[Latest News][6]

Affiliate Marketing Guides
Agriculture Business Ideas
Amazon Online Store Tips
Banking & Finance Tips
Blogging & Webmaster Guides
Bulk SMS Short Code Guides
Computer & IT Business Ideas
Education Business Ideas
Entrepreneurship Tips & Freebies
Facebook Autopilot & Tips
Fashion & Decoration Ideas
Financial Calculators
Fiverr Income Guides
Free SMS Text Messages
Google Adsense Tips
Health Business Opportunities
Inspirational Poems & Literature
Insurance & Risk Management
Job Search Tips
Mobile Phone Tips & Business
Motivational Quotes & Tips
Oil & Gas Business Ideas
Online Business Guides
Online Importation Business Guides
Small Scale Business Ideas
Social Media Income Guides
Start-Up Business Ideas
Transportation & Haulage Ideas
Web & Graphic Designing Ideas
Work-At-Home Business Ideas
Loading...

Stamp Duties In Life Insurance Policy

Stamp Duties In Life Insurance Policy

Stamp duty payable on a policy of life insurance is governed by the Indian Stamp Act, 1899. Section 2(19) of the Act defines a Policy of insurance to include a life-policy, and any policy insuring any person against accident or sickness, and any other personal insurance. Section 2(19A) of the Act defines a policy of group insurance to mean any instrument covering not less than fifty or such smaller number as the Central Government may approve, either generally or with reference to any particular case, by which an insurer, in consideration of a premium paid by an employer or by an employer and his employees jointly, engages to cover, with or without medical examination and for the sole benefit of persons other than the employer, the lives of all the employees or of any class of them, determined by conditions pertaining to the employment, for amounts of insurance based upon a plan which precludes individual selection.

Insurance
[Post Image Courtesy of PhasinPhoto at FreeDigitalPhotos.net]

Schedule 47(D) of Schedule 1 to the Indian Stamp Act, 1899 lays down the manner of calculation of stamp duty on a policy of life insurance. The stamp duty is calculated at 0.02% per Rs.1000/- sum assured. If a policy of group insurance is renewed or otherwise modified whereby the sum insured exceeds the sum previously insured, duty is payable on the excess sum so insured.

On a Policy of annuity, stamp duty is calculated as follows:

1. Annuity Certain – Where the annuity is guaranteed for a predetermined period, the amount of stamp duty will be based on the total annuity amount payable during such certain period i.e. the annuity per annum multiplied by number of years.

2. Annuity for Life – Where the annuity is payable during the lifetime of the annuitant, the amount of stamp duty will be based on the annuity amount payable for 12 years.

Insurance Law And Practice - ICSI

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

No comments:

Post a Comment

Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !

Start typing and press Enter to search