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LIC policies to become expensive from October 1

LIC will charge service tax of over 3% on the premiums paid on all non-unit-linked products from October 1

July 16, 2013 3:35 IST | India Infoline News Service
Life Insurance Corporation of India's (LIC) policies will become expensive more from October 1, according to a media report.
 

The public sector insurer will charge service tax of around 3% on the premiums paid on all non-unit-linked products from October 1, the report added.

LIC collected premiums worth Rs. 1.87 trillion from its non-unit linked polices in 2011-12.

At present, private insurers charge service tax to the premium paid by customers, LIC has not been charging this tax on its endowment and money-back plans.

Recently IRDA (Insurance Regulatory and Development Authority) mandated that service tax shall not be included in the contractual premium, but collected from policyholder separately.

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