Customers (Proposers / Policyholders) may please be informed that by virtue of introduction of Section 269ST in the Income Tax Act, 1961, operative w.e.f. 1st April 2017, any person (including Insurance Company) cannot collect consideration or value against a transaction, in cash, for an amount greater than Rs.1,99,999/- (gross amount). In other words, payment of an amount of two lakh rupees or more against a transaction cannot be collected.
Accordingly, in order to comply to the above, the Company w.e.f. 1st April 2017 shall not accept from a Customer (Proposer / Policyholder):
a. Premium in Cash for single or multiple policies, in aggregate, in excess of Rs.1,99,999/- on a single day; and
b. Premium in Cash per policy per financial year, in aggregate, in excess of Rs.1,99,999/-.
* Premium for the above purpose, means any payment in cash by customer towards Initial Deposit, Shortfall, Top-Up, Advance Premium, Renewal / Reinstatement / Revival of policy, any other applicable deposits, fees or charges and Service Tax.
This is for information.