What would be the time of supply of life insurance services?
Insurance policies are contracts for indemnifying any loss suffered by the policyholder. The policyholder is required to pay a premium at the time of inception of the policy. Renewal premiums are required to be paid on periodical basis during the tenure of the policy. For renewal of the policies the policyholders are allowed grace period ranging from 15 days to 30 days in accordance with the IRDA (Protection of Policyholders’ Interests) Regulation, 2002.
The time of supply of life insurance services to the policy holders would be as
(a) New Policy – At the time of issuance of the policy;
(b) Renewal of Policy – The time of issuance of renewal notice for insurance premium;
(c) Other charges including ULIP charges – At the time of levy or recovery of the charges from the policyholder.