On January 24, 2025, the Government of Kerala issued a significant notification concerning the payment of stamp duty for Life Insurance Corporation (LIC) policies related to Pension and Group Schemes within the state.
Key Details of the Notification:
The notification, issued under the Indian Stamp Act, 1899, allows LIC to pay a consolidated stamp duty of ₹10,00,000 (Ten Lakhs Rupees) for policies related to Pension and Group Insurance schemes. This stamp duty will cover the policies issued under the jurisdiction of the Kozhikode Division in Kerala.
The specifics are as follows:
- The stamp duty will be charged at the rate of 20 paise per policy for every ₹1,000 face value of insurance.
- This arrangement is effective from December 1, 2024, and will remain valid until the ₹10,00,000 limit is exhausted.
Purpose and Impact:
The consolidated payment aims to simplify the process for LIC’s Pension and Group Schemes, reducing the administrative burden associated with stamp duty collection for each individual policy. It is expected to streamline the issuance of these policies while ensuring compliance with stamp duty regulations.
This move will particularly benefit the Pension and Group Schemes Unit in the Kozhikode Division, which handles the issuance of Group Insurance Policies by LIC in Kerala.
Conclusion:
With the government’s approval for this consolidated stamp duty payment, LIC can now issue group and pension policies with ease, offering a more efficient and cost-effective process for policyholders in Kerala. This is a welcome step towards simplifying financial services and ensuring smooth operations for LIC in the state.
