General Insurance News

New India Assurance Faces Rs. 2,298 Crore GST Demand

- 

New India Assurance Company Ltd has received a Goods and Services Tax (GST) show cause notice from tax authorities demanding Rs. 2,298 crore for five financial years from April 2018 to March 2023. The notice, dated June 26, 2025, was issued by the office of the Additional Commissioner, Mumbai-South and Maharashtra State.

In a regulatory filing, the state-owned insurer stated that it has a strong case on merit and is currently preparing a detailed response. The company is taking advice from its tax consultants and intends to submit its reply to the Adjudicating Authority within the stipulated timeline.

This development marks a significant compliance challenge for the insurance major, though it maintains confidence in its legal and financial position. The outcome of this case could have wider implications for the insurance sector's GST compliance framework, especially regarding interpretation and application of indirect tax rules in financial services.

Centre Caps Vehicle Age for Aggregators at 8 Years, Tightens EV Norms

The Ministry of Road Transport and Highways has revised guidelines for cab aggregators like Uber, Ola, and Rapido, setting an eight-year age limit for vehicles-cars, buses, three-wheelers, and motorcycles-operating on their platforms. The guidelines also mandate adherence to state-set targets for incorporating electric and zero-emission vehicles in fleets.

Drivers' licences and vehicle permits must now be prominently displayed on the back of the front passenger seat, ensuring visibility for passengers. Additionally, the updated rules formally recognize three-wheelers and private motorcycles as valid aggregator vehicles, offering clarity where state-level regulations previously differed.

Aggregators must also conduct psychological assessments of drivers to determine their suitability. Importantly, drivers cannot be restricted from working with multiple aggregators simultaneously.