# General Insurance Business Exemptions

## Entry 35 – Specified General Insurance Schemes

Services of general insurance under the following schemes are exempt:

(a) Hut Insurance Scheme

(b) Cattle Insurance under Swarnajayanti Gram Swarozgar Yojana

(d) Janata Personal Accident Policy / Gramin Accident Policy

(e) Group Personal Accident Policy for Self-Employed Women

(f) Agricultural Pumpset and Failed Well Insurance

(g) Premia collected on Export Credit Insurance

(h) Restructured Weather Based Crop Insurance Scheme (RWCIS)

(i) Jan Arogya Bima Policy

(j) Pradhan Mantri Fasal Bima Yojana (PMFBY)

(k) Pilot Scheme on Seed Crop Insurance

(l) Central Sector Scheme on Cattle Insurance

(m) Universal Health Insurance Scheme

(n) Rashtriya Swasthya Bima Yojana

(o) Coconut Palm Insurance Scheme

(p) Pradhan Mantri Suraksha Bima Yojana

(q) Niramaya Health Insurance Scheme (National Trust for Autism, Cerebral Palsy, MR & MD Act, 1999)

(r) Bangla Shasya Bima

## Entry 36A – Reinsurance / Retrocession

Services by way of reinsurance of schemes specified in Entry 35, 36 or 40 are exempt.
Retrocession = re-insurance transaction whereby a part of assumed reinsured risk is further ceded to another Indian Insurer or a Cross Border Re-insurer (CBR).
It is clarified: "reinsurance includes retrocession" → therefore retrocession of these schemes is also exempt.

## Entry 36B – Motor Vehicle Accident Fund

Services of insurance provided by Motor Vehicle Accident Fund (constituted u/s 164B of the Motor Vehicles Act, 1988) against contributions made by insurers out of premiums collected for third-party insurance of motor vehicles.

## Meaning of "Insurer" [Sec 2(9), Insurance Act, 1938]

(a) An Indian Insurance Company;

(b) A statutory body established by an Act of Parliament to carry on insurance business;

(d) A foreign company carrying on re-insurance business through a branch in India (includes Lloyd's UK and its Members).

Worked example

### Example 1

Example: New India Assurance issues a PMFBY crop policy to a farmer → EXEMPT under Entry 35(j).

### Example 2

Example: GIC Re reinsures a portion of PMFBY portfolio of New India Assurance → EXEMPT under Entry 36A.

### Example 3

Example: GIC Re further cedes a share of that reinsured risk to a Cross-Border Re-insurer (retrocession) → Still EXEMPT (Entry 36A includes retrocession).

⚠️ Common exam mistakes

Forgetting that retrocession is also covered – treating it as a fresh taxable service.
Assuming all general insurance to farmers is exempt – only the schemes listed in Entry 35 are exempt.
Treating premia on Export Credit Insurance as taxable – it is specifically exempt under Entry 35(g).

Reference: Entries 35, 36A, 36B — Notification No. 12/2017-CT(R) read with Insurance Act, 1938 §2(9)

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General Insurance Business Services – Entries 35, 36A, 36B

Worked example

⚠️ Common exam mistakes