Leading corporates are in a hurry to renew their insurance cover to escape the three percentage point hike in service tax on insurance premiums announced in the Budget for 2003-04.
Over 40 per cent of total insurance premiums, exceeding Rs 11,000 crore, comes from the corporate sector. A large chunk of this is up for renewal on April 1. The hike in the service tax rate to 8 per cent, proposed in the Budget for 2003-04, is feeding the frenzy because insurance cover will become costlier.
A diversified group with major presence in steel will renew the group