Section 60 : General insurance business

1) In computing the income or loss made by any person carrying on a general insurance business from that business in any income year, it shall be separately computed as if the insurance business were a business distinct from any other business carried on by that person.

2) In computing the income of any person carrying on the insurance business in any income year, it shall be done as follows:-

a) In income, in addition to any other amounts required to be included, the following amounts, as well, have to be included:-

(1) Amounts for premium of insurance including premium for reinsurance received by that person from that business in that year, and

(2) Amounts received in that year from payments referred to in sub-clause (1) of clause (b) for any contract of reinsurance, security, guarantee or compensation.

b) In expenses, in addition to the amounts that can be deducted, the following amounts, as well, maybe deducted:-

(1) Payments made by that person as an insurer in operating that business in that year and

(2) The premiums included pursuant to subclause (1) of clause (a) in computing the income earned from that business in that year or last year and returned to the insured in that year.

3) Sum of the following amounts kept in the risk-bearing fund:

a) Amount up to fifty percent of the net insurance cost shown in the profit and loss account of any year, and

b) Amount up to one hundred and fifteen percent of the remaining amount for payment of claim at the end of any year.

Provided that the amount received as a deduction in expenses in any year pursuant to this sub-clause in the income of the insurance business in a forthcoming income year.

¹3) ………………………….

¹4) …………………………

^{1 Removed by the Financial Act, 2075.}