CA Amit Harkhani
Quick Summary
INTRODUCTION TO GENERAL INSURANCE SETTLEMENT Insurance companies providing general insurance for motor vehicles settle repair or damage claims through two modes: Cashless Mode: The insurance company directly pays the repair charges to a network garage. Reimbursement Mode: The insured first pays
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FAQ :
Yes, insurance companies can claim ITC on repair expenses in the reimbursement mode. Despite the policyholder initially paying for the repairs, the insurer is considered the recipient as they ultimately reimburse the approved claim cost.
The insurer can only claim ITC on the portion of the repair cost that is approved and reimbursed. ITC is not available for any excess amount paid by the policyholder beyond the approved claim cost.
Yes, for the insurance company to claim ITC, the repair invoice must be issued in its name for the approved claim cost. If the invoice is in the policyholder's name, ITC cannot be claimed.
If there are two invoices, one for the approved claim cost issued to the insurance company and another for the excess cost issued to the policyholder, ITC is only available on the invoice addressed to the insurance company.
No, if a single invoice is issued for the full repair cost but the insurer only reimburses the approved claim cost, ITC is only available for the portion representing the approved claim cost, not the entire invoice value.
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