Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-C - Deductions and capital losses  

Operative provisions

SECTION 320-80   Deduction for certain claims paid under life insurance policies  

320-80(1)    
A * life insurance company can deduct the amounts paid in respect of the * risk components of claims paid under * life insurance policies during the income year.

320-80(2)    
The risk component of a claim paid under a * life insurance policy is:

(a) if:

(i) the policy does not provide for * participating benefits or * discretionary benefits; and

(ii) the policy is neither an * exempt life insurance policy nor a * funeral policy; and

(iii) an amount is payable under the policy only on the death or disability of the insured person;

the amount paid under the policy as a result of the occurrence of that event; or

(b) if the policy provides for participating benefits or discretionary benefits or is an exempt life insurance policy or a funeral policy - nil; or

(c) otherwise - the amount paid under the policy as a result of the death or disability of the insured person less the * current termination value of the policy (calculated by an * actuary) immediately before the death, or the occurrence of the disability, of the person.

320-80(3)    
Except as provided by subsection (1), a * life insurance company cannot deduct amounts paid in respect of claims under * life insurance policies.