--- title: "Accident Reinsurance Services | Professional Accident Reinsurance Solutions" description: "Expert accident reinsurance services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997142." canonical: "https://busy.in/sac-code-997142/" --- # Accident Reinsurance under SAC Code 997142 Part of [SAC 9971: Financial & related services](https://busy.in/sac-code-9971/). Accident reinsurance services protect insurers that issue personal accident and health related policies by passing a portion of their risk to a reinsurer. They help manage large accident claims, group covers and catastrophic health events more comfortably. Under GST, these accident reinsurance services are classified under SAC 997142. This SAC code and its GST rate decide how GST is applied on accident and health reinsurance premiums and related settlements between insurers and reinsurers. ## 997142 SAC Code GST rate Reinsurance services under these SAC codes are treated as financial and insurance related services under GST. The taxable value usually includes reinsurance premium, any additional service charges and commission adjustments between insurers and reinsurers, while pure claim payouts under contracts are treated separately as indemnity and not as consideration for services. After the September 2025 rationalisation, most taxable insurance and reinsurance service components that are not specifically exempt are generally placed in the 18% slab with input tax credit for eligible registered recipients. Certain life insurance and reinsurance segments may follow special valuation or rate notifications, so these should be checked carefully before deciding the final GST treatment. **The table below explains the prevailing GST treatment for SAC code 997142, indicating the usual 18% slab for taxable reinsurance services and any notified exceptions that may apply.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 997142 | Accident and health reinsurance services | 0% without ITC or 18% with ITC | 18% with ITC | Previously, reinsurance of accident and health policies was generally taxed at 18% with ITC. From 22 Sep 2025, reinsurance of individual health insurance policies (and other individual life / health segments clubbed in this code) is also exempt at 0% without ITC, while reinsurance for group or other taxable accident / health covers remains at 18% with ITC. | Insurers and reinsurers using this SAC code should clearly show reinsurance premium value, GST rate in % and GST amount on tax invoices or reinsurance statements. The same SAC and rate should be mirrored in GSTR 1 and GSTR 3B so that input tax credit can be tracked correctly and GST positions remain defendable during audits. ## Practical classification guidance Insurers, reinsurers and financial service providers should choose the SAC that most accurately reflects the underlying service, such as life reinsurance, accident reinsurance, motor reinsurance or marine reinsurance. Correct SAC selection and GST rate application in % helps maintain a clean audit trail, supports proper input tax credit and reduces disputes during GST scrutiny or assessments. ## Conclusion Accident reinsurance services under SAC 997142 support insurers that cover personal accident and health risks by shifting part of their exposure to reinsurers. Taxable reinsurance service values normally fall in the 18% GST slab with input tax credit where conditions are met. Companies should classify such transactions under SAC 997142, charge GST at the right rate in %, show tax amounts distinctly and mirror the same position in GSTR 1 and GSTR 3B. ## Frequently asked questions ### What is SAC code 997142 in GST for accident reinsurance? SAC 997142 covers reinsurance of accident and health insurance risks. It applies when an insurer passes part of its accident, health or similar non life risk to a reinsurer, who then shares in claims and premiums according to contract terms. ### Does SAC 997142 cover health and personal accident reinsurance treaties? Yes. Reinsurance treaties related to health insurance portfolios, personal accident covers and similar medical risk pools fall under SAC 997142. These treaties help primary insurers limit their exposure by transferring part of large or aggregate risks to specialist reinsurers. ### What GST rate applies to accident reinsurance services under SAC 997142? Accident and health reinsurance services are generally taxable at 18% under GST. GST is charged on the reinsurance premium invoiced by the reinsurer to the direct insurer. The service is treated like other taxable insurance related services, without the exemptions that may apply to some direct policies. ### Are group accident covers reinsured using SAC 997142? Yes. When insurers reinsure group accident or group health schemes, those reinsurance contracts are classified under SAC 997142. The reinsurer issues invoices to the ceding insurer for reinsurance premium, and GST is payable according to general rules for taxable services. ### Can insurers claim ITC on GST paid for SAC 997142 services? Insurers can usually claim ITC on GST paid for accident and health reinsurance services, as these are inputs directly supporting their taxable insurance business. They must keep proper records and follow GST return requirements, including any special provisions applicable to the insurance sector. ## Explore more ### Other SAC services under 9971 - [997111: Central Banking](https://busy.in/sac-code-997111/) - [997112: Deposit](https://busy.in/sac-code-997112/) - [997113: Credit Granting](https://busy.in/sac-code-997113/) - [997114: Equipment Leasing](https://busy.in/sac-code-997114/) - [997119: Financial](https://busy.in/sac-code-997119/) - [997120: Investment Banking](https://busy.in/sac-code-997120/) - [997131: Pension](https://busy.in/sac-code-997131/) - [997132: Life Insurance](https://busy.in/sac-code-997132/) - [997133: Accident Insurance](https://busy.in/sac-code-997133/) - [997134: Motor Insurance](https://busy.in/sac-code-997134/) - [997135: Transport Insurance](https://busy.in/sac-code-997135/) - [997136: Freight Insurance](https://busy.in/sac-code-997136/) - [997137: Property Insurance](https://busy.in/sac-code-997137/) - [997139: Non Life Insurance](https://busy.in/sac-code-997139/) - [997141: Life Reinsurance](https://busy.in/sac-code-997141/) - [997143: Motor Reinsurance](https://busy.in/sac-code-997143/) - [997144: Marine Reinsurance](https://busy.in/sac-code-997144/) - [997145: Cargo Insurance](https://busy.in/sac-code-997145/) - [997146: Commercial Property Insurance](https://busy.in/sac-code-997146/) - [997149: Non Life Reinsurance](https://busy.in/sac-code-997149/) - [997151: M&A Advisory](https://busy.in/sac-code-997151/) - [997152: Stock Brokerage](https://busy.in/sac-code-997152/) - [997153: Portfolio Management](https://busy.in/sac-code-997153/) - [997154: Custody](https://busy.in/sac-code-997154/) - [997155: Financial Market](https://busy.in/sac-code-997155/) - [997156: Financial Consulting](https://busy.in/sac-code-997156/) - [997157: Foreign Exchange](https://busy.in/sac-code-997157/) - [997158: Transaction Processing](https://busy.in/sac-code-997158/) - [997159: Financial Support](https://busy.in/sac-code-997159/) - [997161: Insurance Advisory](https://busy.in/sac-code-997161/) - [997162: Insurance Claim](https://busy.in/sac-code-997162/) - [997163: Actuarial](https://busy.in/sac-code-997163/) - [997164: Pension Fund Management](https://busy.in/sac-code-997164/) - [997169: Insurance Support](https://busy.in/sac-code-997169/) - [997171: Holding Company](https://busy.in/sac-code-997171/) - [997172: Trust Fund Management](https://busy.in/sac-code-997172/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)