Article 47 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Article 47 is the Schedule entry for every policy of insurance, and it is built in Divisions: A (sea insurance), B (fire and other property insurance), C (accident and sickness), CC (workmen's liability), D (life, group and other insurance) and E (re-insurance). It ends with a General Exemption for a letter of cover. A policy of insurance is one of the Union instruments named in section 9(2)(a), so the rates are the ones the central Schedule prints.
Each Division has its own measure, printed in naye paise (and a few rupees) for a policy drawn singly and, in some Divisions, for each part of a policy drawn in duplicate. For this Union instrument the rate is the one the central Schedule prints; any reduction or remission under section 9 and later amendments should be checked. A letter of cover or engagement to issue a policy is exempted, but unless it bears the stamp for the policy nothing is claimable under it except to compel delivery of the policy.
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021). Later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed; policies of insurance are among the exceptions named in section 9(2)(a). This article explains the central Act only. Amounts are quoted exactly as printed, including the copy's mixed spellings of "nayepaise" and "naye paise".
Where the definitions and other sections come in
The policy of insurance, the policy of group insurance and the policy of sea-insurance are defined in section 2(19), (19A) and (20); see our article on the definitions of bill of exchange, promissory note, cheque and policy of insurance. Section 7 (of which only sub-section (4) remains) deals with a voyage policy and a time policy, and Division A refers to it. Section 29(b) and (bb) say who bears the expense: for a policy other than fire insurance, the person effecting the insurance, and for a fire-insurance policy, the person issuing the policy, in each case in the absence of agreement to the contrary. Our article on section 29 sets out the list, and our article on sections 66 to 68 covers the penalty for failing to make out a duly stamped policy within one month of taking the premium.
If your business buys or issues policies and wants the stamping reviewed, our legal consultation service can help.
Division A: sea insurance
Printed as "A. Sea insurance ".
| Article | Description of instrument as printed | If drawn singly | If drawn in duplicate, for each part |
|---|---|---|---|
| 47A(1)(i) | For or upon any voyage, where the premium or consideration does not exceed the rate of one-eighth per centum of the amount insured | Ten nayepaise | Five nayapaise |
| 47A(1)(ii) | In any other case, for every full sum of one thousand five hundred rupees and any fractional part of it insured | Ten nayapaise | Five nayapaise |
| 47A(2)(iii) | For time, for every full sum of one thousand rupees and any fractional part insured, where the insurance is made for any time not exceeding six months | Fifteen nayepaise | Ten nayepaise |
| 47A(2)(iii) | The same, for any time exceeding six months and not exceeding twelve months | Twenty-five nayepaise | Fifteen nayepaise |
The footnotes show Divisions A and B as substituted by Act 5 of 1906, s. 7; the amounts as substituted by Act 19 of 1958, s. 13 (with effect from 1-10-1958); the words "Fifteen nayepaise or" as omitted by Act 14 of 1961, s. 16; and "one thousand five hundred rupees" as substituted by Act 18 of 1928, s. 2 and the First Schedule, for "one thousand rupees".
Division B: fire insurance and other property insurance
Printed as "Fire-insurance and other classes of insurance, not elsewhere included in this Article, covering goods, merchandise, personal effects, crops and other property against loss or damage". The footnote shows the heading as substituted by Act 43 of 1923, s. 2.
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it |
|---|---|---|
| 47B(1)(i) | In respect of an original policy, when the sum insured does not exceed Rs. 5,000 | Fifty nayepaise |
| 47B(1)(ii) | In any other case | "One rupees" (as printed) |
| 47B(2) | In respect of each receipt for any payment of a premium on any renewal of an original policy | One-half of duty payable in respect of the original policy in addition to the amount, if any, chargeable under No. 53 |
Article 53 is the receipt Article; see our article on Article 53.
Division C: accident and sickness insurance
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it | Exemption as printed |
|---|---|---|---|
| 47C(a) | Against railway accident, valid for a single journey only | Ten nayepaise | When issued to a passenger travelling by the intermediate or the third class in any railway |
| 47C(b) | In any other case, for the maximum amount which may become payable in the case of any single accident or sickness where such amount does not exceed Rs. 1,000, and also where it exceeds Rs. 1,000, for every Rs. 1,000 or part thereof | Fifteen nayepaise, with a proviso: for a policy of insurance against death by accident when the annual premium payable does not exceed Rs. 2.50 per Rs. 1,000, ten nayepaise for every Rs. 1,000 or part thereof of the maximum amount payable | None printed |
The footnotes show the proviso as added by Act 18 of 1928, s. 2 and the Schedule, and the figure "Rs. 2.50" as substituted by Act 19 of 1958, s. 13, for "2.8-0".
Division CC: workmen's liability
Printed as "Insurance by way of indemnity against liability to pay damages on account of accidents to workmen employed by or under the insurer or against liability to pay compensation under the Workmen's Compensation Act, 1923 (8 of 1923), for every Rs. 100 or part thereof payable as premium": ten naye paise. The footnote shows the Division as inserted by Act 15 of 1925, s. 2. The 1923 Act is quoted as printed; the reader should check the current law for the corresponding provision.
Division D: life insurance, group insurance and other insurance
Printed as "Life insurance or group insurance or other insurance not specifically provided for, except such a re-insurance as is described in Division E of this Article".
| Article | Sum insured | If drawn singly | If drawn in duplicate, for each part |
|---|---|---|---|
| 47D(i) | Not exceeding Rs. 250 | Fifteen naye paise | Ten naye paise |
| 47D(ii) | Exceeding Rs. 250 but not exceeding Rs. 500 | Twenty five naye paise | Fifteen naye paise |
| 47D(iii) | Exceeding Rs. 500 but not exceeding Rs. 1,000, and also for every Rs. 1,000 or part thereof in excess of Rs. 1,000 | Forty nayepaise | Twenty nayepaise |
N.B. If a policy of group insurance is renewed or otherwise modified whereby the sum insured exceeds the sum previously insured on which stamp-duty has been paid, the proper stamp must be borne on the excess sum so insured. The footnote shows the N.B. as inserted by Act 43 of 1955, s. 7, with effect from 1-4-1956, and the words "or group insurance or other insurance" as substituted by the same Act for "or other insurance".
Exemption. Policies of life-insurance granted by the Director-General of Post Offices in accordance with rules for Postal Life-Insurance issued under the authority of the Central Government.
Division E: re-insurance
Re-insurance by an insurance company which has granted a policy of the nature in Division A or Division B, with another company, by way of indemnity or guarantee against the payment on the original insurance of a certain part of the sum insured, is charged one-quarter of the duty payable in respect of the original insurance, but not less than ten nayepaise or more than one rupee. A proviso says that if the total duty is not a multiple of five nayepaise it is rounded off to the next higher multiple of five nayepaise (inserted by Act 14 of 1961, s. 16).
General Exemption: letter of cover
A letter of cover or engagement to issue a policy of insurance is exempted. The proviso adds that, unless the letter or engagement bears the stamp prescribed by the Act for the policy, nothing is claimable under it, and it is not available for any purpose, except to compel delivery of the policy mentioned in it.
An example using the Schedule's mechanics
Rao Stores insures its stock for Rs. 4,000 against fire by an original policy. Division B(1)(i) applies because the sum insured does not exceed Rs. 5,000: the central Schedule prints fifty nayepaise. When Rao Stores later pays the renewal premium, the receipt for that premium is charged under B(2) at one-half of the duty on the original policy (twenty-five naye paise on those figures), in addition to anything chargeable on the receipt under Article 53. Under section 29(bb) the person issuing the policy bears the expense of a fire-insurance policy, unless there is an agreement to the contrary. A policy of insurance being a Union instrument under section 9(2)(a), these are the rates under the central Schedule, and any reduction or remission under section 9 and later amendments should be checked.
Need help with insurance documents?
If you buy, issue or broker insurance and want the policy forms and renewal receipts read against Article 47, our team can help through our legal consultation service. We map each instrument to its Division and point out the places where the central text leaves the question open.
Key takeaways
- Article 47 charges policies of insurance by Division: sea (A), fire and other property (B), accident and sickness (C), workmen's liability (CC), life, group and other (D) and re-insurance (E).
- Policies are Union instruments under section 9(2)(a): the rate is the central Schedule's; check any reduction under section 9.
- Division B(2) charges a renewal receipt at one-half of the original duty plus any Article 53 amount.
- Division D has an N.B. for group-insurance modifications and an exemption for postal life insurance.
- A letter of cover is exempted but, unless stamped as the policy would be, it is claimable only to compel delivery of the policy.
Read next
- Article 53 of Schedule I: receipt and its exemptions
- Sections 7 and 8 of the Indian Stamp Act, 1899: sea insurance policies and local authority loan securities
- Articles 13, 49, 37 and 50 of Schedule I: bill of exchange, promissory note, letter of credit and protest
- Schedule I: how the Schedule is laid out and which duties the States fix
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.