Section 49

(1) The rights of the insured under an insurance effected in the course Rights under
of a capital redemption business or industrial assurance business shall constitute policies of
insurance,
an asset which may yield a chargeable gain upon disposal.
other than
(2) The rights under any other policy of insurance, whether the risks life
assurance
insured relate to property or not, shall not constitute an asset on the disposal of
policies
A 424 2025 No. 7 Nigeria Tax Act, 2025
which a chargeable gain may accrue, except as may be expressly provided
under this Part.
(3) In this section –
(a) "capital redemption business" means the business of effecting and
carrying out contracts of insurance, whether effected by the issue of policies,
bonds or endowment certificates or otherwise, whereby, in return for one or
more premiums paid to the insurer a sum or a series of sums is to become
payable to the insured in the future, excluding life or industrial assurance
business;
(b) "industrial assurance business" means the business of effecting
and carrying out contracts of insurance in connection with any industrial
assurance whereby in return for one or more premiums paid to the insurer
a sum or a series of sums is to become payable to the insured in the future;
and
(c) "policy of insurance" does not include a policy of assurance on
human life.
Personal