Clause 29

where a taxable person receives any indemnity payment pursuant to a contract of insurance, that payment shall, to the extent that it relates to a loss incurred in the course of making a taxable supply, be treated as consideration received for a supply of services performed on the day of receipt of that indemnity payment by that taxable person in the course or furtherance of that person’s business; and

for the calculation of the deduction of an amount equal to the prescribed fraction of any payment made by a taxable person to indemnify another person pursuant to any contract of insurance from any output tax that is due from the taxable person and the manner in which such deductions is to be allowed.