Insurance and Regulatory Development Authority of India
07.12.2015
Discussion Paper on Convergence to Ind-As in Insurance Sector
This discussion paper covers the approach towards convergence towards Ind-AS in the insurance sector from the date which will be notified by the Authority separately.
Definitions.—(1) In these regulations, unless the context otherwise requires —
“Act” means the Insurance Act, 1938 (4 of 1938);
“Authority” means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);
All words and expressions used herein and not defined but defined in the Insurance Act, 1938 (4 of 1938), or Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), or the Companies Act, 2013 (18 of 2013), shall have the meanings respectively assigned to them in those Acts.
3. Preparation of financial statements, management report and auditor’s report
(1)An insurer carrying on life insurance business, after the commencement of these Regulations, shall comply with the requirements of Schedule A.
(2) An insurer carrying on the business of general insurance, health insurance, reinsurance, after the commencement of these Regulations, shall comply with the requirements of Schedule B. The requirements of this Schedule B shall apply, mutatis mutandis, to the foreign insurer engaged in the business of reinsurance through a branch office established in India.
(3) The financial statements of an insurer shall be signed in the manner as required under section 11 of the Insurance Act, 1938 and in the case of a branch office in India of a foreign insurer, in the manner as may be prescribed by the Authority.
(4) The report of the auditors on the financial statements of every insurer shall be in conformity with the requirements of Schedule C, or as near thereto as the circumstances admit.
(5) The Authority may, from time to time, issue directions/ guidelines in the matter of appointment, continuance or removal of auditors of an insurer, as the case may be, and such directions/ guidelines may include prescriptions regarding qualifications and experience of auditors, their rotation, period of appointment, etc., as may be deemed necessary by the Authority.
SCHEDULE A
(See Regulation 3)
PART I
Accounting principles for preparation of financial statements
Applicability of Accounting Standards
Every Balance Sheet, Revenue Account [Policyholders’ Account], Statement of Profit and Loss [Shareholders’ Account], Receipts and Payments Account- Statement of Cash Flows, of an insurer shall be in conformity with the Indian Accounting Standards [Ind AS] issued under the Companies (Indian Accounting Standards) Rules 2015, to the extent applicable to insurers carrying on life insurance business and not being inconsistent with Insurance Act 1938 and with these Regulations, except that:
Indian Accounting Standard (Ind AS) 1- Presentation of Financial Statements shall apply except accounting for Other Comprehensive Income.
Indian Accounting Standard 7 (Ind AS 7) – Statement of Cash Flow – Cash Flow Statement shall be prepared only under the Direct Method.
Indian Accounting Standard (Ind AS 16) -Property, Plant & Equipment- shall apply except the use of revaluation model for subsequent measurement
Indian Accounting Standard (Ind AS 32) – Financial Instruments; Presentation shall not be applicable
Indian Accounting Standard 40 (Ind AS 40) – Investment Property shall not be applicable in relation to investment property that belong to policyholders’ funds and in other cases fair value need not be disclosed.
Indian Accounting Standard (Ind AS 101) – First time adoption of Indian Accounting Standards shall not be applicable.
Indian Accounting Standard (Ind AS 104) – Insurance Contracts shall not be applicable.
Indian Accounting Standard (Ind AS 107) – Financial Instruments – Disclosures shall not be applicable
Indian Accounting Standard 108 (Ind AS 108) – Operating Segments – shall apply to all insurers irrespective of the meeting of the quantitative threshold and in particular in respect of life, annuity and pension, health and unit Linked business, having regard to participating and non-participating policies
Indian Accounting Standard 109 (Ind AS 109) – Financial instruments shall not be applicable except paragraphs relating to impairment.
For the purpose of this Schedule, the terms used herein shall have the same meanings as per applicable Indian Accounting Standards [Ind AS].
Premium
Premium shall be recognised as income when due. For linked business and business of similar nature, the due date for payment may be taken as the date when the associated units are created.
Acquisition Costs
Acquisition costs, if any, shall be expensed in the period in which they are incurred.
Acquisition costs are those costs that vary with and are primarily related to the acquisition of new and renewal insurance contracts. The most essential test is the obligatory relationship between costs and the execution of insurance contracts (i.e., commencement of risk).
Claims Cost
The ultimate cost of claims shall comprise the policy benefit amount and specific claims settlement costs, wherever applicable.
Forward Exchange Contract
An insurer may enter into a Forward Exchange Contract or another financial instrument that is in substance a Forward Exchange Contract to establish the amount of the reporting currency required or available at the settlement date of a transaction. The premium or discount arising at the inception of such a Forward Exchange Contract shall be amortised as expense or income over the life of the contract. Exchange differences on such a contract should be recognised in the Revenue Account or in the Statement of Profit and Loss Account in the reporting period, in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such a Forward Exchange Contract shall be recognised as income or as expense for the period.
Actuarial Valuation — Liability for Life Policies
The estimation of liability against life policies shall be determined by the appointed actuary of the insurer pursuant to his annual investigation of the life insurance business. Actuarial assumptions are to be disclosed by way of notes to the accounts.
The liability shall be so calculated that together with future premium payments and investment income, the insurer can meet all future claims (including bonus entitlements to policyholders) and expenses.
Procedure to determine value of investments
An insurer shall determine the values of investments in the following manner:-
a) Real Estate – Investment Property pertaining to policyholders’ fund– The value of investment property shall be determined at historical cost, subject to revaluation at least once in every three years and further subject to impairment provisions annually. The change in the carrying amount of the investment property shall be taken to Revaluation Reserve.
Gains/ losses arising due to changes in the carrying amount of real estate shall be taken to ‘Revaluation Reserve’ under Policyholders funds. The ‘Profit on Sale of Investments’ or ‘Loss on Sale ofInvestments’, as the case may be, shall include accumulated changes in the carrying amount previously recognised under ‘Revaluation Reserve’ in respect of a particular property and being recycled to the relevant Revenue Account on sale of that property.
The bases for revaluation shall be disclosed in the notes to accounts. The Authority may issue directions specifying the amount to be released from the revaluation reserve to the revenue account for declaring bonus to the policyholders. For the removal of doubt, it is clarified that except for the amount that is released to policyholders as per the Authority’s direction, no other amount shall be distributed/transferred to shareholders out of Revaluation Reserve Account.
b) Debt Securities–Debt securities, including government securities and redeemable preference shares, shall be considered as “held to maturity” securities and shall be measured at historical cost subject to amortisation and further subject to impairment provisions.
c) Equity Securities and Derivative Instruments that are traded in active markets—Listed equity securities and derivative instruments that are traded in active markets shall be measured at fair value on the balance sheet date subject to impairment provisions. For the purpose of calculation of fair value, thelast quoted closing price at the stock exchange where the securities are primarily tradedshall be taken.
An active market shall mean a market, where the securities traded are homogenous, availability of willing buyers and willing sellers is normal and the prices are publicly available.
Unrealised gains/ losses arising due to changes in the fair value of listed equity shares and derivative instruments shall be taken to equity under the head ‘Fair Value Change Account”. The ‘Profit on sale of investments’ or ‘Loss on sale of investments’, as the case may be, shall include accumulated changes in the fair value previously recognised in equity under the heading ‘Fair Value Change Account’ in respect of a particular security and being recycled to the relevant Revenue Account or Statement of Profit and Loss on actual sale of that listed security.
The Authority may issue directions specifying the amount to be released from the Fair Value Change Account attributable to policyholders account to be revenue account for declaring bonus to the policyholders. For the removal of doubt, it is clarified that except for the amount that is released to policyholders as per the Authority’s prescription, no part of the amount so released shall be transferred to shareholders out of Fair Value Change Account.
Unlisted and other than actively traded Equity Securities and Derivative Instruments —Unlisted equity securities and derivative instruments and listed equity securities and derivative instruments that are not regularly traded in active markets shall be measured at historical cost subject to impairment provisions.
For the purposes of this regulation, a security shall be considered as being not actively traded, if as per guidelines governing mutual funds laid down from time to time by SEBI, such a security is classified as “thinly traded”.
The impairment loss referred to in (a), (b) and (c) above shall not be lower than the amounts derived on the basis of guidelines prescribed by the Authority.
Loans
Loans shall be measured at historical cost subject to impairment provisions
The impairment loss shall not be lower than the amounts derived on the basis of guidelines prescribed bythe Authority
Linked Business
The accounting principles used for valuation of investments are to be consistent with principles enumerated above. A separate set of financial statements, for each segregated fund of the linked businesses, shall be annexed.
Segregated funds represent funds maintained in accounts to meet specific investment objectives of policyholders who bear the investment risk. Investment income/ gains and losses generally accrue directly to the policyholders. The assets of each account are segregated and are not subject to claims that arise out of any other business of the insurer.
Funds for Future Appropriation
The funds for future appropriation shall be presented separately. The funds for future appropriation represent all funds, the allocation of which, either to the policyholders or to the shareholders, has not been determined by the end of the financial year.
Preliminary Expenses
Expenses incurred for incorporation of the company need to be written off in the year of incorporation to the Statement of Profit & Loss and any other expenses incurred on issue of equity share capital shall be shown as deduction from such paid up share capital.
13. No part of policyholders’ funds pertaining to a specific operating segment shall be applied directly or indirectly in any manner save in accordance with Insurance Act, 1938 and Regulations made thereunder or as expressly permitted by the Authority.
Catastrophe Reserve
Catastrophe reserve shall be created in accordance with norms, if any, prescribed by the Authority and shall form part of policyholders’ funds. Investment of funds out of catastrophe reserve shall be made in accordance with prescription of the Authority
15. (i) Schedules/Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required (a) narrative descriptions or dis-aggregations of items recognised in those statements; and (b) information about items that do not qualify for recognition in those statements.
(ii) Each item on the face of the Balance Sheet, Revenue Account and Statement of Profit and Loss shall be cross-referenced to any related information in the notes/schedules to accounts. In preparing the Financial Statements including the notes/schedules to accounts, a balance shall be maintained between providing excessive detail that may not assist users of financial statements and not providing important information as a result of too much aggregation.
PART II
Disclosures forming part of Financial Statements
The following shall be disclosed by way of notes to the Balance Sheet:
Contingent Liabilities:
Partly-paid up investments
Claims, other than those under policies, not acknowledged as debts
Guarantees/letter of comfort given by or on behalf of the company
Statutory demands/liabilities in dispute, not provided for
Reinsurance Obligations to the extent not provided for in accounts
Others (to be specified).
Actuarial assumptions for valuation of liabilities for life policies in force.
Encumbrances on assets of the insurer in and outside India.
Commitments made and outstanding for Loans, Investments, property, plant and equipment, intangible and others.
Any portion of controlled fund that is subject to regulations under the Insurance Act 1938 and under a law of any other country shall be disclosed in the manner prescribed by the Authority.
Claims approved for payment and remaining unpaid for a period of more than six months as on the balance sheet date.
Ageing of the unclaimed amounts as prescribed by the Authority
Value of contracts in relation to investments, for:
Purchases where deliveries are pending;
Overdue payment in respect of sales made
Details of provision of impairment loss including movement in provision for impairments – (In case there is no provision against of these items, the same need not be furnished) :-
A.SHAREHOLDERS (` lakh)
Impairment Loss – against investments Shareholders
As at beginning of year
For the year
Reversals of Impairment
As at end of the year
NON CURRENT INVESTMENTS
1. Government securities and Government guaranteed bonds including Treasury Bills
2. Other Approved Securities
3. Other Investments
(a) Shares
i. Equity
ii. Preference
(b) Mutual Funds
(c) Derivative Instruments
(d) Debentures/ Bonds
(e) Other Securities (to be specified)
(f) Subsidiaries
(g) Investment properties-Real Estate
4. Investments in Infrastructure and Social Sector
5. Other than Approved Investments
Sub-Total (A)
Sub-Total Previous Year
CURRENT INVESTMENTS
1. Government securities and Government guaranteed bonds including Treasury Bills
2. Other Approved Securities
3. Other Investments
(a) Shares
i. Equity
ii. Preference
(b) Mutual Funds
(c) Derivative Instruments
(d) Debentures/ Bonds
(e) Other Securities (to be specified)
(f) Subsidiaries
(g) Investment properties-Real Estate
4. Investments in Infrastructure and Social Sector
5. Other than Approved Investments
Sub-Total (B)
Sub-Total Previous Year
Grand Total (A) + (B)
POLICYHOLDERS
Impairment Loss- against investments Policyholders
As at beginning of year
For the year
Reversals of Impairment
As at end of the year
NON CURRENT INVESTMENTS
1. Government securities and Government guaranteed bonds including Treasury Bills
2. Other Approved Securities
3. Other Investments
(a) Shares
i.Equity
ii.Preference
(b) Mutual Funds
(c) Derivative Instruments
(d) Debentures/ Bonds
(e) Other Securities (to be specified)
(f) Subsidiaries
(g) Investment properties-Real Estate
4. Investments in Infrastructure and Social Sector
5. Other than Approved Investments
Sub-Total (A)
Sub-Total Previous Year
CURRENT INVESTMENTS
1. Government securities and Government guaranteed bonds including Treasury Bills
2. Other Approved Securities
3. Other Investments
(a) Shares
i. Equity
ii. Preference
(b) Mutual Funds
(c) Derivative Instruments
(d) Debentures/ Bonds
(e) Other Securities (to be specified)
(f) Subsidiaries
(g) Investment properties-
Real Estate
4. Investments in Infrastructure and Social Sector
5. Other than Approved Investments
Sub-Total (B)
Sub-Total Previous Year
Grand Total (A) + (B)
Operating expenses relating to insurance business: basis of allocation of expenditure to various segments of business
Basis of revaluation of investment property
Disclosures on derivatives:
Description of insurer’s financial risk management objective and policies, in particular its policy for hedging forecasted transactions.
Hedging strategy.
Nature and terms of outstanding Interest Rate derivative contracts.
Disclosures on related party transactions – As per Indian Accounting Standard [Ind AS] 24 – Related Parties and additional disclosures as may be prescribed by the Authority.
The following accounting policies shall form an integral part of the financial statements:
All significant accounting policies in terms of the Indian Accounting Standards [Ind AS] issued under Companies (Accounting Standards) Rules 2015 to the extent applicable and significant principles and policies given in Part I of Accounting Principles. The accounting policies, followed by the insurer, shall be stated in the manner required under Indian Accounting Standard AS [Ind AS 1] issued under the Companies (Accounting Standards) Rules 2015.
Any departure from B.1 above shall be separately disclosed with reasons for such departure.
The following information shall be disclosed:
Investments made in accordance with any statutory requirement should be disclosed separately together with its amount, nature, security and any special rights in and outside India;
Segregation into performing/ non performing investments for purpose of income recognition as per the directions, if any, issued by the Authority;
Assets to the extent required to be deposited under local laws or otherwise encumbered in or outside India;
Total business, urban business, rural business, social sector business and micro insurance business indicating gross premium underwritten, number of policies issued andnumberof lives covered (both in absolute and in percentage terms).
Extent of risk retained and re-insured shall be separately disclosed.
Irreversible contributions made by the shareholders to the Policyholders’ account–segment wise.
Total amount of assets subject to restructuring and those under the heads standard, sub-standard, doubtful assets as may be prescribed by the Authority.
Information on the penalties imposed on the insurer by various government/regulatory bodies, including the Authority, as may be prescribed by the Authority
Details of Combi-products including name of the partner insurer, number of contracts underwritten during the year, premium collected during the year, commission paid
Disclosures on discontinued fund as may be prescribed, including
Number of policies discontinued during the financial year;
Percentage of discontinued policies to total policies (product-wise) during the year;
Number and Percentage of policies revived during the year (w.r.t. discontinued policies)
Charges imposed on account of discontinued policies.
Charges readjusted on account of revival of discontinued policies
Disclosures for ULIP business
Performance of the Fund (Absolute Growth % )
Fund Name
Year of Inception
Year
Since inception
Current Year (X)
(X – 1)
(X – 2 )
Related party transactions – Details to be furnished Fund-wise
Brokerage, custodial fee or any other payments and receipts made to/from related parties
Company-wise details of investments held in the Promoter Group along with its percentage to funds under management. (This information is required to be given fund-wise and also for total funds under ULIPs).
Industry wise disclosure of investments (with exposure of 10% and above) segregated at scrip level. Investments in Industries where exposure is below 10%, should be grouped under the head “Others”. Such disclosures are required to be made in (i) Amount in ` lakh and (ii) Percentage of respective Funds.
Unclaimed redemptions of units
NAV : Highest, Lowest and Closing at the end of the year
Expenses charged to Fund (%)
Annualized expense ratio to average daily assets of the Fund
Ratio of gross income (including unrealized gains) to average daily net assets.
Provision for doubtful debts on assets of the respective Fund.
Fund-wise disclosure of appreciation and/or depreciation in value of investments segregated class-wise
A summary of financial statements for the last five years, in the manner as may be prescribed by the Authority;
Accounting Ratios as may be prescribed by the Authority.
PART III
General Instructions for Preparation of Financial Statements
Except in the case of first financial statements (after the incorporation of the entity), the corresponding amounts for the immediately preceding financial year for all items shown in the Balance Sheet, Revenue Account, Statement of Profit and Loss and Receipts and Payments Account- Statement of Cash Flows-shall be given.
The figures in the financial statements may be rounded off to the nearest lakh of rupees.
Interest, dividends and rentals receivable in connection with an investment should be stated at gross amount. The amount of income tax deducted at source should be included under ‘advance taxes paid’ and taxes deducted at source”.
Any debit balance of the Statement of Profit and Loss shall be shown separately as part of Reserves and Surplus.
Instructions on Preparation of financial statements for ULIP business:
Treatment of premium inclusive of both Investment and risk premium :
Risk premium and Investment premium shall form part of income and should be disclosed in revenue account.
Treatment of Benefits paid
All the benefits paid should be shown under the head “Benefits Paid” in Revenue account. No part of benefits shall be reduced from the fund directly.
Treatment of Unrealized Gains: Both in Revenue A/c. and Balance Sheet.
Unrealized gains in respect of unit linked business shall be credited in revenue account.
In the Balance Sheet the disclosure should be as under:
Linked liabilities XXX
Fair value change XXX
——
Total Linked Liability XXX
Treatment of Group Insurance business:
Regular Premium plans with limited premium payment term and/or pre-determined policy term shall be treated as regular business with due classification into first year premium and renewal premium.
Plans other than those under 6 (i) above shall be treated as Single Premium plans.
PART IV
CONTENTS OF MANAGEMENT REPORT
There shall be attached to the financial statements, a management report containing, inter alia, the following, duly authenticated by the management:
Confirmation regarding the continued validity of the registration granted by the Authority and compliance with the terms and conditions of Registration
Certification that all the dues payable to the statutory authorities have been duly paid;
Confirmation to the effect that the shareholding pattern and any transfer of shares during the year are in accordance with the statutory or regulatory requirements;
Declaration that the management has not directly or indirectly invested outside India the funds of the holders of policies issued in India;
Confirmation that the required solvency margins have been maintained;
6 Confirmation that the provisions relating to investments under the Insurance Act 1938 and the Regulations made thereunder have been complied with
Certification to the effect that no part of the policyholders’ operating segment funds had been applied directly or indirectly in any manner save in accordance with Insurance Act, 1938 and Regulations made thereunder or as expressly permitted by the Authority
Disclosure with regard to the overall risk exposure and strategy adopted to mitigate the same;
Operations in other countries, if any, with a separate statement giving the management’s estimate of country risk and exposure risk and the hedging strategy adopted
Ageing of claims indicating the trends in average claim settlement time during the current year
and preceding five years to be disclosed as may be prescribed by the Authority
11.Review of asset quality and performance of investment in terms of portfolios, i.e., separately in terms of real estate, loans, investments, etc.
Corporate Governance framework and necessary details requiring disclosure as may be prescribed.
Solvency margin –Excess of assets over liabilitiesas at thebalance sheet date of the current year and preceding financial yearagainst the required margin prescribed by the Authority, both in terms of quantum and percentage.
Details of payments to individuals, firms, companies and organizations in which directors are interested as may be prescribed by the Authority
Confirmation to the effect that :
All the claims registered upto the year-end have been reckoned while making appropriate provision for all outstanding claims. Appropriate provision has been made for all outstanding claims at the year end.
All the claims entered in claims register up to the yearend have been considered while making provision for outstanding claims.
A responsibility statement indicating therein that:in the preparation of financial statements, the applicable accounting standards, principles and policies have been followed along with proper explanations relating to material departures, if any;
the management has adopted accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the insurer at the end of the financial year, of the surplus/deficit in revenue account and of the profit or loss in the Statement of Profit and Loss for the year and of the receipts and payments for the year;
the management has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the applicable provisions of the Insurance Act, 1938 (4 of 1938) Companies Act, 2013 (18 of 2013), for safeguarding the assets of the insurer and for preventing and detecting fraud and other irregularities;
the management has prepared the financial statements on a “going concern” basis;
the management has laid down internal financial controls to be followed by the insurer and that such internal financial controls are adequate and were operating effectively;
the management has ensured that an internal audit system commensurate with the size and nature of the business exists and is operating effectively; and
the management has devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively
Information on the penalties imposed on the Insurer by various government /regulatory bodies within and outside India as prescribed by the Authority.
Part V
Preparation of Financial Statements
(1) An insurer shall prepare the Revenue Account [Policyholders’ Account], Statement of Profit and Loss [Shareholders’ Account] and the Balance Sheet in Form A-RA, Form A-PL and Form A-BS, as prescribed in this Part, or as near thereto as the circumstances admit.
Provided that an insurer shall prepare Revenue Account and Balance Sheet for the under mentioned businesses separately and to that extent the application of Ind AS 108 – Operating Segments stand modified:-
Participating policies and Non-participating policies;
i ) Linked business [As defined in IRDAI (Linked Insurance Products ) Regulations , 2013] including Variable Insurance Products
ii) Non-Linked business] including Variable Insurance Products separately for Ordinary Life, General Annuity, Pensions and Health Insurance;and furthersegregated into Individual and group insurance
iii) In respect of business of health insurance, separately for, health-benefits; indemnity; personal accident; and travel; and further segregated into individual and group business
Business within India and business outside India.
An insurer shall prepare separate Receipts and Payments Account in accordance with the Direct Method prescribed in Ind AS 7 – “Statement of Cash Flows”.
Part VI
Preparation of Consolidated financial statements
(a) An insurer, where applicable, shall prepare Consolidated Financial Statements, i.e., Consolidated Balance sheet, Consolidated Revenue Account, Consolidated Statement of Profit and Loss and Consolidated Receipts and Payment Accounts –Consolidated Statement of Cash Flow. The insurer shall, mutatis mutandis,follow with the requirements of this Schedule. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Ind AS including the following:
Profit or loss attributable to –minority/”non-controlling interest” and to the owners of the parent, in the statement of profit and loss shall be presented as allocation for the period.
Minority/”non-controlling interests” in the balance sheet within equity shall be presented separatelyfrom the equity of the owners of the parent.
(b) All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated financial statements.
(c) An insurer shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with reasons for not consolidating.
In Consolidated Financial Statements, the following shall be disclosed by way of additional information
(` lakh)
Name of
the entity in
Net Assets i.e., total assets
minus total liabilities
Share in profit or loss
As % of
Consolidated net assets
Amount
As % of
Consolidated profit or
loss
Amount
1
2
3
4
5
Parent
Subsidiaries
Indian
1.
2.
3.
Foreign
1.
2.
3.
Minority interests in
All Subsidiaries
Associates
(Investments as per equity method)
Indian
1.
2.
3.
Foreign
1.
2.
3.
Joint ventures
(as per proportionate consolidation/ Investment as per equity method)
Indian
1.
2.
3.
Foreign
1.
2.
3.
FORM A-RA
Name of the Insurer:
Registration No. and Date of Registration with the IRDAI
REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 20___.
Policyholders’ Account (Technical Account)
Particulars
Schedule
Current Year
Previous Year
(` lakh)
(` lakh)
Premiums earned – net
(a) Premium (net of service tax)
(b) Reinsurance ceded
(c) Reinsurance accepted
1
Income from Investments
(a) Interest(Net of Accretions/Amortisation of discounts/premium)
(b) Dividend
(c) Rent
(d) Profit on sale/redemption of investments
(e) (Loss on sale/ redemption of investments)
(f) Transfer/Gain on revaluation/change in fair value*
Other Income (to be specified)
Shareholders contribution for meeting deficit
TOTAL (A)
Commission
2
Operating Expenses related to Insurance Business
3
Provision for doubtful debts
Provisions (other than taxation)
(a) For impairment in the value of investments (Net)
(b) Others (to be specified)
Bad debts written off
Service tax charge
Provision for Tax
TOTAL (B)
Benefits Paid (Net)
4
Interim Bonuses Paid
Change in valuation of liability in respect of life policies
(a) Policy Liabilities**
(b) Fund Reserve
(c) Discontinued fund
(d) Amount ceded in Reinsurance
(e) Amount accepted in Reinsurance
TOTAL (C)
SURPLUS/ (DEFICIT) (D) =(A)-(B)-(C)
Amount available for appropriation (D)
APPROPRIATIONS
Transfer to Shareholders’ Account
Transfer to Catastrophe Reserve
Transfer to Other Reserves (to be specified)
Balance being Funds for Future Appropriations
TOTAL (D)
Notes:
*Representsthe deemed realised gain as per norms specified by the Authority.
** Represents Mathematical Reserves after allocation of bonus
The total surplus shall be disclosed separately with the following details:
Interim Bonuses Paid
Allocation of Bonus to policyholders
Surplus shown in the Revenue Account
Total Surplus: [(a)+(b)+(c)].
See Notes appended at the end of Form A-PL
FORM A-PL
Name of the Insurer:
Registration No. and Date of Registration with the IRDAI
STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH, 20___.
Shareholders’ Account (Non-technical Account)
Particulars
Schedule
Current Year
Previous Year
(` lakh)
(` lakh)
Income From Investments
(a) Interest(Net of Accretions/Amortisation of discounts/premium)
(b) Dividend
(c) Rent
(d) Profit on sale/redemption of investments
(e) (Loss on sale/ redemption of investments)
Other Income (To be specified)
Amounts transferred from the Policyholders Account -(Technical Account)
TOTAL (A)
Expense other than those directly related to the insurance business
3A
Bad debts written off
Provisions (Other than taxation)
(a) For impairment in the value of investments (Net)
(b) Provision for doubtful debts
(c) Others (to be specified)
Amounts transferred to the Policyholders Account (Technical Account)
TOTAL (B)
Profit/ (Loss) before exceptional items and tax
Exceptional Items
Profit/(Loss) before Tax
Tax Expense
i. Current
ii. Deferred
Profit / (Loss) after tax for the period for continuing operations A
Profit / (Loss) from discontinuing operations*
Tax expense of discontinuing operations
Profit/(Loss) from Discontinuing operations (after tax)B
Profit/(Loss) for the period carried to Balance Sheet
(A+B)
Earnings per equity share
i) Basic
(ii) Diluted
Notes to Form A-RA and A-PL:
Premium income received from business concluded in and outside India shall be separately disclosed.
Reinsurance premiums whether on business ceded or accepted are to be brought into account gross (i.e. before deducting commissions) under the head reinsurance premiums.
Claims incurred shall comprise claims paid, specific claims settlement costs wherever applicable and change in the outstanding provision for claims at the year-end,.
Items of expenses and income in excess of one percent of the total premiums (less reinsurance) or `500000 whichever is higher, shall be shown as a separate line item.
Fees and expenses connected with claims shall be included in claims.
Under the sub-head “Others” shall be included items like foreign exchange gains or losses and other items.
Interest, dividends and rentals receivable in connection with an investment should be stated as gross amount, the amount of income tax deducted at source being included under ‘advance taxes paid and taxes deducted at source”.
Income from rent shall not include any notional rent.
*Details of discontinued operations to be disclosed appropriately
FORM A-BS
Name of the Insurer:
Registration No. and Date of Registration with the IRDAI
BALANCE SHEET AS AT 31ST MARCH, 20____.
Schedule
Current Year
Previous Year
(` lakh)
(` lakh)
EQUITY AND LIABILITIES
Shareholders’ funds:
Share capital
5
Reserves and surplus
6
Credit/[Debit] fair value change account
NON CURRENT LIABILITIES
Long-term borrowings
7
Deferred Tax Liabilities
8
Other long term liabilities
9
Long term provisions
10
CURRENT LIABILITIES
Short term Borrowings
7
Current Maturity of Long term borrowings
Trade payables
Other Liabilities
9
Short term Provisions
10
Policyholders’ funds:
Reserves
6A
Credit/[debit] fair value change account
Policy liabilities – non current
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