Full Text
EXTRAORDINARY
PART III—Section 4
PUBLISHED BY AUTHORITY
No. 209] NEW DELHI, FRIDAY , MARCH 2 2, 2024 /CHAITRA 2, 1946
CG-TL-E-28032024-253449
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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
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...
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ऋण (राजि लाख रु. में)
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अचल आजस्ट्तयाँ (राजि लाख रु. में)
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(i) ………………………
(ii) ………………………
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(i)……………………….
(ii)……………………..
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(i)……………………….
(ii)……………………..
76 THE GAZETTE OF IN DIA : EXTRAORDINARY [PART III—SEC.4]
(i) __________
(ii) __________
78 THE GAZETTE OF IN DIA : EXTRAORDINARY [PART III—SEC.4]
(क)._________
(ख)._________
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कमीिि (राजि लाख रु. में)
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ऋण (राजि लाख रु. में)
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अचल आजस्ट्तयाँ (राजि लाख रु. में)
90 THE GAZETTE OF IN DIA : EXTRAORDINARY [PART III—SEC.4]
(i) _______
(ii) _______
(i)_____________
(ii)_____________
(i)__________
(ii)__________
(क) ________ (ख)________
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1.
(1)
(2)
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100 THE GAZETTE OF IN DIA : EXTRAORDINARY [PART III—SEC.4]
(1) (2) (3) (4)
1(i)(ग) या 1(ii) या 1(iii)
1(i)(क) या 1(i)(ख) या 1(i)(ग)
1(ii) या 1(iii) या 1(iv) क े
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(%)²
कु ल __________________________ _________________________________________________________________________________________
__________________________________________________________
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%
(5)
(5)
जििेि आजस्ट्तयाँ : __________________________ ___________________________________________________________________________________
114 THE GAZETTE OF IN DIA : EXTRAORDINARY [PART III—SEC.4]
तक) _______________________________
_________
(क) 0
(क) (ख) (ग) (घ) (ङ) (च) =
3 क. (ii) + 3 ख. (ii) उपरोि 15% से
उप िोड़ (क)
%
(1+2)
(1) (2) (1+2)
(i) सजहत ) 50%
%
(1+2)
(1) (2) (1+2)
%
(1+2)
(1) (2) (1+2)
(ख) ______
___
% (च) (छ)=(घ
% (च) (छ)=(घ
% (क) (ख) (क+ख)
1 2 3 4 5 6 7 8 9
------------------------
------
(3)
(3) क े
(3) क े
+
+
(1+2
+3)
(1)
[1+2]
[3(क)]
1.
[3(ख)]
[3(ग)]
(3(घ))
क ु ल क ु ल (1+2+3)
___________________________ पूरा िाम :
अध्यि _______________________
…..)
% (2/1)
(4/2)
(1-4)
4)
% (8/7)
(क) (ख) (ग) (घ) (ङ) = (क) + (ग) (च) = (ख) +
(छ) (ि) (झ) (ञ) (ट) (ि) (ड) =
(छ)+(झ)+(ट)-(ि) (ढ) = (ि) +
(ञ) (ण) = (ड) /
…… Σ
(1) (2) (3)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22)
31 र्ाचम __ __
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17)
31 र्ाचम ___ _
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (1
3) (1
4) (15
) (1
6) (17
) (18
) (19) (20) (21
) (22)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (11) (12) (13) (14) (15) (16) (17)
(1) (2) (3) (4) (5)
(1) (2) (3) (4) (5)
(1) (2) (3) (4) (5)
8बी……………………….( सी)
---- (ओ)
(1) (2). (3) (4) (5) (6) (7) (8) (9) (10) (11)
------
------
------
------
------
------
------
------
(1) (2) (3) (4) (5)
(1) (2) (3) (4)
(ए) = (ए1) + ( ए2)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
01 अवि 0.50 0.50
04 र्ोटर 0.75 0.75
06 विर्ानन 0.50 0.50
07 देयता 0.75 0.75
09 विविध 0.70 0.70
(1) (2) (3)
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad , the 20th March, 2024
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment
Functions of Insurers ) Regulations, 20 24
F. No. IRDAI/Reg /10/20 4/2024 .—In exercise of the powers conferred by clauses (g), (h), (i), (ia), (ib),
(y), (z), (za), (zd) and (zab) of sub -section (2) of section 114A , Sections 11, 13, 20, 27, 27A, 27B, 27C, 27D ,
28, clause (a) of sub -section (3) of section 29, 49, 64V, and 64VA of the Insurance Act, 1938, (4 of 1938) and
section 14 and 26 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the
Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations,
namely:
CHAPTER -I
PRELIMINARY
Short title, applicability and commencement :
(1) These regulations may be called the Insurance Regulatory and Development Authority of India
(Actuarial, Finance and Investment Functions of Insurers ) Regulations, 2024 .
(2) These regulat ions shall come into force from the date of the ir publication in the Official Gazette or 1st
April, 2024 whichever is later .
(3) These regulations are applicable to all insurers including those engaged exclusively in reinsurance
business, unless otherwise spec ified.
(4) These regulations shall be reviewed once in every three years from the date of its publication, unless
the review or repeal or amendment is warranted earlier .
2. Objectives: The key objectives of these regulations are to ensure that :
(1) sound and responsi ve management practices are in place for effective discharge of actuarial, finance
and investment functions and analysis , covering the areas including but not limited to the valuation of
assets and liabilities, regulatory reporting, bonus distribution , asset-liability management, solvency,
investment and risk management ;
(2) regulatory returns are prepared and reported in accordance with applicable standards, principles and
policies to provide a true and fair view of state of affairs of the insurer ;
(3) policyhold ers’ interests are protecte d and
(4) ease of doing business is facilitated .
3. Definitions :
(1) In these regulations, unless the context otherwise requires -
(i) “Act” means the Insurance Act, 1938 (4 of 1938);
(ii) “Actuarial Practice Standards” means the standards of prac tice and guidance notes issued by the
Institute of Actuaries of India;
(iii) “Actuary” means an actuary as defined in section 2(1) of Insurance Act, 1938;
(iv) “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);
(v) “Available Solvency Margin” means :
In case of a Life insurer, the excess of value of assets subject to admissibil ity criteria specified
under the se regulations , available in policyholders’ and shareholders’ funds over and above the
value of Mathematical Reserves and other liabilities of policyholders’ and shareholders’ funds;
In case of a General insurer or Health insurer , the excess of value of assets subject t o admissibil ity
criteria specified under the se regulations, available in policyholders’ and shareholders’ funds over
and above the Technical L iabilities and other liabilities of policyholders’ and shareholders’ funds;
In case of a reinsurer, the excess of value of assets subject to admissibility criteria specified under
these regulations, available in policyholders’ and shareholders’ funds over and above the
Mathematical Reserves, Technical Liabilities and other liabilities of policyholders’ and
shareholder s’ funds;
(vi) “Competent Authority” means
(a) Chairperson or
(b) such whole -time member or such committee of the whole -time members or such o fficer (s) of
the Authority, as may be determined by the Chairperson .
(vii) “General insurer” means an insurer transacting g eneral insurance business as defined in the Act;
(viii) “Life insurer” means an insurer carrying on life insurance business as defined in the Act;
(ix) “Mathematical Reserves” means the provisions determined in accordance with these regulations
to cover liabilities ( excluding liabilities which have fallen due and liabilities arising from deposit
back arrangement in relation to any policy whereby an amount is deposited by re -insurer with the
cedant) arising under or in connection with policies or contracts of life (Re )insurance business
which includes specific provision for adverse deviations of all the bases including but not limited
to mortality and morbidity rates; lapse rates, interest rates and expenses; and any explicit
provision made in the valuation of liabilit ies;
(x) “Premium Deficiency Reserve (PDR)” means the reserve held in excess of the unearned
premium reserve, which allows for any expectation that the unearned premium reserve will be
insufficient to cover the cost of claims and expenses incurred during the period of unexpired risk ;
(xi) “Required Solvency Margin” means the amount arrived in the manner as specified under Part III or
Part IV or Part V of Schedule -I of these regulations as applicable subject to a minimum of fifty per
cent of the amount of minimum c apital as stated under section 6 of the Insurance Act, 1938;
(xii) “Solvency Ratio” means the ratio of the amount of Available Solvency Margin to the amount of
Required Solvency Margin;
(xiii) “Technical Liabilities” means the provisions determined in accordance with these regulations to
cover liabilities arising under or in connection with policies or contracts of General (Re)insurance
business or Health (Re)i nsurance Business which include specific provision for adverse
deviations of all the bases of actuarial valuat ion.
(xiv) “Unearned Premium Reserve (UPR)” means an amount representing that part of the premium
written which is attributable and to be allocated to the succeeding accounting period s;
(2) All words and expressions used herein and not defined in these regulations but defined in the Insurance
Act, 1938 (4 of 1938), or the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or
any Rules or Regulations made thereunder shall have the meanings respectively assigned to them in
those Acts or Rules or Reg ulations.
CHAPT ER- II
GUIDING PRINCIPLES FOR ACTUARIAL, FINANCE AND INVESTMENT FUNCTIONS
4. Principles governing the Actuarial, Finan ce and Investment functions of insurers
(1) Mathematical Reserves or Technical liabilities , as the case may be, are based on sou nd actuarial
principles;
(2) Solvency margin of insurer is ensured at least at the control level at all times ;
(3) Financial statements reflect true and fair picture of the financial condition of the insurer;
(4) Funds are invested such that the policyholders’ liab ilities are met as and when due;
(5) Suitable and adequate resources are available with insurer to carry out actuarial , finance and
investment functions .
5. Board approved policies of the insurer
Insurers shall have in place , polices govern ing areas of actuari al, finance and investment functions , such
as bonus distribution philosophy as applicable , asset -liability managemen t, investment and risk
management duly approved by the Board of Directors or by the Executive Committee of Management in
case of a foreign c ompany engaged in re -insurance business through a branch established in India (FRB).
6. In addition to the above, insurers shall follow the respective provisions as set out below:
(1) Schedule - I: Actuarial functions
(2) Schedule - II: Finance functions
(3) Schedu le - III: Investment functions
(4) Schedule - IV: Loans and Advances by Insurance Companies .
(5) Schedule - V: Inspection and Supply of Returns
CHAPTER III
MISCELLANEOUS
7. Power to issue circulars, guidelines and directions
The Competent Authority may issue f rom time to time circulars , guidelines and directions relating to these
regulations, if necessary including but not limited to, with profit committee, applicable norms in respect of
Appointed Actuary, Foreign Reinsur er’s Branches, detailed information to b e obtained in relation to the
statements appended to the Actuarial Report and Abstract, submission of any other additional forms or
statements with respect to Life insurance, General insurance, Health insurance and Reinsurance business
as applicable .
8. Power to issue clarifications and to remove difficulties
In order to remove any doubts or difficulties that may arise in the application or interpretation of any of the
provisions of these regulations, the Competent Authority may issue appropriate clarificati ons as and when
deemed necessary.
9. Repeal s
(1) These regulations shall repeal the following regulations from the date these regulations come into force :
a. Insurance Regulatory and Development Authority of India (Actuarial Report and Abstract for Life
Insurance B usiness) Regulations, 2016 and subsequent amendments;
b. Insurance Regulatory and Development Authority (Distributions of Surplus) Regulations, 2002;
c. Insurance Regulatory and Development Authority of India (Assets, Liabilities and Solvency Margin
of Life Ins urance Business) Regulations, 2016 ;
d. Insurance Regulatory and Development Authority of India (Assets, Liabilities and Solvency Margin
of General Insurance Business) Regulations, 2016 and subsequent amendments ;
e. Insurance Regulatory and Development Authorit y of India (Appointed Actuary) Regulations, 2022;
f. Insurance Regulatory and Development Authority of India (Investment) Regulations, 2016;
g. Insurance Regulatory and Development Authority of India (Preparation of Financial Statements
and Auditors’ Report of Insurance Companies) Regulations, 2002 and subsequent amendments ;
h. Insurance Regulatory and Development Authority of India (Inspection and Fee for Supply of Copies
of Returns) Regulations, 2015;
i. Insurance Regulatory and Development Authority of India (Lo ans or Temporary Advances to Full
Time Employees of the Insurers) Regulations, 2016;
(2) Other provisions which were in existence in the regulations mentioned under sub regulation ( 1) of
regulation 9 above and not mentioned in these regulation s shall be provided separately by the circular
issued under provision of regulation 7 of th ese regulation s.
DEBASISH PANDA, Chairperson
[ADVT. -III/4/Exty./865/2023 -24]
SCHEDULE - I: ACTUARIAL FUNCTIONS
Part I: Definitions
1. General :
(1) “Institute of Actuaries of India” me ans a statutory body established under section 3 of the Actuaries Act,
2006 (35 of 2006);
(2) “Valuation date” means , in respect of any valuation, the date as at which the valuation is made ;
(3) “Ordinarily Resident in India” means a resident in India defined a s per the Income Tax Act, 1961
2. Definitions a pplicable to Life insurers :
(1) “Extra premium” means a charge or premium collected for additional risk exposure beyond the risk
factored in deriving the standard premium rates ;
(2) “Group business” means business other than individual business;
(3) “Guarantees” means the terms in regard to benefits or premiums or charges, which shall not be altered
during the currency of the policy;
(4) “Individual business” means individual insurance contracts issued on single or joint li fe basis;
(5) “Inter valuation period” means period between two successive actuarial valuations of asset and liabilities
of an insurer ;
(6) “Maturity date” means a fixed date on which maturity benefit may become payable either absolutely or
contingently;
(7) “Non-par pol icies” or “policies without participation in profits” means policies which are not entitled for
any share in surplus or profits;
(8) “Non-participating policyholders” means the holders of “non -par policies”;
(9) “Options” means the rights available to a policyhold er under a policy;
(10) “Par policies” or “policies with participation in profits” means polices which are entitled to share in
surplus or profits during the policy term as per Section 49 of the Insurance Act, 1938.;
(11) “Policies with deferred participation in pro fits” means polices entitled for participation in profits after a
certain period from the date of commencement of the policy;
(12) “Participating policyholders” means the holders of “par policies” and “policies with deferred participation
in profits”;
(13) “Premium payment term” means the period during which premiums are payable;
(14) “Policy Accounts” means funds for each policy under Variable Linked Business and Variable Non -
Linked Business ;
(15) “Sum at risk”, at any point of time in respect of a policy is the excess of
Sum of
{‘Lump sum b enefit payable on death or any other contingency covered’}
and
{‘Present Value of the benefits payable on account of death or any other contingency in form of
periodical payments including annuity payments’}
Over
{Mathematical Res erves } of the policy
3. Definitions applicable to General insurers :
(1) "Allocated Loss Adjustment Expenses (ALAE)" are claim -related expenses that are directly attributable
to a specific claim ;
(2) “Claim Reserves” means the reserves in respect of the claims which have already occurred as on the
date of valuation ;
(3) “Incurred But Not Enough Reported (IBNER) Reserves ” means the reserves reflecting the expected
changes in the estimates of reported claims including ALAE, if any ;
(4) “Incurred But Not Reported Claim (IBN R) Reserves ” includes IBNER, estimate for reopened claims,
provision for incurred but not reported claims, provision for claims in transit as on the date of valuation
and ALAE;
(5) “Outstanding Claim Reserves (OS Reserves)” means the provision made in respect of all outstanding
reported claims as on the date of valuation includ ing ALAE;
(6) “Unexpired Risk Reserves” means the reserves in respect of the liabilities for unexpired risks and
determined as the aggregate of Unearned Premium Reserve (UPR) and Premium De ficiency Reserve
(PDR) .
Part II: Appointed Actuary
1. Appointment of an Appointed Actuary :
An insurer registered to carry on insurance business in India shall appoint an actuary, on approval of the
Competent Authority , who shall be known as the “Appointed Actuary” for the purposes of the Act.
2. Procedure for Appointment of an Appointed Actuary :
(1) A person shall be eligible to be appointed as an Appointed Actuary for an insurer, if he or she is:
(i) An Ordinarily Resident in India;
(ii) A Fellow member in accordance wi th the Actuaries Act, 2006;
(iii) A Fellow Member of the Institute of Actuaries of India ( IAI), satisfying the following requirements in
case of a Life insurer:
(a) At least 12 years of experience in the area of Life Insurance and out of which at least 7 years shal l
be post fellowship experience.
Provided that, if the applicant has passed the Specialist Application or Specialist Advanced level
subject in Life Insurance from Institute of Actuaries of India or from any other institute or body with
which IAI has Mutual Recognition Agreement, the experience criteria including post fellowship
experience criteria as mentioned in clause 2(1)(iii)(a) of Part II of Schedule -I of these regulations ,
shall be reduced by 2 years.
(b) At least 3 years post fellowship experience out o f 7 years or 5 years as applicable, as specified
under clause 2(1)(iii)(a) of Part II of Schedule -I of these regulations shall be in the preparation or
review of annual statutory valuation or product pricing of an Indian Life insurer or Indian reinsurer
or Foreign Reinsurer’s Branch established in India .
Notwithstanding the above, experience in the area of Life Insurance as a Peer Reviewer or
Independent Actuary or Panel Actuary or Actuary certifying the reinsurance returns for Life
reinsurance business or experience in actuarial consultancy in Life Insurance business or relevant
experience with the Authority shall also be considered.
(c) At least 3 years of experience shall be in the role of middle or senior level management.
(iv) A Fellow Member of the Institute o f Actuaries of India ( IAI), satisfying the following requirements in
case of a General insurer:
(a) At least 9 years of experience in the area of General Insurance and out of which at least 4 years
shall be post fellowship experience.
Provided that, if the a pplicant has passed the Specialist Application or Specialist Advanced level
subject in General Insurance from Institute of Actuaries of India or from any other institute or body
with which IAI has Mutual Recognition Agreement, the experience criteria inclu ding post
fellowship experience criterion as mentioned in clause 2(1)(iv)(a) of Part II of Schedule -I of these
regulations , shall be reduced by 2 years.
(b) At least 2 years post fellowship experience out of 4 years or 2 years as applicable, as specified
unde r clause 2(1)(iv)(a) of Part II of Schedule -I of these regulations shall be in the preparation or
review of annual statutory valuation or product pricing of an Indian General insurer or Indian
reinsurer or Foreign Reinsurer’s Branch established in India .
Notwithstanding the above, experience in the area of General Insurance as a Peer Reviewer or
Panel Actuary or Actuary certifying reinsurance returns for General reinsurance business or
experience in actuarial consultancy in General Insurance business or re levant experience with the
Authority shall also be considered.
(c) At least 3 years of experience shall be in the role of middle or senior level management.
(v) A Fellow Member of the Institute of Actuaries of India ( IAI), satisfying the following requirements in
case of a Health insurer:
(a) At least 9 years of experience in the area of General or Health Insurance and out of which at least
4 years shall be post fellowship experience.
Provided that, if the applicant has passed the Specialist Application or Special ist Advanced level
subject in General or Health Insurance from Institute of Actuaries of India or from any other
institute or body with which IAI has Mutual Recognition Agreement, the experience criteria
including post fellowship experience criterio n as me ntioned in clause 2(1)(v)(a) of Part II of
Schedule -I of these regulations , shall be reduced by 2 years.
(b) At least 2 years post fellowship experience out of 4 years or 2 years as applicable, as specified
under clause 2(1)(v)(a) of Part II of Schedule -I of these regulations shall be in the preparation or
review of annual statutory valuation or product pricing of an Indian General or Health insurer or
Indian reinsurer or Foreign Reinsurer’s Branch established in India .
Notwithstanding the above, experience i n the area of General or Health Insurance as a Peer
Reviewer or Panel Actuary or Actuary certifying reinsurance returns for General or Health
reinsurance business or experience in actuarial consultancy in General or Health insurance
business or relevant ex perience with the Authority shall also be considered.
(c) At least 3 years of experience shall be in the role of middle or senior level management.
(vi) An employee of the insurer on full time basis;
(vii) A person who has not committed any professional or other mis conduct;
(viii) Not an Appointed Actuary of any other insurer in India;
(ix) A person who possesses a Certificate of Practice issued by the Institute of Actuaries of India;
(x) Not over the age of 70 years.
(2) Provision for existing Appointed Actuaries as on date of noti fication of these regulations:
The existing Appointed Actuaries as on the date of notification of these regulations are eligible to
continue as Appointed Actuary of the respective insurer.
(3) An insurer shall seek the approval of the Competent Authority for the appointment of Appointed
Actuary, submitting the application in the format as may be specified from time to time.
(4) The Competent Authority shall, within thirty days from the date of receipt of application, either accept or
reject the same.
Provided th at before rejecting the application, the Competent Authority shall give an opportunity of
being heard to the insurer.
(5) An insurer, who is unable to appoint an Appointed Actuary in accordance with clause 2(1) of Part II of
Schedule -I of th ese regulations, shall make an application to the Competent Authority in writing for
relaxation of any of the eligibility conditions. The Competent Authority may grant relaxation of one or
more conditions. However, there shall be no relaxation in respect of conditions under clause 2(1)(ii),
2(1)(vii) & 2(1)(ix) of Part II of Schedule -I of these regulation .
(6) The appointment of an Appointed Actuary shall take effect on or after the date of approval by the
Competent Authority .
3. Effect of rejection of the application
The insurer s hall, within four weeks of rejection of the application referred to under clause 2(5) of Part II of
Schedule -I of of these regulations , apply to the Competent Authority under clause 2(4) of Part II of
Schedule -I of these regulations for the appointment of an actuary as an Appointed Actuary other than the
one rejected by it under clause 2(5) of Part II of Schedule -I of these regulations .
4. Carrying on business without Appointed Actuary
(1) No insurer shall carry on the business of insurance/reinsurance without an Appointed Actuary. Any non -
compliance in this regard shall attract appropriate actions under the relevant provisions of the Act.
(2) The Competent Authority , on request of the insurer for relaxation of the provisions under clause 4(1) of
Part II of Schedule -I of these regulations , may grant relaxation for such period (not exceeding one year),
as it may deem appropriate.
(3) The Competent Authority may issue circular(s) from time to time regarding the transitory provisions for
consideration of relaxation referred under clause 4(2) of Part II of Schedule -I of these regulations .
5. Cessation of Appointment as Appointed Actuary
(1) An Appointed Actuary shall be given a notice of withdrawal of approval by the Competent Authority on
the following grounds:
(i) that he or she cease s to be eligible in accordance with clause 2(1) of Part II of Schedule -I of these
regulations , or
(ii) that he or she has, in the opinion of the Competent Authority , failed to perform adequately and
properly the duties and obligations of an Appointed Actuary un der these regulations .
(2) The Competent Authority after serving a notice to such Appointed Actuary shall grant an opportunity of
being heard and thereafter issue appropriate order either withdrawing approval or revocation of the
notice issued.
(3) If the Appointe d Actuary makes formal intimation to the insurer to cease to be an Appointed Actuary of
the insurer otherwise than on the grounds mentioned in clause 5(1) of Part II of Schedule -I of these
regulations , the insurer and the Appointed Actuary shall intimate t he Competent Authority the reasons
thereof within one week of the date of such intimation to the insurer .
(4) The insurer in consultation with Appointed Actuary shall endeavour to avoid delay in submission of
annual statutory returns arising from cessation of services of Appointed Actuary.
6. Powers of Appointed Actuary
(1) An Appointed Actuary shall have access to all such information and documents in possession or under
control, of the insurer if the same access is necessary for the proper and effective performanc e of the
functions and duties of the Appointed Actuary.
(2) The Appointed Actuary may seek any information for the purpose of clause 6(1) of Part II of Schedule -I
of these regulations from any officer or employee of the insurer.
(3) The Appointed Actuary shall be entitled to attend, speak and discuss on any matter in meetings of the
management including directors meeting of the insurer and in meetings of the shareholders or the
policyholders of the insurer:
(i) that relates to the actuarial advice given to the director s;
(ii) that may affect the solvency of the insurer;
(iii) that may affect the ability of the insurer to meet the reasonable expectations of policyholders; or
(iv) on which actuarial advice is necessary.
(4) An Appointed Actuary shall be entitled to make any statement to in surer, for the purpose of the
performance of his or her functions as Appointed Actuary. This is in addition to any other privilege
conferred upon an Appointed Actuary under any other regulations.
(5) No provision of the letter of appointment of the Appointed A ctuary, shall restrict or prevent his or her
duties, obligations and privileges under these regulations.
7. Duties and obligations of Appointed Actuary
In particular, and without prejudice to the generality of the foregoing matters, and in the interests of th e
insurance industry and the policyholders, the duties and obligations of an Appointed Actuary of an insurer
shall include:
(1) Ensuring that all the requisite records have been made available to him or her for the purpose of
conducting actuarial valuation of liabilities and assets of the insurer;
(2) Rendering actuarial advice to the management of the insurer, in particular in the areas of product design
and pricing, insurance contract wording, investments and reinsurance;
(3) Identifying and monitoring the risks ass ociated with the insurer’s ability to maintain the solvency at all
times and r eporting those risks to the Board of the insurer where the Appointed Actuary believes that
there are material concerns which may adversely affect the solvency of the insurer with
recommendations on actions to be taken for rectification of solvency position and informing the
Competent Authority, if the insurer fails to take necessary steps to rectify the situation;
(4) Complying with the provisions of the section 64V of the Act in rega rd to certification of the assets and
liabilities that have been valued in the manner required under the said section;
(5) Complying with the provisions of the section 64 VA of the Act in regard to maintenance of required
control level of solvency margin in th e manner required under the said section;
(6) Drawing the attention of management of the insurer, to any matter on which he or she thinks that action
is required to be taken by the insurer to avoid any contravention of the Act of such a nature that it may
affect the interests of the policyholders;
(7) Complying with the Authority’s directions from time to time;
(8) Ensuring that overall pricing policy of the insurer is in line with the overall underwriting and claims
management policy of the insurer;
(9) Ensuring adequacy of reinsurance arrangements;
(10) Contributing to the effective implementation of the risk management system;
(11) Complying with the provisions of section 21 of the Act in regard to further information required by the
Authority;
(12) In addition to the above, the duties of an Appointed Actuary of an insurer carrying on life insurance
business shall include:
(i) Certifying the actuarial report and abstract and other returns as required under section 13 of the
Act;
(ii) Complying with the provisions of the section 112 of the Act with regard to recommendation of
interim bonus or bonuses payable by life insurer to policyholders whose policies mature for
payment by reason of death or otherwise during the inter -valuation period;
(iii) Rendering actuarial advice in respect of expenses of mana gement of the insurer;
(iv) Ensuring that the premium rates of the insurance products are fair;
(v) Certifying that the mathematical reserves have been determined in the manner prescribed in Part
III of Schedule -I of these regulations and taking into account the Gu idance Notes /Actuarial
Practice Standard issued by the Institute of Actuaries of India and any directions given by the
Authority;
(vi) Ensuring that the policyholders' reasonable expectations have been considered in the matter of
valuation of liabilities and d istribution of surplus to the participating policyholders who are entitled
for a share of surplus;
(vii) Submitting the actuarial advice in the interests of the insurance industry and the policyholders;
(viii) Coordinating the calculation of mathematical reserves;
(ix) Ensu ring the appropriateness of the methodologies and underlying models used, as well as the
assumptions made in the calculation of mathematical reserves;
(x) Assessing the sufficiency and quality of the data used in the calculation of mathematical reserves;
(xi) Informing the Board of insurer about the reliability and adequacy of mathematical reserves;
(13) In addition to sub clause ( 1) to ( 11) of clause 7 of Part-II of Schedule -I of these regulations , the duties
of the Appointed Actuary of the insurer carrying on general i nsurance business or health insurance
business include:
(i) Ensuring that the premium rates of the insurance products are fair;
(ii) Certifying that claims reserves including reserves for incurred but not reported claims (IBNR) and
other reserves (including reserv es for incurred but not enough reported claims (IBNER) and
premium deficiency reserve (PDR)) have been determined using actuarial principles and in the
manner prescribed in Part IV of Schedule -I of these regulations ;
(iii) Rendering actuarial advice in respect of expenses of management of the insurer;
(iv) Coordinating the calculation of reserves for IBNR and other reserves (including reserves for
IBNER and PDR);
(v) Assessing the sufficiency and quality of the data used in the calculation of reserves for IBNR and
other reserves including reserves for IBNER and PDR;
(vi) Informing the Board of insurer about the reliability and adequacy of reserves for IBNR and other
reserves including reserves for IBNER and PDR;
(14) informing the Competent Authority in writing of his or her opini on, within a reasonable time,
(i) any contravention of the Act or any other Acts by the insurer is of such a nature that it may affect
significantly the interests of the Policyholders or beneficiaries of policies issued by the insurer;
(ii) whether the directors of the insurer have failed to take such action as is reasonably necessary to
enable him or her to exercise his or her duties and obligations under these regulations; or
(iii) whether an officer or employee of the insurer has engaged in conduct in order to prevent him or her
exercising his or her duties and obligations under these regulations.
(15) If an Appointed Actuary is disqualified to act as an Actuary, he or she ceases to exist as Appointed
Actuary forthwith;
(16) While carrying out his or her duties and obligations, t he Appointed Actuary shall pay due regard to
generally accepted actuarial principles and practices;
(17) The Appointed Actuary shall inform the Competent Authority of any disciplinary proceedings initiated
against him or her by any entity within seven days from the date of such initiation.
8. Conflict of interest
(1) The Appointed Actuary shall function in accordance with these regulations, and he or she shall not
function in any other capacity which could result in conflict of interest in performing his or her role as
Appointed Actuary in accordance with these regulations.
(2) The insurer and the Appointed Actuary shall comply with the provisions of clause 8(1) of Part II of
Schedule -I of these regulations above at all times during his or her tenure as Appointed Actuary.
9. Obligations of the insurer
(1) The insurer shall provide adequate resources to the Appointed Actuary.
(2) In order to build up or develop sufficient actuarial expertise, life insurers shall have at least two actuaries
and general/standalone health insurers shall have at least one actuary in addition to Appointed Actuary
for pricing and valuation purposes within such period as may be notified by the Competent Authority
from time to time.
(3) The insurer shall ensure that different functions of the insurer provide adeq uate support to the
Appointed Actuary in discharging his or her duties and obligations.
(4) The insurer shall ensure that the Appointed Actuary does not simultaneously perform the role of Chief
Risk Officer of the insurer. The Chief Risk Officer , however may p referably be an Actuary independent
of the Appointed Actuary.
(5) The insurer shall ensure that the Appointed Actuary reports directly to Chief Executive Officer of the
insurer.
10. Applicability to reinsurance business
Part II of Schedule - I of these regulations shall apply to Indian reinsurers. The norms applicable in respect
of FRBs shall be as specified by the Competent Authority.
Part III: Valuation of Life Insurance Business
1. Applicability
This part of regulations shall be applicable to all the life insurer s.
(A) Assets, Liabilities and Solvency Margin
1. Valuation of Assets
All assets of a life insurer shall be valued in accordance with Schedule - II – Finance functions of the se
regulations , other applicable Regulations , including IRDAI (Registration, Capital Stru cture, Transfer of
Shares and Amalgamation of Insurers ) Regulations, 2024 and applicable extant norms , except the
following assets which shall be placed with value zero for solvency margin computation :
(1) Agents’ and Intermediaries’ balances and outstanding p remiums in India, to the extent they are not
realised within a period of thirty days;
(2) Agents’ and Intermediaries’ balances and outstanding premiums outside India, to the extent they are
not realisable;
(3) Sundry debts, to the extent they are not realisable;
(4) Advances and receivables of an unrealisable character;
(5) Loans and advances as per Schedule – IV of these regulations ;
(6) Furniture, fixtures, dead stock and stationery;
(7) Deferred expenses;
(8) Debit balance of Profit and loss appropriation account balance and any fi ctitious assets other than pre-
paid expenses;
(9) Reinsurer’s balances outstanding for more than one hundred and twenty days;
(10) Leasehold improvements ;
(11) Goods and Services Tax (GST) u nutilized credit outstanding for more than one hundred and twenty
days;
(12) Seventy -five percent of the 'Deferred Tax Asset' other than that arising on account o f "Accumulated
losses";
(13) 'Deferred Tax Asset' arising on account of "Accumulated losses";
(14) Investments representing unclaimed amounts and investment income accrued or earned thereon ;
(15) Any other assets to the extent not realisable.
2. Determination of Amount of Liabilities
Every insurer transacting life insurance business shall value the amount of liabilities in the manner as set
out below :
(1) Mathematical Reserves shall be determined for e ach contract by a prospective method of valuation in
accordance with sub clause (2) to (4) of clause 2 of Part III (A) of Schedule - I of these regulations .
(2) The valuation method shall take into account all prospective contingencies under which any premiums
(by the policyholder) or benefits (to the policyholder/beneficiary) may be payable under the policy, as
determined by the policy conditions. The level of benefits shall take into account the reasonable
expectations of policyholders (with regard to bonuses, including terminal bonuses, if any) and any
established practices of an insurer for payment of benefits.
(3) The valuation method shall take into account the cost of any options and guarantees that may be
available to the policyholder under the terms of the c ontract.
(4) The determination of the amount of liability under each policy shall be based on prudent assumptions of
all relevant parameters. The value of each such parameter shall be based on the insurer’s expected
experience and shall include an appropriate margin for adverse deviations (hereinafter referred to as
MAD) that shall not result in decrease in the amount of mathematical reserves.
(5) Treatment of negative reserves and surrender value deficiency reserves:
(i) The amount of mathematical reserve in respect o f a policy, determined in accordance with sub -
para (4), may be negative (called “negative reserves”) or less than the surrender value available
(called “surrender value deficiency reserves”) at the valuation date. The surrender value for this
purpose shal l be higher of special surrender value and guaranteed surrender value.
(ii) The Appointed Actuary shall, for the purpose of section 35 of the Act, use the amount of such
mathematical reserves without any modification;
(iii) The Appointed Actuary shall, for the purpos e of sections 13, 49, 64V and 64VA of the Act, set the
amount of such mathematical reserve to zero, in case of such negative reserve, or to the surrender
value, in case of such surrender value deficiency reserves, as the case may be.
(6) The valuation method s hall be “Gross Premium Valuation” except for the following cases:
(i) One-year renewable group term assurances including riders attached to group business wherein
Reserves shall allow for Unearned Premium, Premium deficiency and Incurred But Not Reported
claim s.
(ii) Riders attached to individual products wherein the reserve shall be higher of Gross Premium
Valuation Reserve and Unearned Premium Reserve .
(7) For individual business, the Appointed Actuary may hold additional reserve in respect of Incurred But
Not Report ed claims.
(8) If in the opinion of the Appointed Actuary, a method of valuation other than the Gross Premium
Method of valuation is to be adopted, then, other approximation methods (e.g. retrospective method)
may be used .
Provided that the amount of calculat ed reserve is expected to be at least equal to the amount that
shall be produced by application of Gross Premium Valuation m ethod.
(9) The method of calculation of the amount of liabilities and the assumptions for the valuation parameters
shall not be subject to arbitrary discontinuities from one year to the next.
3. Policy Cash Flows : The gross premium method of valuation shall discount the following future policy cash
flows at an appropriate rate of interest,
(1) Premiums payable, if any,
(2) Benefits payable, if any, on death , survival , maturity, voluntary termination of contract or any other
contingencies covered under the policy
(3) Bonuses that have already been vested as at the valuation date if any,
(4) Bonuses as a result of the valuation at the valuation date if any
(5) Future bonuses if any (one year after valuation date) including terminal bonuses
(6) Any other benefits as applicable
(7) Commission and remuneration payable, if any, in respect of a policy (this shall be based on current
practice of the insurer) . No allowance shal l be made for non -payment of commission in respect of
orphaned policies
(8) Policy maintenance expenses, if any, in respect of a policy;
(9) Allocation of profit to shareholders, if any, where there is a specified relationship between profits
attributable to share holders and the bonus rates declared for policyholders
Provided that allowance must be made for tax, if any.
(10) Any other cash flow as applicable
4. Policy Options and Guarantees:
Where a policy provides built -in options that may be exercised by the policyholde r, such as conversion or
addition of coverage at future date(s) without any evidence of good health, or guarantees, such as annuity
rate guarantees at maturity of contract, investment guarantees etc., the costs of such options or
guarantees shall be estima ted and treated as special cash flows in calculating the mathematical reserves.
5. Valuation Parameters:
(1) The valuation parameters shall constitute the bases on which the future policy cash flows shall be
computed and discounted. Each parameter shall be approp riate to the block of business to be valued. The
Appointed Actuary shall take into consideration the following:
(i) The value(s) of the parameter shall be based on the insurer’s experience study, where available. If
reliable experience study is not available, the value(s) can be based on the industry study, if available
and appropriate. If neither is available, the values may be based on the bases used for pricing the
product. In establishing the expected level of any parameter, any likely deterioration in the experience
shall be taken into account;
(ii) The expected level, as determined in sub clause 1(i) of clause 5 of P art III of Schedule -I of these
regulations, shall be adjusted by an appropriate Margin for Adverse Deviations (MAD), the level of
MAD being depende nt on the degree of confidence in the expected level, and such MAD in each
parameter shall be based on the Actuarial Practice Standards / Guidance Notes issued by the Institute
of Actuaries of India, with the concurrence of the Authority ;
(iii) The values used f or the various valuation parameters should be consistent among themselves.
(2) Mortality rates to be used shall be by reference to a published table, unless the insurer has constructed
a separate table based on its own experience:
Provided that such published table shall be made available to the insurance industry by the Institute of
Actuaries of India, with the concurrence of the Authority.
Provided further that such rates determined by reference to a published table shall not be less than one
hundred percent of that published table.
Provided further that such rates determined by reference to the published table may be less than one
hundred percent of that published table if the Appointed Actuary can justify a lower percent.
(3) Morbidity rates to be used shall be by reference to a published table, unless the insurer has
constructed a separate table based on its own experience:
Provided that such published table shall be made available to the insurance industry by the Institute of
Actuaries of India, with the concu rrence of the Authority:
Provided further that such rates determined by reference to a published table shall not be less than one
hundred percent of that published table.
Provided further that such rates determined by reference to the published table may be less than one
hundred percent of that published table if the Appointed Actuary can justify a lower percent.
(4) Policy maintenance expenses shall have regard to the actual expense experience of the insurer. All
expenses shall be increased in future years f or inflation; the rate of inflation assumed should be
consistent with the valuation rate of interest.
Provided that appropriate additional provisions shall be made if the actual experience has not been
considered for the valuation.
Provided further that th e above provision shall not be applicable to the life insurance companies for the
first five years from the date of commencement of the business.
(5) Valuation rate of interest :
(i) The best estimate interest rate shall first be , determined based on the current a nd expected yields
from existing assets attributable to blocks of life insurance business, and the yields which the insurer
is expected to obtain from the sums to be invested in the future, and such assessment shall take into
account :
(a) the composition of as sets supporting the liabilities, expected cash flows from the investments on
hand, the cash flows from the block of policies to be valued, the likely future investment conditions
and the reinvestment and disinvestment strategy to be employed in dealing wit h the future net cash
flows;
(b) the risks associated with investment in regard to receipt of income on such investment or
repayment of principal;
(c) the expenses associated with the investment functions of the insurer;
(ii) such best estimate shall be adjusted by the Margin for Adverse Deviation to arrive at the valuation
rate of interest
(iii) Further, the valuation rate of interest,
(a) shall not be higher than the rates of interest, determined from prudent assessment of the yields from
existing assets attributable to blocks of life insurance business, and the yields which the insurer is
expected to obtain from the sums to be invested in the future;
(b) shall not be higher than, for the calculation of present value of policy cash flows in respect of a
particular category of contra cts, the yields on assets maintained for the purpose of such category of
contacts;
(c) in respect of non -participating business, shall recognize the risk of decline in the future interest rates;
(d) in respect of participating business, shall be based on the assum ption (with regard to future
investment conditions), that the scale of future bonuses used in the valuation is consistent with the
valuation rate of interest.
(6) Lapse rate, if considered for valuation, should be a prudent assumption based on past experience of
the product or similar products; and shall have regard to the expected future experience based on the
nature of the products, target market, distribution channel etc.
(7) Other parameters may be taken into account, depending on the type of policy. In establ ishing the
values of such parameters, the considerations set out in Part III -A of this Schedule shall be taken into
account.
(8) Reinsurance arrangement with an element of borrowing in the form of deposit or credit of any kind from
insurer’s reinsurers without the prior approval of the Competent Authority shall not be treated as credit
for reinsurance for the purpose of determination of required solvency margin.
(9) In case the mathematical reserve is calculated allowing for outgo in respect of reinsurance premium and
credit taken for claim recoveries from reinsurer, the valuation basis and methods shall be as per th e Part
III of Schedule - I of these regulations .
6. Additional Requirements for Linked Insurance Business :
(1) Reserves in respect of linked business shall cons ist of two components, namely, unit reserves or policy
account value and general fund reserves.
(2) Unit reserves or policy account value shall be calculated in respect of the units or policy account value
allocated to the policies in force at the valuation da te using unit values or policy account value if
applicable, at the valuation date.
(3) General fund reserves shall be determined using discounted cash flow method, which shall take into
account of the following, namely:
(i) premiums, if any, payable in future;
(ii) death benefits, if any, provided by the general fund reserve (over and above the value of units or
the policy account value );
(iii) charges paid to the general fund;
(iv) guarantees, if any, relating to surrender values or minimum death and maturity benefits;
(v) fund grow th rates and fund management charges. (The values of these parameters, along with
others, shall be determined in accordance with clause 5(5) of Part III (A) of Schedule - I of these
regulations) ;
(vi) non-negative residual additions, if any,
(vii) other future cash f low, if any,
(viii) any future negative cash flow shall be appropriately provided for by setting up reserves;
(4) General fund reserve under linked policies calculated as above, if negative, shall be set to zero.
(5) The general fund reserves shall be considered as res erve for non -linked non -participating business for
the purpose of investment norms, distribution of surplus etc.
7. Additional Requirements for Variable Linked Business:
(1) Reserve in respect of variable linked business shall consist of two components, namely, p olicy account
reserves and general fund reserves.
(2) Policy account reserves shall be the balance in Policy Account on the date of valuation.
(3) General fund reserves shall be determined using discounted cash flow method, which shall take into
account the follow ing, namely:
(i) premiums, if any, payable in future;
(ii) death benefits, if any, provided by the general fund (over and above the value of policy account);
(iii) charges paid to the general fund;
(iv) guarantees, if any, relating to surrender values or minimum death and ma turity benefits;
(v) policy account growth rates and fund management charges. (The values of these parameters,
along with others, shall be determined in accordance with clause 5(5) of Part III (A) of Schedule - I
of these regulations );
(vi) non-negative residual add itions, if any;
(vii) other future cash flow, if any,
(viii) any future negative cash flow shall be appropriately provided for by setting up reserves;
(4) General fund reserve s under variable linked policies calculated as above, if negative, shall be set to
zero.
(5) The ge neral fund reserves shall be considered as reserve for non -linked non -participating business for
the purpose of investment norms, distribution of surplus etc.
8. Additional Requirements for Variable Non -Linked Business (Par and Non -Par):
(1) Reserve in respect o f variable non -linked business shall consist of two components, namely, policy
account reserves and general fund reserves.
(2) Policy account reserves shall be the balance in Policy Account on the date of valuation.
(3) General fund reserves shall be determined us ing discounted cash flow method, which shall take into
account of the following, namely:
(i) premiums, if any, payable in future;
(ii) death benefits, if any, provided by the general fund (over and above the value of Policy account);
(iii) charges paid to the general fu nd;
(iv) guarantees, if any, relating to surrender values or minimum death and maturity benefits;
(v) policy account growth rates and fund management charges. (The values of these parameters,
along with others, shall be determined in accordance with clause 5(5) of Part III (A) of Schedule - I
of these regulations );
(vi) non-negative residual additions, if any,
(vii) other future cash flow, if any,
(viii) any future negative cash flow shall be appropriately provided for by setting up reserves
(ix) future bonuses (one year after valuation date) including terminal bonuses (consistent with the
valuation rate of interest)
(x) allocation of profit to shareholders, if any, where there is a specified relationship between profits
attributable to shareholders and the bonus rates declared for policyhold ers.
Provided that allowance must be made for tax, if any
(4) General fund reserves under variable non-linked policies calculated as above, if negative, shall be set
to zero.
(5) The general fund reserves under variable non -linked non -participating business shall be considered
as reserve for non -linked non-participating business for the purpose of investment norms, distribution
of surplus etc.
(6) The general fund reserves under variable non -linked participating business shall be considered as
reserve for non -linked p articipating business for the purpose of investment norms, distribution of
surplus etc.
9. Requirements for Additional Provisions :
The Appointed Actuary shall make aggregate provisions in respect of the following, where it is not
possible to factor while calculat ing mathematical reserves for each policy, in the determination of
mathematical reserves:
(1) Policies in respect of which extra premiums have been charged on account of underwriting of
substandard lives that are subject to extra risks such as occupation hazard, over -weight, under weight,
smoking history, health, climatic or geographical conditions;
(2) Lapsed policies not included in the valuation but under which a liability exists or may arise;
(3) Reduced paid -up policies where there is a possibility of reviva l resulting in additional reserves;
(4) Options available under individual and group insurance policies;
(5) Guarantees available to individual and group insurance policies;
(6) The rates of exchange at which benefits in respect of policies issued in foreign currenci es have been
converted into Indian Rupees and what provision s have been made for possible increase of
mathematical reserves arising from future variations in rates of exchange;
(7) Pandemic events , if any;
(8) Other s, if any.
10. Solvency Margin
(1) Every life insurer sh all determine the Required Solvency Margin, the Available Solvency Margin, and
the Solvency Ratio as per the Form s KT-1, KT -2 and KT -3 as specified under Annexure Actl -6 to
Annexure Actl -8 of these regulations.
(2) The control level of solvency margin shall be one hundred and fifty percent of Required Solvency
Margin for the purpose of sub -section 3 of Section 64 VA of Insurance Act,1938.
(3) Every life insurer shall at all times maintain solvency margin not below the control level of solvency
margin.
11. Health Ins urance Business
Where the Life insurer transacts health insurance business providing health covers, the amount of liabilities
shall be determined in accordance with the principles specified under these regulations .
12. Business outside India
Where the Life insurer transacts life insurance business in a country outside India as a branch of the
insurer and submits statements or returns or any such particulars to the host regulator, the insurer shall
enclose th e same along with the forms as specified in Part I II (B) of Schedule -I of these regulations.
Provided that if Appointed Actuary is of the opinion that the liability and solvency norms outside India
where the insurer transacts business, results in lower liability and/or solvency requirement as compared to
the liability and solvency norms existing in India , then such person shall require the insurer to set aside
additional reserves over and above the reserves shown in the statements or returns or any such particulars
submitted to the host regulator of a countr y outside India so as to comply with the liability and solvency
norms existing in India .
13. Furnishing of Statements
Statements of Assets, Liabilities and Solvency Margin shall be furnished in forms as specified under Part II I
(B) of Schedule -I of these regul ations and shall be furnished separately for life insurance business within
India and total business transacted by the insurer.
(B) Report and Abstract for Life Insurance Business as stipulated under the Section 13 of the Act.
1. Procedure for Preparation of Actu arial Report and Abstract.
(1) The abstracts and statements must be so arranged that the number and letters of the paragraphs
correspond with clause 2 of Part I II(B) of Schedule -I of these regulations .
(2) The Abstracts and Statements shall be furnished to the Com petent Authority, within three months from
the end of the period to which they refer to or within thirty days from the date of adoption of accounts by
the Board, whichever is earlier.
(3) There shall be appended to every such abstract and statement :
(i) Certificat e signed by the Chief Executive Officer (CEO) that full and accurate particulars of every
policy under which there is a liability, either actual or contingent, has been furnished to the Appointed
Actuary for the investigation; however, exceptions if any, m ay be brought out along with action being
taken to rectify the deficiency in the valuation data.
(ii) Certificate signed by the Appointed Actuary with his remarks, if any, to the effect that:
(a) the data furnished by the CEO has been included in conducting the val uation of liabilities for t he
purpose of the investigation;
(b) the provisions of the Act are complied with;
(c) the Actuarial Practice Standards issued by Institute of Actuaries of India with the concurrence of
the Authority are complied with;
(d) reasonable steps ha ve been taken to ensure the accuracy and completeness of data (if any data
deficiency is observed this may be highlighted).
(e) in the opinion of the Appointed Actuary , the mathematical reserves are adequate to meet
insurer’s future commitments under the contr acts, and the policyholders’ reasonable
expectations.
2. Requirements Applicable to Abstract and Statements
(1) Abstracts and statements shall be prepared separately in respect of
(i) Participating; and
(ii) Non - Participating business
(2) Every insurer shall append the following statements in the form specified in Annexure Actl-1 to
Annexure Actl - 9 to the abstract prepared in accordance with these regulations:
(i) Statement of Liabilities – Form H, Form NLB, Form LB, Form VIPNLB and Form VIPLB
(ii) Form IA NPAR (In respect of No n-Participating Business)
(iii) Form IA PAR (In respect of Participating Business)
(iv) Valuation balance Sheet – Form I
(v) Statement of Assets - Form AA
(vi) Form KT -1
(vii) Form KT -2
(viii) Statement of Available Solvency Margin and Solvency Ratio - Form KT -3
(ix) Composition and Distributi on of Surplus – Form S
(3) Every insurer shall also submit the following along with above statements :
(i) With Profit Committee Report
(ii) Any other forms as prescribed by the Competent Authority from time to time
(iii) Detailed information regarding the above statements m ay be obtained in the formats as specified
by the Competent Authority.
(4) Each Abstract shall show :
(i) The Valuation Date - The date on which valuation (investigation) is done;
(ii) Products - A list of all products/riders included in the valuation along with their respective UIN;
(iii) Foreign Operations - A brief description of the foreign operations of the insurer, during the inter -
valuation period;
(iv) Valuation data - The Appointed Actuary shall comment on the steps taken to verify consistency,
completeness and accuracy of data provided by the CEO.
(v) Valuation Method - A brief description of:
(a) the methods adopted in the determination of mathematical reserves in respect of insurance
products;
(b) the method by which age at entry, premium term, maturity date, valuation age, peri od from the
valuation date to the maturity date, have been treated for the purpose of valuation;
(c) the manner in which reinsurance has been taken into account in arriving at the valuation
reserves net of reinsurance
(d) the method of allowing for :
(1) Incidence of p remium income ; and
(2) Premiums payable otherwise than annually;
(e) valuation methodology for various options and guarantees:
(1) Provide the details of various options that are provided under various products included in
investigation.
(2) Summarize the methods used to make suitable provisions for these options, wherever
explicitly provided.
(3) Provide the details of various guarantees that are offered under various products included
in investigation.
(4) Summarize the methods used to make provisions for these guarantees, w herever explicitly
provided.
(vi) Other Adjustments (Provisions) :
The methods by which provisions, if any, have been made for the following matters, along with a
statement of bases as part of Valuation bases, wherever necessary :
(a) Policies in respect of which extra premiums have been charged on account of underwriting of
under -average lives that are subject to extra risks such as occupation hazard, over -weight,
under -weight, smoking history, health, climatic or geographical conditions;
(b) Lapsed policies not incl uded in the valuation but under which a liability exists or may arise;
(c) Reduced paid -up policies where there is possibility of revival resulting in additional reserves;
(d) Options available under individual and group insurance policies
(e) Guarantees available to individual and group insurance policies
(f) The rates of exchange at which benefits in respect of policies issued in foreign currencies have
been converted into Indian Rupees and what provision has been made for possible increase of
mathematical reserves aris ing from future variations in rates of exchange;
(g) Pandemic events, if any;
(h) Other s, if any.
(vii) Valuation bases :
Valuation parameters used in the valuation shall be furnished separately for best estimate, margin
for adverse deviation and valuation assumptions in the manner as specified in the table hereunder:
Description Mortalit
y basis
used Morbidity
basis
used Inflation
rate Interest
Rate Expe
nses Lapse /
Surrende
r, if any Future
bonuse
s, if any Others,
please
specify Remarks
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
(a) Insurance
Product:
(i) Regular
Premium
(ii) Single premium
and Fully paid up
(iii) Reduced Paid
up
(b) Insurance
Product:
(i) Regular
Premium
(ii) Single premium
and Fully paid up
(iii) Reduced Paid
up
Notes:
a. Summarize th e Margins for Adverse Deviations for these parameters.
b. Provide the basis for arriving at the valuation parameters along with experience, if any
c. Summarize and justify any material changes made to the assumptions during the inter -valuation
period along with the impact.
d. Specify separately the expenses related to premiums, sum assured, annuity, etc., and per policy
under Column (6) of the table;
e. Specify items such as terminal bonus in respect of with profit contracts and management charges, unit
growth rate, po licy account growth rate etc. in respect of linked business under Column (9) of the
table;
f. Include items related to Other Provisions, if any, as part of Column (9)
3. Negative Reserves and Guaranteed Surrender Value Deficiency Reserves :
A brief description o f treatment adopted for negative reserves and guaranteed surrender value deficiency
reserves shall be furnished.
4. Return on Assets:
The yield on investment will be the investment income as a percentage of the mean fund over the period,
on assets attributa ble to blocks of business / segments etc. The value of the assets for this purpose shall
be the adjusted values of assets using the asset valuation method prescribed in Part III (A) of Schedule -I
of these regulations. The mean fund would be assessed consid ering the amount and incidence of cash -
flow to the fund.
5. Distribution of surplus :
The basis adopted in the distribution of surplus as between the shareholders and the policyholders, and
whether such distribution was determined by the instruments constitu ting the Insurer or by its regulations
or by -laws or how otherwise shall be mentioned.
6. Principles adopte d in distribution of surplus :
The general principles adopted in distribution of surplus among policyholders, including statements on
following points , shall be furnished:
(1) Whether the principles were determined by instruments constituting the insurer, or by its regulations
or by -laws or otherwise;
(2) The number of years premium to be paid, period to elapse and other conditions to be fulfilled befo re
a bonus is allotted;
(3) Whether the bonus is allocated in respect of each year's premium paid, or in respect of each
calendar year or year of assurance or otherwise; and
(4) Whether the bonus vests immediately on allocation, or, if not, conditions of v esting.
7. Statement of composition of surplus and distribution of surplus in respect of policyholders' funds .
(1) A Statement of composition of surplus and distribution of surplus in respect of policyholders' funds,
showing total amount of surplus as at the Ba lance sheet date and the allocation of such surplus, shall
be furnished separately for participating business and for non -participating business, with the
particulars as mentioned below:
Composition of Surplus:
(i) Surplus emerging during the valuation year ;
(ii) Interim Bonuses paid du ring the inter -valuation period ;
(iii) Terminal Bonuses paid during the inter -valuation period;
(iv) Loyalty Additions or other forms of bonuses, if any, paid during the inter -valuation period;
(v) Sum transferred from shareholders’ funds during the inter-valuation period;
(vi) Amount of surplus, from policyholders' funds, brought forward from preceding valuation ;
(vii) Total Surplus (total of the items (i) to (vi )):
Distribution of Surplus:
Policyholders' Fund:
(i) To Interim Bonuses paid;
(ii) To Terminal Bonuses;
(iii) To Loyalty Additions or any other forms of bonuses, if any;
(iv) Among policyholders with immediate participation giving the number of polices which
participated and the sums assured thereunder (excluding bonuses);
(v) Among policyholders with deferred participation , giving the number of polices which
participated and the sums assured thereunder (excluding bonuses);
(vi) To every reserve fund or other fund or account (any such sums passed through the accounts
during the inter -valuation period to be separately stated);
(vii) As carried forward un -appropriated.
Share -holders’ fund:
(viii) To the shareholders’ funds (any such sums passed through the accounts during the inter
valuation period to be separately stated);
Totals:
(ix) Total Surplus a llocated: (total of the items (i ) to (viii ))
(2) Specimen of Bonuses allotted to policies for one thousand rupees of benefit together with the amounts
apportioned under the various manners in which the bonus is receivable, for each type of participating
product, shall be furnished.
8. Provisions related to submission of Statements :
(1) Statements mentioned under clause 2 of Part III (B) of Schedule -I of these regulations shall have the
following description , as applicable : -
(i) Classification
(ii) Type
(iii) Category
(iv) Division
(v) Sub-Class
(vi) Group
(2) There shall be two Classifi cations, namely, Business Within India and Total Business (consisting of
Business within India and Business outside India), with Classification Codes ‘BWI’ and ‘BT’
respectively
(3) There shall be two Types, namely, Participating and Non -Participating with co des ‘PAR’ and ‘NPAR’
respectively under each classification.
(4) There shall be four categories as under each Type namely,
(i) Non-Linked (other than Variable Insurance Products) with Category Code ‘NL’
(ii) Linked (other than Variable Insurance Products) with Cat egory Code ‘L’
(iii) Non-Linked Variable Insurance Products with category code ‘VIP -NL’
(iv) Linked Variable Insurance Products with category code ‘VIP -L’
(5) There shall be two Divisions, namely, Individual Business and Group Business, with Division Codes
‘I’ and ‘G’ r espectively under each Category.
(6) There shall be four Sub -Classes, namely, Life Business, Pension Business, General Annuity
Business and Health Insurance Business with Sub -Class codes ‘L’,’P’, ‘A’, and ‘HL’
(7) There shall be two Groups, namely, Immediate Par ticipation, Deferred Participation with Group
Codes of ‘I -PAR’ and ’D -PAR’ respectively under the Sub Class – Life Business of Individual Division
under Participating Type.
(8) There shall be two Groups, namely, Immediate Annuity and Deferred Annuity with Gro up Codes ‘IA’
and ‘DA’ under the Sub Class of General Annuity Business.
(9) There shall be two Groups, namely, Premiums Guaranteed for not more than one year and Premiums
Guaranteed for more than one year with Group Codes of ‘NGP’ and ‘GP’ respectively under Sub
Class of Life Business under the Division of Group Business under Non -Linked Category.
(10) There shall be two Groups, namely, With Guarantees and Without Guarantee with Group Codes of
‘WG’ and ‘WOG’ respectively under each of the categories Linked, Non -Linked Variable Insurance
Products and Linked Variable Insurance Products.
(11) “Nil” Statements shall be furnished for those forms where the insurer has no transactions.
(12) All figures shall be furnished in thousands and all amounts shall be furnished in Indian R upees.
(13) In respect of Group Business, ‘the number of policies’ in Forms and Statements , wherever applicable,
shall be read as ‘number of schemes’.
(C) Distribution of Surplus by Life Insurance Companies :
1. Requirement to maintain a life insurance fund :
(1) A life insurer registered under section 3 of the Act shall be required to maintain separately:
(i) A life fund for participating policyholders , and
(ii) A life fund for non -participating policyholders.
(2) Non-Compliance with the requirements of clause 1(1) of Part III (C) of Schedule – I of these
regulations shall mean that the life fund maintained by the insurer shall be for the benefit of the
participating policy holders only.
2. Procedure for distribution of surplus :
A life insurer, may on the advice of his App ointed Actuary, reserve to its shareholders, a part of the
actuarial surplus (also referred to as valuation surplus) arising out of a valuation of assets and liabilities
made for a financial year in accordance with Part I II of these regulations, in the fol lowing manner:
(1) one hundred percent , in case of a life fund maintained for non -participating policy -holders;
(2) one-ninth of the surplus allocated to policyholders in case of a life fund maintained for participating
policy holders.
Provided that an insurer sh all however be required to obtain prior approval of the Authority in cases
where the said allocation is not the one -ninth of the surplus.
Provided further that an insurer shall not allocate or reserve exceeding ten percent , of the said
actuarial surplus to its shareholders.
Part I V: Valuation of General Insurance Business :
1. Applicability :
This part of regulations shall be applicable to all th e general insurers and standalone health insurers .
2. Assets, Liabilities and Solvency Margin :
1. Valuation of Assets:
All assets of a general insurer or a standalone health insurer shall be valued in accordance with
Schedule - II – Finance functions of these regulations, other applicable regulations, including IRDAI
(Registration, Capital Structure, Transfer of Shares and Amal gamation of Insurers ) Regulations, 2024
and applicable extant norms , except the following assets which shall be placed with value zero for
solvency margin computation:
(i) Agents’ and Intermediaries’ balances and outstanding premiums in India, to the extent th ey are not
realized within a period of thirty days;
(ii) Premiums receivables relating to State/Central government sponsored schemes, to the extent they
are not realized within a period of 365 days;
(iii) Agents’ and Intermediaries’ balances and outstanding premiums outside India, to the extent they
are not realizable;
(iv) Sundry debts, to the extent they are not realizable;
(v) Advances and receivables of an unrealizable character;
(vi) Loans and advances as per Schedule – IV of these regulations;
(vii) Furniture, fixtures, dead stock and stationery;
(viii) Deferred expenses;
(ix) Debit balance of Profit and loss appropriation account balance and any fictitious assets other than
pre-paid expenses;
(x) Co-insurer’s balances outstanding for more than ninety days;
(xi) Balances of Indian Reinsurers and Foreign Reinsurers having Branches in India outstanding for
more than 365 days;
(xii) Reinsurer’s balances other than mentioned in point (x i) above outstanding for more than 180 days;
(xiii) Leasehold improvements ;
(xiv) Goods and Services Tax (GST) Unutilized Credit outstanding fo r more than 120 days ;
(xv) Seventy -five percent of the ‘Deferred Tax Asset’ other than that arising on account of
“Accumulated losses” ;
(xvi) ‘Deferred Tax Asset’ arising on account of "Accumulated losses";
(xvii) Investments representing unclaimed amounts and investment in come accrued or earned thereon ;
(xviii) Any other assets to the extent not realisable .
2. Determination of Amount of Liabilities
The amount of technical liabilities shall be determined on the Valuation Date separately for each line of
business and shall be the sum to tal of Unexpired Risk Reserves and Claims Reserves. The Appointed
Actuary shall ensure the reserves estimated are adequate to meet the liabilities.
(i) Unexpired Risk Reserves (URR) :
The URR shall be calculated using sound actuarial principles and shall compri se of the following:
(a) Unearned Premium Reserve (UPR):
A reserve for unearned premium shall be provide d as the amount representing that part of the
premium written which is attributable to, and allocated to the succeeding accounting periods. UPR
will be est imated as per the clause 4 of Part I I of Schedule - II of these regulations and shall be
certified by the Chief Financial Officer and the Statutory Auditor .
(b) Premium Deficiency Reserve (PDR):
The PDR shall be calculated using sound actuarial principles. Thou gh the PDR shall be maintained
at the insurer level, PDR on segmental basis would be monitored for assessing the sustainability of
products and maintaining at lines of business level. PDR as maintained at the insurer level shall be
subject to minimum of ze ro value.
Premium deficiency shall be recognized if the sum of expected claim costs, expenses and
maintenance costs exceeds related unearned premium reserve. Premium deficiency reserve shall
be calculated and duly cer tified by an Appointed Actuary.
(ii) CLAIMS RESERVE
(a) The Claims Reserve shall be determined as the aggregate amount o f Outstanding Claims
Reserve, Incurred but Not Reported Claims Reserve (IBNR) and Incurred but not Enough
Reported (IBNER) claim reserves as described below for the following lines of business . In case of
FRB, the claims reserve may be arrived at aggregate level for each of Motor and H eath lines of
business if the granular data is not available.
ITEM NO. LINE OF BUSINESS
MOTOR
1 Motor OD - Private car
2 Motor OD - Two Wheeler
3 Motor OD - Commercial Vehicle
4 Motor TP - Private car
5 Motor TP - Two Wheeler
6 Motor TP - Commercial Vehicle (Declined Pool)
7 Motor TP - Commercial Vehicle (TP Pool)
8 Motor TP - Commercial Vehicle (Other than Pool)
HEALTH
9 Health Insurance - Individual
10 Health Insurance - Group -Government Schemes
11 Health Insurance - Group -Employer/Employee Schemes
12 Health Insurance - Group -Other Schemes
PERSONAL ACCIDENT
13 Personal Accident – Individual
14 Personal Accident - Group (Government Sche mes)
15 Personal Accident – Group (Others)
16 TRAVEL
17 FIRE
MARINE
18 Marine Cargo
19 Marine – Other than Marine Cargo
OTHER MISCELLANEOUS
20 Engineering
21 Aviation
22 Product Liability
23 Liability Insurance
24 Workmen Compensation / Emplo yer's Liability
25 Crop Insurance
26 Weather Insurance
27 Credit Insurance
28 Others
(b) Outstanding Claims Reserve :
The outstanding claims reserve shall be determined in the following manner:
(i) Where the amount of outstanding claims of the insurers is know n, the amount is to be provided
in full;
(ii) Where the amount of outstanding claims can be reasonably estimated according to the insurer,
insurer shall follow the 'case by case method' after taking into account the explicit allowance for
changes in the settlem ent pattern or average claim amounts, expenses and inflation;
(iii) For lines of business, where the Appointed Actuary is of the view that the statistical method is
most appropriate for the estimation of Outstanding claims, the Appointed Actuary may use the
appropriate statistical method of claims reserving instead of following case by case method. In
such cases, the claims outstanding reserve shall be certified by Appointed Actuary. Where the
Appointed Actuary identifies material changes in the claims handling p ractices, their impact on
the outstanding claims reserve pattern shall be taken into account and reported.
(c) Incurred But Not Reported (IBNR) Claims Reserve :
(i) The incurred but not reported (IBNR) claims reserve shall be determined using appropriate
actuar ial principles and methods and shall be certified by the Appointed Actuary.
(ii) The Appointed Actuary shall estimate IBNR on both net of reinsurance and gross of reinsurance
basis.
(iii) The Appointed Actuary shall estimate the provision for IBNR for each year of oc currence and
the figures shall be aggregated to arrive at the total amount to be provided.
(iv) If estimate of IBNR provision for any year of occurrence produces a negative value, the
Appointed Actuary shall consider the IBNR provision for that year of occurren ce at least zero .
(v) The estimation process shall not discount the estimated future development of claims to the
current date.
3. Determination of Other Liabilities :
The general insurer shall place a proper value in respect of the following items , in full :
(i) Provision for bad and doubtful debts; reserve for dividends declared or recommended, and
outstanding dividends;
(ii) Amount due to insurance companie s carrying on insurance business ;
(iii) Amount due to sundry creditors;
(iv) Provision for taxation;
(v) Foreign exchange reserve ; and
(vi) Other liabilities, if any.
4. Determination of Solvency Margin :
(i) Every general insurer and standalone health insurer shall determine the Required Solvency Margin,
the Available Solvency Margin, and the Solvency Ratio in FORM IRDAI -GI-SM in accordance wi th
Annexure Actl -12.
(ii) Control level of solvency margin :
(a) The control level of solvency margin shall be one hundred and fifty percent of Required Solvency
Margin for the purpose of sub -section 3 of Section 64 VA of Insurance Act,1938.
(b) Every general insurer a nd standalone health insurer shall at all times maintain solvency margin not
below the control level of solvency margin.
5. Statements to be Submitted :
(i) Every general insurer and standalone health insurer shall submit a statement of value of admissible
asset s in FORM IRDAI -GI-TA in accordance with Annexure Actl - 10.
(ii) The amount of Required Solvency Margin shall be determined on the Valuation Date separately for
each line of business as listed in the FORM IRDAI -GI-SM. Every general insurer and standalone healt h
insurer shall submit a statement of liabilities in FORM IRDA I-GI-TR in accordance with Annexure Actl -
11, certified by the Appointed Actuary , Principal Officer , Statutory Auditor and Chief Financial Officer in
accordance with Section 64V of the Act.
(iii) Every general insurer and standalone health insurer shall submit a statement of solvency margin in
FORM IRDA -GI-SM in accordance with Annexure Actl - 12.
(iv) The general insurer and standalone health insurer shall furnish any additional information as may be
spec ified by the Competent Authority from time to time.
(v) The Forms as prescribed above , namely, FORM IRDAI -GI-TA, FORM IRDAI -GI-TR and FORM IRDAI -
GI-SM shall be furnished separately for General Insurance Business within India and Total Business
transacted by t he general insurer.
(vi) These Forms shall be furnished to the Competent Authority, within three months from the end of the
period to which they refer to or within thirty days from the date of adoption of accounts by the Board of
the insurer, whichever is earl ier, along with any other reports as may be specifi ed by the Competent
Authority from time to time .
6. Business Outside India :
Where the insurer transacts general or health insurance business in a country outside India as a branch of
the insurer and submits statements or returns or any such particulars to the host regulator of that country,
the insurer shall enclose a copy of the same along with the Forms specified in accordance with these
regulations and as may be specifi ed by the Competent Authority from ti me to time.
Provided that if Appointed Actuary is of the opinion that the liability and solvency norms outside India,
where the insurer transacts business, results in lower liability and/or solvency requirement as compared to
the liability and solvency nor ms existing in India, then the Appointed Actuary shall require the insurer to
set aside additional reserves over and above the reserves shown in the statements or returns or any such
particulars submitted to the host regulator of a country outside India so as to comply with the liability and
solvency norms existing in India.
Part V: Applicability to Reinsurers including ‘Foreign Reinsur er’s Branches’ for the purpose of
determination of solvency margin:
1. Life Reinsurance business :
(1) The amount of liabilities shall be determined in accordance with the Part III of Schedule - I of these
regulations .
(2) The Required Solvency Margin shall be determined in accordance with the Part II I of Schedule - I of
these regulations .
(3) As regards the business ceded by the insurers, Pa rt III of Schedule - I of these regulations shall be
applicable to the net sums at risk retained by the insurer.
(4) Life Reinsurance business includes life and health insurance business ceded by life insurers.
2. General Reinsurance business:
(1) The amount of lia bilities shall be determined in accordance with the Part IV of Schedule - I of these
regulations;
(2) The Required Solvency Margin shall be determined in accordance with the Part IV of Schedule - I of
these regulations
(3) As regards the business ceded by the insure rs, Part IV of Schedule I of these regulations shall be
applicable to the net sums at risk retained by the insurer.
(4) General Reinsurance business includes general and health insurance business ceded by General and
standalone health insurers.
3. Valuation of a ssets :
(1) The available asset shall be valued at reinsurer level in accordance with Schedule - II – Finance
functions of these regulations.
(2) Inadmissible assets shall be valued in accordance with Part II I and Part IV of Schedule - I of these
regulations as appl icable.
4. Control level of solvency margin :
(1) The control level of solvency margin shall be one hundred and fifty percent of Total Required
Solvency Margin , where Total Required Solvency Margin is the sum of Required Solvency Margin for
Life Reinsurance bus iness and Required Solvency Margin of General Reinsurance Business .
(2) Every reinsurer shall at all times maintain solvency margin not below the control level of solvency
margin.
5. Statements to be Submitted :
(1) Statements for Life Reinsurance Business :
(i) Stateme nts of Liabilities (Annexure Actl -1)
(ii) Form KT1 (Annexure Actl -6)
(iii) Form KT2 (Annexure Actl -7)
(2) Statements for General Reinsurance Business:
(i) Form IRDAI -GI-TR (Annexure Actl -11)
(ii) Table IA of Form IRDAI -GI-SM (Annexure Actl -12)
(3) Combined statements for Life and Gener al Reinsurance business
(i) Statement of Assets – FORM IRDAI -RI-TA (Annexure Actl -13)
(ii) Solvency Form - IRDAI -RI-SM (Annexure Actl -14)
(4) Every reins urer shall submit the statements as specified above under clause 5(1) to 5(3) of Part V of
Schedule - I of these regulations .
(5) Any other forms as prescribed by the Competent Authority from time to time
6. The forms as referred in clause 5 of Part V of Schedule -I of these regulations shall be furnished to the
Competent Authority, within three months from the end of the per iod to which they refer to or within thirty
days from the date of adoption of accounts by the Board of the reinsurer, whichever is earlier, along with
any other reports as may be specified by the Competent Authority from time to time.
SCHEDULE – II: FINANC E FUNCTIONS
Part I: Preparation of financial statements, management report of life insurers
1. Applicability
This part of regulations shall be applicable to all the life insurers.
2. Accounting Principles for Preparation of Financial Statements :
Applicability of Accounting Standards. - Every Balance -Sheet, Revenue Account [Policyholders' Account],
Receipts and Payments Account [Cash Flow statement] and Profit and Loss Account [Shareholders'
Account] of an insurer shall be in conformity with the Accounting Stand ards (AS) as notified under the
Companies Act, 2013 , to the extent applicable to insurers carrying on life insurance business, except
that-
(1) Accounting Standard 3 (AS 3) - Cash Flow Statements - Cash Flow Statement shall be prepared only
under the Direct Me thod.
(2) Accounting Standard 17 (AS 17) - Segment Reporting - shall apply to all insurers irrespective of the
requirements regarding listing and turnover mentioned therein.
3. Premium :
Premium shall be recognised as income when due. For linked business the due date for payment may be
taken as the date when the associated units are created.
4. 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).
5. Claims Cost :
The ultimate cost of claims shall comprise the policy benefit amount and specific claims settlement costs,
wherever applicable.
6. 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 account.
The liability shall be so calculated that together with future premium payments and investment income, the
insur er can meet all future claims (including bonus entitlements to policyholders) and expenses.
7. Procedure to determine value of investments :
An insurer shall determine the values of investments in the following manner:
(1) Real Estate - Investment Property :
The value of investment property shall be determined at historical cost, subject to revaluation at least
once in every three years. The change in the carrying amount of the investment property shall be
taken to Revaluation Reserve.
The insurer shall assess at each balance sheet date whether any impairment of the investment
property has occurred.
Gains/losses arising due to changes in the carrying amount of real estate shall be taken to equity
under 'Revaluation Reserve'. The 'Profit on sale of investments' or 'Loss on sale of investments', as the
case may be, shall include accumulated changes in the carrying amount previously recognised in
equity under the heading 'Revaluation Reserve' in respect of a particular property and being recycled
to the relevant Reven ue Account or Profit and Loss Account on sale of that property.
The bases for revaluation shall be disclosed in the notes to accounts. The Competent Authority may
issue directions specifying the amount to be released from the revaluation reserve for decla ring 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 Competent Authority’s direction, no other amount shall be distributed to
shareholders out of Revaluation Rese rve Account.
An impairment loss shall be recognised as an expense in the Revenue/Profit and Loss Account
immediately, unless the asset is carried at re -valued amount. Any impairment loss of a re -valued asset
shall be treated as a revaluation decrease of t hat asset and if the impairment loss exceeds the
corresponding revaluation reserve, such excess shall be recognised as an expense in the
Revenue/Profit and Loss Account.
(2) Debt Securities :
Debt securities, including government securities and redeemable pre ference shares, shall be
considered as "held to maturity" securities and shall be measured at historical cost subject to
amortisation.
(3) 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. Measurement for the purpose of calculation of fair value shall
be the last quoted closing price on NSE. However, in case of any stock not being listed in NSE, the
insurer may value the Equity based on the last quoted closing price in BSE.
The insurer shall assess on each balance sheet date whether any impairment of listed equity
security(ies)/derivative(s) instruments has occurred.
An active market sha ll 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 Profit and Loss
Account on actual sale of that listed security.
The Competent Authority may issue directions specifying the amount to be released from the Fair
Value Change 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 Competent Authority's
prescr iption, no other amount shall be distributed to shareholders out of Fair Value Change Account.
Also, any debit balance in Fair Value Change Account shall be reduced from profit/free reserves while
declaring dividends.
The insurer shall assess, on each bal ance sheet date, whether any impairment has occurred. An
impairment loss (i.e. other than temporary diminution in value) shall be recognised as an expense in
Revenue/Profit and Loss Account to the extent of the difference between the re -measured fair value of
the security/investment and its acquisition cost as reduced by any previous impairment loss recognised
as expense in Revenue/Profit and Loss Account. Any reversal of impairment loss, earlier recognised in
Revenue/Profit and Loss Account shall be recogn ised in Revenue/Profit and Loss Account.
Insurer shall disclose its policy on recognition of impairment in notes to account.
(4) Unlisted and other than actively traded Equity Securities and Derivative Instruments :
Unlisted equity securities and derivativ e instruments and listed equity securities and derivative
instruments that are not regularly traded in active markets shall be measured at historical cost.
Provision shall be made for diminution in value of such investments. The provision so made shall be
reversed in subsequent periods if estimates based on external evidence show an increase in the value
of the investment over its carrying amount. The increased carrying amount of the investment due to
the reversal of the provision shall not exceed the histo rical cost.
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".
(5) Loans :
Loans shall be measured at historical cost subject to impairment provisions.
The insurer shall assess the quality of its loan assets and shall provide for impairment. The
impairment provision shall not be lower than the amounts derived on the basis of guidelines
prescribed from time to time by the Reserve Bank of India, that apply to companies and financial
institutions.
(6) Linked Business :
The accounting principles used for valuation of investments are to be consistent with principles
enumerated above. A sepa rate 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
policy -holders 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.
(7) Funds for future appropriation :
The funds for future app ropriation 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.
8. Disclosures Forming Par t of Financial Statements
(1) The following shall be disclosed by way of notes to the Balance Sheet:
(i) Contingent Liabilities:
(a) Partly -paid up investments
(b) Underwriting commitments outstanding
(c) Claims, other than those under policies, not acknowledged as debts;
(d) Guarantees given by or on behalf of the company
(e) Statutory demands/liabilities in dispute, not provided for
(f) Reinsurance Obligations to the extent no provided for in accounts
(g) Others (to be specified).
(ii) Actuarial assumptions for valuation of liabilities for life policies in force.
(iii) Encumbrances to assets of the company in and outside India.
(iv) Commitments made and outstanding for Loans, Investments and Fixed Assets.
(v) Basis of amortisation of debt securities.
(vi) Claims settled and remaining unpaid for a period of more tha n six months as on the balance
sheet date.
(vii) Value of contracts in relation to investments, for:
(a) Purchases where deliveries are pending;
(b) Sales where payments are overdue.
(viii) Operating expenses relating to insurance business: basis of allocation and apportionmen t of
expenditure to various segments of business.
(ix) Computation of managerial remuneration.
(x) Historical costs of those investments valued on fair value basis.
(xi) Basis of revaluation of investment property.
(xii) Provisions made for policy cancellations during free lo ok period in current year and previous
year duly certified by the appointed actuary
(xiii) Disclosure that contributions made by the shareholders to the Policyholders’ A/c are irreversible
in nature, and shall not be recouped to the shareholders at any point of t ime in future with
reference to the general meeting of the insurer at which such prior approval of the shareholders
has been obtained.
(2) The following accounting policies shall form an integral par t of the financial statements:
(i) All significant accounting policies in terms of the accounting standards and significant principles
and policies given in Part I of Accounting Principles. Any other accounting policies, followed by
the insurer, shall be stated in the manner required under Accounting Standard AS 1.
(ii) Any departure from the accounting policies shall be separately disclosed with reasons for such
departure.
(3) The following information shall also be disclosed :
(i) Investments made in accordance with any statutory requirement should be disclosed separately
toget her with its amount, nature, security and any special rights in and outside India;
(ii) Segregation into performing/non -performing investments for purpose of income recognition as
per the directions, if any, issued by the Competent Authority;
(iii) Assets to the exte nt required to be deposited under local laws or otherwise encumbered in or
outside India;
(iv) Percentage of business sector wise;
(v) Bases of allocation of investments and income thereon between Policy -holders' Account and
Share -holders' Account;
(vi) Disclosure of policy and principles for provisioning for policy cancellations during free look period,
based on assumptions and experience, duly certified by the appointed actuary
(vii) Any other information as may be specified.
9. General Instructions for Preparation of Financial Statements
(1) The corresponding amounts for the immediately preceding financial year for all items shown in the
Balance Sheet, Revenue Account, Profit and Loss Account and Receipts and Payments Account shall
be given.
(2) The figures in the financial statements may be rounded off to the nearest Lakhs.
(3) 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 deduc ted at source.
(4) For the purposes of financial statements, unless the context otherwise requires, -
(i) the expression "provision" shall, subject to (v) below mean any amount written off or retained by
way of providing for depreciation, renewals or diminution in value of assets, or retained by way of
providing for any known liability or loss of which the amount cannot be determined with
substantial accuracy;
(ii) the expression "reserve" shall not, subject to as aforesaid, include any amount written off or
retained by way of providing for depreciation, renewals or diminution in value of assets or
retained by way of providing for any known liability or loss;
(iii) the expression "capital reserve" shall not include any amount regarded as free for distribution
through the profi t and loss account; and the expression "revenue reserve" shall mean any
reserve other than a capital reserve;
(iv) The expression "liability" shall include all liabilities in respect of expenditure contracted for and all
disputed or contingent liabilities.
(v) Wher e-
(a) any amount written off or retained by way of providing for depreciation, renewals or
diminution in value of assets, or
(b) any amount retained by way of providing for any known liability or loss, is in excess of the
amount which in the opinion of the direct ors is reasonably necessary for the purpose, the
excess shall be treated as a reserve and not provision.
(5) The company shall make provisions for damages under lawsuits where the management is of the
opinion that the award may go against the insurer.
(6) Extent o f risk retained and re -insured shall be separately disclosed.
(7) Any debit balance of the Profit and Loss Account shall be shown as deduction from uncommitted
reserves and the balance, if any, shall be shown separately.
(8) All insurers are required to maintain s eparate investment accounts for the shareholders and the policy
holders and the income/ losses accrued / capital gains/losses on the investments is to be credited
/debited to the Revenue Account/ Profit & Loss Account, as the case may be.
10. Contents of Mana gement Report:
There shall be attached to the financial statements, a management report containing, inter alia, the
following duly authenticated by the management: -
(1) Confirmation regarding the continued validity of the registration granted by the Authorit y;
(2) Certification that all the dues payable to the statutory authorities have been duly paid;
(3) 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 ;
(4) Declaration that the management has not directly or indirectly invested outside India the funds of the
holders of policies issued in India;
(5) Confirmation that the required solvency margins have been maintained;
(6) Certification to the effect that the values of all the assets have been reviewed on the date of the
Balance Sheet and that in his (insurer's) belief the assets set forth in the Balance -sheets are shown
in the aggregate at amounts not exceeding their realisable or market value under the several
headi ngs - " Loans", " Investments", "Agents balances", "Outstanding Premiums", "Interest,
Dividends and Rents outstanding", "Interest, Dividends and Rents accruing but not due", "Amounts
due from other persons or Bodies carrying on insurance business", " Sundr y Debtors", " Bills
Receivable", " Cash" and the several items specified under "Other Accounts";
(7) Certification to the effect that no part of the life insurance fund has been directly or indirectly applied
in contravention of the provisions of the Insurance Act, 1938 (4 of 1938) relating to the application
and investment of the life insurance funds;
(8) Disclosure with regard to the overall risk exposure and strategy adopted to mitigate the same;
(9) Operations in other countries, if any, with a separate statement g iving the management's estimate of
country risk and exposure risk and the hedging strategy adopted;
(10) Ageing of claims indicating the trends in average claim settlement time during the preceding five
years;
(11) Certification to the effect as to how the values, a s shown in the balance sheet, of the investments
and stocks and shares have been arrived at, and how the market value thereof has been
ascertained for the purpose of comparison with the values so shown;
(12) Review of asset quality and performance of investment in terms of portfolios, i.e., separately in terms
of real estate, loans, investments, etc.
(13) A responsibility statement indicating therein that: -
(i) 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;
(ii) the management has adopted accounting policies and applied them consistently and made
judgements and estimates that are reasonable and prudent so as to give a true and fa ir view of
the state of affairs of the company at the end of the financial year and of the operating profit or
loss and of the profit or loss of the company for the year;
(iii) 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, for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities;
(iv) the management has prepare d the financial statements on a going concern basis;
(v) the management has ensured that an internal audit system commensurate with the size and
nature of the business exists and is operating effectively.
(14) A schedule of payments, which have been made to individ uals, firms, companies and organizations
in which Directors of the insurer are interested.
(15) Confirmation of compliance with domestic, statutory, regulatory and other laws in the countries in
relation to subsidiaries, associates, joint ventures and other arr angements.
(16) Any other information as may be specified.
11. Preparation of Financial Statements
(1) An insurer shall prepare the Revenue Account [Policy -holders' Account], Profit and Loss Account
[Share -holders' 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 permit.
Provided that an insurer shall prepare the financial statements and the schedules therein for the
under mentioned businesses separately and to that extent the application of AS 17 shall stand
modified: -
(i) Linked Business - (a) Life, (b) Pension, (c) Health, (d) Others
(ii) Non-Linked Business Participating - (a) Life, (b) Pension, (c) Health, (iv) Others
(iii) Non-Linked Business -Non-Participating - (a) Life, (b) Pension, (c) Health, (d) Others
(iv) Business within India and business outside India.
(v) Any other segment as may be specified.
(2) An insurer shall prepare separate Receipts and Payments Account in accordance with the Direct
Method prescribed in AS 3 - "Cash Flow Statement".
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) (Amount in Rs. Lakhs)
Particula rs Schedule
Ref. Current
Year Previous
Year
Premiums earned – net
(a) Premium 1
(b) Reinsurance ceded
(c) Reinsurance accepted
Income from Investments
(a) Interest, Dividends & Rent – Gross
(b) Profit on sale/redemption of investments
(c) (Loss on sale/ redemption of investments)
(d)Transfer/Gain on revaluation/change in fair value
(e) Amortisation of Premium / Discount on
investments
Other Income (to be specified)
Contribution from Shareholders' A/c
(a) Towards Excess Expenses of Management 2
(b) Towards remuneration of MD/CEO/WTD/Other
KMPs 3
(c) Others
TOTAL (A)
Commission 2
Operating Expenses related to Insurance
Business 3
Provision for doubtful debts
Bad debts written off
Provision for Tax
Provisions (other than taxation)
(a) For diminution in the value of investments (Net)
(b) For others (to be specified)
Goods a nd Services Tax on ULIP Charges
TOTAL (B)
Benefits Paid (Net) 4
Interim Bonuses Paid
Change in valuation of liability in respect of life
policies
(a) Gross 4
(b) Amount ceded in Reinsurance
(c) Amount accepted in Reinsurance
(d) Fund Reserve for Linked Policies
(e) Fund for Discontinued Policies
TOTAL (C)
SURPLUS/ (DEFICIT) (D) =(A) -(B)-(C) 5
Amount transferred from Shareholders' Account
(Non -technical Account)6
Amount available for appropriation
Appropriations
Transfer to Shareholders’ Account
Transfer to Other Reserves (to be specified)
Balance being Funds for Future Appropriations
TOTAL
1 Represents the deemed realised gain as per specified norms.
2 In case expenses of management exceeds the limits prescribed by the regulations,
3 In case annual remuneration exceeds the specified limit,
4 Represents Mathematical Reserves after allocation of bonus
5The t otal surplus shall be disclosed separately with the following details:
(a) Interim Bonuses Paid:
(b) Allocation of Bonus to policyholders:
(c) Surplus shown in the Revenue Account:
(d) Total Surplus: [(a)+(b)+(c)].
6 In case of deficit in the Rev enue Account
Note:
a) 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.
b) Items of income in excess of one percent of the total p remiums (less reinsurance) or Rs.5,00,000
whichever is higher, shall be shown as a separate line item.
c) Interest, dividends and rentals receivable in connection with an investment should be stated as
gross amount, the amount of income tax deducted at so urce being included under 'advance taxes
paid and taxes deducted at source”.
d) Income from rent shall include only the realised rent. It shall not include any notional rent.
e) Under the sub -head "Other Income" items like foreign exchange gains or losse s and other items
shall be included.
FORM A -PL
Name of the Insurer:
Registration No. and Date of Registration with the IRDAI
Profit & loss account for the year ended 31st March, 20___.
Shareholders’ Account (Non -technical Account) (Amount in Rs. Lakhs)
Particulars Schedule
Ref. Current
Year Previous
Year
Amounts transferred from the Policyholders Account
(Technical Account)
Income from Investments
(a) Interest, Dividends & Rent – Gross
(b) Profit on sale/redemption of investments
(c) (Loss on sale/ redemption of investments)
(d) Amortisation of Premium / Discount on Investments
Other Income (to be specified)
TOTAL (A)
Expense other than those directly related to the
insurance business
Contribution to Policyholders' A/c
(a) Towards Excess Expenses of Management1
(b) Towards remuneration of MD/CEO/WTD/Other KMPs 2
(c) Others
Interest on subordinated debt
Expenses towards CSR activities
Penalties
Bad debts written off
Amount Transferred to Policyholders' Account3
Provisions (Other than taxation)
(a) For diminution in the value of investments (Net)
(b) Provision for doub tful debts
(c) Others (to be specified)
TOTAL (B)
Profit/ (Loss) before tax
Provision for Taxation
Profit / (Loss) after tax
APPROPRIATIONS
(a) Balance at the beginning of the year.
(b) Interi m dividend paid
(c) Final dividend paid
(d) Transfer to reserves/ other accounts (to be specified)
Profit/Loss carried forward to Balance Sheet
1 In case expenses of management exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
3 In case of deficit in the Revenue Account
Note:
a) 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”.
b) Income from rent shall include only the realised rent. It shall not include any notional rent.
FORM A -BS
Name of the Insurer:
Registration No. a nd Date of Registration with the IRDAI
Balance sheet as at 31st March, 20____. (Amount in Rs. Lakhs)
Particulars Schedule Ref. Current
Year Previous
Year
Sources of funds
Shareholders’ funds:
Share cap ital 5 & 5A
Share application money pending allotment
Reserves and surplus 6
Credit/[debit] fair value change account
Sub-total
Borrowings 7
Policyholders’ funds:
Credit/[debit] fair value change a ccount
Policy liabilities
Funds for discontinued policies:
(i) Discontinued on Account of Non -Payment Of Premiums
(ii) others
Insurance reserves1
Provision for linked liabilities
Sub-total
Funds for future appropriations
Linked
Non-linked (non -par)
Non-linked (par)
Deferred tax liabilities (net)
Total
Application of funds
Investments
Shareholders’ 8
Policyholders’ 8A
Assets held to cover linked liabilities 8B
Loans 9
Fixed assets 10
Deferred tax assets (net)
Current assets
Cash and bank balances 11
Advances and other assets 12
Sub-total (a)
Current l iabilities 13
Provisions 14
Sub-total (b)
Net current assets (c) = (a – b)
Miscellaneous expenditure (to the extent not written
off or adjusted) 15
Debit balance in profit & loss account (shareholders’
account)
Defict in Revenue Account (policyholders'
account)
Total
1 the Insurance Reserves cannot be a negative figure
Contingent Liabilities (Amount in Rs. Lakhs)
Particulars Current
Year Previous
Year
1 Partly paid -up investments
2 Claims, other than against policies, not
acknowledged as debts by the company
3 Underwriting commitments outstanding (in respect
of shares and securities) (a)
4 Guarantees given by or on be half of the Company
5 Statutory demands/ liabilities in dispute, not
provided for
6 Reinsurance obligations to the extent not provided
for in accounts
7 Others (to be specified)
(a)
(b)
TOTAL
Note :
(a) Underwriting commitments outstanding - Commitments to underwrite the subscription to a new issue of
shares, but the liability for which is contingent upon the issue not being fully subscribed. It is, however,
clarified that insurers are presently not permitted to underwrite issues.
(b) Re-insurance obligations - it includes obligations under reinsurance contracts with the insurer in
respect of which, there are subsisting obligations as at the balance sheet date but for valid reasons,
the insurer has not made any provision.
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE 1
Premium
(Amount in Rs. Lakhs)
PARTICULARS Current Year Previous Year
1 First year premiums
2 Renewal Premiums
3 Single Premiums
TOTAL PREM IUM
Premium Income from Business written :
In India
Outside India
Notes: -
a) Premium income received from business concluded in and outside India shall be separately
disclosed.
b) Premium to be reported excluding Goods & service tax.
SCHEDULE 2
Commission Expenses (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Commission
Direct – First year premiums
- Renewal premiums
- Single premiums
Gross Commission
Add: Commission on Re -insurance Accepted
Less: Commission on Re -insurance Ceded
Net Commission
TOTAL
Channel wise break -up of
Commission (Excluding
Reinsurance commission):
Individual agents
Corporate Agents -Banks/FII/HFC
Corporate Agents -Others
Brokers
Micro Agents
Direct Business - Online1
Direct Business - Others
Common Service Centre (CSC)
Web Aggregators
IMF
Point of Sales (Direct)
Others (Please Specify)
Commission (Excluding
Reinsurance) Business written:
In India
Outside India
1 Commission on Business procured through Company website
Note:
Profit Commissi on should be adjusted with the Reinsurance ceded/ accepted and should not be shown in the
Schedule of Commission Expenses
SCHEDULE 3
Operating Expenses Related to Insurance Business ( Amount in Rs. Lakhs)
Particulars Current
Year Previous
Year
1 Employees’ remuneration & welfare benefits
2 Travel, conveyance and vehicle running expenses
3 Training expenses
4 Rents, rates & taxes
5 Repairs
6 Printing & stationery
7 Communication expenses
8 Legal & profess ional charges
9 Medical fees
10 Auditors' fees, expenses etc
a) as auditor
b) as adviser or in any other capacity, in respect of
(i) Taxation matters
(ii) Insurance matters
(iii) Management services; and
c) in any other capacity
11 Advertisement and publicity
12 Interest & Bank Charges
13 Depreciation
14 Brand/Trade Mark usage fee/charges
15 Business Development and Sales Promotion Expenses
16 Stamp duty on policies
17 Informa tion Technology Expenses
18 Goods and Services Tax (GST)
19 Others (to be specified)
TOTAL
Operating Expenses Related to Insurance Business
In India
Outside India
Note:
a) Items of expenses in excess of one percent of the to tal premiums (less reinsurance) or Rs.5,00,000
whichever is higher, shall be shown as a separate line item.
b) Expenses paid for various outsourcing activities/arrangements are to be booked under relevant line item
on the basis of nature of services availed and not to be shown as "Outsourcing Expenses"
SCHEDULE 4
Benefits Paid [Net] (Amount in Rs. Lakhs)
Particulars Current
Year Previous
Year
1. Insurance Claims
(a) Claims by Death
(b) Claims by Maturity
(c) Annuities/Pension payment
(d) Periodical Benefit
(e) Health
(f) Surrenders
(g) any other (please specify)
Benefits Paid (Gross)
In India
Outside India
2. (Amount ceded in reinsurance):
(a) Claims by Death
(b) Claims by Maturity
(c) Annuities/Pension payment
(d) Periodical Benefit
(e) Health
(f) any other (please specify)
3. Amount accepted in reinsurance:
(a) Claims by Death
(b) Claims by Maturity
(c) Annuities/Pension payment
(d) Periodical Benefit
(e) Health
(f) any other (please specify)
Benefits Paid (Net)
In India
Outsid e India
Note:
a) Claims incurred shall comprise claims paid, specific claims settlement costs wherever applicable and
change in the outstanding provision for claims
b) Fees and expenses connected with claims shall be included in claims.
c) Legal an d other fees and expenses shall also form part of the claims cost, wherever applicable.
SCHEDULE 5
Share Capital (Amount in Rs. Lakhs)
Particulars Current Year Previous
Year
1 Authorised Capital
Equity Shares of Rs..... each
Preference Shares of Rs..... each
2 Issued Capital
Equity Shares of Rs..... each
Preference Shares of Rs..... each
3 Subscribed Capital
Equity Shares of Rs.....each
Preference Shares of Rs..... each
4 Called -up Capital
Equity Shares of Rs.....each
Less : Calls unpaid
Add : Shares forfeited (Amount originally paid up)
Less : Par value of Equity Shares bought back
Less : Pr eliminary Expenses
Expenses including commission or brokerage on
Underwriting or subscription of shares
Preference Shares of Rs..... each
TOTAL
Note:
a) Particulars of the different classes of capital should be separately stated.
b) The amount capitalised on account of issue of bonus shares should be disclosed.
c) In case any part of the capital is held by a holding company, the same should be separately disclosed.
SCHEDULE 5A
Pattern of Sharehold ing
[As certified by the Management]
Shareholder Current Year Previous Year
Number of Shares % of Holding Number of Shares % of Holding
Promoters
· Indian
· Foreign
Investors1
· Indian
· Foreign
Others(to be
specified) 2
· Indian
· Foreign
TOTAL
1 Investors as defined under IRDAI regulations as amended from time to time
2 Others may include ESOPs etc.
SCHEDULE 6
Reserves and Surplus (Amount in Rs. Lakhs)
Particulars Current
Year Previous
Year
1 Capital Reserve
2 Capital Redemption Reserve
3 Share Premium
4 Revaluation Reserve
5 General Reserves
Less: Amount utilized for Buy -back of shares
Less: Amount utilized for issue of Bonus shares
6 Catastrophe Reserve
7 Other Reserves (to be specified)
8 Balance of profit in Profit and Loss Account
TOTAL
Note:
a) Additions to and deductions from the reserves shall be disclosed under each of the specified heads.
SCHEDULE 7
Borrowings (Amount in Rs. Lakhs)
Sl. No. Particulars Current Year Previous Year
1 Debentures/ Bonds
2 From Banks
3 From Financial Institutions
4 From Others (to be specified)
TOTAL
Note:
a) The extent to which the borrowings are secured shall be separately disclosed stating the nature of t he
security under each sub -head, as given below.
b) Amounts due within 12 months from the date of Balance Sheet should be shown separately.
c) Debentures include NCDs issued as per IRDAI regulations as amended from time to time
Disclosure for Secure d Borrowings (Refer Note a)
(Amount in Rs. Lakhs)
Sl.No. Source / Instrument Amount Borrowed Amount of Security Nature of
Security
…
SCHEDULE 8
Investments -Shareholders (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Long Term Investments
1 Government securities and Government
guaranteed bonds including Treasury Bills
2 Other Approved Securities
3 Other Investments
(a) Shares
(aa) Equity
(bb) Preference
(b) Mutual Funds
(c) Derivative Instruments
(d) Debentures/ Bonds
(e) Other Securities (to be specified)
(f) Subsidiaries
Investment Properties -Real E state
4 Investments in Infrastructure and Housing Sector
5 Other than Approved Investments
Short Term Investments
1 Government securities and Government
guaranteed bonds including Treasury Bills
2 Other Approved Securities
3 Other Investments
(a) Shares
(aa) Equity
(bb) Preference
(b) Mutual Funds
(c) Derivative Instruments
(d) Debentures/ Bonds
(e) Other Securities (to be specified)
(f) Subsidiaries
Investment P roperties -Real Estate
4 Investments in Infrastructure and Housing Sector
5 Other than Approved Investments
TOTAL
Note: See Notes appended at the end of Schedule 8B.
SCHEDULE 8 -A
Investments -Policyholders (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Long Term Investments
1 Government securities and Government
guaranteed bonds including Treasury Bills
2 Other Approved Securities
3 (a) Shares
(aa) Equity
(bb) 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 Infrastructur e and Housing Sector
5 Other than Approved Investments
Short Term Investments
1 Government securities and Government
guaranteed bonds including Treasury Bills
2 Other Approved Securities
3 (a) Shares
(aa) Equity
(bb) 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 Housing Sector
5 Other than Approved Investments
TOTAL
Note: See Notes appe nded at the end of Schedule 8B.
SCHEDULE 8B
Assets Held To Cover Linked Liabilities (Amount in Rs. Lakhs)
Particulars Current Year Previous Ye ar
Long Term Investments
1 Government securities and Government
guaranteed bonds including Treasury Bills
2 Other Approved Securities
3 (a) Shares
(aa) Equity
(bb) Preference
(b) Mutual Funds
(c) Derivative Instrumen ts
(d) Debentures/ Bonds
(e) Other Securities (to be specified)
(f) Subsidiaries
(g) Investment Properties -Real Estate
4 Investments in Infrastructure and Housing
Sector
5 Other than Approved Investments
Short Term Investmen ts
1 Government securities and Government
guaranteed bonds including Treasury
Bills
2 Other Approved Securities
3 (a) Shares
(aa) Equity
(bb) Preference
(b) Mutual Funds
(c ) Derivative Instruments
(d) Debentures/ B onds
(e) Other Securities (to be specified)
(f) Subsidiaries
(g) Investment Properties -Real Estate
4 Investments in Infrastructure and Housing
Sector
5 Other than Approved Investments
6 Other Current Assets (Net)
TOTAL
Notes (Applicable to Schedules 8, 8 -A & 8 -B)
a) Investments in subsidiary/holding companies, joint ventures and associates shall be separately
disclosed, at cost.
i) Holding company and subsidiary shall be construed as defined in the Companies Act, 2013.
ii) Joint Venture is a contractual arrangement whereby two or more parties undertake an economic
activity, which is subject to joint control.
iii) Joint control - is the contractually agreed sharing of power to govern the financial and operating
policies of an economic activity to obtain benefits from it.
iv) Associate - is an enterprise in which the company has significant influence and which is neither a
subsidiary nor a joint venture of the company.
v) Significant influence (f or the purpose of this schedule) -means participation in the financial and
operating policy decisions of a company, but not control of those policies. Significant influence may
be exercised in several ways, for example, by representation on the board of d irectors, participation
in the policymaking process, material inter -company transactions, interchange of managerial
personnel or dependence on technical information. Significant influence may be gained by share
ownership, statute or agreement. As regards share ownership, if an investor holds, directly or
indirectly through subsidiaries, 20 percent or more of the voting power of the investee, it is
presumed that the investor does have significant influence, unless it can be clearly demonstrated
that this i s not the case. Conversely, if the investor holds, directly or indirectly through subsidiaries,
less than 20 percent of the voting power of the investee, it is presumed that the investor does not
have significant influence, unless such influence is clearl y demonstrated. A substantial or majority
ownership by another investor does not necessarily preclude an investor from having significant
influence.
b) Aggregate amount of company's investments other than listed equity securities and derivative
instrumen ts and also the market value thereof shall be disclosed.
c) Investment made out of Catastrophe reserve should be shown separately.
d) Debt securities will be considered as “held to maturity” securities and will be measured at historical costs
subject to amortisation
e) Investment Property means a property [land or building or part of a building or both] held to earn rental
income or for capital appreciation or for both, rather than for use in services or for administrative
purposes.
f) Investments matu ring within twelve months from balance sheet date and investments made with the
specific intention to dispose of within twelve months from balance sheet date shall be classified as short -
term investments
Disc losure for Schedules 8, 8A & 8B
Aggregate v alue of Investments other than Listed Equity Securities and Derivative Instruments
(Amount in Rs. Lakhs)
Particulars Shareholders Policyholders Assets held to
cover Linked
Liabilities Total
Current
Year Previous
Year Current
Year Previous
Year Current
Year Previous
Year Current
Year Previous
Year
Long Term
Investments:
Book Value
Market Value
Short Term
Investments:
Book Value
Market Value
Note: Market Value in respect of Shareholders and Policyholders investments should be arrived as per the
guidelines prescribed for linked business investments as specified
SCHEDULE 9
Loans (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
1 Security -Wise Classification
Secured
(a) On mortgage of property
(aa) In India
(bb) Outside India
(b) On Shares, Bonds, Govt. Securities, etc.
(c) Loans against policies
(d) Others (to be specified)
Unsecured
TOTAL
2 Borrower -Wise Classification
(a) Central and State Governments
(b) Banks and Financial In stitutions
(c) Subsidiaries
(d) Companies
(e) Loans against policies
(f) Others (to be specified)
TOTAL
3 Performance -Wise Classification
(a) Loans classified as standard
(aa) In India
(bb) Outside India
(b) Non-standard loans less provisions
(aa) In India
(bb) Outside India
TOTAL
4 Maturity -Wise Classification
(a) Short Term
(b) Lon g Term
TOTAL
Note:
a) Short -term loans shall include those, which are repayable within 12 months from the date of balance sheet. Long
term loans shall be the loans other than short -term loans.
b) Provisions against non -performing lo ans shall be shown separately.
c) The nature of the security in case of all long term secured loans shall be specified in each case. Secured loans for
the purposes of this schedule, means loans secured wholly or partly against an asset of the company.
d) Loans considered doubtful and the amount of provision created against such loans shall be disclosed.
Provisions against Non -performing Loans
Non-Performing Loans Loan Amount
(Rs. Lakhs) Provision
(Rs. Lakhs)
Sub-standard
Doubtfu l
Loss
Total
SCHEDULE 10
Fixed Assets (Amount in Rs. Lakhs)
Particulars Cost/ Gross Block Depreciation Net Block
Openi
ng Additi
ons Dedu
ctions Closi
ng Up to
Last
Year For
The
Period On
Sales/
Adjustm
ents To
Date Curr
ent
Year
Previous
Year
Goodwill
Intangibles
(specify)
Land -Freehold
Leasehold
Property
Buildings
Furniture &
Fittings
Information
Technology
Equipment
Vehicles
Office
Equipment
Others (Specify
nature)
TOTAL
Work in
progress
Grand Total
Previous Year
Note: Assets included in land, property and building above exclude Investment Properties as defin ed in note
(e) to Schedule 8
SCHEDULE 11
Cash and Bank Balances (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
1 Cash (including cheques1, drafts and stamps)
2 Bank Balances
(a) Deposit Accounts
(aa) Short -term (due within 12 months of the
date of Balance Sheet)
(bb) Others
(b) Current Accounts
(c) Others (to be specified)
3 Money at Call and Short Notice
(a) With Banks
(b) With other Institutions
4 Others (to be specified)
TOTAL
Balances with non -scheduled banks included
in 2 and 3 above
Cash & Bank Balances
In India
Outside India
TOTAL
1 Cheque s on hand amount to Rs._________(in Lakhs)
Corresponding period of Previous year Rs. ___________(in Lakhs)
Note: Bank balance may include remittances in transit. If so, the nature and amount shall be
separately stated.
SCHEDULE 12
Advances and Other Assets (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Advances
1 Reserve deposits with ceding
companies
2 Application money for investments
3 Prepayments
4 Advances to Directors/ Officers
5 Advance tax paid and taxes deducted at
source (Net of provision for taxation)
6 Goods & Service tax credit
7 Others (to be specified)
TOTAL (A)
Other Assets
1 Income accrued on investments
2 Outsta nding Premiums
3 Agents’ Balances
4 Foreign Agencies Balances
5 Due from other entities carrying on
insurance business (including
reinsurers)
6 Due from subsidiaries / holding company
7 Investments held for Unclaimed Amount
of Poli cyholders
8 Interest on investments held for
Unclaimed Amount of Policyholders
9 Others (to be specified)
TOTAL (B)
TOTAL (A+B)
Note:
(a) The items under the above heads shall not be shown net of provisions for doubtf ul amounts. The
amount of provision against each head should be shown separately.
(b)The term ‘officer’ should conform to the definition of that term as given under the Companies Act,
(c) Sundry debtors will be shown under item 9 (Others)
SCHEDULE 13
Current Liabilities (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
1 Agents’ Balances
2 Balances due to other insurance companies
3 Deposits held on re -insurance ceded
4 Premiums received in advance
5 Unallocated premium
6 Sundry creditors
7 Due to subsidiaries/ holding company
8 Claims Outstanding
9 Annuities Due
10 Due to Officers/ Directors
11 Unclaimed Amount of policyholders
12 Income accrued on Unclaimed amounts
13 Interest payable on debentures/bonds
14 Goods and Service tax Liabilities
15 Others (to be specified)
TOTAL
Details of Unclaimed Amounts and Investment Income thereon
(Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Opening Balance as at 1st April
Add: Amount transferred to unclaimed amount
Add: Cheques i ssued out of the unclaimed
amount but not encashed by the
policyholders (To be included only when the
cheques are stale)
Add: Investment Income on Unclaimed Fund
Less: Amount of claims paid during the year
Less: Amount transferred to SCWF during the
year (net of claims paid in respect of
amounts transferred earlier)
Closing Balance of Unclaimed Amount as at 31st
March
SCHEDULE 14
Provisions (Amount in Rs. Lakhs)
Particu lars Current Year Previous Year
1 For Taxation (less payments
and taxes deducted at
source)
2 For Employee Benefits
3 For Others (To be specified)
TOTAL
SCHEDULE 15
Miscellaneous Expenditure
(To the extent not written off or adjust ed) (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
1 Discount Allowed in issue of shares/
debentures
2 Others (to be specified)
TOTAL
Note:
(a) No item shall be included under the head "Mi scellaneous Expenditure" and carried forward unless:
1. some benefit from the expenditure can reasonably be expected to be received in future, and
2. the amount of such benefit is reasonably determinable.
(b) The amount to be carried forward in respe ct of any item included under the head "Miscellaneous
Expenditure" shall not exceed the expected future revenue/other benefits related to the expenditure.
Part II: Preparation of financial statements, management report of general insurers including
health insurers and those insurers engaged exclusively in reinsurance business
1. Applicability :
This part of regulations shall be applicable to all the general insurers including health insurers and those
insurers engaged exclusively in reinsurance business, unless otherwise specified.
2. Accounting Principles for Preparation of Financial Statements :
Every Balance Sheet, Receipts and Payments Account [Cash Flow statement] and Profit and Loss
Account [Share -holders' Account] of the insurer shall be in conformit y with the Accounting Standards
(AS) as notified under Companies Act, 2013 , to the extent applicable to the insurers carrying on
general insurance business, except that -
(1) Accounting Standard 3 (AS 3) - Cash Flow Statements - Cash Flow Statement shall be pre pared
only under the Direct Method.
(2) Accounting Standard 13 (AS 13) - Accounting for Investments, shall not be applicable.
(3) Accounting Standard 17 (AS 17) - Segment Reporting - shall apply to all insurers irrespective of
the requirements regarding listing an d turnover mentioned therein.
3. Premium :
(1) Premium shall be recognized as income over the contract period or the period of risk, whichever
is appropriate.
(2) "Premium received in Advance" is the premium where the period of inception of the risk is outside
the ac counting period and is to be shown under current liabilities.
(3) "Unallocated premium" includes premium deposit and premium which has been received but for
which risk has not commenced. It is to be shown under current liabilities.
4. Unearned Premium Reserve :
A reserve for unearned premium shall be created as the amount representing that part of the premium
written which is attributable and allocated to the succeeding accounting periods. Such Reserves shall
be computed as under:
(1) Marine Hull - 100 percent of Net Written Premium during the preceding twelve months;
(2) Other Segments - 50 percent of Net Written Premium during the preceding twelve months; or on
the basis of proportion of the unexpired period to the total period of the respective policies.
However, Insure rs shall follow the method of provisioning of Unearned Premium Reserve in a
consistent manner. Any change in the method of provisioning can be done only with the prior written
approval of the Competent Authority.
5. Premium Deficiency :
Premium deficiency sh all be recognised at the insurer level, if the sum of expected claim costs, related
expenses and maintenance costs exceeds related reserve for unexpired risks.
6. Acquisition Costs :
Acquisition costs, if any, shall be expensed in the period in which they a re 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 contrac ts (i.e. commencement of risk).
7. Claims :
The components of the ultimate cost of claims to an insurer comprise the claims under policies and
specific claims settlement costs. Claims under policies comprise the claims made for losses incurred,
and those e stimated or anticipated under the policies following a loss occurrence.
A liability for outstanding claims shall be brought to account in respect of both direct business and
inward reinsurance business. The liability shall include:
(1) Future payments in rela tion to unpaid reported claims;
(2) Claims Incurred But Not Reported (IBNR) including inadequate reserves [sometimes referred to
as Claims Incurred But Not Enough Reported (IBNER)], which will result in future cash/asset
outgo for settling liabilities against those claims. Change in estimated liability represents the
difference between the estimated liability for outstanding claims at the beginning and at the end of
the financial period.
The accounting estimate shall also include claims cost adjusted for estima ted salvage value if there is
sufficient degree of certainty of its realisation.
8. Actuarial Valuation of claim liability - in some cases:
Claims made in respect of contracts where the claims payment period exceeds four years shall be
recognised on an act uarial basis, subject to regulations that may be prescribed by the Authority. In
such cases, certificate from a appointed actuary as to the fairness of liability assessment must be
obtained. Actuarial assumptions shall be suitably disclosed by way of notes to the account.
9. Procedure to determine the value of investments :
An insurer shall determine the values of investments in the following manne r:
(1) Real Estate - Investment Property :
The value of investment property shall be determined at historical cost, subject to revaluation at
least once in every three years. The change in the carrying amount of the investment property
shall be taken to Revaluation Reserve.
The insurer shall assess at each balance sheet date whether any impairment of the investment
property has occurred.
Gains/losses arising due to changes in the carrying amount of real estate shall be taken to equity
under 'Revaluation Reserve'. The 'Profit on sale of investments' or 'Loss on sale of investments',
as the case may be, shall include accu mulated changes in the carrying amount previously
recognised in equity under the heading 'Revaluation Reserve' in respect of a particular property
and being recycled to the relevant Revenue Account or Profit and Loss Account on sale of that
property.
The bases for revaluation shall be disclosed in the notes to accounts.
An impairment loss shall be recognised as an expense in the Revenue/Profit and Loss Account
immediately, unless the asset is carried at re -valued amount. Any impairment loss of a re -value d
asset shall be treated as a revaluation decrease of that asset and if the impairment loss exceeds
the corresponding revaluation reserve, such excess shall be recognised as an expense in the
Revenue/Profit and Loss Account.
(2) Debt Securities :
Debt securiti es 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.
(3) Equity Securities and Derivative Instruments that are traded in acti ve markets :
Listed equity securities and derivative instruments that are traded in active markets shall be
measured at fair value as at the balance sheet date. Measurement for the purpose of calculation
of fair value shall be the last quoted closing price on NSE. However, in case of any stock not
being listed in NSE, the insurer may value the Equity based on the last quoted closing price in
BSE.
The insurer shall assess on each balance sheet date whether any impairment of listed equity
security(ies)/derivat ive(s) instruments has occurred.
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
accumu lated 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 Profit and Loss
Account on actual sale of that listed security.
For the removal of doubt, it is clarified that balance or any part thereof shall not be available for
distribution as dividends. Also, any debit balance in the said Fair Value Change Account shall be
reduced from the profits/free reserves while declaring dividends.
The insurer sh all assess, at each balance sheet date, whether any impairment has occurred. An
impairment loss (i.e. other than temporary diminution in value) shall be recognised as an expense
in Revenue/Profit and Loss Account to the extent of the difference between the remeasured fair
value of the security/investment and its acquisition cost as reduced by any previous impairment
loss recognised as expense in Revenue/Profit and Loss Account. Any reversal of impairment loss,
earlier recognised in Revenue/Profit and Loss A ccount shall be recognised in Revenue/Profit and
Loss Account.
Insurer shall disclose its policy on recognition of impairment in notes to account.
(4) Unlisted and other than actively traded Equity Securities and Derivative Instruments :
Unlisted equity sec urities and derivative instruments and listed equity securities and derivative
instruments that are not regularly traded in active market will be measured at historical costs.
Provision shall be made for diminution in value of such investments. The provisi on so made shall
be reversed in subsequent periods if estimates based on external evidence show an increase in
the value of the investment over its carrying amount. The increased carrying amount of the
investment due to the reversal of the provision shall not exceed the historical cost.
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 trad ed".
(5) Loans :
Loans shall be measured at historical cost subject to impairment provisions.
The insurer shall assess the quality of its loan assets and shall provide for impairment. The
impairment provision shall not be lower than the amounts derived on the basis of guidelines
prescribed from time to time by the Reserve Bank of India, that apply to companies and financial
institutions.
(6) Catastrophe Reserve :
Catastrophe reserve shall be created in accordance with norms, as specified. Investment of funds
out of catastrophe reserve shall be made in accordance with prescriptions, as specified.
10. Disclosures Forming Part of Financial Statements :
(1) The following shall be disclosed by way of notes to the Balance -Sheet, -
(i) Contingent Liabilities:
(a) Partly -paid up invest ments
(b) Underwriting commitments outstanding
(c) Claims, other than those under policies, not acknowledged as debts
(d) Guarantees given by or on behalf of the company
(e) Statutory demands/liabilities in dispute, not provided for
(f) Reinsurance obligations to the extent n ot provided for in accounts
(g) Others (to be specified)
(ii) Encumbrances to assets of the company in and outside India.
(iii) Commitments made and outstanding for Loans, Investments and Fixed Assets.
(iv) Claims, less reinsurance, paid to claimants in/outside India.
(v) Actuari al assumptions for determination of claim liabilities in the case of claims where the
claims payment period exceeds four years.
(vi) Ageing of claims - distinguishing between claims outstanding for more than six months and
other claims.
(vii) Premiums, less reinsura nce, written from business in/outside India.
(viii) Extent of premium income recognised, based on varying risk pattern, category wise, with
basis and justification therefor, including whether reliance has been placed on external
evidence.
(ix) Value of contracts in re lation to investments, for -
(a) Purchases where deliveries are pending;
(b) Sales where payments are overdue.
(x) Operating expenses relating to insurance business: basis of allocation and apportionment of
expenditure to various classes of business.
(xi) Historical costs o f those investments valued on fair value basis.
(xii) Computation of managerial remuneration.
(xiii) Basis of amortisation of debt securities.
(xiv) (a) Unrealised gain/losses arising due to changes in the fair value of listed equity shares and
derivative instruments are to be taken to equity under the head "Fair Value Change Account"
and on realisation reported in profit and loss Account.
(b) Pending realisation, the credit balance in the "Fair Value Change Account" is not
available for distribution.
(xv) Fair value of investment property and the basis therefor.
(xvi) Claims settled and remaining unpaid for a period of more than six months as on the
balance sheet date.
(xvii) Provisions made for policy cancellations during free look period in current year and
previous year duly certified by th e appointed actuary
(xviii) Basis of computation of premium deficiency
(2) The following accounting policies shall form an integral part of the financial statements:
(i) All significant accounting policies in terms of the accounting standards, and significant principle s
and policies given in Part I of Accounting Principles. Any other accounting policies followed by
the insurer shall be stated in the manner required under Accounting Standard AS 1.
(ii) Any departure from the accounting policies as aforesaid shall be separatel y disclosed with
reasons for such departure.
(3) The following information shall also be disclosed:
(i) 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;
(ii) Segregation into performing/non -performing investments for purpose of income recognition as
per the directions, if any, issued by the Competent Authority;
(iii) Percentage of business sector -wise;
(iv) Basis of allocation of Interest, Dividends and Rent between Revenue Account and Profit and
Loss Account.
(v) Disclosure of policy and principles for provisioning for policy cancellations during free look
period, based on assumptions and experience, duly certified by the appointed actuary .
(vi) Any other i nformation as may be specified.
11. GENERAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS
(1) The corresponding amounts for the immediately preceding financial year for all items shown in
the Balance Sheet, Revenue Account and Profit and Loss Account shoul d be given.
(2) The figures in the financial statements may be rounded off to the nearest lakhs.
(3) Interest, dividends and rentals receivable in connection with an investment should be stated as
gross value, the amount of income tax deducted at source being incl uded under "advance taxes
paid".
(4) Income from rent shall not include any notional rent.
(5) For the purposes of financial statements, unless the context otherwise requires,
(i) the expression "provision" shall, subject to note (v) below mean any amount written off or
retained by way of providing for depreciation, renewals or diminution in value of assets, or
retained by way of providing for any known liability or loss of which the amount cannot be
determined with substantial accuracy;
(ii) the expression "reserve" shall not, subject to as aforesaid, include any amount written off or
retained by way of providing for depreciation, renewals or diminution in value of assets or
retained by way of providing for any known liability;
(iii) the expression "capital reserve" shall not in clude any amount regarded as free for distribution
through the profit and loss account; and the expression "revenue reserve" shall mean any
reserve other than a capital reserve;
(iv) The expression "liability" shall include all liabilities in respect of expendi ture contracted for and
all disputed or contingent liabilities.
(v) Where:
(a) any amount written off or retained by way of providing for depreciation, renewals or
diminution in value of assets, or
(b) any amount retained by way of providing for any known liability is in excess of the amount
which in the opinion of the directors is reasonably necessary for the purpose, the excess
shall be treated for the purposes of these accounts as a reserve and not as a provision.
(6) The company should make provisions for damages und er lawsuits where the management is of
the opinion that the award may go against the insurer.
(7) Extent of risk retained and reinsured shall be separately disclosed.
(8) Any debit balance of Profit and Loss Account shall be shown as deduction from uncommitted
reserves and the balance if any, shall be shown separately.
(9) All insurers are required to maintain separate investment accounts for the shareholders and the
policy holders and the income/ losses accrued / capital gains/losses on the investments is to be
credit ed /debited to the Revenue Account/ Profit & Loss Account, as the case may be.
12. Contents of Management Report :
There shall be attached to the financial statements, a management report containing, inter alia, the
following duly authenticated by the manage ment:
(1) Confirmation regarding the continued validity of the registration granted by the Authority;
(2) Certification that all the dues payable to the statutory authorities have been duly paid;
(3) Confirmation to the effect that the shareholding pattern and any tr ansfer of shares during the
year are in accordance with the statutory or regulatory requirements;
(4) Declaration that the management has not directly or indirectly invested outside India the
funds of the holders of policies issued in India;
(5) Confirmation that the required solvency margins have been maintained;
(6) Certification to the effect that the values of all the assets have been reviewed on the date of
the Balance Sheet and that in his (insurer's) belief the assets set forth in the Balance -sheets
are shown in the aggregate at amounts not exceeding their realisable or market value under
the several headings - "Loans", "Investments", "Agents balances", "Outstanding Premiums",
"Interest, Dividends and Rents outstanding", "Interest, Dividends and Rents accruing bu t not
due", "Amounts due from other persons or Bodies carrying on insurance business", " Sundry
Debtors", "Bills Receivable", "Cash" and the several items specified under "Other Accounts";
(7) Disclosure with regard to the overall risk exposure and strategy ad opted to mitigate the
same;
(8) 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;
(9) Ageing of claims indicating the trends in average claim settle ment time during the preceding
five years;
(10) Certification to the effect as to how the values, as shown in the balance sheet, of the
investments and stocks and shares have been arrived at, and how the market value thereof
has been ascertained for the purpose of comparison with the values so shown;
(11) Review of asset quality and performance of investment in terms of portfolios, i.e., separately
in terms of real estate, loans, investments, etc.
(12) A responsibility statement indicating therein that :
(i) 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;
(ii) the management has adopted accounting policies and applied them consistently a nd
made judgements and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the company at the end of the financial year and of the
operating profit or loss and of the profit or loss of the company for the year;
(iii) 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, for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(iv) the management has prepared the financial statements on a going concern basis;
(v) the management has ensured that an internal audit system commensurate with the size
and nature of the business exists and is operating effectively.
(13) A schedule of payments, which have been made to individuals, firms, companies and
organizations in which Directors of the insurer are interested.
(14) Confirmation of compliance with domestic, statutory, regulatory and other laws in the countries
in relation to subsidiaries, associates, joint ventures and other arrangements.
(15) Any other information as may be specified.
13. Preparation of Financial Statements
(1) An insurer shall prepare the Revenue Account, Profit and Loss Account [Shareholders' Account]
and the Balance Sheet in Form B -RA, Form B -PL, and Form B -BS, or as near thereto as the
circumstances permit.
In addition, in respect of miscellaneous business, separate Schedules shall be furnished for the
following at the minimum:
(i) Under Motor: sub -segments (a) Motor Own Damage and (b) Motor TP,
(Insurers engaged exclusively in Reinsurance business may prepare the schedule at
overall Motor level)
(ii) Under Health: sub -segments (a) Health, (b) Personal Accident and (c) Travel,
(iii) Workmen’s Compensation/ Employer’s liability,
(iv) Public/ Product Liability,
(v) Engineering,
(vi) Aviation,
(vii) Crop,
(viii) Any other sub -segment contributing more than 10% of the total gross direct premium of
the insurer shall be shown separately.
(ix) Others.
(x) Any other seg ment as may be specified.
(2) Segments to be reported on the basis of line of business, and on the basis of business within and
outside India. While giving the segment details of corresponding previous year’s figures should
also be given for all the segments.
(3) An insurer shall prepare separate Receipts and Payments Account in accordance with the Direct
Method prescribed in AS 3 - "Cash Flow Statement".
FORM B -RA
Name of the Insurer:______________________________________
Registration No._______ and Date of Registration with the IRDAI______________
Revenue Account for Fire Segment for the year ended 31st march, 20....
(Amount in Rs. Lakhs)
Particulars Schedule
Ref. Current Year Previous
Year
1 Premiums earned (Net) 1
2 Profit/ Loss on sale/ redem ption
of Investments
3 Interest, Dividend & Rent – Gross
Note 1
4 Other
(a) Other Income (to be specified)
(i)………..
(ii)………...
(b) Contribution from the
Shareholders' Account
(i) Towards Excess
Expenses of Mana gement 1
(ii) Towards remuneration
of MD/CEO/WTD/Other
KMPs 2
(iii) Others (please specify)
TOTAL (A)
5 Claims Incurred (Net) 2
6 Commission 3
7 Operating Expenses related to
Insurance Business 4
TOTAL (B)
8 Operating Profit/(Loss)
C= (A - B)
9 Appropriations
Transfer to Shareholders’
Account
Transfer to Catastrophe Reserve
Transfer to Other Reserves (to be
specified)
TOTAL (C)
1 In case expenses of ma nagement exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
Notes: (a) See notes appended at the end of FORM B -PL
Note - 1
Pertaining to Policyholder’s funds (Amount in Rs. Lakhs)
Current Year Previous
Year
Interest, Dividend & Rent
Add/Less: -
Investment Expenses
Amortisation of Premium/ Discount on Investments
Amount written off in respect of depreciated
investments
Provision for Bad and Doubtful Deb ts
Provision for diminution in the value of other than
actively traded Equities
Investment income from Pool
Interest, Dividend & Rent – Gross*
* Term gross implies inclusive of TDS
FORM B -RA
Name of the Insurer:________________ ______________________
Registration No._______ and Date of Registration with the IRDAI______________
Revenue Account for Marine segment for the year ended 31st march, 20....
(Amount in Rs. Lakhs)
Particulars Schedul
e
Ref. Current Year Previous Yea r
1 Premiums earned (Net) 1
2 Profit/ Loss on sale/ redemption
of Investments
3 Interest, Dividend & Rent – Gross
Note 1
4 Other
(a) Other Income (to be specified)
(i) ………..
(ii)………...
(b) Contribution from the
Shareholders' Account
(i) Towards Excess Expenses of
Management 1
(ii) Towards remuneration of
MD/CEO/WTD/Other KMPs 2
(iii) Others (please specify)
TOTAL (A)
5 Claims Incurred (Net) 2
6 Commission 3
7 Operating Expenses related to
Insurance Business 4
TOTAL (B)
8 Operating Profit/(Loss)
C= (A - B)
9 Appropriations
Transfer to Shareholders’ Account
Transfer to Catastrophe Reserve
Transfer to Other Reserves (to be
specified)
TOTAL (C)
Notes: - (a) See notes appended at the end of FORM B -PL
1 In case expenses of management exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
Note - 1
Pertaining to Policyholder’s funds (Amount in Rs. Lakhs)
Current Year Previous
Year
Interest, Dividend & Rent
Add/Less: -
Investment Expenses
Amortisation of Premium/ Discount on
Investments
Amount written off in respect of depreciated
investments
Provision for Bad and Doubtful Debts
Provision for diminution in the value of other than
actively traded Equities
Investment income from Pool
Interest, Dividend & Rent – Gross*
* Term gross implies inc lusive of TDS
FORM B -RA
Name of the Insurer:______________________________________
Registration No._______ and Date of Registration with the IRDAI______________
Revenue Account for Miscellaneous segment for the year ended 31st march, 20....
(Amount in Rs. Lakhs)
Particulars Schedul
e
Ref. Current Year Previous Year
1 Premiums earned (Net) 1
2 Profit/ Loss on sale/ redemption
of Investments
3 Interest, Dividend & Rent – Gross
Note 1
4 Other
(a) Other Income (to b e specified)
(i) ………..
(ii)………...
(b) Contribution from the
Shareholders' Account
(i) Towards Excess
Expenses of Management 1
(ii) Towards remuneration of
MD/CEO/WTD/Other KMPs 2
(iii) Others (please specify)
TOTAL (A)
5 Claims Incurred (Net) 2
6 Commission 3
7 Operating Expenses related to
Insurance Business 4
TOTAL (B)
8 Operating Profit/(Loss)
C= (A - B)
9 Appropriations
Transfer to Shareholders’ Account
Transfer to Catastrophe Reserve
Transfer to Other Reserves (to be
specified)
TOTAL (C)
Notes: - (a) See notes appended at the end of FORM B -PL
1 In case expenses of management exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
Note - 1
Pertaining to Policyholder’s funds (Amount in Rs. Lakhs)
Current Year Previous
Year
Interest, Dividend & Rent
Add/Less: -
Investment Expenses
Amortisation o f Premium/ Discount on
Investments
Amount written off in respect of depreciated
investments
Provision for Bad and Doubtful Debts
Provision for diminution in the value of other than
actively traded Equities
Investment income from Poo l
Interest, Dividend & Rent – Gross*
* Term gross implies inclusive of TDS
FORM B -RA
Name of the Insurer:______________________________________
Registration No._______ and Date of Registration with the IRDAI______________
Revenue Accou nt for Marine segment for the year ended 31st march, 20....
(Amount in Rs. Lakhs)
Particulars Schedule
Ref. Current Year Previous Year
1 Premiums earned (Net) 1
2 Profit/ Loss on sale/ redemption
of Investments
3 Interest, Dividend & Rent – Gross
Note 1
4 Other
(a) Other Income (to be specified)
(i) ………..
(ii)………...
(b) Contribution from the
Shareholders' Account
(i) Towards Excess
Expenses of Management 1
(ii) Towards remuneration of
MD/CEO/WTD/Othe r KMPs 2
(iii) Others (please specify)
TOTAL (A)
5 Claims Incurred (Net) 2
6 Commission 3
7 Operating Expenses related to
Insurance Business 4
TOTAL (B)
8 Operating Profit/(Loss)
C= (A - B)
9 Approp riations
Transfer to Shareholders’ Account
Transfer to Catastrophe Reserve
Transfer to Other Reserves (to be
specified)
TOTAL (C)
Notes: - (a) See notes appended at the end of FORM B -PL
1 In case expenses of man agement exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
Note - 1
Pertaining to Policyholder’s funds (Amount in Rs. Lakhs)
Current Year Previous Year
Interest, Dividend & Rent
Add/Less: -
Investment Expenses
Amortisation of Premium/ Discount on
Investments
Amount written off in respect of depreciated
investments
Provision for Bad and Doubtful Debts
Provision for diminution in the value of other than
actively traded Equities
Investment income from Pool
Interest, Dividend & Rent – Gross*
* Term gross implies inclusive of TDS
FORM B -RA
Name of the Insurer:______________________________________
Registration No._______ and Da te of Registration with the IRDAI______________
Revenue Account for Miscellaneous segment for the year ended 31st march, 20....
(Amount in Rs. Lakhs)
Particulars Schedul
e
Ref. Current Year Previous Year
1 Premiums earned (Net) 1
2 Profit/ Loss on sale/ redemption
of Investments
3 Interest, Dividend & Rent – Gross
Note 1
4 Other
(a) Other Income (to be specified)
(i) ………..
(ii)………...
(b) Contribution from the
Shareholders' Account
(i) Towards Excess
Expenses of Management 1
(ii) Towards remuneration of
MD/CEO/WTD/Other KMPs 2
(iii) Others (please specify)
TOTAL (A)
5 Claims Incurred (Net) 2
6 Commission 3
7 Operating Expenses related to
Insurance Business 4
TOTAL (B)
8 Operating Profit/(Loss)
C= (A - B)
9 Appropriations
Transfer to Shareholders’ Account
Transfer to Catastrophe Reserve
Transfer to Other Reserves (to be
specified)
TOTAL (C)
Notes: - (a) See notes appended at the end of FORM B -PL
1 In case expenses of management exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
Note - 1
Pertaining to Policyholder’s funds (Amount in Rs . Lakhs)
Current Year Previous
Year
Interest, Dividend & Rent
Add/Less: -
Investment Expenses
Amortisation of Premium/ Discount on
Investments
Amount written off in respect of depreciated
investments
Provision for Bad a nd Doubtful Debts
Provision for diminution in the value of other than
actively traded Equities
Investment income from Pool
Interest, Dividend & Rent – Gross*
* Term gross implies inclusive of TDS
FORM B -RA
Name of the Insurer:__ ____________________________________
Registration No._______ and Date of Registration with the IRDAI______________
Revenue Account for the company (total) the year ended 31st march, 20....
(Amount in Rs. Lakhs)
Particulars Schedule
Ref. Current Ye ar Previous Year
1 Premiums earned (Net) 1
2 Profit/ Loss on sale/ redemption
of Investments
3 Interest, Dividend & Rent – Gross
Note 1
4 Other
(a) Other Income (to be specified)
(i) ………..
(ii)………...
(b) Contribution from the
Shareholders' Account
(i) Towards Excess
Expenses of Management 1
(ii) Towards remuneration of
MD/CEO/WTD/Other KMPs 2
(iii) Others (please specify)
TOTAL (A)
5 Claims Incurred (Net) 2
6 Commission 3
7 Oper ating Expenses related to
Insurance Business 4
8 Premium Deficiency
TOTAL (B)
9 Operating Profit/(Loss)
C= (A - B)
0 Appropriations
Transfer to Shareholders’ Account
Transfer to Catastrophe Reserve
Transfer to Other Reserves (to be
specified)
TOTAL (C)
Notes: - (a) See notes appended at the end of FORM B -PL
1 In case expenses of management exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
Note - 1
Pertaining to Policyholder’s funds (Amount in Rs. Lakhs)
Current Year Previous
Year
Interest, Dividend & Rent
Add/Less: -
Investment Expenses
Amortisation of Premium/ Discount on
Investments
Amount written off in respect of depreciated
investments
Provision for Bad and Doubtful Debts
Provision for diminution in the value of other than
actively traded Equities
Investment income from Pool
Interest, Dividend & Rent – Gross*
* Term gross implies inclusive of TDS
FORM B -PL
Name of the Insurer:______________________________________
Registration No._______ and Date of Registration with the IRDAI______________
Profit and Loss Account for the year ended 31st march, 20......
(Amount in Rs. Lakhs)
Particulars Schedule
Ref. Current Year Previous
Year
1 Operating Profit/(Loss)
(a) Fire Insurance
(b) Marine Insurance
(c) Miscellaneous Insurance
2 Income From Investments
(a) Interest, Dividend & Rent – Gross
(b) Profit on sale of investments
(c) (Loss on sale/ redemption of
investments)
(d) Amortization of Premium /
Discount on Investments
3 Other Income (To be specified)
TOTAL (A)
4 Provisions (Other than taxation)
(a) For diminution in the value of
investments
(b) For doubtful debts
(c) Others (to be specified)
5 Other Expenses
(a) Expenses other than those
related to Insurance Business
(b) Bad debts written off
(c) Interest on subordinated debt
(d) Expenses towards CSR activities
(e) Penalties
(f) Contribution to Policyholders' A/c
(i) Towards Excess Expenses
of Mana gement 1
(ii) Towards remuneration of
MD/CEO/WTD/Other KMPs 2
(iii) Others (please specify)
(g) Others (Please specify)
(i) ______
(ii)______
TOTAL (B)
6 Profit/(Loss) Before Tax
7 Provision for Taxation
8 Profit / (Loss) after tax
9 Appropriations
(a) Interim dividends paid during the
year
(b) Final dividend paid
(c) Transfer to any Reserves or
Other Accounts (to be specified)
Balance o f profit/ loss brought
forward from last year
Balance carried forward to
Balance Sheet
1 In case expenses of management exceeds the limits prescribed by the regulations,
2 In case annual remuneration exceeds the specified limit,
Notes to Form B -RA and B - PL
(a) Items of income in excess of one percent of the total premiums (less reinsurance) or Rs.5,00,000
whichever is higher, shall be shown as a separate line item.
(b) Under the sub -head "Others” items like fo reign exchange gains or losses and other items shall
be included
(c) 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 'adva nce
taxes paid and taxes deducted at source". The expenses pertaining to investment income e.g.
Amortisation, Write off, other Investments expenses etc. are to be deducted from this other than
separately disclosed here.
(d) Income from rent shall incl ude only the realized rent. It shall not include any notional rent.
FORM B -BS
Name of the Insurer:______________________________________
Registration No._______ and Date of Registration with the IRDAI______________
Balance sheet as at 31st marc h, 20....
(Amount in Rs. Lakhs)
Particulars Schedule
Ref. Current
Year Previous
Year
Sources of Funds
Share capital 5 &5A
Share application money pending allotment
Reserves and surplus 6
Head office account* 6A
Fair value chan ge account
-Shareholders' Funds
-Policyholders' Funds
Borrowings 7
TOTAL
Application of Funds
Investments -Shareholders 8
Investments -Policyholders 8A
Loans 9
Fixed assets 10
Defe rred tax asset (net)
Current Assets
Cash and Bank Balances 11
Advances and Other Assets 12
Sub-Total (A)
Deferred Tax Liability (Net)
Current Liabilities 13
Provisions 14
Sub-Total (B)
Net Current Asse ts (C) = (A - B)
Miscellaneous Expenditure (to the extent not written
off or adjusted) 15
Debit Balance In Profit And Loss Account
TOTAL
* in case of branches of foreign re -insurers and Lloyd’s India only
Contingent liabilit ies
(Amount in Rs. Lakhs)
Particulars Current Year Previous
Year
1. Partly paid -up investments
2. Claims, other than against
policies, not acknowledged as
debts by the company
3. Underwriting commitments
outstanding (in respect of
shares and securities)
4. Guarantees given by or on behalf
of the Company
5.Statutory demands/ liabilities in
dispute, not provided for
6. Reinsurance obligations to the
extent not provided for in
accounts
7 Others (to be specified)
(a).________
(b). ________
TOTAL
Note:
(a) Underwriting commitments outstanding - Commitments to underwrite the
subscription to a new issue of shares, but the liability for which is
contingent upon the issue not being fully subscribed. I t is, however,
clarified that insurers are presently not permitted to underwrite issues.
(b) Re -insurance obligations - it includes obligations under reinsurance
contracts with the insurer in respect of which, there are subsisting
obligations as at the ba lance sheet date but for valid reasons, the
insurer has not made any provision.
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE 1
Premium Earned [Net] (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Gross Direct Premium
Add: Premium on reinsurance accepted
Less : Premium on reinsurance ceded
Net Written Premium / Net Premium Income
Add: Opening balance of Unearned Premium
Reserve (UPR)
Less: Clo sing balance of Unearned Premium
Reserve (UPR)
Net Earned Premium
Gross Direct Premium
- In India
- Outside India
SCHEDULE 2
Claims Incurred [Net] (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Claims Paid (Direct)
Add :Re-insurance accepted to direct
claims
Less :Re -insurance Ceded to claims paid
Net Claim Paid
Add Claims Outstanding at the end of the
year
Less: Claims Outstand ing at the beginning
of the year
Net Incurred Claims
Claims Paid (Direct)
-In India
-Outside India
Estimates of IBNR and IBNER at the end of
the period (net)
Estimates of IBNR and IBNER at the
beginning of the period (n et)
Notes:
a) Incurred But Not Reported (IBNR), Incurred but not enough reported [IBNER] claims
should be included in the amount for outstanding claims.
b) Claims includes specific claims settlement cost but not expenses of management .
c) The surveyor fees, legal and other expenses shall also form part of claims cost, wherever
applicable.
d) Claims cost should be adjusted for estimated salvage value if there is a sufficient certainty
of its realization.
e) Separate disclosure to be made for segment/sub -segment which contributes more than 10
percent of the total gross direct premium .
SCHEDULE 3
Commission (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Gross Commission
Add: Commission on Re -insurance
Accepted
Less: Commission on Re -insurance
Ceded
Net Commission
Channel wise b reak-up of Commission (Gross):
Individual Agents
Corporate Agents -Banks/FII/HFC
Corporate Agents -Others
Insurance Brokers
Direct Business - Onlinec
MISP (Direct)
Web Aggregators
Insurance Marketing Firm
Common Service Centers
Micro Agents
Point of Sales (Direct)
Other (to be specified)
TOTAL
Commissi on (Excluding Reinsurance)
Business written :
In India
Outside India
Notes:
(a) The profit /commission, if any, are to be combined with the Re -insurance accepted
or Re -insurance ceded figures.
(b) Separate disclosure to be made for segme nt/sub -segment which contributes more
than 10 percent of the total gross direct premium
c Commission on Business procured through Company website
SCHEDULE 4
Operating expenses related to insurance business (Amount in Rs. Lakhs)
Partic ulars Current Year Previous
Year
1 Employees’ remuneration & welfare benefits
2 Travel, conveyance and vehicle running expenses
3 Training expenses
4 Rents, rates & taxes
5 Repairs
6 Printing & stationery
7 Communication expenses
8 Legal & professional charges
9 Auditors' fees, expenses etc.
(a) as auditor
(b) as adviser or in any other capacity, in respect of
(i) Taxation matters
(ii) Insurance matters
(iii) Management services; and
(c) in any other ca pacity
10 Advertisement and publicity
11 Interest & Bank Charges
12 Depreciation
13 Brand/Trade Mark usage fee/charges
14 Business Development and Sales Promotion Expenses
15 Information Technology Expenses
16 Goods and Services Tax (G ST)
17 Others (to be specified)a
TOTAL
In India
Outside India
Notes:
(a) Items of expenses in excess of one percent of the total premiums (less reinsurance) or
Rs.5,00,000 whichever is higher, shall be shown as a separate line item.
(b) Separate disclosure to be made for segment/sub -segment which contributes more than 10
percent of the total gross direct premium
(c) Expenses paid for various outsourcing activities/arrangements are to be booked under
relevant line item on the basis of nature of services availed and not to be shown as "Outsourcing
Expense"
SCHEDULE 5
Share Capital (Amount in Rs. Lakhs)
Particulars Current Year Previous
Year
1 Authorised Capital
Equity Shares of Rs..... each
Preference Shares of Rs..... each
2 Issued Capital
Equity Shares of Rs. .....each
Preference Shares of Rs..... each
3 Subscribed Capital
Equity Shares of Rs.......each
Preference Sh ares of Rs..... each
4 Called -up Capital
Equity Shares of Rs. .....each
Less : Calls unpaid
Add : Equity Shares forfeited (Amount originally
paid up)
Less : Par Value of Equity Shares bought back
Less : Preliminary E xpenses
Expenses including commission or brokerage on
Underwriting or subscription of shares
Preference Shares of Rs..... each
TOTAL
Notes:
(a) Particulars of the different classes of capital should be separately stat ed.
(b) The amount capitalised on account of issue of bonus shares should be disclosed.
(c) In case any part of the capital is held by a holding company, the same should be separately
disclosed.
SCHEDULE 5A
Pattern of Shareholding
[As certified by t he Management]
Shareholder Current Year Previous Year
Number of
Shares % of
Ho
ldi
ng Number of Shares % of
Ho
ldi
ng
Promoters
· Indian
· Foreign
Investors1
· Indian
· Foreign
Others 2
· Indian
· Foreign
TOTAL
1 Investors as defined under relevant regulations
2 Others may include ESOPs
SCHEDULE 6
Reserves and Surplus (Amou nt in Rs. Lakhs)
Particulars Current
Year Previous Year
1 Capital Reserve
2 Capital Redemption Reserve
3 Share Premium
4 Revaluation Reserve
5 General Reserves
Less: Amount utilized for Buy -back
Less: Amount utilized for issue of Bonus
shares
6 Catastrophe Reserve
7 Other Reserves (to be specified)
8 Balance of Profit in Profit & Loss Account
TOTAL
Notes:
(a) Additions to and deductions from the reserves should be disclosed under each of the specified
heads.
SCHEDULE 6A
Head Office Account Schedule
Particulars Current Year Previous
Year
Opening Balance of Assigned capital
Add: Addition during the year
Closing Balance of Assigned Capital*
TOTAL
Note: *Repr esents irreversible fixed amount funded by Head Office as per terms of registration and
no amount/balance shall be transferred out of the Country without approval of the Competent
Authority.
SCHEDULE 7
Borrowings (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
1 Debentures/ Bonds
2 Banks
3 Financial Institutions
4 Others (to be
specified)
TOTAL
Notes:
a) The extent to which th e borrowings are secured shall be separately disclosed stating the
nature of the security under each sub -head.
b) Amounts due within 12 months from the date of Balance Sheet should be shown separately
c) Debentures include NCDs issued as per relevant regul ations.
Disclosure For Secured Borrowings (Refer Note a)
(Amount in Rs. Lakhs)
Sl. No. Source /
instrument Amount
borrowed Amount of
security Nature of
security
SCHEDULE 8 AND 8A
Investment schedule (Amount in Rs. Lakhs)
Particulars SCH -8 SCH -8A
Shareholders Policyholders Total
Current
Year Previous
Year Current
Year Previ ous
Year Current
Year Previous
Year
Long Term
Investments
1 Government securities
and Government
guaranteed bonds
including Treasury Bills
2 Other Approved
Securities
3 Other Investments
( a) Shares
(aa) Equity
(bb) Preference
( b) Mutual Funds
(c) Derivative
Instruments
(d) Debentures/
Bonds
(e) Other Securities
(to be specified)
(f) Subsidiari es
(g) Investment
Properties -Real Estate
4 Investments in
Infrastructure and
Housing
5 Other than Approved
Investments
Short Term
Investments
1 Government securities
and Government
guaranteed bonds
including Treasury Bills
2 Other Approved
Securities
3 Other Investments
(a) Shares
(aa) Equity
(bb) 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
Housing
5 Other than Approved
Investments
TOTAL
GRNAD TOTAL
Notes:
(a) Investments in subsidiary/holding companies, joint ventures and associates shall be separately
disclosed, at cost.
(i) Holding company and subsidiary shall be construed as defined in the Company Act 2013:
(ii) Joint Venture is a contractual arrangement whereby two or more parties undertake an
economic activity, which is subject to joint control.
(iii) Joint contro l is the contractually agreed sharing of power to govern the financial and
operating policies of an economic activity to obtain benefits from it.
(iv) Associate is an enterprise in which the company has significant influence and which is
neither a subsidiary n or a joint venture of the company.
(v) Significant influence (for the purpose of this schedule) - means participation in the financial
and operating policy decisions of a company, but not control of those policies. Significant
influence may be exercised in s everal ways, for example, by representation on the board of
directors, participation in the policymaking process, material inter -company transactions,
interchange of managerial personnel or dependence on technical information. Significant
influence may be gained by share ownership, statute or agreement. As regards share
ownership, if an investor holds, directly or indirectly through subsidiaries, 20 percent or
more of the voting power of the investee, it is presumed that the investor does have
significant influence, unless it can be clearly demonstrated that this is not the
case. Conversely, if the investor holds, directly or indirectly through subsidiaries, less than
20 percent of the voting power of the investee, it is presumed that the investor does not
have significant influence, unless such influence is clearly demonstrated. A substantial or
majority ownership by another investor does not necessarily preclude an investor from
having significant influence.
(b) Investments made out of Catastrophe reserve sh ould be shown separately.
(c) Debt securities will be considered as “held to maturity” securities and will be measured at
historical cost subject to amortisation.
(d) Investment Property means a property [land or building or part of a building or both] held to
earn rental income or for capital appreciation or for both, rather than for use in services or for
administrative purposes.
(e) Investments maturing within twelve months from balance sheet date and investments made
with the specific intention to dispose of wit hin twelve months from balance sheet date shall be
classified as short -term investments
(f) Investment regulations, as amended from time to time, to be referred
(g) Aggregate amount of company's investments other than listed equity securities and derivative
instruments and also the market value thereof shall be disclosed as specified below
Aggregate value of Investments other than Listed Equity Securities and Derivative Instruments
(Amount in Rs. Lakhs)
Particulars Shareholders Policyholders Total
Current
Year Previous
Year Current
Year Previous
Year Current
Year Previous
Year
Long Term Investments :
Book Value
market Value
Short Term Investments :
Book Value
market Value
SCHEDULE 9
Loans (Amount in Rs. Lakhs)
Particula rs Current Year Previous Year
1 Security -Wise Classification
Secured
(a) On mortgage of property
(aa) In India
(bb) Outside India
(b) On Shares, Bonds, Govt. Securities
(c) Others (to be specified)
Unsecured
TOTAL
2 Borrower -Wise Classification
(a) Central and State Governments
(b) Banks and Financial Institutions
(c) Subsidiaries
(d) Industrial Undertakings
(e) Companies
(f) Others (to be specified )
TOTAL
3 Performance -Wise Classification
(a) Loans classified as standard
(aa) In India
(bb) Outside India
(b) Non -performing loans less provisions
(aa) In India
(bb) Outside India
TOTAL
4 Maturity -Wise Classification
(a) Short Term
(b) Long Term
TOTAL
Notes:
(a) Short -term loans shall include those, which are repayable within 12 months from the date
of balance sheet. Long term loans shall be the loans other tha n short -term loans.
(b) The nature of the security in case of all long term secured loans shall be specified in each
case. Secured loans for the purposes of this schedule, means loans secured wholly or partly
against an asset of the company.
(c) Loans considered doubtful and the amount of provision created against such loans shall be
disclosed.
(d) Provisions against non -performing loans shall be shown as below:
Provisions against Non -performing Loans (Amount in Rs. Lakhs)
Non-Performing Loans Loan Amount Provision
Sub-standard
Doubtful
Loss
Total
SCHEDULE 10
Fixed Assets (Amount in Rs. Lakhs)
Particulars Cost/ Gross Block Depreciation Net Block
Opening Additions Deductions Closing Up to
Last
Year For The
Period On Sales/
Adjustments To
Date Current
Year
Previous
Year
Goodwill
Intangibles (specify)
Land -Freehold
Leasehold Property
Buildings
Furniture & Fittings
Information
Technology
Equipment
Vehicl es
Office Equipment
Others (Specify
nature)
TOTAL
Work in progress
Grand Total
Previous Year
Note: Assets included in land, property and building above exclude Investment Properties as defined in note (e) to Schedule 8
SCHEDULE 11
Cash and Bank Balances (Amount in Rs. Lakhs)
Particulars Current
Year Previous
Year
1 Cash (including cheques *, drafts and stamps)
2 Bank Balances
(a) Deposit Accounts
(aa) Short -term (due within 12 months)
(bb) Others
(b) Current Accounts
(c) Others (to be specified)
3 Money at Call and Short Notice
(a) With Banks
(b) With other Institutions
4 Others (to be specified)
TOTAL
Balances with non -scheduled banks included in 2
and 3 above
CASH & BANK BALANCES
In India
Outside India
* Cheques on hand amount to Rs. __________ (in Lakh) Previous Year : Rs. _______ (in Lakh)
Note :
(a) Bank balance may include remittances in transit. If so, the nature and amount should be
separately stated.
SCHEDULE 12
Advances and other assets (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
Advances
1 Reserve deposits with ceding
companies
2 Appli cation money for investments
3 Prepayments
4 Advances to Directors/Officers
5 Advance tax paid and taxes deducted
at source (Net of provision for
taxation)
6. Goods & Service tax credit
7. Others (to be specified)
(i)_____
(ii) ___ __
TOTAL (A)
Other Assets
1 Income accrued on investments
2 Outstanding Premiums
Less : Provisions for doubtful ,if any
3 Agents’ Balances
4 Foreign Agencies Balances
5 Due from other entities carrying on
Insurance business (including
reinsurers)
Less : Provisions for doubtful, if any
6 Due from subsidiaries/ holding
7 Investments held for Unclaimed
Amount of Policyholders
8 Interest on investments held for
Unclaimed Amount of Policyholders
9 Others (to be specified)
(i) ___________
(ii) __________
10 Current Account of Head Office*
TOTAL (B)
TOTAL (A+B)
* in case of branches of foreign re -insurers and Lloyd’s India only
Notes:
(a) The items unde r the above heads shall not be shown net of provisions for doubtful amounts.
The amount of provision against each head should be shown separately.
(b) The term ‘officer’ should conform to the definition of that term as given under the Companies
Act.
SCHEDULE 13
Current liabilities (Amount in Rs. Lakhs)
Particulars Current Year Previous Year
1 Agents’ Balances
2 Balances due to other insurance
companies
3 Deposits held on re -insuran ce ceded
4 Premiums received in advance
(a) For Long term policies (1)
(b) for Other Policies
5 Unallocated Premium
6 Sundry creditors
7 Due to subsidiaries/ holding company
8 Claims Outstanding
9 Due to Officers / Directors
10 Unclaimed Amount of policyholders
11 Income accrued on Unclaimed
amounts
12 Interest payable on debentures/bonds
13 Goods and Service tax Liabilities
14 Others (to be specified)
(i) ________
(ii) _______
15 Current Account of Head Office*
TOTAL
* in case of branches of foreign re -insurers and Lloyd’s India only
Note :
1. Long term policies are policies with more than one year tenure
2. Details of unclaimed amounts and Investment Income to be submi tted as below
Details of unclaimed amounts and Investment Income thereon
(Amount in Rs. Lakhs)
Particula rs Current Year Previous Year
Opening Balance
Add: Amount transferred to unclaimed
amount
Add: Cheques issued out of the
unclaimed amount but not
encashed by the policyholders
(To be included only when the
cheques are stale)
Add: Inves tment Income
Less: Amount paid during the year
Less: Transferred to SCWF
Closing Balance of Unclaimed Amount
SCHEDULE 14
Provisions (Amount in Rs. La khs)
Particulars Current
Year Previous Year
1 Reserve for unearned premium reserve
2 Reserve for Premium Deficiency
3 For taxation (less advance tax paid and taxes
deducted at source)
4 For Employee Benefits
5 Others (to be specifie d)
(a) __________
(b) __________
TOTAL
SCHEDULE 15
Miscellaneous Expenditure
(To the extent not written off or adjusted) (Amount in Rs. Lakhs)
Particulars Current
Year Previous Year
1 Discount All owed in issue of shares/
debentures
2 Others (to be specified)
TOTAL
Notes:
(a) No item shall be included under the head “Miscellaneous Expenditure” and carried forward
unless:
1. some benefit from the expenditure can reasonably be expected to be received in future,
and
2. the amount of such benefit is reasonably determinable.
(b) The amount to be carried forward in respect of any item included under the head
“Miscellaneous Expenditure” shall not exceed the expected future revenue/other benefits
related to the expenditure.
Part III: AUDITOR'S REPORT
The report of the auditors on the financial statements of every insurer shall deal with the matters
specified herein:
1.
(1) That they have obtained all the informa tion and explanations which, to the best of their
knowledge and belief were necessary for the purposes of their audit and whether they
have found them satisfactory;
(2) Whether proper books of account have been maintained by the insurer so far as appears
from an examination of those books;
(3) Whether proper returns, audited or unaudited, from branches and other offices have been
received and whether they were adequate for the purpose of audit;
(4) Whether the Balance sheet, Revenue account, Profit and Loss account and the Receipts
and Payments Account dealt with by the report are in agreement with the books of
account and returns;
(5) Whether the actuarial valuation of liabilities is duly certified by the appointed actuary
including to the effect that the assumptions for s uch valuation are in accordance with the
guidelines and norms, if any, issued.
2. The auditors shall express their opinion on:
(1)
(i) Whether the balance sheet gives a true and fair view of the insurer's affairs as at the
end of the financial year/period;
(ii) Whether the revenue account gives a true and fair view of the surplus or the deficit for
the financial year/period;
(iii) Whether the profit and loss account gives a true and fair view of the profit or loss for
the financial year/period;
(iv) Whether the receipts and paymen ts account gives a true and fair view of the receipts
and payments for the financial year/period;
(2) The f inancial statements stated at (1 ) above are prepared in accordance with the
requirements of the Insurance Act, 1938 (4 of 1938), the Insurance Regulatory and
Development Authority Act, 1999 (41 of 1999) and the Companies Act, 2013, to the
extent applicable and in the manner so required.
(3) Investments have been valued in accordance with the provisions of the Act and these
regulations.
(4) The accounting policies selected by the insurer are appropriate and are in compliance
with the applicable accounting standards and with the accounting principles, as
prescribed in these regulations or any order or direction issued in this behalf.
3. The auditors shall further certif y that:
(1) they have reviewed the management report and there is no apparent mistake or material
inconsistencies with the financial statements;
(2) the insurer has complied with the terms and conditions of the registration stipulated by the
Authority.
4. A certifica te signed by the auditors [which shall be in addition to any other certificate or report
which is required by law to be given with respect to the balance sheet] certifying that -
(1) they have verified the cash balances and the securities relating to the insure r's loans,
reversions and life interests (in the case of life insurers) and investments;
(2) to what extent, if any, they have verified the investments and transactions relating to any
trusts undertaken by the insurer as trustee; and
(3) no part of the assets of t he policyholders' funds has been directly or indirectly applied in
contravention of the provisions of the Insurance Act, 1938 (4 of 1938) relating to the
application and investments of the policyholders' funds.
SCHEDULE III - INVESTMENT FUNCTI ONS
Part-I
1. Definitions :
(1) "Approved Investments" means Investments made as per clause 2(1) and 2 (2) of the
Schedule III of these regulations.
(2) “Assets” means assets in India, held by an Insurer in accordance with the provisions of
Section 31 of the Act.
(3) “Financial Derivatives” means a derivative as defined under clause (ac) of section 2 of the
Securities Contracts (Regulation) Act, 1956, and includes a contract which derives its value
from interest rates of underlying debt securities and such other derivat ive contracts as may be
stipulated by the Competent Authority, from time to time.
(4) “Group” means: two or more individuals, association of individuals, firms, trusts, trustees or
bodies corporate, or any combination thereof, which exercises, or is establishe d to be in a
position to exercise, significant influence and / or control, directly or indirectly, over any
associate as defined in Accounting Standard (AS), body corporate, firm or trust, or use of
common brand names, Associated persons, as may be stipula ted by the Competen t
Authority, from time to time.
Explanation: Use of common brand names in conjunction with other parameters of significant
influence and / or control, whether direct or indirect shall be reckoned for determination for
inclusion as formin g part of the group or otherwise.
(5) “Housing Finance Company ” shall have the meaning assigned to it by the RBI, as amended
from time to time.
(6) “Infrastructure facility” means, the ‘Harmonized Master list of Infrastructure sub -sectors’ as
per Gazette Notificat ion Dt. October 11, 2022 of Department of Economic Affairs, as
amended from time to time.
(7) “Investment Assets” mean all investments made out of:
(i) in the case of Life Insurer
(a) shareholders’ funds representing solvency margin, non -unit reserves of unit linked
insurance business, participating and non -participating funds of policyholders, funds
of variable insurance products including One Year Renewable Pure Group Term
Assurance Business (OYRGTA) at their carrying value;
(b) policyholders’ funds of Pension, Annuity b usiness and Group business including
funds of variable insurance products at their carrying value;
(c) policyholders’ unit reserves of unit linked insurance business including funds of
variable insurance products at their market value as per guidelines issued under
these regulations, from time to time;
(ii) in the case of General Insurer including an insurer carrying on business of re -
insurance or health insurance or in case of a branch of a foreign company engaged in
the business of re -insurance, funds maintai ned in its head office account,
shareholders’ funds representing solvency margin and policyholders’ funds at their
carrying value as shown in its balance sheet prepared in accordance with these
regulations;
(8) Money Market Instruments
Money Market Instruments shall comprise of Short term investments with maturity not more
than one year comprising of the following instruments:
(i) Certificate of deposit rated by a credit rating agency registered under SEBI (Credit
Rating Agencies) Regulations, 1999;
(ii) Commercial pape r rated by a credit rating agency registered under SEBI (Credit
Rating Agencies) Regulations, 1999;
(iii) Reverse Repo;
(iv) Treasury Bills (including Cash Management Bills);
(v) Call, Notice, Term Money;
(vi) Tri-party Repos (TREPs)
(vii) Any other instrument as may be specified by the Competent Authority;
PART II
2. Approved Investments
(1) No insurer shall invest or keep invested any part of its Controlled Fund, as defined under Sec
27A / Assets as defined under Sec 27 (2) of the Act, read together with Sec 27E of the Act,
otherwise tha n in approved securities, as per Section 2(3) of Insurance Act, 1938, as amended
from time to time and in any of the following approved investments, namely:
(i) debentures secured by a first charge on any immovable property, plant or equipment of
any company w hich has paid interest in full without any default ;
(ii) debentures secured by a first charge on any immovable property, plant or equipment of
any company where either the book value or the market value, whichever is less, of such
property, plant or equipment i s more than three times the value of such debentures;
(iii) first debentures secured by a floating charge on all its assets of any company which has
paid dividends on its equity shares for at least 2 financial years out of immediately
preceding 3 consecutive fin ancial years ;
(iv) preference shares of any company which has paid dividends on its equity shares for at
least 2 financial years out of immediately preceding 3 consecutive financial years;
(v) equity shares of any listed and actively traded company on which not les s than ten
percent dividends have been paid for at least 2 financial years out of immediately
preceding 3 consecutive financial years ;
(vi) immovable property situated in India, provided that the property is free of all
encumbrances;
(vii) loans on policies of life i nsurance within their surrender values issued by him or by an
insurer whose business he has acquired and in respect of which business he has
assumed liability;
(viii) Fixed Deposits with banks included for the time being in the Second Schedule to the
Reserve Bank of India Act,1934(2 of 1934); and
such other investments as the Authority may, by notification in the Official Gazette, declare
to be Approved Investments.
(2) In addition, the following investments shall be deemed as Approved Investments
(i) All rated debentures (including bonds) and other rated & secured debt instruments as per
Note appended to Clauses 3 to 8. Equity shares, preference shares and debt instruments
issued by All India Financial Institutions recognized as such by Reserve Bank of India –
investments shall be made in terms of investment policy guidelines, benchmarks and
exposure norms, limits approved by the Board of Directors of the insurer.
(ii) Bonds or debentures issued by companies, rated not less than AA or its equivalent and A1
or its equivalent rat ings for short term bonds, debentures, certificate of deposits and
commercial papers by a credit rating agency, registered under SEBI (Credit Rating
Agencies) Regulations1999.
(iii) Subject to norms and limits approved by the Board of Directors of the insurer’s deposits
[including fixed deposits as per Clause 2(1)(viii) with banks (e.g. in current account, call
deposits, notice deposits, certificate of deposits etc.) included for the time being in the
Second Schedule to Reserve Bank of India Act, 1934(2of 1934) and deposits with primary
dealers duly recognized by Reserve Bank of India as such.
(iv) Tri Party Repo created with the Tri -party Agent who is approved by RBI and exposure to
Gilt, G Sec, overnight, ultra -short term and liquid mutual fund forming part of Appro ved
Investments as per Mutual Fund Guidelines issued under these regulations and money
market instrument/investment.
(v) Asset Backed Securities/Pass through Certificates(PTCs) with underlying Housing loans or
having infrastructure assets as underlying as defi ned under “infrastructure facility” in
clause 1(6) of the Schedule - III to regulation 6(3) of these regulations.
(vi) Commercial papers issued by All India Financial Institutions recognized as such by
Reserve Bank of India having a credit rating of A1 by a cred it rating agency registered
under SEBI (Credit Rating Agencies) Regulations1999.
(vii) Money Market instruments as defined in clause 1(8) of the Schedule - III to Regulation 6(3)
of these regulations.
Explanation: All conditions mentioned in the ‘note’ appended to Clauses 3 to 8 shall be
complied with.
(3) The board of the insurer, to comply with the provisions of Section 27A (2) (ii) of the Act, may
delegate to Investment Committee, for investments already made and the continuance of such
investments from controlled fund / assets, in otherwise than in an approved investment, and in All
India Financial Institutions recognized as such by RBI for investments carrying a rating of less
than AA and being part of Approved Investment. The investment committee shall be respon sible
for the details, analysis and review of non -performing assets of investments on a quarterly
periodicity.
(4) Unless specifically permitted by the Authority, no investment shall be made in any entity not
formed under laws relating to companies in India a nd in company formed under section 8 of the
Companies Act,2013 or erstwhile Section 25 of the Companies Act,1956.
3. Regulation of Investments –Life Insurer :
A life insurer, for the purpose of these regulations, shall invest and at all times keep invested, the
Investment Assets forming part of the Controlled Fund as under:
(1) All funds (excluding Shareholders’ funds held beyond solvency margin, held in a separate
custody account) of Life insurance business and One Year Renewable Pure Group Term
Assurance Business (OYRGTA), and non -unit reserves of all categories of Unit linked life
insurance business, as per clause 4;
(2) all funds of Pension, Annuity and Group Business as per clause 5; and
(3) the unit reserves portion of all categories of Unit linked funds, as per clause 6.
4. Without prejudice to Sections 10 (2AA), 27 or 27A of the Act and any provisions of these
regulations, every insurer carrying on the business of Life Insurance, shall invest and at all times
keep invested its Investment Assets as defined in clause 3(1) (other than funds relating to Pension
& General Annuity and Group Business and unit reserves of all categories of Unit Linked
Business) in the following manner:
No Type of Investment Percentage to funds as under
clause 3(1)
(i) Central Government Securi ties Not less than 25%
(ii) Central Government Securities, State Government
Securities or Other Approved Securities Not less than 50% (incl (i) above)
(iii)
Approved Investments as specified in clause 2(1) and
(2) to these regulations and Other Inve stments as
specified in Section 27A (2) of the Act and, (all taken
together) subject to Exposure / Prudential Norms as
specified in clause -8: Not exceeding 50%
(iv) Other Investments as specified in Section 27A (2) of
the Act, subject to Exposure / Pr udential Norms as
specified in clause -8. Not exceeding 15%
(v) Investment in housing and infrastructure by way of
subscription or purchase of:
A. Investment in Housing
a. Bonds / debentures of National Housing Bank &
HUDCO
b. Bonds / debentures of Housing Finance
Companies either duly accredited by National
Housing Bank, for house building activities, or duly
guaranteed by Government or carrying current
rating of not less than ‘AA’ by a credit rating
agency registered under SEBI (Credit Rating
Agencies) Regulat ions, 1999 and equity shares of
any actively traded Housing Finance Company /
HUDCO on which not less than ten percent
dividends have been paid for at least 2 Financial
years out of immediately preceding 3 consecutive
Financial years.
c. Asset Backed Securitie s with underlying housing
loans, satisfying the norms specified in the
guidelines issued under these regulations from
time to time.
B. Investment in Infrastructure
Explanation: Subscription or purchase of Bonds /
Debentures, Equity and Asset Backed Securit ies
with underlying infrastructure assets would qualify
for the purpose of this requirement.
‘Infrastructure facility’ shall have the meaning as
given in clause 1(6) as amended from time to time.
Note: Investments made under category (i) and (ii)
above may be considered as investment in housing
and infrastructure, provided the respective
government issues such a security specifically to
meet the needs of any of the sectors specified as
‘infrastructure facility’. Total Investment in housing and
infrastructu re (i.e.,) investment in
categories (i), (ii), (iii) and
(iv) above taken together shall not be
less than 15% of the fund under clause
3(1).
5. Without prejudice to Sections 10 (2AA), 27 or 27A of the Act and any provisions of these
regulations every insu rer carrying on Pension, Annuity and Group Business shall invest and at all
times keep invested its Investment Assets of Pension, Annuity and Group business in the
following manner:
No Type of Investment Percentage to funds
under clause 3(2)
(i) Central Government Securities Not less than 20%
(ii) Central Government Securities, State Government
Securities or Other Approved Securities Not less than 40% (incl (i)
above)
(iii) Balance to be invested in Approved Investments, as specified
in clause 2(1)and (2 ), subject to Exposure / Prudential norms
as specified in clause 8. Not exceeding 60%
Note: For the purposes of this regulation no investment falling under ‘Other Investments’ as
specified under Section 27A (2) of the Act shall be made.
6. Unit Linked Insura nce Business
(1) Without prejudice to Sections 10 (2AA), 27 or 27A of the Act and any provisions of these
regulations every insurer shall invest and at all times keep invested its segregated fund(s)
under clause 3(3) (with underlying securities at custodian le vel) of Unit linked business as per
pattern of investment offered to and subscribed to by the policy -holders where the units are
linked to categories of assets which are both marketable and readily realizable within the
approved pattern as per the product regulations.
(2) However, the investment in Approved Investments shall not be less than 75% of such fund(s)
in each such segregated fund”.
(3) All prudential and exposure norms under clause 8, shall be applicable at the level of individual
segregated fund at SFIN level.
(4) Insurer shall, as per circular / guidelines issued, from time to time, disclose on their website,
the minimum information required for the benefit of policyholders.
7. Regulation of Investments - General Insurer including an insurer carrying on busines s of
re-insurance or health insurance.
Without prejudice to Sections 10 (2AA), 27, or 27B of the Act and any provisions of these
regulations, an insurer carrying on the business of General Insurance including an insurer
carrying on business of re -insurance or health insurance shall invest and at all times keep
invested its investment assets in the manner set out below:
No Type of Investment Percentage of Investment
Assets
(i) Central Government Securities Not less than 20%
(ii) Central Government Securiti es, State Government Securities
or Other Approved Securities. Not less than 30%(incl (i)
above)
(iii) Approved Investments as specified in clause 2 (1) and (2) and
Other Investments as specified in Section 27A (2),(all taken
together) subject to Exposure / Prudential Norms as specified in
clause 8.
Not exceeding 70%
(iv) Other investments as specified in Section 27A (2), subject to
Exposure / Prudential Norms as specified in clause 8. Not more than 15%
(v) Loans to State Government for Housing and Fire Fighting
equipment, by way of subscription or purchase of:
No Type of Investment Percentage of Investment
Assets
A. Investments in Housing
a. Bonds / debentures of National Housing Bank & HUDCO
b. Bonds / debentures of Housing Finance Companies either
duly accredited by National Housing Bank, for house
buildin g activities, or duly guaranteed by Government or
carrying current rating of not less than ‘AA’ by a credit
rating agency registered under SEBI (Credit Rating
Agencies) Regulations, 1999 and equity shares of any
actively traded Housing Finance Company /HUDC O on
which not less than ten percent dividends have been paid
for at least 2 Financial years out of immediately preceding 3
consecutive Financial years.
c. Asset Backed Securities with underlying Housing loans,
satisfying the norms specified in the Guidelines issued
under these regulations from time to time.
B. Investment in Infrastructure
d. Explanation: Subscription or purchase of Bonds/
Debentures, Equity and Asset Backed Securities with
underlying infrastructure assets would qualify for the
purpose of this r equirement.
e. ‘Infrastructure facility’ shall have the meaning as given in
Clause 1(6) as amended from time to time.
Note: Investments made under category (i) and (ii) above may
be considered as investment in housing or infrastructure, as the
case may be, pr ovided the respective government issues such
a security specifically to meet the needs of any of the sectors
specified as ‘infrastructure facility’. Total Investment in housing
and infrastructure (i.e.,)
investment in categories (i),
(ii), (iii) and (iv ) above taken
together shall not be less
than 15% of the Investment
Assets
“Note –For the purpose of Clauses 3 to 7
(I) Applicability of Pattern of Investment
Pattern of Investment will not be applicable for Shareholders’ funds held in business beyond
require d solvency margin, and not taken in calculation of solvency margin. Such excess shall
be:
(a) Made after fully complying with investment in Central Government Securities, State
Government and Other Approved Securities and in Housing & Infrastructure
Investment s from funds representing solvency margin.
(b) Such excess of Shareholder’s funds, held beyond Solvency Margin requirement,
shall be held in a separate custody account with identified scrips.
(c) Such excess funds shall be determined only after Actuarial Valuation , certified by
Appointed Actuary and such valuation is filed with the Authority.
(d) Such transfer made between quarters, shall be certified by the Concurrent Auditor
to have complied with points (a), (b) and (c) above.
(e) Exposure Norms of ‘investee company’, ‘g roup’, ‘promoter group’ and ‘industry
sector’ shall be applicable to both funds representing solvency margin (FRSM) and
funds held in excess of required solvency margin.
(II) All investments in assets or instruments, which are capable of being rated as per
market practice, shall be made on the basis of credit rating of such assets or
instruments. No approved investment shall be made in instruments, if such
instruments are capable of being rated, but are not rated.
(III) The rating should be done by a credit rating a gency registered under SEBI (Credit
Rating Agencies) Regulations,1999.
(IV) Infrastructure Investments rated not less than A along with Expected Loss Rating of
EL1 would be considered as approved investment.
(V) The rating of a debt instrument issued by All India Financial Institutions recognized as
such by RBI shall be of ‘AA’ or equivalent rating. In case investments of this grade
are not available to meet the requirements of the investing insurance company, and
Investment Committee of the investing insurance co mpany is fully satisfied about the
same, then, for the reasons to be recorded in the Investment Committee’s minutes,
the Investment Committee may approve investments in instruments carrying current
rating of not less than ‘A+’ or equivalent as rated by a c redit rating agency, registered
under SEBI (Credit Rating Agencies) Regulations,1999,would be considered as
‘Approved Investments’.
(VI) Approved Investments under Clauses 4,5,6 and 7 which are downgraded below the
minimum rating prescribed or not continuing t o satisfy dividend criteria should be
automatically re -classified under ‘ Other Investments’ and specifically identified under
relevant category.
(VII) (a) Not less than 75% of investment in debt instruments (including Central
Government Securities, State Govern ment Securities or Other Approved Securities)in
the case of life insurer and not less than 65% of investment in debt instruments
(including Central Government Securities, State Government Securities or Other
Approved Securities)in the case of General Insur er including an insurer carrying on
business of re -insurance or health insurance – shall be in sovereign debt, AAA or
equivalent rating for long term and sovereign debt, A1+ or equivalent for short term
instruments. This shall apply at segregated fund(s)in case of Unit linked business.
Note: In calculating the 75% in the case of Life insurers and 65% in the case of General
Insurer including an insurer carrying on business of re -insurance or health insurance, of
investment in ‘Debt’ instruments, investment i n a) Reverse Repo with corporate bond
underlying (b)Bank Fixed Deposit (c)Investment in Promoter Group Mutual Fund(s) and
un-rated Mutual funds, shall not be considered both in numerator and denominator.
(b)Not more than 5% of funds under clause 3(1) and c lause 3(3) in debt instruments
(including Central Government Securities, State Government Securities or Other
Approved Securities) in the case of life insurer and not more than 8% of investment in
debt instruments (including Central Government Securities, State Government
Securities or Other Approved Securities)in the case of General Insurer including an
insurer carrying on business of re -insurance or health insurance –shall have a rating of
A or below or equivalent rating for long term.
(c) No investment ca n be made in other investments out of funds under clause 3(2).
(d) Investments in debt instruments rated AA – (AA minus) or below for long term and
below A1 or equivalent for short term debt instruments and Infrastructure Debt
Investments rated below A or EL1 shall form part of Other Investments.
(VIII) Notwithstanding the above, it is emphasized that rating should not replace appropriate
risk analysis and management on the part of the Insurer. The Insurer should conduct risk
analysis commensurate with the complexity of the product(s) and the materiality of their
holding or could also refrain from such investments.
8. Exposure/Prudential Norms :
Without prejudice to anything contained in Sections 10(2AA),27,27A,27B and27C of the Act every
insurer shall limit it s investment of controlled funds/all assets as per the following exposure norms:
(1) Exposure norms for:
(i) Life Insurance business:
(a) all funds of Life insurance business and One Year Renewable pure Group Term
Assurance Business(OYRGTA) and non -unit reserves of all categories of Unit
linked life insurance business;
(b) all funds of Pension, Annuity and Group Business as per clause 5; and
(c) the unit reserves portion of all categories of Unit linked funds, as per clause 6,
Life, Pension, Annuity and Group busi ness and each segregated fund within Unit
Linked Insurance business (except for promoter group exposure).
(ii) General insurance business
(iii) Re-insurance business
(iv) Health insurance business
For both Approved Investments as per clause 2(1) and 2(2) and Other Investm ents as
permitted under Section 27A (2) shall be as under.
(2) The maximum exposure limit for a single ‘investee’ company (equity, debt and other investments
taken together) from all investment assets under point (1(i)(a),1(i)(b), 1(i)(c) all taken together),
1(ii), 1( iii) and 1(iv) mentioned above, shall not exceed the lower of the following;
(a) An amount of 10% of investment assets as under clause 1(7)(i) , clause 1(7)(ii))
excluding fair value change of investment assets under clause 1(7) except clause 1(7)(i)( c).
(b) An aggregate of amount calculated under point (a) and (b) of the following table:
Type of Investment
Limit for ‘Investee’ Company
Limit for
the entire
Group of
the
Investee
Company Limit for Industry
Sector to which
Investee Company
belongs
(1) (2) (3) (4)
a. Investment in
‘Equity’, Preference
Shares, Convertible
Debentures 10% * of the Paid -up Equity
Share capital
or
10% of the amount under1(i)(a)
or 1(i)(b) or 1(i)(c) [segregated
fund] above considered
separately in the case of Life
insurers /amou nt under 1(ii) or
1(iii) or 1(iv) in the case of
General Insurer including an
insurer carrying on business of
re-insurance or health insurance Not more
than15% of
the amount
under point
1(i)(a) or
1(i)(b)
or1(i)(c) or
1(ii) or 1(iii)
or 1(iv)
Exposure to
Investments
made in
companies
belonging to Investment by the
insurer in any industrial
sector should not
exceed 15% of the
amount under point
1(i)(a) or 1(i)(b) or
1(i)(c) or 1(ii) or 1(iii) or
1(iv)
Note: Industrial Sector
shall be classified in
the lines of National
Industrial Classification
(All Economic
whichever is lower Promoter
Group shall
be made as
per Point (VII)
under notes
to clause 8 Activities) - 2008 [ NIC]
for all sectors, except
housing and
infrastructure sector.
Exposure shall be
calculated at Division
level from A to R. For
Financial and
Insurance Activities
sector exposure shall
be at Section level.
Exposure to
‘infrastructure
‘investments are subject
to Note: II, III and IV
mentioned below. b. Investment in Debt
(incl. CPs) / Loans
and a ny other
permitted Investments
as per Act /Regulation
other than item ‘a’
above. 10% * of the Paid -up Share
capital, Free reserves
(excluding revaluation reserve)
and Debentures /Bonds (incl.
CPs ) of the‘ Investee’ company
or
10% of the amount under 1(i)( a)
or 1(i)(b) or 1(i)(c) [segregated
fund] above considered
separately in the case of Life
insurers /amount under 1(ii) or
1(iii) or 1(iv) in the case of
General Insurer including an
insurer carrying on business of
re-insurance or health insurance
Whicheve r is lower .
* In the case of insurers having investment assets within the meaning of clause 1(7) (i) and
clause 1(7)(ii) of the under mentioned size, the (*) marked limit in the above table for investment in
equity, preference shares, convertible debent ures, debt, loans or any other permitted investment
under the se regulations, shall stand substituted asunder:
Investment assets Limit for ‘investee’ company
Equity Debt
Rs. 2,50,000 Crores
or more 15% of Paid up Equity Share Capital 15% of paid up share capital, free
reserves (excluding revaluation
reserve)& debentures/ bonds
Rs.50,000 Crores but
less than
Rs.2,50,000 Crores 12% of Paid up Equity Share Capital 12% of paid up share capital, free
reserves (excluding revaluation
reserve)&debentures/ bonds
Less than Rs.50,000
Crores 10% of Paid up Equity Share Capital 10% of paid up share capital, free
reserves (excluding revaluation
reserve)&debentures/ bonds
Note:
(I) Industry sector norms shall not apply for investments made in:
(i) ‘Infrastructure facility’ se ctor as defined under clause 1(6). NIC classification shall not
apply to investments made in ‘Infrastructure facility’.
(ii) NIC classification shall not apply to investments made in ‘Housing Sector’.
(II) Investments in IDF -NBFCs (Infrastructure Debt Fund), shall be reckoned for investments in
Infrastructure subject to the following conditions:
(i) IDF-NBFC is registered with RBI
(ii) Debt securities shall have residual tenure of not less than 5 years (at the time of
investment).
(iii) Minimum Credit Rating of AA or its equivale nt by a Credit Rating Agency registered
with SEBI to be eligible for approved investments.
(iv) The exposure limits for investments in IDF -NBFCs is as per the note (III) below.
(III) Exposure to a public limited ‘Infrastructure investee company’ and Infrastructure F inance
Company (NBFC -IFC registered with RBI) will be:
(i) 20%of Paid up Equity Share Capital in case of equity (or)
(ii) 20%of Paid up Equity Share Capital plus free reserves (excluding revaluation reserve)
plus debentures/bonds taken together, in the case of debt (or)
(iii) Amount under clause 8(2)(a) whichever is lower .
(iv) The20%mentioned above, can be further increased by an additional 5%, in case of
debt instruments alone, with the prior approval of Board of Insurer.
(v) The outstanding tenure of debt instruments, beyond the exposure prescribed in the
above table in this regulation, in an infrastructure Investee Company, should not be
less than 5 years at the time of investment.
(vi) In case of Equity investment, dividend track record as per these regulations, in the
case of prima ry issuance of a wholly owned subsidiary of a Corporate/ PSU shall
apply to the holding company.
(vii) All investments made in an ‘infrastructure investee company’ shall be subject to
group/promoter group exposure norms.
(IV) An insurer can, at the time of investing , subject to group / promoter group exposure norms,
invest a maximum of 20%of the project cost (as decided by a competent body) of an Public
Limited Special Purpose Vehicle (SPV) engaged in infrastructure sector (or) amount under
clause 8(2)(a), whichever is lower, as a part of Approved Investments provided:
(i) such investment is in Debt;
(ii) the parent company guarantees the entire debt extended and the interest payment of
SPV;
(iii) the principal or interest, if in default and if not paid within 90 days of the due dat e, such
debt shall be classified under other investments;
(iv) the latest instrument of the parent company (ies) has (have) rating of not less than AA;
(v) such guarantee of the parent company (ies) should not exceed 20% of net worth of
parent company (ies) includi ng the existing guarantees, if any, given;
(vi) the net worth of the parent company (ies), if unlisted, shall not be less than Rs. 500
crores or where the parent company (ies) is listed on stock exchanges having
nationwide terminals, the net worth shall not be less than Rs. 250 Crores.
(vii) Investment Committee should at least on a half -yearly periodicity evaluate the risk of
such investments and take necessary corrective actions where the parent company
(ies)is floating more than one SPV;
(V) Investment in securitized assets (Mortgaged Backed Securities (MBS) / Asset Backed
Securities (ABS) / Security Receipts (SR) / Pass Through Certificates (PTC)) both under
approved (with minimum credit rating of AAA) and other investment (with credit rating below
AAA) category shall not exceed 10% of Investment Assets in case of Life Insurance
companies and 5% of Investment Asset in the case of General Insurance companies.
Approved Investment in MBS / ABS with underlying Housing or Infrastructure Assets shall not
exceed 10% of invest ment assets in the case of Life insurance companies and not more than
5% of investment assets in the case of General insurance companies. Any MBS / ABS with
underlying housing or infrastructure assets, if downgraded below AAA or equivalent, shall be
reclas sified as Other Investments;
(VI) Investment Property within the meaning of Accounting Standards, and covered under clause
2(1)(vi) shall not exceed, at the time of investment, 5% of (a) Investment Assets in the case
of general insurer and (b) 5% of Investment Assets of life funds in the case of life insurer.
Immovable property, held as ‘investment property’ shall not be for ‘self -use’. Immovable
property, for self -use, shall be purchased only out of shareholders’ funds, and shall comply
with circular/ guidelin es issued’
(VII) Subject to exposure limits mentioned in the table above, an insurer shall not have
investments of more than 5% in aggregate of its investment assets in all companies
belonging to the promoters’ group. Investment made in all companies belonging to the
promoters’ group shall not be made by way of private placement (except QIPs of
BSE100/NSE100 companies and Central Public Sector Enterprises) or in unlisted
instruments (equity, debt, certificate of deposits and fixed deposits held in a Scheduled
Commercial Bank), except for companies formed by Insurers under Note XII to clause 8;
(VIII) The exposure limit for financial and insurance activities (as per Section K of NIC
classification – 2008, as amended from time to time) shall stand at 30% of investment
assets for all insurers. Investment in Housing Financing Companies and Infrastructure
Financing Companies (except investment in Bonds / debentures of HUDCO, NHB and
bonds issued by Housing Finance Companies having a rating of not less than AA,
investment in equity shares of any actively traded Housing Finance Company on which not
less than ten percent dividends have been paid for at least 2 Financial years out of
immediately preceding 3 consecutive Financial years and investment in Debt, Equity in
dedicated infrastructure financing entities forming part of Infrastructure sector) shall form
part of exposure to financial and insurance activities (as per Section K of NIC classification –
2008);
(IX) Where an investment is in partly paid -up shares, the uncalled liabil ity on such shares shall
be added to the amount invested for the purpose of computing exposure norms;
(X) Notwithstanding anything contained in clause 8(2) where new shares are issued to the
existing shareholders by a company the existing shares of which are c overed by clause
2(1)(v) and the insurer is already a shareholder, the insurer may subscribe to such new
shares, provided that the proportion of new shares subscribed by him does not exceed the
proportion which the paid -up amount on the shares held by him immediately before such
subscription bears to the total paid -up capital of the company at the time of such
subscription;
(XI) Investment in fixed deposit and certificate of deposit of a Scheduled Bank, in case of life
insurers, would be deemed as exposure to f inancial and insurance activities (as per Section
K of NIC classification - 2008). No investment in deposits including FDs and CDs in financial
institutions falling under Promoter Group shall be made. Investment in FDs shall not exceed
either 3% of control led fund or not more than 5% of respective fund size [Pension & General
Annuity Fund and Unit linked fund(s) at SFIN level], whichever is lower, in the case of Life
Insurers and 15% of Investment Assets as per clause 1(7)(ii) in the case of General Insurer
including an insurer carrying on business of re -insurance or health insurance;
Note: Fixed Deposits as permitted under this Regulation kept as ASBA (Application
Supported by Blocked Amount) deposit, including FDs with Banks falling under the promoter
group of the Insurer, or otherwise, shall be excluded in computation of limits mentioned
above. FDs of Banks under Promoter Group, earmarked for complying with ASBA
requirement, will be part of exposure to Promoter Group;
(XII) An insurer shall not out of the contro lled fund / assets invest or keep invested in the shares or
debentures of any one company more than the exposure prescribed in clause 8 above,
provided that nothing in this regulation shall apply to any investment made with the previous
approval of the Aut hority by an insurer, being a company with a view to forming a subsidiary
company carrying on insurance / re -insurance business ;
(XIII) The debt exposure, in Housing Finance Companies, rated not less than AA+, shall be up to
20% of paid -up share capital, free re serves (excluding revaluation reserve) and debentures /
bonds (incl. CPs) or amount under clause 8(2)(i) whichever is lower. The 20% limit mentioned
herein can be further increased by an additional 5%with the prior approval of Board of Insurer.
All exposur e norms applicable to group, promoter group shall be applicable to all investments
made in a Housing Finance Company.
PART III
9. Returns to be submitted by an Insurer :
Every insurer shall submit to the Authority returns (electronic mode) within such time, at such
intervals in the manner as specified in ANNEXURE INV -III of Schedule III of these regulations .
10. Power to call for additional information :
The Competent Authority may, by general or special order, require from the insurers such other
information in such manner, intervals and time limit as may be specified therein in the interest of
policy holders and issue such directions to the insurers as it thinks fit.
11. Duty to Report extraordinary events affecting the investment portfolio :
Every insurer shall report to the Authority forthwith, the effect or the probable effect of any event
coming to its knowledge, which could have material adverse impact on the investment portfolio
and consequently on the security of policy -holder benefits or exp ectations.
12. Provisions on Investment Management
(1) Constitution of Investment Committee :
Every insurer shall constitute an Investment Committee with a composition as mentioned
in the Corporate Governance regulations and Circulars issued thereon by the Authori ty
from time to time. The decisions taken by the Investment Committee shall be recorded
and be open to inspection by the officers of the Authority.
(2) Investment Policy
(i) Every Insurer shall draw up, an Investment Policy (IP) (fund wise IP in the case of
Unit Linked Insurance Business) and place the same before its Board of Directors for
its approval.
(ii) Every insurer shall have a model code of conduct to prevent insider / personal trading
of Officers involved in various levels of Investment Operations in com pliance with
SEBI (Prohibition of Insider Trading) Regulation, 1992 as amended from time to time
and place the same before its Board of Directors for its approval.
(iii) While framing the Investment Policy, the Board shall ensure compliance with the
following:
(a) Issues relating to liquidity, prudential norms, exposure limits, stop loss limits
including securities trading, management of all investment risks, management of
assets liabilities mismatch, Scope of Internal or Concurrent audit of Investments,
criteria fo r empanelment and review of investment brokers, investment statistics
and all other internal controls of investment operations, the provisions of the
Insurance Act, 1938 and these regulations.
(b) Ensuring adequate return on policyholders and shareholders’ fun ds consistent
with the protection, safety and liquidity of such fund(s).
(iv) The investment policy of Life, General Insurer including an insurer carrying on
business of re -insurance or health insurance, as approved by the Board shall be
implemented by th e investment committee. The Board shall review on a quarterly
basis the monitoring of fund wise and in respect of each product (both participating
and non -participating products in the case of life insurers) the following minimum:
(a) Life Insurers:
i. new busin ess scale planned versus a ctual at the end of the period to
maturity
ii. expenses projected versus actual
iii. persistency / renewal premium streams projected versus actual
iv. claims - projected versus actual
v. actual yield versus projected yield or returns
vi. action plan and follow up status
(b) General Insurer including an insurer carrying on business of re -insurance or
health insurance (at line of business level):
i. gross level of premium income projected vs actual along with reasons for
negative growth if any
ii. steps to correc t the business achieved as planned in case of under
achievement of gross written premium
iii. underwriting results planned vs achieved along with reasons for negative
deviations
iv. claims outgo projected versus actual - major reasons for increase /
decrease in los s ratio and corrective steps planned for future
v. expenses including acquisition cost planned vs actuals - in case of excess
over permitted limits, reasons for such excess along with plan to comply
limits
vi. overall incremental investments projected vs actual - reason for deviation
from the planned accretion and steps planned to correct the trend if the
same is negative
(v) The Board shall review the investment policy and its implementation on a half -yearly
basis or at such short intervals as it may decide and make s uch modification to the
investment policy as is necessary to bring it in line with the investment provisions laid
down in the Act and Regulations made there under, keeping in mind protection of
policyholders’ interest and pattern of investment laid down in these regulations or in
terms of the agreement entered into with the policy holders in the case of unit linked
insurance business.
(3) Investment Operations
(i) The funds of the insurer shall be invested and continued to be invested in equity shares,
equity rela ted instruments and debt instruments rated as per Note below clause 3 to 7
by a credit rating agency, registered under SEBI (Credit Rating Agencies) Regulations,
1999. The Board shall lay down norms for investing in ‘Other Investments’ as specified
in sect ion 27A(2)of the InsuranceAct,1938 bythe investment committee, taking into
account the safety and liquidity of the policyholders’ funds and protection of their
interest.
(ii) To ensure proper internal control of investment functions and operations the insurer
shall clearly segregate the functions and operations of front, mid and back office (as
provided in the Guidance note on Internal /Concurrent Audit of Investment functions of
Insurance Companies issued by the Institute of Chartered Accountants of India) and no
function falling under Front, Mid and Back Office Investment function(s), shall be
outsourced. Also, the primary data server of the computer application used for
investment management shall remain within the country.
(iii) The Board of the Insurer shall appoi nt a Custodian to carry out the custodial service for
its Investments, who shall not be an entity under its promoter ‘Group’ unless permitted
otherwise by the Competent Authority.
(4) Risk Management Systems and its Review
(i) The Board shall implement the Investm ent Risk Management Systems and Process,
mandated by the Authority. The implementation shall be certified by a Chartered
Accountant firm, as per the procedure laid down in the “Guidance note on Review and
Certification of Investment Risk Management Systems and Process of Insurance
Companies”, issued by the Institute of Chartered Accountants of India, as amended
from time to time.
(ii) The Investment Risk Management Systems and Process shall be reviewed once in two
financial years or such shorter frequency as dec ided by the Board of the Insurer (the
gap between two such audits should not be more than two years), by a Chartered
Accountant firm and file the certificate issued by such Chartered Accountant, with the
Authority along with the first quarter returns.
(iii) The appointment of Chartered Accountant firm to certify implementation and review of
Investment Risk Management Systems and Process shall be as per the circular issued
under these regulations.
(5) Audit and Reporting to Management
(i) Every insurer shall constitute a n Audit Committee of the Board with a composition as
mentioned in the Corporate Governance regulations and Circulars issued thereon by
the Authority from time to time. The Chairperson of the Audit Committee shall not be
the Chairperson of Investment Commit tee.
(ii) The Insurer shall have the investment transactions covering both Shareholders and
Policyholders funds be audited through Internal or Concurrent Auditor as per the
circular issued under this regulation.
(iii) The quarterly internal / concurrent audit report, covering investments of both
shareholders as well as policyholders, shall be as per the “Guidance note on
Internal/Concurrent Audit of Investment functions of Insurance Companies” issued by
the Institute of Chartered Accountants of India, as amended from time to time.
(iv) The Details of Investment Policy, implementation status of Investment Risk
Management Systems and Process or its review shall be made available to the internal
or concurrent auditor. The auditor shall comment on implementation status, review and
its impact on the investment operations, systems and process in their report to be
placed before the Board’s Audit Committee.
(6) Category of Investments
Every Insurer shall invest its controlled fund as defined under Section 27A / all assets as
defined under Section 27(2) of the Insurance Act, 1938 as amended from time to time, only
within the exhaustive category of investments listed in the guidelines issued by the Competent
Authority.
13. Dealing in Financial Derivatives
Every Insurer carrying on the busin ess of life insurance or general insurance or health insurance
business may deal in financial derivatives only to the extent permitted and in accordance with the
guidelines issued by the Competent Authority in this regard from time to time.
14. Miscellaneous
The Board of the Authority may, by any general or special order, modify or change the application
of clauses 3 to 9 to any insurer either on its own o r on an application made to it.
ANNEXURE INV -I
LIFE INSURERS
(See Clause 3 to 6 )
A. Processing of Unit Linked Business Application and Declaration of NAV
Every Unit linked segregated fund(s), shall be identified by its Segregated Fund Identification
Number(SFIN) and shall follow the guidelines issued by the Competent Authority.
1. All applications received for premi um payment, switches, redemption, surrender, maturity claim
etc., should be time stamped and dated.
2. Applications for “premium payment”
a. for applications received, with local cheques, cash or demand draft payable at par at the
place where the premium is rece ived, before cut -off time (3.00 pm) on a business day, the
applicable NAV would be the closing NAV of the same day.
b. for applications received, along with local cheques, cash or demand draft payable at par at
the place where the premium is received, after c ut-off time (3.00 pm) on a business day, the
applicable NAV would be the closing NAV of the next business day.
c. For premiums received with an outstation cheque or demand draft, the closing NAV of the
day on which the cheque/ demand draft is realized shall b e applied.
3. Applications for “other than” premium payment
a. for applications received before the cut -off time (3.00pm) on a business day, the applicable
NAV would be the closing NAV of the same day.
b. for applications received, after the cut -off time (3.00 pm) on a business day, the applicable
NAV would be the closing NAV of the next business day.
4. Daily disclosure/reconciliation of Product and Fund information
a. Every insurer doing Unit linked business shall reconcile, through the system , the premium
received (net of charges and benefits paid) under each product (Unique Identification
Number – UIN) with value of all the segregated fund(s)(Segregated Fund Identification
Number –SFIN)net of fund management charges, held under a single UIN, on a day to day
basis, as pe r Form D01.
b. The insurer, through a portal, shall enable the policyholder to know, through a secured login
(i) the value of policy wise units held by him, as per Form D02and (ii) fund wise NAV (SFIN
wise) on both the Insurer’s website and life council websi te on the same day.
Disclosure format
No Format Description Frequency
01 Form D01 Daily reconciliation of ULIP
portfolio End of the Day (not to be filed with Authority)
02 Form D02 Statement of Product Value Enable through secured log into individual
policy holder
03 Portfolio Disclosure The minimum information, as per
guidelines/circular issued, on a monthly basis
c. The internal / concurrent Auditor shall report on the automated system and process to
handle the UIN wise reconciliation (as in point ‘a’ above) and value of policy wise units held
by policyholder and fund wise NAV, on a quarterly basis.
5. Applicable NAV for the applications received on the last business day of the Quarter.
a. for applications received on the last business day of the quarter UP T O 3.00 pm shall be
processed with NAV of the last business day (irrespective of the payment instrument is local
or outstation)
b. for applications received AFTER 3.00pm on the last business day, the same shall fall into
the next quarter and NAV of the immedia te next business day would be applicable.
c. The insurer shall declare NAV for the las t business day of a quarter end, even if it is a non -
business day.
6. For allotment of units, the applicable NAV shall be as per the date of commencement of policy for
new poli cy contracts and date of receipt of premium for renewals.
a. For allotment of units to a new policy contract, the NAV shall be applicable as at the date of
commencement of the policy contract. The premium in such case shall have to be received
on or before the date of commencement of policy contract.
b. For renewals of existing policy contract, the NAV shall be applicable as at the date of
renewal where the date of receipt of premiums on or before due date and as at the date of
receipt of premium where the pr emium is received after the due date of renewal.
c. For revivals, the date of revival shall be the reference date for application of NAV through
allotment of units.
d. The date of receipt of premium for reasons such as top -up or any other provision for
payment o f premium apart from regular payment schedule as per respective product
conditions shall be the reference date for application of NAV.
7. The Insurer’s Policy Admin System (PAS) shall be `automated’ for tracking `policy -wise’,
information of discontinued poli cies along with the information of the particular ULIP fund to
which the same pertains.
8. Asset allocation and exposure norms for a segregated fund shall not apply for either the first six
months from the date of its launch or the segregated fund reaches the size of Rs.5 Crores, for
the first time, whichever is earlier. On expiry of the sixth month, every such segregated fund,
shall comply with all exposure norms under Clause 8. Where in case of a segregated fund, has
gone below Rs.5 Crores, the insurer may p rovide a free switch, after informing the policyholder,
to another fund with similar fund objective / risk profile with either same or lower fund
management charges.
9. Fund Management Charges (FMC) charged on the segregated fund (SFIN), where investment is
made in Mutual Funds, Exchange Traded Funds, shall be the FMC as per the respective product
conditions of the segregated fund (SFIN) reduced by FMC charged by the respective Mutual
Fund/ETF. This provision shall not be applicable for either the first six mo nths from the date of
launch of the segregated fund or the segregated fund reaches the size of Rs.5 Crores, for the
first time, whichever is earlier.
10. In the case of discontinued policy fund, investment in treasury bills will be treated as part of
Central G overnment Securities.
11. All Insurers shall file a certificate, issued by Internal /Concurrent Auditor for compliance of the
following:
a. Compliance to all exposure norms at the level of each segregated fund, on a quarterly basis.
b. Confirmation on quarterly basi s that Fund Management Charges (FMC) charged on the
segregated fund (SFIN), where investment is made in Mutual Funds, Exchange Traded
Funds, shall be the FMC as per the respective product conditions of the segregated fund
(SFIN) reduced by FMC charged by t he respective Mutual Fund/ETF.
c. Each of the directions issued at point 5 above, regarding the applicable NAV for applications
received on the last business day.
d. The Statutory Auditors shall also confirm point ‘c’ above, in the Annual Accounts.
Note:
1. Busines s day shall mean days other than holidays where stock exchanges (excluding Muhurat
trading day) with national wide terminals are open for trade (other than day on which exchanges
are open for testing) or any day declared by the Competent Authority as busin ess day.
2. The insurer shall invest only in such investments for which the day -to-day Valuations are
available and readily realisable. No investment can be made in any Fund of Funds or a fund for
which NAV is not available on a day -to-day basis.
B. Fund Manage ment
1. In the case of (a) Life fund, (b) Pension, Annuity & Group funds, the insurer shall maintain
separate sub -custody account with identifiable securities for participating and non -participating
funds.
2. Every insurer shall have a separate fund manager for debt and equity up to a fund size (for both
shareholder and policyholder funds taken together) of Rs.10000Crores. When the fund size, for
the first time, is Rs.10000 Crores, every fund [(a) Life fund (b) Pension, Annuity & Group fund (c)
Unit linked segreg ated fund(s)] shall have manager. No fund manager can be common between
(a) Life fund, Pension & Group fund and (b) Unit linked fund(s).
ANNEXURE INV -II
(SeeClause -7)
General Insurer including an insurer carrying on business of re -insurance or health in surance
A. Applicability of Pattern of Investment
Where an Insurer, hold the entire investment assets, as per clause 1(7) for and behalf of the
Policyholders, the pattern of investment shall apply to the entire investment assets (both shareholder and
policyho lder’s funds taken together) and the investment assets can be maintained in a single custody
account.
B. “Policyholders’ Funds” means the sum of (1) Estimated liability for Outstanding Claims including Incurred
but not Reported (IBNR) & Incurred but not En ough Reported (IBNER) (2) Unexpired Risk Reserve
(URR) (3) Catastrophe Reserve (4) Premium Deficiency (5) Other liabilities net off Other Assets as at the
Balance Sheet date .
Note: Other Liabilities comprise of (i) Premium received in advance (ii) Unalloca ted premium (iii) Balance
due to other Insurance Companies (iv) Due to others members of Insurance Pools, if applicable (v)
Sundry creditors (due to Policyholders);
Note: Other Assets comprise of (i) Outstanding premium (ii) Due from other entities carryi ng on Insurance
business including Re -insurers (iv) Balance with Insurance Pools, if applicable.
C. “Shareholders’ Funds” means Share Capital plus all Reserves and Surplus (except Revaluation Reserve
and fair value change account) net of accumulated losses and miscellaneous expenditure to the extent
not written off as at the Balance Sheet date, represented by investments of funds held in business
beyond solvency margin.
D. Miscellaneous
The mandatory minimum investment in Housing and Infrastructure as specified under Clause -7, will not
apply for Health Insurers.
ANNEXURE INV -III
All insurers are advised to furnish the returns to the Authority as specified below. However, the periodicity of
return is half -yearly for branches of foreign reinsurers. In case there is no information applicable for a
particular point the insurer should indicate 'Not Applicable’ or ‘Nil’, as the case may be, rather than deleting
the said point from the Returns filed with the Authority.
No Form Description Periodicity of
Return Time limit for
submission Verified / Certified
by
1 Form 1 Statement of
Investment and
Income on
Investment Quarterly Within 45 days of
the end of the
Quarter Principal Officer /
Chief of Investment /
Chief of (Finance)
2 Form 2 (Part A,
B, C) Statement of
Downgraded
Investments,
Details of Rated
Instruments Quarterly Within 45 days of
the end of the
Quarter Principal Officer /
Chief of Investment /
Chief of (Finance)
3 Form 3A (Part
A, B, C, D,E) Statement of
Investments
Assets (Life
Insurers) Quarterly Within 45 days of
the end of the
Quarter Principal Officer /
Chief of Investment /
Chief of (Finance)
4 Form 3B (Part
A, B) Statement of
Investment
Assets (General
Insurer including
an insurer
carrying on
business of re -
insurance or
health insura nce) Quarterly Within 45 days of
the end of the
Quarter Principal Officer /
Chief of Investment /
Chief of (Finance)
5 Form 4 (Part
B) Internal /
Concurrent
Auditor's
Certificate on
Investment Risk
Management
Systems -
Implementation
Status Quarterly Within 45 days of
the end of the
Quarter Internal / Concurrent
Auditor appointed
under this regulation
6 Form 4A (Part
A, B, C,D) Statement of
Investment
Subject to
Exposure Norms
– Investee
Company,
Group, Promoter Quarterly Within 45 days of
the end of the
Quarter Principal Officer /
Chief of Investment /
Chief of (Finance)
No Form Description Periodicity of
Return Time limit for
submission Verified / Certified
by
Group, Industry
Sector
7 Form 5 Statement of
Investment
Reconciliation Quarterly Within 45 days of
the end of the
Quarter Principal Officer /
Chief of Investment /
Chief of (Finance)
8 Form 6 Certificate under
Sec 27A (5) Quarterly Within 45 days of
the end of the
Quarter Chairman, Director 1,
Director 2, Principal
Officer
9 Form 7 Statement of
Non-Performing
Assets Quarterly Within 45 days of
the end of the
Quarter Principal Officer /
Chief of Investment /
Chief of (Finance)
Note:
1. The Internal / Concurrent Audit Report of the previous quarter with comments of Audit Committee of
the Board, on ‘very serious’, ‘serious’ points (as per the Guidance note on Internal / Concurrent Audit
of Investment functions of Insurance Companies, issued by the Institute of Chartered Accountants of
India) in the report, and status of implementation of Audit committee recommendation shall be filed
with the Authority along with current quarter returns.
2. All returns for the quarter ending March shall be filed within the period stipulated above based on
provisional figures and later re -submitted with Audited figures within 15 days of adoption of accounts
by the Board of Directors.
FORM - 1
(Read with clause 9 of Part III of Schedule III)
Name of the Insurer:
Registration Number:
Statement as on: Name of the Fund
Statement of Investment and Income on Investment
Periodicity of Submission: Quarterly
No. Category
of
Investment Category
Code Current Quarter Year to Date (current year) Year to Date (previous
year)3
Invest
ment
(Rs.)¹ Income
on
Invest -
ment
(Rs.) Gross
Yield
(%)¹ Net
Yield
(%)² Invest
ment
(Rs.)¹ Income on
Investment
(Rs.) Gross
Yield
(%)¹ Net
Yield
(%)² Invest
ment
(Rs.)¹ Income
on
Invest -
ment
(Rs.) Gross
Yield
(%)¹ Net
Yield
(%)²
Rs Crore
TOTAL =====================================================
CERTIFICATION
Certified that the information given herein are correct, complete and nothing ha s been concealed or
suppressed, to the best of my knowledge and belief.
Signature ___________________
Date: Full Name
Authorised Signatory
Note: Category of Investment (COI) shall be as per Guidelines, as amended from time to time
1. Based on daily simple Average of Investments
2. Yield netted for Tax
3. In the previous year column, the figures of the corresponding Year to date of the previous financial year
shall be shown
4. FORM -1 shall be prepared in respect of each fund. In case of ULIP FORM 1 shall be prepared at
Segregated Fund (SFIN) level and also at consolidated level.
5. YTD Income on investment shall be reconciled with figures in P&L and Revenue account
FORM - 2
(Read with clause 9 of Part III of Schedule III) PART - A
Name of the Insurer:
Registration Num ber:
Statement as on: Name of Fund
Statement of Down Graded Investments Periodicity of Submission: Quarterly
Rs Crore
No Name of the
Security COI Amount Date of
Purchase Rating
Agency Original
Grade Current
Grade Date of last
Downgrade Remarks
A. During t he
Quarter ¹
B. As on Date ²
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Signature ____________________
Date Full Name and Designation
Authorised Signatory
Note:
1 Provide details of Down Graded Investments during the Quarter.
2 Investments currently upgraded, listed as Down Graded during earlier Quarter shall be delet ed from the
Cumulative listing.
3 FORM -2 shall be prepared in respect of each fund. In case of ULIP FORM 2 shall be prepared at
Segregated Fund (SFIN) level and also at consolidated level.
4 Category of Investment (COI) shall be as per Guidelines issued.
FORM - 2
(Read with clause 9 of Part III of Schedule III)
Name of the Insurer:
Registration No: PART - B
INVESTMENT ASSETS - RATING PROFILE
Name of the Fund: _____________ Rs.Crore
No Type of
Investments Investments in
Sovereign
instruments AAA or
Equivalent AA+ or AA AA- or lower
upto A+ or
Equivalent A or lower
than A or
Equivalent Unrated NPA Equity and
other
Instruments Total
BV
BV % to
Inv.
Asset
s BV % to
Inv.
Assets BV % to
Inv.
Assets BV % to Inv.
Assets BV % to
Inv.
Assets BV % to
Inv.
Assets BV % to
Inv.
Assets BV % to Inv.
Assets
(a) (b) (c) (d) (e) (f) (g) (h) (i)
i Central Govt
Securities
ii State Govt Sec. or
Other Approved
Securities
ii i (A) Housing Sector
(1) Debt
instrume nts
(2) Loans
(3) Others (Specify)
(B)
Infrastructure
Sector
(1) Debt instruments
(2) Equity
instruments
(3) Loans
(4) Othe rs (Specify)
(C)Approved
Investments
(1) Debt
instruments
(2) Equity
instruments
(3) Loans
(4) Investment
Property –
Immovable
(5) Mutual
Fund
(6) Money
Market
(7) Net current
assets
(8) Others
(Specify)
iv Other
Investments
(1) Debt
instruments
(2) Equity
instruments
(3) Loans
(4) Investment
Property -
Immovable
(5) Mutual
Fund
(6) Others
(specify)
Investment
Assets
Certification
Certified that the information given herein are correct and complete to the best of my knowledge. Also
certified that the various investments made and covered in the return are within the categories provided in
Investment Guidelines as amended from time to time.
Signature:____________________
Full name:
Authorised Signatory
Note:
1. The figures in Col ( i) must match (for each type of investment) with Form 3A (Part A)/Form 3B.
2. Non-Performing investment assets shall be separately shown irrespective of the rating
3. For Linked business values of Investments shall be at Market Value.
4. Equity shall be as permitt ed under the se regulations as amended from time to time.
5. FORM - 2 (Part B) shall be prepared in respect of each fund. In case of ULIP Form 2 shall be
prepared at Segregated Fund (SFIN) level and also at consolidated level.
6. Category of Investment (COI) shal l be as per Guidelines, as amended from time to time.
Investment in
'Debt'
instruments Book Value (Life, Pension Fund
and General Insurers) Market Value (for
ULIP Funds) %
Investments in
Sovereign
instruments
APPROVED
INVESTMENTS
AAA
AA+ upto AA or
Equivalent
MM, Loans,
Others
- Approved Invt.
OTHER
INVESTMENTS
AA,A, lower than
A or Equivalent
Unrated, Loans,
Others - Other
Invt.
Total Debt
Investments
(Column [a]
to [g])
==============================================================
FORM - 2
(Read with clause 9 of Part III of Schedule III)
Name of the Insurer: PART - C
Registration No:
INVESTMENT ASSETS &HOUSING ANDINFRA INVESTMENTS - RATING PROFILE
Name of the Fund
SECTION - 1
INVESTMENT ASSETS Rs Crore % to Inv. Assets
Central Govt. Sec + Other Approved Securities
TOTAL (1)
Approved Investments
AAA or upto AA or Equivalent
Equity - Approved Invt
MM, Loans, Others - Approved Invt
TOTAL (2)
Other Investment s
AA-, A, lower than A or Equivalent
Equity - Other Invt
Unrated, NPA, Loans, Others - Other Invt
TOTAL (3)
TOTAL FUND (1+2+3)
SECTION – 2
HOUSING AND INFRASTRUCTURE
INVESTMENTS
Approved Investments
AAA or upto AA or Equivalent
Equities -Approved
MM, Loans, Others -Approved Invt
TOTAL (i)
Other Investments
AA-,A, lower than A or Equivalent
Equities -Other Investments
Loans, NPAs, Others - Other Invt
TOTAL (ii)
Total Infra Investment (i + ii)
Certificati on
Certified that the information given herein are correct and complete to the best of my knowledge. Also
certified that the various investments made and covered in the return are within the categories provided in
Investment Guidelines as amended from time to time.
Signature: ______________
Full name: ______________
Authorised Signatory ______________
Note::
1. The figures must match (for each type of investment) with Form 3A (Part A)/Form 3B
2. FORM - 2 (Part C) shall be prepared in respect of life fund.
3. Categ ory of Investment (COI) shall be as per Guidelines issued.
FORM - 3A
(Read with clause 9 of Part III of Schedule III)
Name of the Insurer:
Registration Number: PART - A
Statement as on:
Statement of Investment Assets (Life Insurers) (Business within Indi a)
Periodicity of Submission: Quarterly
Rs. Crore
Section I Reconciliation of Investment
Assets __________
No PARTICULARS SCH Amount Total Investment Assets (as per
Balance Sheet) __________
1 Investments (Sharehoders) 8 Balance Sheet Value of:
Investments (Policyholders) 8A A. Life Fund ----------------
Investments (Linked
Liabilities) 8B B. Pension & General Annuity and
Group Business __________
2 Loans 9 C. Unit Linked Funds ----------------
3 Fixed Assets 10 0
4 Current Assets =========
a. Cash & Bank Balance 11
b. Advances & Other
Assets 12
5 Current Liabilities
a. Current Liabilities 13
b. Provisions 14
c. Misc. Exp not Written Off 15
d. Debit Balance of P&L A/c
Application of Fun ds as
per Balance Sheet 0
Less: Other Assets SCH Amount
1 Loans (if any) 9
2 Fixed Assets (if any) 10
3 Cash & Bank Balance
(if any) 11
4 Advances & Other
Assets (if any) 12
5 Current Liabilities 13
6 Provisions 14
7 Misc. Exp not Written Off 15
8 Investments held
outside India
9 Debit Balance of P&L A/c
TOTAL (B) 0
Investment Assets (A-B) 0
Section IIA
NON - LINKED BUSINESS
A. LIFE FUND % as
per
Reg SH PH Book
Value
(SH+P
H) Act ual
%
(g)
[(f)
-
(a)] % FVC
Amo
unt
(h) Total
Fund
(i)=(f
+h) Market
Value
(j) Balance FR
SM
+ UL-
Non
Unit
Res PA
R NON
PA
R
(a) (b) (c) (d) (e) (f) =
[a+b+c
+d+e]
1 Central Govt. Sec Not
Less
than
25%
2 Central Govt Sec, State Govt
Sec or Other Approved
Securities (incl (1) above) Not
Less
than
50%
3 Investment
subject to
Exposure
Norms
a. Infrastructure/
Social/ Housing
Sector Not
Less
than
15%
i) Approved
Investments
ii) Other
Investments
b. i) Approved
Investments Not
excee
ding
35%
ii) Other
Investments
TOTAL LIFE FUND 100%
Section II B Housing and Infrastructure Reconciliation
A: LIFE FUND % As per
Reg. SH PH Book Value
(SH+PH) ACTUAL
% FVC
Amount Total Fund Market
Value Balance FRSM+ UL
Non
Unit
Res PAR NON -PAR
(a) (b) (c) (d) (e) (F)=(a+b+c+d+e) (g) = (f -a) (h) (i)=(a+f+h) (j)
3 a.(ii) + 3 b.(ii)
above Not
exceeding
15%
Total Housing
& Infrastructure
From 1, 2 & 3 Not Less
than 15%
B. PENSION & GENERAL
ANNUITY AND GROUP
BUSINESS % as per Reg PH Book
Value Act
ual
% FVC
Amo
unt Total
Fund Market
Value PA R N O N
PA
R
(a) (b) (c)=
(a+b) (d) (e) (f)=(c
+e) (g)
1 Central Gov t.
Sec Not Less than
20%
2 Central Govt Sec, State Govt
Sec or Other Approved
Securities (incl (1) above) Not Less than
40%
3 Balance in
Approved
investment Not Exceeding
60%
TOTAL PENSION, GENERAL ANNUITY FUND 100%
LINKED BUSIN ESS
C. LINKED FUNDS % as per Reg PH Total Fund Actual %
PA R N O N
PAR
(a) (b) (c)=(a+b) (d)
1 Approved Investments Not Less than
75%
2 Other Investments Not More than
25%
TOTAL LINKED INSURANCE FUND 100
=============================== =======================================
CERTIFICATION :
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Signature: ______________
Date: Full name:
Author ised Signatory
Note:
1 (+) FRSM refers to 'Funds representing Solvency Margin'.
2 Funds beyond Solvency Margin shall have a separate Custody Account.
3 Other Investments shall be as permitted as per Sec 27A (2) of Insurance Act, 1938 as amended from
time to time .
4 Pattern of Investment is applicable to both Shareholders funds representing solvency margin and
policyholders funds.
5 Exposure Norms shall apply to Funds held beyond Solvency Margin, held in a separate Custody
Account.
6 Category of Investment (COI) shall b e as per Guidelines, as amended from time to time.
FORM 3A
(Read with clause 9 of Part III of Schedule III)
Unit Linked Insurance Business PART - B
Name of the Insurer:
Registration Number: Link to Item 'C' of FORM 3A (Part A)
Periodicity of Submission: Quarterly
Statement as on:
Rs. Crore
PARTICULARS SFIN 1 SFIN 2 SFIN 'n' Total of All
Funds
Opening Balance (Market Value)
Add: Inflow during the Quarter
Increase / (Decrease) Value of Inv [Net]
Less: Outflow during the Quarter
TOTAL INVESTIBLE FUNDS (MKT VALUE)
INVESTMENT OF UNIT FUND SFIN 1 SFIN 2 SFIN 'n' Total of All
Funds
Actual
Inv. %
Actual Actual
Inv. %
Actual Actual
Inv. %
Actual Actual
Inv. %
Actual
Approved Investments
(>=75%)
Central Govt. Securities
State Govt.Securities
Other Approved Securities
Corporate Bonds
Infrastructure Bonds
Equity
Money Market Investments
Mutual funds
Deposit with Banks
Sub Total (A)
Current Assets:
Accrued Interest
Dividend Receivable
Bank Balance
Receivable for Sale of Investments
Other Current Assets (for Investments)
Less: Current Liabilities
Payable for Investments
Fund Mgmt Char ges Payable
Other Current Liabilities (for
Investments)
Sub Total (B)
Other Investments (<=25%)
Corporate Bonds
Infrastructure Bonds
Equity
Mutual funds
Others
Sub Total (C)
======= =========================================
Total (A + B + C)
================================================
Fund Carried Forward (as per LB 2)
=========== ==============================
Signature:______________________
Date : Full name: _________________ _____
Authorised Signatory ___________
Note:
1. The aggregate of all the above Segregated Unit -Funds should reconcile with item C of FORM 3A (Part
A), for both Par & Non Par Business.
2. Details of total expenditure reported in the Actuarial Return “Statement of Net Assets Values for the
Segregated Funds maintained by the insurer for its Unit Linked Business” shall be reconciled with
FORM 3A (Part B).
3. Other Investments' are as permitted under Sec 27A(2) of Insurance Act,1938 as amended from time
to time.
4. Category of Investment (COI) shall be as per Guidelines issued.
FORM - 3A
(Read with clause 9 of Part III of Schedule III)
Name of the Insurer:
Registration Number: PART - C
Link to FORM 3A (Part B)
Statement for the period:
Periodicity of Submission: Quarterly
Statement of NAV of Segregated Funds
Rs.Crore
No Fund
Name SFIN Date of
Launch Par/Non
Par Assets
Under
Manage
ment on
the
above
date NAV
as
per
LB 2 NAV
as on
the
above
date* Previous
Qtr NAV 2nd
Previous
Qtr NAV 3rd
Previous
Qtr NAV 4th
Previous
Qtr NAV Return/
Yield 3 Year
Rolling
CAGR High est
NAV
Since
inception
1 Segregate
d Fund 1
2 Segregate
d Fund 2
3 Segregate
d Fund n
Total
CERTIFICATION
Certified that the perfo rmance of all segregated funds have been placed and reviewed by the Board. All
information given herein are correct, complete and nothing has been concealed or suppressed, to the best of
my knowledge and belief.
DATE : Signature:
Full name:
Authorised Sig natory
Note:
1. * NAV should reflect the published NAV on the reporting date.
2. NAV should be upto 4 decimal.
3. Category of Investment (COI) shall be as per Guidelines issued.
FORM - 3A
(Read with clause 9 of Part III of Schedule III) PART - D
Name of the Ins urer:
Registration Number: Link to FORM 3A (Part A)
Statement as on:
Statement of Accretion of Funds
(Business within India)
Periodicity of Submission : Quarterly
Rs.Crore
No Category of Investments POI Opening
Balance % to
Total
(A) Net
Accretion
for the
Qtr. % to
Total
Accretion TOTAL % to
Total
(1+2)
(1) (2) (1+2)
A LIFE FUND
1 Central Govt. Sec Not less than
25%
2 Central Govt Sec, State Govt Sec or
Other Approved Securities (incl (1)
above) Not less than
50%
3 Investment sub ject to Exposure
Norms
a. Housing & Infrastructure Not less than
15%
1. Approved Investments
2. Other Investments
b. (i) Approved Investments Not exceeding
35%
(ii) Other Investments (Not to exceed
15%)
Total (A)
==============================================
No Category of Investments POI Opening
Balance % to
Total
(B) Net
Accretion
for the
Qtr. % to
Total
Accretion TOTAL % to
Total
(1+2)
(1) (2) (1+2)
B PENSION & GENERAL
ANNUNITY AND GROUP
BUSINES S
1 Central Govt. Sec Not less than
20%
2 Central Govt Sec, State Govt
Sec or Other Approved Not less than
40%
No Category of Investments POI Opening
Balance % to
Total
(B) Net
Accretion
for the
Qtr. % to
Total
Accretion TOTAL % to
Total
(1+2)
(1) (2) (1+2)
Securities (incl (1) above)
3 Balance in Approved investment Not exceeding
60%
Total (B)
============================ ==================
No Category of Investments POI Opening
Balance % to
Total
(C) Net
Accretion
for the
Qtr. % to
Total
Accretion TOTAL % to
Total
(1+2)
(1) (2) (1+2)
C LINKED FUNDS
1 Approved Investments Not less than
75%
2 Other Inve stments Not more than
25%
Total (C) 100%
==========================================
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Date:
Signature:
Full name:
Authorised Signatory________
Note:
Category of Investment (COI) shall be as per Guidelines issued.
FORM - 3A
(Read with clause 9 of Part III of Schedule III) PART - E
Name of the Insurer:
Registration Number:
Statement as on:
Statement of Investment Details of ULIP Products to Segregated Funds
(Business within India) Rs. Crore
Periodicity of Submission : Quarterly
INVESTMENT DETAILS OF "ULIP" PRODUCTS [UIN]TO SEGREGATED FUNDS [SFIN]
Inflow UIN1 UIN2 UIN n Total U IN '1'
to
'n'
Premium
Others (Specify)
TOTAL (A)
Outflow
Commission
Charges
Claims
Others
TOTAL (B)
Total C = (A -B)
Policy Funds at "C" above allotted to
SFIN 1
SFIN 2
SFIN n
TOTAL (D)
Difference (if any) E = (C -D)
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Date:
Signature:
Full name:
Authorised Signatory_ ____________
Note:
1. UIN represents the Unique product number as per "file and use' approved under ULIP products.
2. SFIN represents the Segregated Fund Identification Number as approved by the Product Approval
Committee.
3. Category of Investment (COI) shall be a s per Guidelines issued.
FORM - 3B
(Read with clause 9 of Part III of Schedule III) Name of the Insurer:
Registration Number:
Statement as on: PART - A
Statement of Investment Assets (General Insurer including an insurer carrying on business of re -
insura nce or health insurance) (Business within India)
Rs.Crore
Periodicity of Submission: Quarterly Section I
No PARTICULARS SCH ++ AMOUNT
1 Investments(Shareholders) 8
Investments(Policyholders) 8A
2 Loans 9
3 Fixed Assets 10
4 Current Assets
a. Cash & Bank Balance 11
b. Advances & Other Assets 12
5 Current Liabilities
a. Current Liabilities 13
b. Provisions 14
c. Misc. Exp not Written Off 15
d. Debit Balance of P&L A/c
Application of Funds as per Balance Sheet Total (A) 0
Less: Other Assets SCH ++ Amount
1 Loans (if any) 9
2 Fixed Assets (if any) 10
3 Cash & Bank Balance (if any) 11
4 Advances & Other Assets (if any) 12
5 Current Liabilities 13
6 Provisions 14
7 Misc. Exp not Written Off 15
8 Investments hel d outside India
9 Debit Balance of P&L A/c
Total TOTAL (B)
_______
'Investment Assets' (A-B) 0
As per FORM 3B =======
Section II
No 'Investment'
represented as Reg.
% SH PH Book
Value
(SH +
PH) %
Actual FVC
Amount Total Market
Value
(h) Balance FRSM+
(a) (b) (c) d =
(a+b+c) e = (d -
a)
% (f) (g)=(d+f)
1 Central Govt.
Securities Not less than
20%
2 Central Govt
Sec, State Govt
Sec or Other
Approved
Securities (incl
(1) above) Not less than
30%
3 Investment
subject to
Exposure
Norms
a. Housing /
Infra & Loans to
SG for
Housing and
FFE Not less than
15%
1.Approved
Investments
2. Other
Investments
b. Approved
Investments Not exceeding
55%
c. Other
Investments
Investment Assets 100%
==========================================================
Housing and Infrastructure Sector Investments Reconciliation
Investment
represented
As % As per
Reg. SH PH Book Value
(SH+PH) ACTUAL
% FVC
Amount Total Market
Value Balance FRSM+
(a) (b) (c) d=(a+b+c) (e) = (d -
a)% (f) (g)=(d+f) (h)
3 a.(2) + 3 c
above Not
exceeding
15%
Total Housing
&
Infrastructure
From 1, 2 & 3 Not Less
than 15%
Certification:
Certified that the info rmation given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Date: Signature:
Full name:
Authorised Signatory
Note: 1. (+) FRSM refers 'Funds representing Solvency Margin'
2. Other Investmen ts' are as permitted under 27A(2) of Insurance Act 1938 as amended from
time to time.
3. Pattern of Investment is applicable to both Shareholders funds representing solvency margin
and policyholders funds.
4. Exposure Norms shall apply to Funds held beyond Solve ncy Margin, held in a separate
Custody Account.
5. SCH (++) refers to Schedules to Balance Sheet, prepared as per these regulations.
6. Category of Investment (COI) shall be as per Guidelines issued.
FORM - 3B
(Read with clause 9 of Part III of Schedule III)
Name of the Insurer: PART - B
Registration Number:
Statement as on:
Statement of Accretion of Assets Rs. Crore
(Business within India)
Periodicity of Submission : Quarterly
No Category of Investments COI Opening
Balance % to
Opening
Balanc e Net
Accretion
for the Qtr. % to
Total
Accrual TOTAL % to
Total
(A) (B) (A+B)
1 Central Govt. Securities
2 Central Govt Sec, State
Govt Sec or Other
Approved Securities (incl
(i) above)
3 Investment subject to
Exposure Norms
a. Housing & Loans to SG
for Housing and FFE
1. Approved Investments
2. Other Investments
b. Infrastructure
Investments
1. Approved Investments
2. Other Investments
c. Approved Investments
d. Other Investments (not
exceeding 15%)
Total
=========================================
Certification:
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Date: Signature:_________________
Full name:
Authorised Signatory
Note:
a. Total (A+B), fund wise should tally with figures shown in Form 3B (Part A)
b. Category of Investment (COI) shall be as per Guidelines issued.
FORM - 4
(Read with clause 9 of Part
III of Schedule III) PART B
Name of the Insurer:
Registration Number:
Statement as on:
INTERNAL / CONCURRENT AUDITOR'S CERTIFICATE ON INVESTMENT RISK MANAGEMENT
SYSTEMS - IMPLEMENTATION STATUS
No Annexure
Ref Audit
Objective Audit
Obser vation Severity of
Non
Compliance Action(s)
taken for
Compliance MMM/YYYY
Committed
by the
Insurer’s
Board to
IRDAI for
complying
with the
requirement Proof provided
(or)
demonstrated
by the Insurer,
to the Auditor
to comply with
the
Requirement Remarks &
Comments of Audit
Committee of the
Board on non -
compliance of
‘time frame’
communicated to
IRDAI on
implementing
Systems &
Processes
1 2 3 4 5 6 7 8 9
A ISSUES OF PREVIOUS QUARTER(S)
B ISSUES TO BE COMPLIED IN CURRENT QUA RTER
CERTIFICATE
We certify that all issues, to be reported to IRDAI on implementation of Investment Risk Management Systems
and Process, for the Quarter and pending issues of previous Quarter(s) [as committed to IRDAI], an d as listed
in the Chartered A ccou ntant’s Certificate have been covered in the above table.
___________________
Chartered Accountants
(Internal / Concurrent Auditor)
Place:
Date:
Note:
1. No. (under Col. 1 in above table) shall be as per the Annexure(s) to th e Certificate issued by the
Chartered Accountant appointed to certify implementation of Investment Risk Management Systems
and Process.
2. If all the issues have been complied with and no issues to be reported, a NIL statement should be
filed.
FORM - 4A
(Read with clause 9 of Part III of Schedule III) PART A
Name of the Insurer:
Registration Number:
Statement as on: Total Investment Assets for the quarter as per FORM 3A/3B:
EXPOSURE NORMS COMPLIANCE - INVESTEE COMPANY
Rs. Crore
No Investee
Company Whether
(Equity/
Debt) Equity Debt + Others Equity + Debt +
Others Deviation Amount
Eligibility
Limit as
per Clause
8 of
Regulation
6(3) Actual Eligibility
Limit as
per Clause
8 of
Regulation
6(3) Actual Eligibility
Limit as
per Clause
8 of
Regulation
6(3) Actu al Equity (Debt +
Others) Equity +
Debt +
Others
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Signature: ____________________
Date: Full name: ____________________
Authorised Signatory _______________
Note:
1. Above table shall be compiled separately for Life, Pension & General Annuity and Group Business
and Individually for each Segregated Fund (SFIN) AND at Assets under Management Level.
2. Only ( -ve) deviations are to be reported.
3. Exposure would be on the basis of Book Value for Non -unit linked funds & on Market Value for Unit
linked Funds.
FORM - 4A
(Read with clause 9 of Part III of Schedule III))
Name of the Insurer: PART B
Registration Number:
Total Investment Assets for the quarter as per FORM 3A/3B:
Statement as on:
Rs. Crore
EXPOSURE NORMS COMPLIANCE - PROMOTER GROUP
No Name of Group
Company Eligibility Limit as
per C lause 8 of
Regulation 6(3) Actual Investment Actual
Investments
(Cumulative) Deviation
a b c d e f=c-e
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Signature: ____________________
Date: Full name: ____________________
Authorised Signatory _______________
Note:
1. Above table shall be compiled in aggregate of its total investments.
2. Exposure would be on th e basis of Book Value for Non -unit linked funds & on Market Value for Unit
linked Funds.
FORM - 4A
(Read with clause 9 of Part III of Schedule III)) PART C
Name of the Insurer:
Registration Number:
Statement as on: Rs. Crore
Total Investment Assets as p er FORM 3A/3B:
EXPOSURE NORMS COMPLIANCE - GROUP
No Name of Group Company Eligibility Limit as
per Clause 8 of
Regulation 6(3) Actual Investments Deviation
a b c d e=c-d
Total ___________________
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Signature: ____________________
Date: Full name: ____________________
Authorised Signatory _______________
Note:
1. Above table shall be compiled separately for Life, Pension & General Anniuty and Group Business
and Individually for each Segregated Fund (SFIN) AND at Assets under Management Level its total
investment assets.
2. Exposure would be on the basis of Book Value for No n-unit linked funds & on Market Value for Unit
linked Funds.
3. The Total of Column 'd' should reconcile with Total Investment Assets as per FORM 3A.
FORM - 4A
(Read with clause 9 of Part III of Schedule III)) PART D
Name of the Insurer:
Registration Number :
Statement as on: Rs.Crore
Total Investment Assets as per FORM 3A/3B:
EXPOSURE TO INDUSTRY SECTOR
No Name of Industry Sector (as
per regulations) Eligibility Limit
as per Clause 8
of Regulation
6(3) Actual Investments Deviation
a b c d e=c-d
Total
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief.
Signature: ____________________
Date: Full name: ____________________
Chief of Finance _______________
Note:
1. Above table shall be compiled separately for Life, Pension & General Annuity and Group Business and
Individually for each Segregated Fund (SFIN) AND at Assets under Management Level its total investment
assets.
2. Exposure would be on the basis of Book Value for Non -unit linked funds & on Market Value for Unit linked
Funds.
3. The Total of Column 'd' should reconcile with Investment Assets as per FORM 3A.
FORM - 5
(Read with clause 9 of Part III of Schedule III))
Name of the Insu rer:
Registration Number:
Statement as on:
Statement of Investment Reconciliation Name of the Fund: _________
(Business within India) Rs.Crore
Periodicity of Submission: Quarterly
No Category of
Investments COI Opening
Balance Purchase for
the Period Sale for the
Period Adjustments Closing Balance % to
Total
(1+2+3) Face
Value Book
Value Face
Value Book
Value Face
Value Book
Value Face
Value Book
Value Face
Value Book
Value Makret
Value
1 Central Govt.
Securities
Total
(1)
2 Central Govt.
Sec, State
Govt . Sec or
Other
Approved Sec.
Total
[1+2]
3 Investments
subject to
Exposure
Norms
(a) Housing &
Loans to State
Govt for
Housing / FFE
1. Approved
Investments
2. Other
Investments
Total
[3(a)]
(b) Infrastructure
Investments
1. Approved
Investments
2.Other
Investments
Total
[3(b)]
(c) Approved
Investments
Total
[3(c)]
(d) Other
Investments
Total
(3(d))
Total [3 (a+b+c+d)]
Total (1+2+3)
CERTIFICATION
Certified that the information given herein are correct, complete and nothing has been concealed or
suppressed, to the best of my knowledge and belief. Also, certif ied that all Cash Market transactions executed
on the Stock Exchange are made only on Delivery basis.
Date: Signature
Full Name & Designation
Authorised Signatory
NOTE:
1. Individual Categories under each of the above Major heads should be listed with Cate gory Code.
2. FORM -5 shall be prepared in respect of each fund. In case of ULIP Form 5 shall be prepared at
Segregated Fund (SFIN) level and also at consolidated level.
3. Each sub -total of FORM -5 shall be linked to its corresponding head in PART -A of FORM -3A / FORM -3B.
4. 'Other Investments' are as permitted under Sec 27A(2) of the Insurance Act,1938 as amended from time
to time.
5. The '% to Total' Column, in the case of Non -Linked funds shall be computed on Book Value and in the
Case of Linked Funds it shall to Mark et Value.
FORM - 6
(Read with clause 9 of Part III of Schedule III))
Name of the Insurer:
Registration Number: Name of the Fund:___________
Statement as on:
Certificate under Section 27A (5) of Insurance Act, 1938 Rs. Crore
Periodicity of Submission: Quarterly
No Investment Particulars Under the Custody of
Bank / Custody
(Rs) Self (Rs) Others (Rs) Total
(Rs)
Share
Holders Policy
Holders Share
Holders Policy
Holders Share
Holders Policy
Holders SH +
PH
1 Central Govt. Securities
2 Central G ovt Securities,
State Govt Securities or
Other Approved
Securities
3 Investment subject to
Exposure Norms
a. Housing & Loans to
State Govt. for Housing &
FFE
1. Approved Investments
2. Other Investments
b. Infras tructure
Investments
1. Approved Investments
2. Other Investments
c. Approved Investments
d. Other Investments
TOTAL
CERTIFICATE
We certify that the above mentioned securities are held free of any encumbrance, charge, hypothecation, or
lien as on the above date.
Signature: _____________ Signature: _____________ Signature: _____________
Full name: _____________ Full name: _____________ Full name: _____________
Chairman: _____________ Director 1: _____________ Director 2: _____________
Signature: _____________
Full name: _____________
Principal Officer: ______________
Note
1. Custodian should certify that he is not disqualified under SEBI (Custodian of securities) Regulations,
1996 as amended from time to time.
2. In the case of Life Insurance Business, FORM -6 shall be prepared in respect of each fund and in
aggregate for Segregated Funds.
3. The values under certificate should be adjusted for Purchase / Sale of investments purchased and
awaiting settlement. A reconciliat ion to this effect should be attached to the Certificate.
FORM 7 Name of the Fund
(Read with clause 9 of Part III of Schedule III))
DETAILS OF NON -PERFORMING ASSETS
Name of the Insurer:
Registration No:
(Rs. Crore)
NO PARTICULARS Bonds /
Debentures Loan s Other Debt
instruments All Other Assets TOTAL
YTD
(As on
date) Prev.
FY (As
on 31
Mar
…..) YTD
(As on
date) Prev.
FY (As
on 31
Mar
…..)
YTD (As
on date) Prev.
FY (As
on 31
Mar
…..)
YTD (As
on date) Prev. FY
(As on
31 Mar
…..)
YTD (As
on date) Prev.
FY (As
on 31
Mar
…..)
1 Investments Assets
(As per Form 5)
2 Gross NPA
3 % of Gross NPA on
Investment Assets
(2/1)
4 Provision made on
NPA
5 Provision as a % of
NPA (4/2)
6 Provision on
Standard
Asse ts
7 Net Investment
Assets (1 -4)
8 Net NPA (2 -4)
9 % of Net NPA to Net
Investment Assets
(8/7)
10 Write off made
during the period
Certification
Certified that the information given herein are correct and complete to the best of my knowledge. Also certified
that the various investments made and covered in the return are within the exhaustive categories provided in
Investment Guidelines as amended from time to time.
Signature: ____________
Full name:
Chief of Finance
Note:
1. The above statement, in the case of 'Life' Insurers shall be prepared 'fund -wise' Viz. Life Fund, Pension &
Group Fund, ULIP Fund and at Assets Under Management level also.
2. Total Investment Assets should reconcile with figures shown in Form 3A / 3B.
3. Gross NPA is investments classified as NPA, before any provisions.
4. Provision made on the 'Standard Assets' shall be as per Circular issued, as amended from time to time.
5. Net Investment assets is net of 'provisions'.
6. Net NPA is gross NPAs les s provisions.
7. Write off as approved by the Board.
Name of the Insurer: FORM - D01
Registration No: Report Date
DAILY RECONCILIATION OF ULIP PORTFOLIO
Unique
Identity
Number
(UIN) Name of
the Product Segregated
Fund
Identification
Number (SFIN) Name of th e
Fund Life / Group Policy Admin System
Opening
Unit
Capital (as
at the start
of the day)
(Amount in
Rs) Opening
Units (as
of the start
of the day)
(Number
of Units) Net Amount
collected or
redeemed
(net of
charges) for
the day
(Amount in
Rs) Net unit s
allotted or
redeemed
for the day
(Number of
Units) Closing
unit capital
(as at the
end of the
day)
(Amount in
Rs) Closing
units (as at
the end of
the day)
(Number of
Units)
(a) (b) (c) (d) (e) = (a) +
(c) (f) = (b) +
(d)
X A XYZ Fund Name 1
Y B
Z C
Sub total
L D ABC Fund Name 'n'
M E
Sub total
Investment Management System
SFI
N Name
of the
Fund Opening
fund
Value (as
at the
start of
the day) Opening
units (as
at the
start of
the day)
(Number
of Units) Additional
fund
Value
created or
redeemed
for the
day Additional
Units
created or
redeemed
for the
day Investment
income for
the day
(including
unrealised
gain/loss) FMC
charges
deducted
for the
day Closing
fund
Value (as
at the e nd
of the
day) Closing
Units (as
at the
end of
the day)
(Number
of units) NAV per
Unit
declared
(g) (h) (i) (j) (k) (l) (m) =
(g)+(i)+(k) -
(l) (n) = (h)
+ (j) (o) = (m)
/ (n)
Fund
Fund
Fund
'n'
NOTES:
1. Opening units as per Life / Group Policy Admin System of previous NAV day [refer (b)] shall reconcile
with Opening Units as per Investment Management System [refer (h)].
2. Addittional fund or Units created or redeemed for the day in Investment Management System [refer (i)
and (j)] shall reconcile with Net Amount or Units collected or redeemed as per Life / Group Policy Admin
System [refer (c) and (d)].
3. Closing units as per Life / Group Policy Admin System of previous NAV day [refer (f)] shall reconcile
with Closing Units a s per Investment Management System [refer (n)]
4. NAV per unit declared [refer (O)] must reconcile with NAV per unit uploaded on Life Insurance council's
website.
5. The unit movements of day "T" in Life/Group Admin System shall flow into Investment Management
System with a maximum time lag of 1 working day i.e T+1.
FORM - D02
XYZ Life Insurance Company Limited
Statement of Product Value
Registration No:
Policyholder ID Login Dt DD/MM/YYYY
Name of Policyholder
Address:
PART - A
Product UIN Premium
incl. Top -
up (Rs) Premium
Allocation
Charge
(Rs) Funds
Allocated
(Rs) Units as per
Policy
Admin
System
(PAS) Value per
Unit (Rs) Product
Value (Rs)
[A]
ZXY Premium Plus
PART -B Rs.
Particulars SFIN SFIN E SFIN
Name of the Fund
Units ( as per Investment Management System)
Percentage of Allocation ( as on Login Dt )
Funds Allocated
Switch In
Switch Out
Withdrawals Fund X Fund Y Total
% % %
Charges
Allocation Charges
Switch charge
Polic y Administration charge
Mortality charges
Other charges (specify)
GST
Total amount invested in Segregated funds
Current NAV
Fund value as on Login Dt :
[B]
PART - C (Product Statistics)
Insur ance Cover over the interim reporting period from dd/mm/yyyy
to dd/mm/yyyy
Total Premium Paid from inception
Total Risk premium from inception, for insurance cover
Total Charges and deductions other than Mortality including
Allocation charge s till Login Dt. (including Service Charges)
Difference between (A) (B) (unrealised Gain / Loss)
Portfolio value on Net Investment as per Benefit Illustration at the
lower rate as prescribed in the regulations
Portfolio value on Net Investme nt as per Benefit Illustration at the
upper rate prescribed in the regulations
NOTE:
1. Product Portfolio value would be aggregate of all fund values in a product.
2. Product value per unit would be arrived at post dividing aggregate fund value by initial units
3. Consolidated Product Value would be a derived by aggregating the product values and dividing the
same by consolidated initial units.
4. Product Value would be in addition to all the existing disclosures and calculations.
5. Current prescribed practices shall continue.
SCHEDULE IV: LOANS AND ADVANCES BY INSURANCE COMPANIES
1. Definitions:
(1) “Officer” means an officer defined in Section 2 (59) of the Companies Act, 2013 but does not include
non-whole -time director;
(2) “Full time Employees” m eans all employees of the insurer and includes Officers of the insurer.
2. Loans or Temporary Advances:
i. No insurer shall grant any loans or temporary advances to any officer who is not a whole -time
Director either on hypothecation of property or on person al security or otherwise except as provided
under Section 29 (1) of the Act.
ii. No insurer shall grant any loans or temporary advances to its full -time Employees either on
hypothecation of property or on personal security or otherwise, except as provided unde r Section 29
(1) of the Act;
Provided that an Insurer may grant the loans or temporary advances to its full time Employees only
for the following purposes:
(i) Loan for purchasing of car and / or two wheeler;
(ii) Loan for purchasing of personal computer and for o ther electronic devices;
(iii) Loan for purchasing of furniture;
(iv) Loan for constructing/acquiring a house for personal use;
(v) Loans for education of the children of the employees
(vi) Advance for Festival;
(vii) Any other purpose as may be specified in the policy in this regard approved by the Board of
the Insurer.
Provided further that the aggregate of all loans taken together by a full time employee shall not
exceed rupees one crore and shall be linked to the fixed remuneration of the employees.
3. Board Approved Polic y:
Every Insurer who grants loans or temporary advances to its employees shall have in place a scheme
duly approved by its Board of Directors for the grant of the above said loans or temporary advances.
4. Terms and Conditions:
The loans or temporary advances stated in clause 2 of Schedule -IV of these regulations shall be
subject to the following conditions:
(i) The loans and advances shall form part of the compensation /remuneration package in accordance
with the compensation / remuneration policy approved by th e Board of Directors or by the
Nomination and Remuneration Committee of the Board to which powers have been so delegated, as
the case may be.
(ii) The terms and conditions of such loans or advances shall be such as may be approved by the Board
or by the Nomin ation and Remuneration Committee of the Board to which such powers have been
delegated.
Provided that the interest rate charged on loan or temporary advances to whole -time Directors and
other officers cannot be lower than the rate charged on loans or tem porary advances to the insurer’s
own employees.
(iii) All such loans and advances shall not be admissible for Available Solvency Margin.
SCHEDULE – V: INSPECTION AND SUPPLY OF RETURNS
1. Inspection and Supply of Returns:
(1) Any person seeking inspection of any ret urn or a copy of any return under Section 20 (1) of the Act,
shall make an application to the Authority in such manner as may be specified by the Competent
Authority.
(2) The fee shall be charged at the following rates: Rupees One Hu ndred Only (Rs. 100/ -) for each page
or part thereof in physical form and Rupees Seventy -Five (Rs. 75/ -) per page in electronic form.
2. Supply of a copy of Memorandum and articles of association by the insurer:
(1) A policyholder of an insurer seeking a copy of memorandum and articles of association under Section
20 (3) of the Act, shall make an application in such manner as may be specified by the Competent
Authority.
(2) The insurer shall furnish a copy of the memorandum and articles of association within such time
period as may be specifie d by the Competent Authority.
(3) The fee shall be charged at the following rates: Rupees One Hundred Only (Rs. 100/ -) for each page
or part thereof in physical form and Rupees Seventy -Five (Rs. 75/ -) per page in electronic form
Annexure Actl - 1
Form H
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024
Summar y of Valuation as at 31st MARCH ___________
Name of the Insurer: Form Code: Date of Registration:
Registration Number:
Item
No. Type Category of Bus iness Mathematical Reserves (inclusive of
cost of bonuses allocated)
(1) (2) (3)
Business within India:
Par Non-Linked Business
02 Linked Business
03 VIP-Non Linked Business
04 VIP-Linked Business
05 TOTAL (total of the items (1) to (4 ))
Non-Par Non-Linked Business
07 Linked Business
08 VIP-Non Linked Business
09 VIP-Linked Business
10 TOTAL (total of the items (6) to (9)
11 Grand TOTAL (total of the items (5) and (10))
Total Business:
Par Non-Linked Business
13 Linked Business
14 VIP-Non Linked Business
15 VIP-Linked Business
16 TOTAL (total of the items (12) to (15))
Non-Par Non-Linked Business
18 Linked Business
19 VIP-Non Linked Business
20 VIP-Linked Business
21 TOTAL (total of the items (17) to (20))
22 Grand TOTAL (total of the items (16) and (21))
Note:
1 All figures should be in thousands
2 Mathematical reserves in Col (3) shall be furnished inclusive of cost of bonuses allocated
Annexure Actl - 1 (Continued)
Form NLB
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations , 2024
Summary and Valuation of polices as at 31st March ……………
Name of the Insu rer: Date of Registration: Form Code
Classification: Registration Number: Classification Code:
Type: Type Code:
Item
No. Sub
Class
Descri
ption Policy Particulars Valuation Details Number of policies
Number of Lives
Sum assured on Death / Rider
Sum Assured on Maturity
Vested Bonus
Annuity pa
Others, if any
Annualized Premium
All Benefits
(e.g. Death, maturity, guaranteed add -ons. Etc.)
Annuity
Vested Bonus
Future Bonus
Cost of Bonus Allocated
Terminal Bonus
Expenses and Commission
Future Premiums
Mathematical Reserve (before Adjustment)
Negative Reserve adjustment
Surrender Value Deficiency Reserve
Adjusted Mathematical Reserve
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22)
INDIVI
DUAL
BUSIN
ESS
01 Life
Business Before
Reinsu
rance
02 After
Reinsu
rance
03 Pensio
n Before
Reinsu
rance
04 After
Reinsu
rance
05 Gener
al
Annuit
y Before
Reinsu
rance
06 After
Reinsu
rance
07 Health Before
Reinsu
rance
08 After
Reinsu
rance
GROU
P
BUSIN
ESS
Life
Busine
ss Premi
ums
Guara
nteed
for
one
year:
09 Before
Reinsu
rance
10 After
Reinsu
rance
Premi
ums
Guara
nteed
for
not
more
than
one
year:
11 Before
Reinsu
rance
12 After
Reinsu
rance
13 Pensio
n Before
Reinsu
rance
14 After
Reinsu
rance
15 Gener
al
Annuit
y Before
Reinsu
rance
16 After
Reinsu
rance
17 Health Before
Reinsu
rance
18 After
Reinsu
rance
TOTA
L
BUSIN
ESS
19 Totals Before
Reinsu
rance
20 After
Reinsu
rance
Notes:
1 All figures should be in thousands
2 Col (19) = Col (11) + Col (12) +Col (13) +Col (14) + Col (15) + Col (16) +Col (17) - Col (18)
3 Col (22) = Col (19) + Col (20) + Col (21)
Annexure Actl - 1 (Continued)
Form LB
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024
Summary and Valuation of polices as at 31st March ………………
Name of the Insurer: Date of Registration: Form Code:
Classification: Registration Number: Classification Code:
Type: Type Code:
Category: Cate gory Code:
Item
No. Sub-Class Descript
ion Policy Particulars Valuation Details Number of policies
Number of Lives
Death Benefit / rider benefit
Maturity Benefit
Other Benefits
Annual Premium
Number of Units
Value of Units
Non Unit value/General Fun d
Reserve
Cost of Bonus
MR before negative reserves
Negative Reserve Adjustment
Surrender Value Deficiency
Reserves
Total Reserves
(1) (2) (3) (4) (5) (6) (7) (8) (9) (1
) (11) (12) (13) (14) (15) (16) (17)
INDIVID
UAL
BUSIN
ESS
Life
Business With
Guaran
tees:
01 Before
Reinsur
ance
02 After
Reinsur
ance
Without
Guarant
ees:
03 Before
Reinsur
ance
04 After
Reinsur
ance
Pension With
Guarant
ees:
05 Before
Re
insuranc
e
06 After
Reinsur
ance
Without
Guarant
ees:
07 Before
Reinsur
ance
08 After
Reinsur
ance
General
Annuity With
Guaran
tees:
09 Befor e
Reinsur
ance
10 After
Reinsur
ance
Without
Guaran
tees:
11 Before
Reinsur
ance
12 After
Reinsur
ance
Health With
Guaran
tees:
13 Before
Reinsur
ance
14 After
Reinsur
ance
Without
Guaran
tees:
15 Before
Reinsur
ance
16 After
Reinsur
ance
GROUP
BUSIN
ESS
Life
Business With
Guaran
tees:
17 Before
Reinsur
ance
18 After
Reinsur
ance
Without
Guaran
tees:
19 Before
Reinsur
ance
20 After
Reinsur
ance
Pension With
Guaran
tees:
21 Before
Reinsur
ance
22 After
Reinsur
ance
Without
Guaran
tees:
23 Before
Reinsur
ance
24 After
Reinsur
ance
General
Annuity With
Guaran
tees:
25 Before
Reinsur
ance
26 After
Reinsur
ance
Without
Guaran
tees:
27 Before
Reinsur
ance
28 After
Reinsur
ance
Health With
Guaran
tees:
29 Before
Reinsur
ance
30 After
Reinsur
ance
Without
Guaran
tees:
31 Before
Reinsur
ance
32 After
Reinsur
ance
TOTAL
BUSIN
ESS
TOTALS With
Guaran
tees:
33 Before
Reinsur
ance
34 After
Reinsur
ance
Without
Guaran
tees:
35 Before
Reinsur
ance
36 After
Reinsur
ance
Notes:
1 All figures should be in thousands
2 Col (14) = Col (11) + Col (12) + Col (13)
3 Col (17) = Col (14) + Col (15) + Col (16)
Annexure Actl - 1 (Continued)
Form VIPNLB
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Aut hority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations,
Summary and Valuation of polices as at 31st MARCH ……………
Name of the Insurer: Date of Registration: Form Code:
Classification: Registration Number: Classification Code:
Type: Type Code:
Category: Category Code:
Item
NO Sub
Class Description Policy Particulars Valuation Details Number of policies
Number of Lives
Sum assured on Death / Rider
Sum Assur ed on Maturity
Vested Bonus
Annuity pa
Others, if any
Annualized
Premium
All Benefits (e.g. Death, maturity,
guaranteed additions. Etc.)
Annuity
Vested Bonus
Future Bonus
Cost of Bonus Allocated
Terminal Bonus
Expenses and Commission
Future Premium
Math Re serve (before
Adjustment)
Negative Reserve adjustment
Surrender Value Deficiency
Reserves
Adjusted Math Reserve
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22)
INDIVIDUAL
BUSINESS
01 Life
Business Before Reinsurance
02 After Reinsurance
03 Pension Before Reinsurance
04 After Reinsurance
05 General
Annuity Before Reinsurance
06 After Reinsurance
07 Health Before Reinsurance
08 After Reinsurance
GROUP BUSINESS
Life
Business Premiums
Guaranteed for one year:
09 Before R einsurance
10 After Reinsurance
Premiums Guaranteed
for not more than one year:
11 Before Reinsurance
12 After Reinsurance
13 Pension Before Reins urance
14 After Reinsurance
15 General
Annuity Before Reinsurance
16 After Reinsurance
17 Health Before Reinsurance
18 After Reinsurance
TOTAL BUSINESS
19 Totals Before Reinsurance
20 After Reinsurance
Notes:
1 All figures should be in thousands
2 Col (19) = Col (11) + Col (12) +Co l (13) +Col (14) + Col ( 15)+ Col(16) + Col (17) - Col (18)
3 Col (22) = Col (19) +Col (20) + Col (21)
Annexure Actl - 1 (Continued)
Form VIPLB
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers)
Regulations, 2024
Particulars of the policies and valuation details as at 31st March ………………
Name of the Insurer: Date of Registration: Form Code:
Class ification: Registration Number: Classification Code:
Type: Type Co de:
Category: Category Code:
Item
No. Sub-
Class Description Policy Particulars Valuation Details
Number of policies
Number of Lives
Death B enefit / rider
benefit
Assured Maturity Benefit
Other Benefits
Annualised Premium
Policy Account Value
Non Policy Account
/General fund value
Cost of Bonus
MR before negative
reserves
Negative Reserve
Adjustment
Surrender Value
Deficiency
Reserves
Total R eserves
(1) (2) (3) (4) (5) (6) (7) (8) (9) (11) (12) (13) (14) (15) (16) (17)
INDIVIDUAL
BUSINESS
Life
Business With
Guarantees :
01 Before
Reinsurance
02 After
Reinsurance
Without
Guarantees :
03 Before
Reinsurance
04 After
Reinsurance
Pension With
Guarantees :
05 Before
Reinsurance
06 After
Reinsurance
Without
Guarantees :
07 Before
Reinsur ance
08 After
Reinsurance
General
Annuity With
Guarantees :
09 Before
Reinsurance
10 After
Reinsurance
Without
Guarantees :
11 Before
Reinsurance
12 After
Reinsurance
Health With
Guarantees :
13 Before
Reinsurance
14 After
Reinsurance
Without
Guarantees :
15 Before
Reinsurance
16 After
Reinsurance
GROU P
BUSINESS
Life
Business With
Guarantees :
17 Before
Reinsurance
18 After
Reinsurance
Without
Guarantees :
19 Before
Reinsurance
20 After
Reinsurance
Pension With
Guarantees :
21 Before
Reinsurance
22 After
Reinsurance
Without
Guarantees :
23 Before
Reinsurance
24 After
Reinsurance
General
Annuity With
Guarantees :
25 Before
Reinsurance
26 After
Reinsurance
Without
Guarantees :
27 Before
Reinsurance
28 After
Reinsurance
Health With
Guarantees :
29 Before
Reinsurance
30 After
Reinsurance
Without
Guarantees :
31 Before
Reinsurance
32 After
Reinsurance
TOTAL
BUSINESS
TOTALS With
Guarantees :
33 Before
Reinsurance
34 After
Reinsurance
Without
Guarantees :
35 Before
Reinsurance
36 After
Reinsurance
Notes:
1 All figures should be in thousands
2 Col (14) = Col (11) + Col (12) + Col (13)
3 Col (17) = Col (1 4) + Col (15) + Col (16)
Annexure Actl - 2
Form IA (Non -Participating)
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024
Valuation Results as at 31st March…………….
Name of the Insurer: Date of Registration: Form Code
Classification: Registration Number: Classification Code:
Type : Type Code:
Type
Item No. Description Balance of
Fund shown in
Balance Sheet Mathematical reserves
(excluding cost of
bonuses
allocated) Surplus
(1) (2) (3) (4) (5)
01 Business within India:
Non-Linked
a Non-par Polices - Life
b Non-par Polices - Pensions
c Non-par Polices - Annuity
d Non-par Polices – Health
Linked
e Non-par Polices – Life
f Non-par Polices - Pensions
g Non-par Polices - Annuity
h Non-par Polices – Health
VIP
i Non-par Polices - Life
j Non-par Polices - Pensions
02 Totals - Policyholder Funds
- within India
03 Total Business
Non-Linked
a Non-par Polices - Life
b Non-par Polices - Pensions
c Non-par Polices - Annuity
d Non-par Polices - Health
Linked
e Non-par Polices - Life
f Non-par Polices - Pensions
g Non-par Polices - Annuity
h Non-par Polices - Health
VIP
i Non-par Polices - Life
j Non-par Polices - Pensions
04 Totals - Policyholder Funds
Notes:
1 All figures should be in thousands
2 Col (5) = Col (3) - Col (4)
Annexure Actl - 3
Form IA (Participating)
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of
Insurers) Regulations, 2024
Valuation Results as at 31st March………….
Name of the Insurer: Date of Registration: Form Code
Classification : Registration Number: Classification Code:
Type : Type Code:
Item No. Description Balance of Fund shown
in Balance Sheet Mathematic al reserves
Mathematical reserves
(excluding cost of bonuses
allocated) Surplus
(1) (2) (3) (4) (5)
1 Business within
India:
Non-Linked
a Life
b Pensions
c Annuity
d Health
Non-Linked VIP
a Life
b Pensions
c Annuity
d Health
Linked
a Life
b Pensions
c Annuity
d Health
Linked VIP
a Life
b Pensions
c Annuity
d Health
2 Totals -
Policyholder Funds
- within India
3 Total Business
Non-Linke d
a Life
b Pensions
c Annuity
d Health
Non-Linked VIP
a Life
b Pensions
c Annuity
d Health
Linked
a Life
b Pensions
c Annuity
d Health
Linked VIP
a Life
b Pensions
c Annuity
d Health
4 Totals -
Policyholder Funds
Notes:
1 All figures should be in thousands
2 Col (5) = Col (3) - Col (4)
Annexure Actl - 4
Form I
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of
Insurers) Regulations, 2024
Valuation Results as at 31st March…………….
Name of the Insurer: Date of Registration: Form Code
Classification: Registration Number: Classific ation Code:
Item No. Description Balance of Fund
shown in Balance
Sheet Mathematical reserves
(excluding cost of
bonuses allocated) Surplus
(1) (2) (3) (4) (5)
01 Business within India:
a Participating Policies
b Non-participating Polices
02 Totals - Policyholder
Funds - within India
03 Total Business
a Participating Policies
b Non-participating Polices
04 Totals - Policyholder
Funds
Note:
1 All figures should be in thousands
2 Col (5) = Col (3) - Col (4)
3 The figure s shown in column (3) includes surplus in the policyholder fund; it is the Balance Sheet position
of assets prior to any transfer being made out to the shareholder fund.
4 The figures shown in (3) and the Surplus shown in (5) also includes shareholder transf er to the
policyholder fund in order to meet the deficits in some segments.
5 The figures shown in column (3) for Par business does not include the amount of interim and terminal
bonus paid to the policyholder during the inter valuation period amounting Rs. X.
Annexure Actl - 5
FORM IRDAI -ASSETS -AA
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of
Insurers) Regulations, 2024
Statement of Assets as at 31st MARCH …………….
Name of the Insurer: Date of Registration: Form Code :
Classification: Registration Number: Classification Code:
Form AA
Particulars (Amount in 000’s) Policyholders
A/C Shareholders
A/C Total
Investments
Investments Share holder' SCH 8 …………(A)
Policyholders' SCH -8A …………(B)
Assets held to cover linked liabilities SCH -8B ………(C)
Total Investments as per BS# (D)=(A)+(B)+(C)
Inadmissible Investment assets*** ……… (E)
Fixed assets
Fixed assets as per BS …… …. (F)
Inadmissible Fixed assets*** ……………(G)
Current Assets
Cash & Bank Balances as per BS……………(H)
Advances and Other assets as per BS ……………(I)
Total Current Assets as per BS …………… (J) = (H) + (I)
Inadmissible Current assets*** ………… …(K)
Current Liabilities & Provisions
Current Liabilities as per BS……………(L)
Provisions as per BS …………… (M)
Total Current Liabilities & Provisions …………… (N) = (L) +
(M)
Policy Loans
Policy and Other Admissible Loans as per BS……….(O)
Fair Value Change Account subject to minimum of zero
…….(P)
Total Assets as per BS (Q) = (D) + (F) + (J) - (N)
+ (O)
Total Inadmissible assets (R) = (E) + (G) + (K) + (P)
Total Admissible assets for Solvency -— (Q) - (R)
Note: Policyho lders’ asset (SCH 8A) should include assets backing General Fund liabilities of linked business.
However, SCH 8B will include only assets backing unit liabilities and policy account
*** Inadmissible assets as per clause 1 of Part III A of Schedule I of th ese regulations.
# 'BS' indicates 'Balance Sheet'
Annexure Actl - 6
Form KT-1
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) R egulations, 2024
Required Solvency Margin based on Mathematical Reserves and Sum at Risk as at 31st March…………….
Name of the Insurer: Date of Registration:
Form Code:
Classification: Registration Number:
Classification Code:
Item
No. Description Mathematical
Reserves before
Reinsurance Mathematical
Reserves after
Reinsurance
K1 Sum at Risk
before
Reinsurance Sum at Risk
after
Reinsurance
K2 First
Factor Second
Factor Required
Solvency
Margin
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
01 Non-
Participating
Non-Linked
Division / sub-
class / group by
……….
Linked
Division / sub-
class / group by
VIP Non-Linked
Division / sub-
class / group by
VIP Linked
Division / sub-
class / group by
Total - Non-
Participating
02 Participating
Non-Linked
Division / sub-
class / group by
Linked
Division / sub-
class / group by
VIP Non -Linked
Division / sub-
class / group by
VIP Linked
Division / sub-
class / group by
Total -
Participating
Total
(1) K1 = 0.85 or (Mathematical Reserves afte r Reinsurance / Mathematical Reserves before reinsurance),
whichever is higher.
(2) K2 = 0.5 or (Sum at Risk after reinsurance /Sum at risk before reinsurance), whichever is higher
(3) Col. (11) = [ Col. (3) x Col. (5) x Col. (9)] + [Col. (6) x Col. (8) x Col. (10)]
(4) In the computation of the total sum at risk, ignore the contracts for which the sum at risk is a negative
figure or does not exist
(5) The first and second factor are x% and y% respectively
(6) K1 and K2 shall be calculated separately f or each row.
Required Solvency Margin (RSM) Factors
First Factor Second Factor
1.Type: Non-Participating
1.1. Category: Non -Linked:
1.1.1. Division - Individual
1.1.1.1. Sub-Class - Life Business
1.1.1.1.a. Other than term 3.00% 0.30%
1.1.1.1 .b. Pure Term 3.00% 0.10%
1.1.1.1.c. Term with ROP 3.00% 0.10%
1.1.1.2. Sub-Class - General Annuity 3.00% 0.00%
1.1.1.3. Sub-Class -Pension 3.00% 0.30%
1.1.1.4. Sub-Class - Health 3.00% 0.00%
1.1.2. Division: Group Business:
1.1.2.1. Sub-class: Life Business :
1.1.2.1.a. Premiums guaranteed for not more than one year 1.00% 0.10%
1.1.2.1.b. Premiums guaranteed for more than one year 1.00% 0.10%
1.1.2.1.c. Fund Based Non Participating 1.00% 0.10%
1.1.2.1.d Pradhan Mantri Jeevan Jyoti Bima Yojan a (PMJJBY) 1.00% 0.05%
1.1.2.2. Sub-class: General Annuity 3.00% 0.00%
1.1.2.3. Sub -class: Pension 3.00% 0.10%
1.1.2.4. Sub-Class - Health 3.00% 0.00%
1.2. Category: Linked :
1.2.1. Division - Individual
1.2.1.1. Sub-Class - Life Business
1.2.1.1.a. with guarantees 1.80% 0.20%
1.2.1.1.b. without guarantees 0.60% 0.20%
1.1.2.2. Sub -class: General Annuity
1.2.1.2.a. with guarantees 1.80% 0.20%
1.2.1.2.b. without guarantees 0.60% 0.20%
1.2.1.3. Sub -Class - Pension
1.2.1.3.a. With gua rantees 1.80% 0.20%
1.2.1.3.b. without guarantees 0.60% 0.20%
1.2.1.4. Sub -Class - Health
1.2.1.4. a. With guarantees 1.80% 0.00%
1.2.1.4. b. without guarantees 0.60% 0.00%
1.2.2. Division: Group Business:
1.2.2.1. Sub -Class - Life Business
1.2.2.1.a. with guarantees 1.80% 0.20%
1.2.2.1.b. without guarantees 0.60% 0.20%
1.2.2.2. Sub -Class - General Annuity
1.2.2.2.a. with guarantees 1.80% 0.20%
1.2.2.2.b without guarantees 0.60% 0.20%
1.2.2.3. Sub -Class - Pension
1.2.2.3.a. Wit h guarantees 1.80% 0.20%
1.2.2.3.b. without guarantees 0.60% 0.20%
1.2.2.4. Sub -Class - Health
1.2.2.4.a. With guarantees 1.80% 0.00%
1.2.2.4.b. without guarantees 0.60% 0.00%
2. Type: Participating
2.1. Category: Non -Linked:
2.1.1. Div ision- Individual
2.1.1.1. Sub -Class - Life Business 3.00% 0.30%
2.1.1.2. Sub -Class - General Annuity 3.00% 0.00%
2.1.1.3. Sub -Class - Pension 3.00% 0.10%
2.1.1.4. Sub -Class - Health 3.00% 0.00%
2.1.2. Division: Group Business:
2.1.2.1. Sub -class: Life Business :
2.1.2.1.a. Premiums guaranteed for not more than one year 1.00% 0.10%
2.1.2.1.b. Premiums guaranteed for more than one year 1.00% 0.10%
2.1.2.1.c. Fund Based Participating 1.00% 0.10%
2.1.2.2. Sub -class: General Annuity 3.00% 0.00%
2.1.2.3. Sub -class: Pension 3.00% 0.10%
2.1.2.4. Sub -Class - Health 3.00% 0.00%
2.2. Category: Linked :
2.2.1. Division - Individual
2.2.1.1. Sub -Class - Life Business
2.2.1.1.a. with guarantees 1.80% 0.20%
2.2.1.1.b. without guarant ees 0.60% 0.20%
2.2.1.2. Sub -Class - General Annuity
2.2.1.2.a. with guarantees 1.80% 0.20%
2.2.1.2.b. without guarantees 0.60% 0.20%
2.2.1.3. Sub -Class - Pension
2.2.1.3.a. With guarantees 1.80% 0.20%
2.2.1.3.b. without guarantees 0.60% 0.20%
2.2.1.4. Sub -Class - Health
2.2.1.4.a. With guarantees 1.80% 0.00%
2.2.1.4.b. without guarantees 0.60% 0.00%
2.2.2. Division: Group Business:
2.2.2.1. Sub -Class - Life Business
2.2.2.1.a. with guarantees 1.80% 0.20%
2.2.2.1.b. without gua rantees 0.60% 0.20%
2.2.2.2. Sub -Class - General Annuity
2.2.2.2.a. with guarantees 1.80% 0.20%
2.2.2.2.b. without guarantees 0.60% 0.20%
2.2.2.3. Sub -Class - Pension
2.2.2.3.a. With guarantees 1.80% 0.20%
2.2.2.3.b. without guarantees 0.60% 0.20%
2.2.2.4. Sub -Class - Health
2.2.2.4. a. With guarantees 1.80% 0.00%
2.2.2.4. b. without guarantees 0.60% 0.00%
Notes:
(1) The Factors Applicable to the Adjustments shall be as per the nature of the Base products
(2) The Factors Applicable to the Riders shall be as per the following table:
Riders First Factor Second Factor
For Health Insurance Rider 3.00% 0.00%
For Other than Health Insurance Rider 3.00% 0.10%
Annexure Actl - 7
Form KT -2
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regu latory and Development Authority of India (Actuarial, Finance and
Investment Functions of Insurers) Regulations, 2024
Required Solvency Margin based on Assets of Policyholders' Funds as at 31st
March……………
Name of the Insurer: Date of Registration: Form Code:
Classification: Registration Number: Classification Code:
Item No. Category of Asset Notes Amount
(see Notes
below) Rs. Third Factor % Required Solvency
Margin
(1) (2). (3) (4) (5)
Non-Mandated
investments
Corporate Bonds
01 AAA or Equivalent
02 AA or Equivalent
03 A or Equivalent
04 BBB or Equivalent
05 BB or Equivalent
06 B or Equivalent
07 Lower than B
08 Unrated
Mortgages
09 Residential
10 Commercial
Real Estate
11 Residential
12 Commerci al
Preference
Shares
13 Listed Preference
Shares
14 Unlisted
Preference
Shares
Equity
15 Listed Ordinary
Shares
16 Unlisted Ordinary
Shares
17 Total
Note:
(1) Column (5) = Column (3) X Column (4)
(2) Column (4) = zero un til further intimation from the Authority
(3) The table should show the amount (in column (3)) which is Balance Sheet Value in
respect of the above mentioned category of asset (where the Balance Sheet is
prepared in accordance with Insurance Regulatory and Dev elopment Authority of India
(Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024
Annexure Actl - 8
Form KT -3
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finan ce and
Investment Functions of Insurers) Regulations, 2024
Available Solvency Margin and Solvency Ratio as at 31st March…………….
Name of the Insurer: Date of Registration:
Form Code:
Classification: Registration Number:
Classification Code:
ode:
Item Description Notes No... Adjusted Value
(1) (2) (3) (4)
01 Available Assets in Policyholders' Fund: 2
Deduct:
02 Mathematical Reserves 3
03 Other Liabilities 4
04 Excess in Policyholders' funds
(01-02-03)
05 Available Assets in Shareholders Fund: 5
Deduct:
06 Other Liabilities of shareholders’ fund 4
07 Excess in Shareholders' funds (05 -06)
08 Total ASM (04)+(07)
09 Total RSM 6
10 Solvency Ratio (ASM/RSM)
Certification:
I, …………………. the Appointed Actuary, certify that the above statements have b een prepared
in accordance with the section 64VA of the Insurance Act, 1938, as amended from time to time; and
the amounts mentioned therein are true and fair to the best of my knowledge.
Place:
Date:
Name and Signature of Appointed Actuary Name and Signature of CEO
Notes:
1. All figures shall be in thousands;
2. Item No. 01 shall be the amount of the Total Admissible assets for So lvency as mentioned in
Form IRDAI -Assets - AA under Policyholders A/C;
3. Item No. 02 shall be the amount of Mathematical Reserves as mentioned in Form H;
4. Item Nos. 03 and 06 shall be the amount of other liabilities as mentioned in the Balance Sheet;
5. Items No. 05 shall be the amount of the Total Admissible assets for Solvency as mentioned in
Form IRDAI -Assets - AA under Shareholders A/C;
6. Items No. 09 shall be the sum total of the Required Solvency Margins arrived in the manner as
specified under Form KT -1 and KT -2 of Part III (B) of Schedule -I of these regulations.
Annexure Actl - 9
Form S
(See clause 2(2) of Part III (B) of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and
Investment Functions of Insurers) Re gulations, 2024
Composition and Distribution of Surplus as at 31st March…………
Name of the Insurer: Date of Registration: Form Code
Classification: Registration Number: Classification Code:
Type : Type
Code:
Category: Category Code:
Com position of surplus
Life Pension General
Annuity Health Total
01 Surplus emerged during the year
02 Interim bonus paid during the
inter valuation period
03 Terminal Bonus paid during the
inter valuation period.
04 Loyalty Additions or other forms
of bonuses, if any, paid during the
inter-valuation period
05 Sums transferred from
shareholders fund during the inter
valuation period
06 Amount of surplus, from
policyholders' funds, brought
forward from preceding valuation
07 Total Surplus[2] (Sum of items 1
to 6)
Distribution of surplus
Life Pension General
Annuity Health Total
01 To Interim Bonuses paid
02 To Terminal Bonuses
03 To Loyalty Additions or any other
forms of bonuses, if any
04 Among policyholders with
immediate participation
05 Among policyholders with
deferred participation
06 Among policyholders in the
discounted bonus class or Cash
Bonus
07 To every reserve fund or other
fund or account
08 As carried forw ard un -
appropriated
09 To the shareholders’ funds (any
such sums passed through the
accounts during the inter
valuation period to be separately
stated)
10 Total Surplus allocated (Sum of
items 1 to 9)
Annexure Actl - 10
FORM IRDAI -GI-TA
(See clause 5 of Part IV of Schedule - I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and
Investment Functions of Insurers) Regulations, 2024
STATEMENT OF ADMISSIBLE ASSETS as at 31st March…………
Name of Insurer:
Registration Number:
Date of registration:
Classification: Business within India/ Total Business
(All amounts in Rupees of Lakhs)
Particulars Policyholders
A/C Shareholders
A/C Total
Investments
Investments Shareholder' SCH 8 (A1)
Policyholders' SCH 8A (A2)
Total Investments as per BS (A) = (A1) + (A2)
Inadmissible investment assets 1 --- (B)
Fixed assets
Fixed assets as per BS ( C)
Inadmissible Fixed assets1 -------- (D)
Current Assets
Cash & Bank Balances as per B S (E)
Advances and Other assets as per BS (F)
Total Current Assets as per BS (G) = (E)
+ (F)
Inadmissible Current assets1 ------- (H)
Loans
Loans as per BS (I)
Fair Value Change Account subject to
minimum of zero (J)
Total Assets as per BS (K) = (A) + (C) +
(G) + (I) (Excluding current liabilities and
provisions)
Total Inadmissible assets (L) = (B) + (D) + (H)
+ (J)
Total Admissible assets for Solvency (K) - (L)
(Excluding current liabilities and provi sions)
We certify that the statement has been prepared in accordance with Part IV of Schedule I of these
regulations.
Name and Signature of Appointed Actuary
Name and Signature of Statutory Auditor
Name and Signature of Chief Executive Officer
Place
Date
Note:
1. Inadmissible assets shall be the assets which are placed with zero value as per Part IV of
Schedule I of these regulations
Annexure Actl -11
FORM IRDAI -GI-TR
(See clause 5 of Part IV of Schedule -I)
Insurance Regulatory and Development Autho rity of India (Actuarial, Finance and
Investment Functions of Insurers) Regulations, 2024
STATEMENT OF LIABILITIES as at 31st March………….
Name of Insurer:
Registration Number:
Date of registration:
Classification: Business within India/ Total Business:
(All amounts in Rupees of Lakhs)
Reserve Gross
Reserve Net
Reserve
Unearned Premium Reserves (UPR) …. (a)
Premium Deficiency Reserves (PDR)….(b)
Unexpired Risk Reserves (URR)….(c) = (a) +(b)
Outstanding Claim Reserves (other than IBNR reserve)….(d )
IBNR Reserves…. (e)
Total Reserves for Technical Liabilities ….(f)= (c)+(d)+(e)
Certification
(1) Certification by the Statutory Auditor:
I certify that the above statement represents the liabilities of the insurer which have been determined
in the manner prescribed in the Insurance Regulatory and Development Authority of India ( Actuarial,
Finance and Investment Functions of Insurers ) Regulations, 2024 and amounts of such liabilities are
fair and reasonable. I also further certify that the outstandi ng claims reserves that are estimated using
statistical methods, PDR and IBNR reserves in the statement above have been determined by the
Appointed Actuary and his/her certificate is furnished below.
Qualifications, if any (in regard to the determination o f liabilities):
Place:
Date:
Name and Signature of the Statutory Auditor
(2) Certification by the Appointed Actuary:
I certify that, I have checked the data to the best of my ability and I am satisfied that the data is
consistent, reliable and complete. I also further certify that the outstanding claims reserves that are
estimated using statistical methods, PDR and IBNR reserves in the statement above have been
determined using actuarial principles and in the manner prescribed in the Insurance R egulatory and
Development Authority of India (Actuarial, Finance and Investment Functions of Insurers)
Regulations, 2024 . These reserves, estimated as on the 31st day of March of ………. (year of
investigation) represent, in my opinion, a fair reflection of t he expected future experience.
Qualifications, if any:
Name of the Insurer:
Place:
Date:
Name and Signature of the Appointed Actuary
(3) Certification by the Principal officer:
I certify that
(a) Full and accurate particulars of every policy and claim have been f urnished to the Appointed
Actuary: <name of the actuary> for the purpose of the determination of Technical Reserves as
on the 31st Day of March of 20XX.
(b) The data provided to the Appointed Actuary reconciles with the Audited Financials as at 31st
Day of Ma rch 20XX.
(c) The Appointed Actuary has been made aware of all the information pertaining to underwriting,
claims and reinsurance policies and practices followed by the Insurer.
Qualifications, if any:
Name of the Insurer:
Place:
Date:
Name and Signature of the Principal Officer
(4) Certification by the Chief Financial Officer:
I certify that the UPR has been determined as per the clause 4 of Part II of Schedule II of Insurance
Regulatory and Development Authority of India (Actuarial, Finance and Investment Fu nctions of
Insurers) Regulations, 2024 .
Qualifications, if any (in regard to determination of UPR):
Name of the Insurer:
Place:
Date:
Name and Signature of the Chief Financial Officer
Annexure Actl - 12
FORM IRDAI -GI-SM
(See clause 5 of Part IV of Schedu le-I)
Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024
TABLE - I
STATEMENT OF SOLVENCY MARGIN as at 31st March………….
Name of Insurer:
Registration Number:
Date of registratio n:
Classification: Business within India / Total Business:
TABLE IA: REQUIRED SOLVENCY MARGIN BASED ON NET PREMIUM AND NET INCURRED
CLAIMS
(All amounts in Rupees of Lakhs)
Item
No. Line of
Business Gross
Premiums Net
Premiums Gross
Incurr
ed
claims Net
Incurred
claims RSM1 RSM2 RSM Factor
A Factor B
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
01 Fire 0.50 0.50
02 Marine Cargo 0.60 0.60
03 Marine – Other
than Marine
Cargo 0.50 0.50
04 Motor 0.75 0.75
05 Engineering 0.50 0.50
06 Aviation 0.50 0.50
07 Liability 0.75 0.75
08 Health 0.75 0.75
09 Miscellaneous 0.70 0.70
10 Crop Insurance 0.50 0.50
Total
NOTES:
(3) = Gross Written Premium including Inward Reinsurance
(4) = Net Written Premium
(5) = Gross Incurred Claims including impact of Gross IBNR
(6) = Net Incurred Claims including impact of Net IBNR
(3) and (4) are calculated as ‘Trailing 12 Months’ Data’ from the valuation date
(5) and (6) are calculated as Maximum of ‘Trailing 12 Months Data’ and ‘Trailing 36 Months Data
divided by 3’ from the valuation date
(7) RSM 1 in the above table means Required Solvency Margin based on net premiums, and shall be
determined as Twenty Percent (20%) of the amount which is the h igher of the Gross Premiums
multiplied by a Factor A as specified in the Table IA and the Net Premiums.
(8) RSM 2 in the above table means Required Solvency Margin based on net incurred claims and
shall be determined as Thirty Percent (30%) of the amount w hich is the higher of the Gross Incurred
Claims multiplied by a Factor B as specified in the Table above and the Net Incurred Claims.
(9) RSM means Required Solvency Margin and shall be the higher of the amounts of RSM 1 and RSM
2 for each LOB separately.
Annexure Actl - 12 (Continued)
TABLE IB: AVAILABLE SOLVENCY MARGIN AND SOLVENCY RATIO
Name of Insurer:
Registration Number:
Date of registration:
Classification: Business within India / Total Business
(All amounts in Rupees of Lakhs)
(1) (2) (3)
ITEM NO. DESCRIPTION AMOUNT
Policyholder’s Funds
(A) Available assets(as per Form IRDAI -GI-TA)
Deduct:
(B) Current Liabilities as per BS
(C) Provisions as per BS
(D) Other Liabilities
(E) Excess in Policyholder’s funds (A) -(B)-(C)-(D)
Shareholder’ s Funds
(F) Available Assets
Deduct:
(G) Other Liabilities
(H) Excess in Shareholder’s funds (F -G)
(I) Total ASM (E+H)
(J) Total RSM
(K) SOLVENCY RATIO (Total ASM/ Total RSM)
Certification :
I , the Statutory Auditor, hereby certify that t he above statements have been prepared in
accordance with the Section 64VA of the Insurance Act, 1938, and the amounts mentioned
therein are tr ue to the best of my knowledge.
Place
Date:
Name and Signature of the Statutory Auditor
Counter signature by
Principal Officer: Appointed Actuary Chief Financial Officer
NOTES:
1. Item A shall be the amount of the Adjusted Value of Assets in respect of policyholders' funds
as mentioned in FORM IRDAI -GI-TA.
2. Item B shall be the amount of Total Liabilities a s mentioned in FORM IRDAI -GI-TR.
3. Item C shall be the amount of other liabilities arising in respect of policyholders' funds and as
mentioned in the Balance Sheet.
4. Item F shall be the amount of the adjusted value of the Total Assets in respect of
shareholde rs' funds as mentioned in FORM IRDAI - GI-TA.
5. Item G shall be the amount of other liabilities arising in respect of shareholders' funds and as
mentioned in the Balance Sheet.
Annexure Actl -13
FORM IRDAI -RI-TA
(See clause 5 of Part V of Schedule I)
Insura nce Regulatory and Development Authority of India (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024
STATEMENT OF ADMISSIBLE ASSETS as at 31st March……….
Name of reinsurer:
Registration Number:
Date of registration:
Classification: Business within India/ Total Business:
(All amounts in Rupees of Lakhs)
Particulars Policyholders
A/C Shareholders
A/C Total
Investments
Investments Shareholder' SCH 8
Policyholders' SCH 8A
Total Investments as per BS (A)
Inadmissibl e investment assets1 --- (B)
Fixed assets
Fixed assets as per BS( C)
Inadmissible Fixed assets 1-------- (D)
Current Assets
Cash & Bank Balances as per BS (E)
Advances and Other assets as per BS (F)
Particulars Policyholders
A/C Shareholders
A/C Total
Total Curren t Assets as per BS (G) = (E) + (F)
Inadmissible Current assets1 (H)
Loans
Loans as per BS (I)
Fair Value Change Account subject to minimum
of zero (J)
Total Assets as per BS (K) = (A) + (C) + (G) +
(I) (Excludi ng current liabilities and
provisions as applicable)
Total Inadmissible assets (L) = (B) + (D) + (H) +
(J)
Total Admissible assets for Solvency (K) - (L)
(Excluding current liabilities and provisions)
We certify that the statement has been pr epared in accordance with clause 3 of Part V of the
Schedule I of these regulations.
Name and Signature of Appointed Actuary/ Actuary**
Name and Signature of Statutory Auditor
Name and Signature of Chief Executive Officer
Place:
Date:
NOTES:
1. Inadmissi ble assets shall be the assets which are placed with zero value as per Part V of
these regulations.
2. **Signature of the actuary certifying the reports of the FRB
Annexure Actl -14
FORM IRDAI -RI-SM
(See clause 5 of Part V of Schedule I)
Insurance Regulato ry and Development Authority of India (Actuarial, Finance and Investment
Functions of Insurers) Regulations, 2024
STATEMENT OF AVAILABLE SOLVENCY MARGIN AND SOLVENCY RATIO
as at 31st March……….
Name of reinsurer:
Registration Number:
Date of registration:
Classification: Business within India/ Total Business:
(All amounts in Rupees of Lakhs)
ITEM NO. DESCRIPTION AMOUNTS
Policyholder's funds
(A) Available Assets (as per form 'Form IRDAI -RI-TA')
Deduct:
(B) Current Liabilities as per Balance Sh eet (BS)
(C) Provisions as per BS
(D) Mathematical Reserves as per BS
(E) Other Liabilities as per BS
(F) Excess in Policyholder's funds (A) - (B) - (C) - (D) - (E)
Shareholder's funds
(G) Available Assets (as per form 'Form IRDAI -RI-TA')
Deduct:
(H) Other Liabilities as per BS
(I) Excess in Shareholder's funds (G) - (H)
(J) Total ASM (F) + (I)
(K) RSM (Life Reinsurance Business)
(L) RSM (General Reinsurance Business)
(M) Total RSM (K) + (L)
(N) SOLVENCY RATI O (Total ASM/ Total RSM)
Certification :
I , the Statutory Auditor, hereby certify that the above statements have been prepared in
accordance with the Section 64VA of the Insurance Act, 1938, and the amounts mentioned
therein are true to the best of my k nowledge.
Place
Date:
Name and Signature of the Statutory Auditor
Counter signature by
Appointed Actuary/Actuary** Chief Financial Officer
Principal Officer/ /Chief Executive Officer:
NOTES:
1. **Signature of the actuary certifying the reports of the FRB
2. Items (B) and (C) are applicable for General Reinsurance business
3. Item (D) is applicable for Life Reinsurance business
4. Item (K) shall be determined shall be the sum total of the Required Solvency Margins arrived in
the manner as specified under Fo rm KT -1 and KT -2 of Part III (B) of Schedule -I of Insurance
Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of
Insurers) Regulations, 2024.
5. Item (L) shall be determined as per clause 2 of Part V of Schedule -I of these regulations
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