In exercise of the powers conferred by
clauses (y), (z) and (za) of sub-section (2) of section 114-A of the
Insurance Act, 1938 (4 of 1938), read with section 26 of the Insurance
Regulatory and Development Authority Act, 1999 (41 of 1999), the
Authority, in consultation with the lnsurance Advisory Committee, hereby
makes the following regulations, namely--
1. Short title and
commencement
(1) These regulations may be called the
Insurance Regulatory and Development Authority (Assets, Liabilities and
Solvency Margin of Insurers) Regulations, 2000.
(2) They shall come into force from the
date of their publication in the Official Gazette.
2. Definitions
(1) In these regulations, unless the
context otherwise requires--
(a) "Act" means the Insurance
Act, 1938 (4 of 1938);
(b) "Authority" means the
Insurance Regulatory and Development Authority established under
sub-section (1) of section 3 of the Insurance Regulatory and Development
Authority Act, 1999 (41 of 1999).
(2) All words and expressions used
herein and not defined but defined in the Insurance Act, 1938(4 of
1938), or in the Insurance Regulatory and Development Authority Act,
1999 (41 of 1999), or in any rules or regulations made thereunder, shall
have the meanings respectively assigned to them in those Acts or rules
or regulations.
3. Valuation of assets
Every insurer shall prepare a statement
of the value of assets in Form IRDA Assets AA in accordance with
Schedule I.
4. Determination of
amount of liabilities
Every insurer shall prepare a statement
of the amount of liabilities in accordance with
Schedule II-A, in respect of life insurance business, and in Form HG
in accordance with Schedule II-B, in
respect of general insurance business, as the case may be.
5. Determination of
solvency margin
Every insurer shall prepare a statement
of solvency margin in accordance with Schedule
III-A, in respect of life insurance business, and in Form KG in
accordance with Schedule III-B, in respect
of general insurance business, as the case may be.
6. Health insurance business
Where the insurer transacts health
insurance business, providing health covers, the amount of liabilities
shall be determined in accordance with the principles specified under
these regulations.
7. Business outside India
Where the insurer transacts insurance
business in a country outside India, and submits statements or returns
or any such particulars to a public authority of that country, he shall
enclose the same along with the Forms specified in accordance with these
regulations and the Insurance Regulatory and Development Authority
(Actuarial Report and Abstract) Regulations, 2000:
PROVIDED that if the appointed actuary
is of the opinion that it is necessary to set additional reserves over
and above the reserves shown in the statements or returns or any such
particulars submitted to the public authority of a country outside
India, he may set such additional reserves.
8. Furnishing of Forms
The Forms, namely, Form IRDA-Assets-AA,
Form HG, and Form KG, shall be furnished separately for business within
India and total business transacted by the insurer.
9.
Personal visit of appointed actuary to the Authority
The Authority may, if considered
necessary and expedient, ask the appointed actuary to make a personal
visit to the office of the Authority to elicit from him any further
information.
SCHEDULE I
(Refer regulation 3)
VALUATION OF ASSETS
1.
Interpretation
In this Schedule, unless the context
otherwise requires, `non-mandated investments' means those investments
that are neither approved securities nor approved investments.
2. Values of
assets
(1) The following assets should be
placed with value zero:
(a) Agents' balances and
outstanding premiums in India, to the extent they are not realised
within a period of thirty days.
(b) Agents' balances and
outstanding premiums outside India, to the extent they are not
realisable.
(c) Sundry debts, to the extent
they are not realisable.
(d) Advances of an unrealisable
character.
(e) Furniture, fixtures, dead
stock and stationery.
(f) Deferred expenses.
(g) Profit and loss
appropriation account balance and any fictitious assets other than
pre-paid expenses.
(h) Reinsurer's balances
outstanding for more than three months.
(i) Preliminary expenses in the
formation of the company.
(2) The value of computer equipment
including software shall be computed as under:
(i) Seventy five per cent
of its cost in the year of purchase;
(ii) Fifty per cent of its
cost in the second year;
(iii) Twenty-five per cent
of its cost in the third year; and
(iv) Zero per cent
thereafter.
(3) All other assets of an insurer have
to be valued in accordance with the Insurance Regulatory and Development
Authority (Preparation of Financial Statements and Auditor's Report of
Insurance Companies) Regulations, 2000.
3. Statement
of assets
Every insurer shall prepare a statement
of assets in Form IRDA-Assets-AA.
FORM IRDA-ASSETS-AA
(Refer regulation 3)
Insurance Regulatory and Development
Authority (Assets, Liabilities and Solvency Margin of Insurers)
Regulations, 2000
STATEMENT OF ASSETS AS AT 31ST MARCH,
20....
Form Code: [ ][ ][ ][ ][ ][
][ ][ ][ ]
Name of
Insurer: Registration Number: |
Date of
registration:....... |
Classification: Business Within India/Total Business |
|
Item No.
|
Category of Asset
|
Policyholders' funds : Amount
(in rupees lakhs) as per (a) below
|
Shareholders' funds: Amount
(in rupees lakhs) as per (a) below
|
(1)
|
(2)
|
(3)
|
(4)
|
01
|
Approved Securities |
|
|
02
|
Approved
Investments |
|
|
03
|
Deposits |
|
|
04
|
Non-mandated
Investments |
|
|
05
|
Other Assets
specify |
|
|
06
|
Total |
|
|
07
|
Fair Value Change
Account |
|
|
08
|
Adjusted Value of
Assets: (6) -- (7) |
|
|
I certify that the statement has been
prepared in accordance with Schedule I.
Place :
Name and signature of Appointed
Actuary,
(in case of a life insurer)
Date :
Name and signature of Auditor
(in case of a general insurer)
Note
: The statement shall
show the value of the above mentioned categories of assets in accordance
with regulation 2 in Schedule I.
SCHEDULE II-A
(Refer regulation 4)
VALUATION OF LIABILITES - LIFE
INSURANCE
1.
Interpretation
In this Schedule,--
(a) "valuation date", in relation
to an actuarial investigation, means the date to which the investigation
relates;
(b) "universal life contracts"
means those contracts that are presented in an unbundled form. The
contracts where policyholders have an option to invest in units of
insurer's segregated fund(s) shall be treated as "linked business"; and
others shall be treated as " non-linked business".
(c) "segregated funds" means funds
earmarked in respect of linked business.
2. Method of
determination of mathematical reserves
(1) Mathematical reserves shall be
determined separately for each contract by a prospective method of
valuation in accordance with sub-paras (2) to (4).
(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 that may be available to the
policyholder under the terms of the contract.
(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 may
result in an increase in the amount of mathematical reserves.
(5)(i)The amount of mathematical
reserve in respect of a policy, determined in accordance with sub-para
(4), may be negative (called "negative reserves") or less than the
guaranteed surrender value available (called "guaranteed surrender value
deficiency reserves") at the valuation date.
(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 purpose 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 guaranteed surrender value, in case of such
guaranteed surrender value deficiency reserves, as the case may be.
(6) The valuation method shall be
called "Gross Premium Method".
(7) 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 approximations (e.g.
retrospective method) may be used:
PROVIDED that the amount of calculated
reserve is expected to be at least equal to the amount that shall be
produced by the application of Gross Premium Method.
(8) 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.
(9) The determination of the amount of
mathematical reserves shall take into account the nature and term of the
assets representing those liabilities and the value placed upon them and
shall include prudent provision against the effects of possible future
changes in the value of assets on the ability of the insurer to meet its
obligations arising under policies as they arise.
3. Policy
cash flows
The gross premium method of valuation
shall discount the following future policy cash flows at an appropriate
rate of interest,--
(a) premiums payable, if any,
benefits payable, if any, on death; benefits payable, if any, on
survival; benefits payable, if any, on voluntary termination of contract
and the following, if any,--
(i) basic benefits,
(ii) rider benefits,
(iii) bonuses that have already been
vested as at the valuation date,
(iv) bonuses as a result of the
valuation at the valuation date, and
(v) future bonuses (one year after
valuation date) including terminal bonuses (consistent with the
valuation rate of interest);
(b) commission and remuneration
payable, if any, in respect of a policy (This shall be based on the
current practice of the insurer). No allowance shall be made for
non-payment of commissions in respect of the orphaned policies;
(c) policy maintenance expenses,
if any, in respect of a policy, as provided under sub-para (4) of para
5;
(d) allocation of profit to
shareholders, if any, where there is a specified relationship between
profits attributable to shareholders and the bonus rates declared for
policyholders:
PROVIDED that allowance must be made
for tax, if any.
4. Policy
options
Where a policy provides built-in
options, that may be exercised by the policyholder, such as conversion
or addition of coverage at future date(s) without any evidence of good
health, annuity rate guarantees at maturity of contract, etc., the costs
of such options shall be estimated 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 have to be appropriate to
the block of business to be valued. An appointed actuary shall take
into consideration the following:
(a) 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.
(b) The expected level, as
determined in clause (a) of this sub-para, shall be adjusted by an
appropriate Margin for Adverse Deviations (MAD), the level of MAD being
dependent on the degree of confidence in the expected level, and such
MAD in each parameter shall be based on the Guidance Notes issued by the
Actuarial Society of India, with the concurrence of the Authority.
(c) The values used for the
various valuation parameters should be consistent among themselves.
(2) Mortality rates be used shall be by
reference to a published table, unless the insurer has constructed a
separate table based on his own experience:
PROVIDED that such published table
shall be made available to the insurance industry by the Actuarial
Society 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
hundred per cent of that published table:
PROVIDED FURTHER that such rates
determined by reference to a published table may be less than hundred
per cent of that published table if the appointed actuary can justify a
lower per cent.
(3) Morbidity rates to be used shall be
by reference to a published table, unless the insurer has constructed a
separate table based on this own experience:
PROVIDED that such published table
shall be made available to the insurance industry by the Actuarial
Society 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
hundred per cent of that published table:
PROVIDED FURTHER that such rates
determined by reference to a published table may be less than hundred
per cent of that published table if the appointed actuary can justify a
lower per cent.
(4) Policy maintenance expenses shall
depend on the manner, in which they are analysed by the insurer, viz.,
fixed expenses and variable expenses. The variable expenses shall be
related to sum assured or premiums or benefits. The fixed expenses may
be related to sum assured or premiums or benefits or per policy
expenses. All expenses shall be increased in future years for
inflation, the rate of inflation assumed should be consistent with the
valuation rate of interest.
(5) Valuation rates of interest, to be
used by appointed actuary,--
(a) shall be not higher than the
rates of interest, for the calculation of the present value of policy
cash flows referred to in para 4, 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 invested in the future, and such assessment shall take into
account,--
(i) the composition of assets
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 with the future net cash flows,
(ii) the risks associated with
investment in regard to receipt of income on such investment or
repayment of principal,
(iii) the expenses associated with the
investment functions of the insurer;
(b) shall not be higher than,
for the calculation of present value of policy cash flows in respect of
a particular category of contracts, the yields on assets maintained for
the purpose of such category contracts;
(c) in respect of
non-participating business, shall recognise the risk of decline in the
future interest rates;
(d) in respect of participating
business, shall be based on the assumption (with regard to future
investment conditions), that the scale of future bonuses used in the
valuation is consistent with the valuation rate of interest; and
(e) in respect of single
premium business, shall take into account the effect of changes in the
risk-free interest rates.
(6) Other parameters, may be taken into
account, depending on the type of policy. In establishing the values of
such parameters, the considerations set out in this Schedule shall be
taken into account.
6.
Applicability to reinsurance
(1) This Schedule shall also apply to
the valuation of business in the books of reinsurers.
(2) As regards the business ceded by
insurers, this Schedule shall be applicable to the net sums at risk
retained by the insurer.
(3) 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 Authority shall
not be treated as credit for reinsurance for the purpose of
determination of required solvency margin.
7.
Additional requirements for linked business
(1) Reserves in respect of linked
business shall consist of two components, namely, unit reserves and
general fund reserves.
(2) Units reserves shall be calculated
in respect of the units allocated to the policies in force at the
valuation date using unit values at the valuation date.
(3) General fund reserves (non-unit
reserves) shall be determined using a prospective valuation method set
out in this Schedule, which shall take into account of the following,
namely,--
(a) premiums, if any, payable in
future;
(b) death benefits, if any,
provided by the general fund (over and above the value of units);
(c) management charges paid to
the general fund;
(d) guarantees, if any, relating
to surrender values or minimum death and maturity bnefits;
(e) fund growth rates and
management charges (The values of these parameters, along with others,
shall be
determined in accordance
with para 5);
(f) negative reserves, if any,
shall be dealt with in accordance with sub-para (5) of para 2.
8.
Additional requirements for provisions
The appointed actuary shall make
aggregate provisions in respect of the following, where it is not
possible to calculate mathematical reserves for each policy, in the
determination of mathematical reserves:
(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 included
in the valuation but under which a liability exists or may arise.
(c) Options available under
individual and group insurance policies.
(d) Guarantees available to
individual and group insurance policies.
(e) The rate 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 arising from future
variations in rates of exchange.
(f) Others, if any.
9. Statement
of liabilities
An insurer shall furnish a statement of
liabilities in accordance with the Insurance Regulatory and Development
Authority (Actuarial Report and Abstract) Regulations, 2000.
SCHEDULE II-B
(Refer regulation 4)
VALUATION OF LIABILITIES (GENERAL
INSURANCE)
1.
Interpretation
In this Schedule,--
(a) "Reserve for claims incurred
but not reported (IBNR)" means the reserve for claims incurred but not
reported on the balance sheet date, and includes reserve for claims
which may be inadequately reserved;
(b) "Reserve for outstanding
claims" means the reserve for outstanding claims as mentioned in para
2(1)(b)(iii) of this Schedule.
2.
Determination of liabilities
An insurer shall,--
(i) place a proper value in
respect of the following items, namely,--
(I) provision for bad and doubtful
debts;
(II) reserve for dividends declared or
recommended and outstanding dividends in full;
(III) amount due to insurance companies
carrying on insurance business, in full;
(IV) amount due to sundry creditors, in
full;
(V) provision for taxation, in full;
and
(VI) foreign exchange reserve.
(ii) determine the amount of
following reserves, in the manner specified herein below for each
reserve,--
(a) reserve for unexpired risks, shall
be, in respect of,--
(I) fire business, 50 per cent,
(II) miscellaneous business, 50 per
cent,
(III) marine business other than marine
hull business, 50 per cent, and
(IV) marine hull business, 100 per
cent,
of the premium, net of re-insurances,
received or receivable during the preceding twelve months;
(b) reserve for outstanding
claims shall be determined in the following manner:
(I) Where the amounts of outstanding
claims of the insurers are known, the amount is to be provided in full;
(II) Where the amounts of outstanding
claims can be reasonably estimated according to the insurer, he may
follow the 'case by case method' after taking into account the explicit
allowance for changes in the settlement pattern or average claim
amounts, expenses and inflation;
(c) reserve for claims incurred
but not reported (IBNR) shall be determined using actuarial principles.
In such determination, the appointed actuary shall follow the Guidance
Notes issued by the Actuarial Society of India, with the concurrence of
the Authority and any directions issued by the Authority, in this
behalf.
3. Statement
of liability
Every general insurer shall prepare a
statement of liabilities in Form HG, certified by an auditor approved by
the Authority in accordance with section 64V of the Act, and also
certified by its appointed actuary in respect of IBNR reserves. The
statement shall be furnished to the Authority along with the returns
mentioned in section 15 of the Act.
FORM HG
(Refer regulation 4)
INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY (ASSETS,
LIABILITIES AND SOLVENCY MARGIN) REGULATIONS, 2000
TABLE I-STATEMENT OF LIABILITIES AS AT
31ST MARCH, 20.....
Form Code: [ ] [ ] [ ] [ ] [ ] [ ]
Name of Insurer:
Registration Number: |
Date of registration:_____
|
Classification: Business within India/Total Business |
|
Item No.
|
Description
|
Reserves for unexpired risks
|
Reserves for Outstanding
Claims
|
IBNR Reserves
|
Total Reserves
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
01
|
Fire |
|
|
|
|
02
|
Marine
Sub-class: Marine
Cargo
Marine Hull |
|
|
|
|
03
|
Miscellaneous Sub-class:
Motor
Engineering Aviation Liabilities Rural insurance Others |
|
|
|
|
04
|
Health Insurance |
|
|
|
|
05
|
Total Liabilities |
|
|
|
|
Certification from Auditor (approved by
the Authority)
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 (Assets, Liabilities and Solvency Margin of Insurers)
Regulations, 2000 and the amounts of such liabilities are fair and
reasonable. I also further certify that the above statement includes
the IBNR reserves which have been determined by the appointed actuary
and his certificate is furnished herein below.
Qualifications, if any (in regard to
the determination of liabilities) :
Place :
Date :
Name and Signature of the Auditor
Certification from the Appointed
Actuary
I certify that the IBNR reserves in the
statement above represent, in my opinion, true and fair amount.
Qualifications, if any (in regard to
the determination of IBNR reserves):
Place :
Date
: Name and Signature
of the Appointed Actuary
SCHEDULE III-A
(Refer regulation 5)
DETERMINATION OF SOLVENCY MARGINS--LIFE
INSURERS
1.
Interpretation
In this Schedule--
(a) "Available Solvency Margin"
means the excess of value of assets (furnished in IRDA-Form-AA) over the
value of life insurance liabilities [furnished in Form H as specified in
Regulation 4 of Insurance Regulatory and Development Authority
(Actuarial Report and Abstract) Regulations, 2000] and other liabilities
of policyholders' fund and shareholders' funds;
(b) “Solvency Ratio" means the
ratio of the amount of Available Solvency Margin to the amount of
Required Solvency Margin.
2.
Determination of solvency margin
Every insurer shall determine the
required solvency margin, the available solvency margin, and the
solvency ratio in Form K as specified under Insurance Regulatory and
Development Authority (Actuarial Report and Abstract) Regulations, 2000.
SCHEDULE III-B
(Refer regulation 5)
DETERMINATION OF SOLVENCY
MARGINS--GENERAL INSURERS
1.
Interpretation
In this Schedule--
(a) "Available Solvency Margin"
means the excess of value of assets (furnished in Form IRDA-Assets-AA)
over the value of liabilities (furnished in Form HG), with further
adjustments as shown in Table III of Form KG;
(b) "Solvency Ratio" means the
ratio of the amount of Available Solvency Margin to the amount of
Required Solvency Margin.
2.
Determination of solvency margin
Every insurer shall determine the
required solvency margin, the available solvency margin, and the
solvency ratio in Form KG.
FORM KG
(Refer regulation 5)
INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY (ASSETS,
LIABILITIES AND SOLVENCY MARGIN) REGULATIONS, 2000
TABLE I- STATEMENT OF SOLVENCY MARGIN:
(GENERAL INSURERS)
AS AT 31ST MARCH, 20____
Form Code : [ ] [ ] [ ] [ ]
[ ]
Name of Insurer:
Registration Number: |
Date of registration:___
|
Classification: Business within India/Total Business |
Classification Code: [ ]
|
TABLE I- REQUIRED SOLVENCY MARGIN BASED
ON NET PREMIUM AND NET INCURRED CLAIMS (IN RS. LAKHS)
Item No.
|
Description (Class of
business)
|
Gross Premiums
|
Net Premiums
|
Gross Incurred claims
|
Net Incurred claims
|
RSM-1
|
RSM-2
|
RSM
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
01
|
Fire Marine: |
|
|
|
|
|
|
|
02
|
Marine Cargo |
|
|
|
|
|
|
|
03
|
Marine Hull: |
|
|
|
|
|
|
|
04
|
Miscellaneous: Motor |
|
|
|
|
|
|
|
05
|
Engineering |
|
|
|
|
|
|
|
06
|
Aviation |
|
|
|
|
|
|
|
07
|
Liability |
|
|
|
|
|
|
|
08
|
Rural Insurance |
|
|
|
|
|
|
|
09
|
Others |
|
|
|
|
|
|
|
10
|
Health Insurance: |
|
|
|
|
|
|
|
11
|
TOTAL |
|
|
|
|
|
|
|
Notes :
(1) RSM-1 in the above Table
means Required Solvency Margin based on net premiums, and shall be
determined as twenty per cent of the amount which is the higher of the
Gross Premiums multiplied by a Factor A as specified below and the Net
Premiums.
(2) RSM-2 in the above Table
means Required Solvency Margin based on net incurred claims, and shall
be determined as thirty per cent of the amount which is the higher of
the Gross Net Incurred Claims multiplied by a Factor B as specified
below and the Net Incurred Claims:
Item No
|
Description (Class of
business)
|
A
|
B
|
(1)
|
(2)
|
(3)
|
(4)
|
01
|
Fire Marine: |
0.5
|
0.5
|
02
|
Marine Cargo |
0.7
|
0.7
|
03
|
Marine Hull: |
0.5
|
0.5
|
04
|
Miscellaneous :
Motor |
0.85
|
0.85
|
05
|
Engineering |
0.5
|
0.5
|
06
|
Aviation |
0.9
|
0.9
|
07
|
Liability |
0.85
|
0.85
|
08
|
Rural Insurance |
0.5
|
0.5
|
09
|
Others |
0.7
|
0.7
|
10
|
Health |
0.85
|
0.85
|
(3) RSM means Required Solvency
Margin and shall be the higher of the amounts of RSM-1 and RSM-2.
TABLE II - AVAILABLE SOLVENCY MARGIN
AND SOLVENCY RATIO
Item
|
Description
|
Notes No
|
Amount
|
(1)
|
(2)
|
(3)
|
(4)
|
01
|
Available
Assets in Policyholders' Funds:
Deuduct: |
|
|
02
|
Liabilities |
|
|
03
|
Other Liabilities |
|
|
04
|
Excess in Policyholders' funds
(01-02-03) |
|
|
05
|
Available
Assets in Shareholders' Funds:
Deduct: |
|
|
06
|
Other Liabilities |
|
|
07
|
Excess in Shareholders' funds:
(05-06) |
|
|
08
|
Total ASM (04)+(07) |
|
|
09
|
Total RSM |
|
|
10
|
Solvency Ratio (Total ASM/Total
RSM) |
|
|
CERTIFICATION
I, .................., the Auditor,
certify that the above statements have been prepared in accordance with
section 64VA of the Insurance Act, 1938, and the amounts mentioned
therein are true to the best of my knowledge.
Place :
Name and Signature of the Auditor
Date :
Counter-signature :
Principal Officer:
Notes:
1. Item No. 01 shall be the amount of
the Adjusted Value of Assets in respect of policyholders' funds as
mentioned in Form IRDA-Assets-AA.
2. Item No. 02 shall be the amount of
Total Liabilities as mentioned in Form HG.
3. Item No. 03 shall be the amount of
other liabilities arising in respect of policyholders' funds and as
mentioned in the Balance Sheet.
4. Items No. 05 shall be the amount of
the Total Assets in respect of shareholders' funds as mentioned in Form
IRDA-Assets-AA.
5. Item No. 06 shall be the amount of
other liabilities arising in respect of shareholders' funds and as
mentioned in the Balance Sheet. |