Page 43 - Insurance Times July 2021

9. ICICI Lombard General Insurance Company year. Expenses relating to policy stamps are directly taken to
Limited the respective revenue accounts.
Allocation / Apportionment of Operating Expenses is based
on the Organisational Structure of the Company comprising 11.KOTAK MAHINDRA General Insurance
of Business, Service and Support groups. Business comprises Company Limited
of Wholesale Business Group, Retail Business Group (including The Company has Board approved policy on allocation and
Sub-Groups) and Government Business Group. Expenses apportionment of expenses of management as per
incurred by Business Group are direct in nature. Service Group notification of IRDAI dated April 27, 2016. The policy covers
comprises of Customer Service Group which consist of basis of allocation, expenses which shall be allocated, basis of
Underwriting and Claims Group, created based on product apportionment and the expenses which shall be apportioned.
segments. Support Group consists of Investments, Expenses of Management related to insurance business to
Operations, Legal, Finance and Accounts, Reinsurance, various segments are allocated on the following basis:
Technology, etc. Expenses incurred by Service and Support a) Expenses which are directly identifiable are directly
Groups are indirect in nature. allocated to respective business segments on actuals.
b) Expenses which are not directly identifiable, are
Operating expenses relating to insurance business are apportioned to business segments on the basis of net
allocated to specific classes of business on the following basis. written premium (before XOL)
a) Direct expenses pertaining to Business Group that are
directly identifiable to a product segment are allocated 12.Liberty General Insurance Limited
on actuals and other direct expenses are apportioned in
proportion to the net written premium of the product Operating expenses related to insurance business are
allocated to specific business segments on the basis of
within the Business Group. However, in case of Retail
Business Group, the other expenses of its Sub Group are a) Expenses which are directly identifiable to the business
segments are allocated on actual basis.
apportioned based on net written premium contributed
by respective sub group. b) Other operating expenses are apportioned between
revenue accounts on the basis of Net Written Premium
b) Expenses pertaining to Service Group are apportioned
excluding pool retrocession.
directly to the product to which it pertains. In case of
multiple products, expenses are apportioned in Expenses in excess of limits prescribed under IRDAI Expenses
proportion to the net written premium of the multiple of Management Regulations, 2016 are charged to Profit and
products. Loss account.
c) Expenses pertaining to Support Group and any other
expenses, which are not directly allocable, are 13.Magma HDI General Insurance Company
apportioned on the basis of net written premium in each Limited
business class. Operating expenses relating to insurance business are
In accordance with IRDAI (Expenses of Management of allocated to specific classes of business on the following basis:
Insurers transacting General or Health Insurance Business) a) Expenses, which are attributable and identifiable to the
Regulations, 2016, operating expenses in excess of segmental business segments, are directly charged to the business
limits of Rs 744013 thousand in Health - Retail segment, and segments.
Rs 6760 thousand in Health Government segment (previous b) Other operating expenses, that are not identifiable to a
year Rs 241920 thousand in Miscellaneous-Retail Segment) segment, are allocated on the basis of ratio of gross
are reduced proportionately from each expenditure head written premium in such business class.
and are borne by the shareholders.
In accordance with IRDAI (Expenses of Management of
Insurers transacting General and Health Insurance Business)
10.IFFCO Tokio General Insurance Company Regulations, 2016, operating expenses in excess of segmental
Limited limits are to be borne by the shareholders.
Operating expenses other than policy stamps are
apportioned to respective revenue accounts on the basis of 14.National Insurance Company Limited
net premium in each class of business at the end of the financial Allowable expenses of management is computed and

The Insurance Times, July 2021 43