Page 44 - Insurance Times July 2021

allocated to revenue accounts on the basis of IRDAI (Expenses be apportioned on the basis of net premium of each
of Management of Insurers transacting General and Health segment.
Insurance Business) Regulations, 2016.
Expenses in excess of permissible limit under Expenses of
15.Navi General Insurance Limited Management Regulations are apportioned on the basis of
The Company has Board approved policy for allocation and expenses under respective business segments arrived after
apportionment of expenses of management amongst various allocation and apportionment as per points a) and b) above.
business segments as required by IRDAI (Expenses of
Management of Insurers transacting General and Health 19.Reliance General Insurance Company Limited
Insurance Business) Regulations ,2016. The expenses are
The Company has Board approved policy for allocation and
segregated between those which can be directly attributed
apportionment of expenses of management amongst various
to a particular business segments and those which need to business segments as required by IRDAI (Expenses of
be apportioned between different segments. Management of Insurers transacting General and Health
a) Operating expenses which are directly attributable to a Insurance Business) Regulations, 2016.
particular business segment are allocated directly to that
segment.
Accordingly, operating expenses relating to insurance
b) Operating expenses which are not directly identifiable business are allocated to specific classes of business on the
to any business segment, but which are attached to following basis:
specific functions are apportioned based on the most i) Expenses, which are attributable and identifiable to the
suitable lever of apportionment for respective functions. business segments, are directly charged to the relevant
Operating expenses which are not attached to specific business segment. This is determined by the
functions are apportioned based on the most logical management, based on the nature of expenses and their
available lever of apportionment as laid down in the relationship with various business segments, wherever
policy.
possible.
ii) Employee's remuneration and welfare expenses relating
16.The New India Assurance Company Limited
to underwriting and claims function, which are
Expenses of management including provision for bad and attributable and identified at health, motor and
doubtful debts and exchange gain / loss, are apportioned in
the revenue accounts on the basis of net premium. commercial lines of business, are directly charged to the
respective lines of business and the same will further be
allocated based on Net Written Premium of respective
17.Oriental Insurance Company Limited
class of business.
Expenses of Management other than policy stamps are
iii) Other expenses, that are not identifiable at the segments,
apportioned to Revenue Accounts on the basis of the gross
direct premium in India plus reinsurance premium accepted are allocated on the basis of Net Written Premium in
India giving weightage of 100% each for Fire and each business class, except advertising and publicity
Miscellaneous business and 75% for Marine business. Expenses expenses, which are not allocated, where business is
relating to policy stamps, agency commission, MSP sourced through tender bidding towards government
distribution fee and brokerage are directly allocated to sponsored schemes for Health Crop and Weather.
respective Revenue Accounts. The allocation of expenses to Further if operating expenses are within allowable limit at
Revenue Accounts and Profit and Loss Account is done as per over all level, but is in excess of segmental limits, such excess
IRDAI Regulations dated 24.04.2016. of segmental limits will be reduced proportionately from each
expenditure head and are borne by the shareholders.
18.Raheja QBE General Insurance Company
Limited 20.Royal Sundaram General Insurance Company
Operating expenses related to the Insurance Business are Limited
allocated to specific business segments on the following basis: Operating Expenses relating to insurance business are
a) Expenses that are directly attributable to a specific assigned to respective business segments as follows.
segment will be allocated on actual.
i) Expenses directly identifiable to the business segments
b) Other expenses, that are not directly attributable, will are allocated on actual basis.

44 The Insurance Times, July 2021