Page 45 - Insurance Times July 2021

ii) Other expenses, which are not directly identifiable, are Expenses which are directly identifiable to the business
apportioned on the basis of Net Written Premium - Direct segments are apportioned on an actual basis.
in each business segment during the year.
Indirect Operating Expenses are allocated on the following
21.Shriram General Insurance Company Limited basis.
The Company has board approved policy for allocation and i) For expenses relating to channels of distribution - in the
apportionment of expenses of management amongst various ratio of Gross Premium Written sourced by that channel.
business segments as per requirement of IRDAI (Expenses of ii) For all other expenses; The cost is apportioned across
Management of Insurers transacting General and Health the various segments based on efforts taken by each
Insurance Business) Regulations, 2016. Operating Expenses function /department to perform their operations.
relating to insurance business are allocated to specific business
segments on the following basis:- 24.United India Insurance Company Limited
a) Expenses which are directly identifiable to the business Expenses of Management are apportioned to the Revenue
segments are allocated on actual.
Accounts on the basis of gross direct premium plus reinsurance
b) Other expenses which are not directly identifiable are accepted, giving weightage of 75% for Marine and 100% for
apportioned as per Board approved policy based on Fire and Miscellaneous business. Expenses relating to policy
nature of expenses and their logical correlation with stamp and reinsurance are directly taken to respective
various business segments wherever possible. Revenue Accounts. Expenses relating to investment such as
safe custody, collection of interest, dividend, bank charges,
22.Star Health and Allied Insurance Company etc. are apportioned between Revenue and Profit and Loss
Limited Accounts based on policyholders' and shareholders' funds as
on the Balance Sheet date.
The Company has allocated expenses of management as per
the policy approved by the Board of Directors.
25.Universal Sompo General Insurance Company
Expenses such as Commission payable to Agents, Brokerage, Limited
etc. which are based on premium procurement for different Pursuant to IRDAI (Expenses of Management of Insurers
segments are directly allocated to each segment on actual transacting General and Health Insurance Business)
incurred basis. Other Administrative expenses net of transfer Regulations, 2016, The Company has followed the Board
to claims cost and incentive payable to field staff which can approved policy for allocating the operating expenses relating
not be directly attributed and allocated to any segment are to insurance business to specific classes of business on the
apportioned on the basis of Gross Premium written for each following basis:
segment.
Expenses that are directly identifiable to a business class are
During the year the Company has transferred from Operating allocated to such class on an actual basis;
Expenses to Claims cost an amount of Rs 2042053 thousands
(PY Rs 1602231 thousands) being 3% of gross premium Other expenses, that are not directly attributable to a business
(Excluding coinsurance inward) pertaining to Health and PA class, are broadly allocated on net written premium in each
segment towards Inhouse Claim processing expenditure such business class; and
based on Insurance Regulatory and Development Authority
of India (Expenses of Management of Insurers' transacting Depreciation expenditure has been allocated on the
General and Health Insurance Business) Regulations, 2016. assessment that the use of assets is proportionate to net
premium of the respective segments.
23.Tata AIG General Insurance Company Limited
The Company has Board approved policy for allocation and Above expenses have been fully recognised in the revenue
apportionment of expenses of management amongst various accounts as expense to the extent allowable under the IRDAI
business segments as required by IRDAI (Expenses of (Expenses of Management of Insurers transacting General
Management of Insurers transacting General and Health and Health Insurance Business) Regulations, 2016, and the
Insurance Business) Regulations, 2016. excess amounts have been charged to shareholders funds. T

The Insurance Times, July 2021 45