Page 36 - Insurance Times April 2022

23.Tata AIG General Insurance Company Limited Account on the basis of Policyholders' funds and
Pursuant to the provisions of the IRDA circular No IRDA/ Shareholders' funds as on the balance sheet date as per
F&A/CIR/CPM/056/03/2016 dated 4th April, 2016 and IRDA/ IRDAI Circular No. IRDA/F&A/CIR/CPM/056/03/2016 dated
F&A/CIR/CPM/010/01/2017 dated 12th January, 2017 the 4th April, 2016.
Company has segregated the investments and Fair Value
Change Account into Sharholders' fund and Policyholders' Investments made out of Policyholders' Funds are
fund on notional basis for the financial statements as at 31st segregated and disclosed separately as on balance sheet
March, 2020. Investments made out of Shareholders fund date as per IRDAI Circular No. IRDA/F&A/CIR/CPM/056/03/
is disclosed under Schedule 8 - Investments Shareholders' 2016 dated 4th April, 2016.
and investments made out of Policyholders' funds are
disclosed under Schedule 8A- Investments Policyholders'. 25.Universal Sompo General Insurance
Company Limited
Investments made by the Company and the Fair Value Pursuant to the provisions of the IRDA circular No IRDA/
Change Account are recognised and segregated between F&A/CIR/CPM/010/01/2017 dated 12th January, 2017
Policyholders' funds and Shareholders' funds respectively in investments assets have been bifurcated on notional basis
compliance to the circular. between Shareholders' funds and Policyholders' funds based
on shareholders' funds and policyholders' funds, and
24.United India Insurance Company Limited disclosed accordingly under Schedule 8 and Schedule 8A.
Shareholders' Funds consists of Share Capital plus all Reserves Respectively.
and Surplus (except Revaluation Reserve and Fair Value
Change Account) net of accumulated losses and Investments made by the Company and the Fair Value
Miscellaneous Expenditure to the extent not written off as Change Account are recognised and segregated between
at the balance sheet date. Policyholders' funds and Shareholders' funds respectively in
compliance to the circular.
Policyholders' Funds consists of
a) Outstanding claim including IBNR and IBNER Investment income has been allocated between Revenue
Accounts and Profit and Loss Account on Policyholders' fund
b) Unearned Premium Reserves
and Shareholder's fund in accordance with IRDAI Circular
c) Premium Deficiency Reserve, if any No. IRDA/F&A/CIR/CPM/010/01/2017 dated 12th January,
d) Catastrophe Reserve, if any and 2017.
e) Other Liabilities net of Other Assets
Further Investment income across segments within the
revenue account(s) has been allocated on the basis of the
Other liabilities in point e) above comprised of premium
received in advance, unallocated premium, Balance due to ratio of average technical reserves of policyholders' funds.
other insurance companies, due to other members of a pool
Investment income arising from pool accounts is allocated
such as third party pool terrorism pool etc. Sundry creditors
directly to respective Revenue Accounts.
due to policyholders.
Other Assets in point e) above comprise of outstanding 26.GIC Re
premium due from other insurance entities carrying on As per the requirements of IRDAI, the income from interest,
insurance business, balance with pool such as motor third dividends and rent is apportioned between profit and loss
party pool and terrorism pool etc. account and Revenue Accounts in the ratio of Shareholders'
Fund and Policyholders' Fund respectively at the end of the
Investment income, profit or loss on sale of or realisation of year. The same is further apportioned amongst the revenue
investments expenditure relating to investments accounts on the basis of the respective policyholder's Fund
amortisation of premium on investments, amounts written at the end of the year. Shareholders Funds consist of Share
off or written down in respect of depreciated investments Capital and Free Reserves. Policyholders' Fund consist of
provision for non performing investments diminution in value provision for outstanding claims and reserve for unexpired
are apportioned to Revenue Accounts and Profit and Loss risks and premium deficiency reserve. T

36 The Insurance Times, April 2022