Page 192 - India Insurance Report 2023- BIMTECH

180 India Insurance Report - Series II

1.4. What is Changing from Indian GAAP (IGAAP)?

• The requirement that in order to apply the insurance standard to investment contracts with DPF, an
entity has to also issue insurance contracts.

• An option to apply Ind AS 115, Revenue from Contracts with Customers to fixed-fee contracts,
provided certain criteria are met.

Table 1 : Key differences between IGAAP and IFRS 17

• Insurance revenue is equal to premium received • Insurance revenue is no longer equal to premium
and is recognized over the contract period received and represents consideration expected
in exchange of insurance service. It includes
insurance claims and other directly attributable
expenses as expected at the beginning of the
reporting period and does not include experience
adjustments relating to these amounts.

• Profits (CSM) are released as insurance service is
fulfilled over the insurance coverage period and
insurers provides information about insurance
contract profits it expects to recognize in the future.

• Under PAA approach, income is recognized over
the contract period.