Page 182 - IC46 addendum

Insurance Contracts

the deposit component
(paragraph 10).

2.13 Policyholder option to Same as for a cash Same as for a cash

surrender a contract for surrender value (IG surrender value

account value based on Example 2.12). (IG Example 2.12).

a principal amount and

a fixed or variable

interest rate (or based

on the fair value of a

pool of interest-bearing

securities), possibly

after deducting a

surrender charge.

2.14 Policyholder option to The option is not closely Fair value measurement

surrender a contract for related to the host is required (paragraph

a surrender value contract (unless the AG30(d) and (e) of Ind AS

based on an equity or option is life-contingent 39).

commodity price or to a significant extent).

index. Fair value measurement

is required (paragraphs

8 of this Standard and

AG30(d) and (e) of Ind

AS 39).

2.15 Policyholder option to If the insurer measures If the insurer regards the
surrender a contract for that portion of its account value as the
account value equal to obligation at account amortised cost or fair
the fair value of a pool value, no further value of that portion of its
of equity investments, adjustment is needed obligation, no further
possibly after deducting for the option (unless adjustment is needed for
a surrender charge. the surrender value the option (unless the
differs significantly from surrender value differs
account value) (see significantly from account
paragraph AG33(g) of value). Otherwise, fair
Ind AS 39). Otherwise, value measurement is
fair value measurement required.

is required.

2.16 Contractual feature that The embedded deri- Fair value measurement
provides a return vative is not an is required.
contractually linked insurance contract and
(with no discretion) to is not closely related to

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