Page 183 - Reinsurance Management IC85

Reinsurance Management

Year Loss Profit
2007 15,00,000 17,00,000
2008
2009 27,50,000
Balance 29,50,000

Hence profit commission = (29,50,000/3) x (30/100)
= 2,95,000

Q4. Outline the procedure to be followed for
Reinsurance arrangements as per IRDA
(Life/General Insurances - Reinsurance)
Regulations, 2000.

Ans: As per IRDA`s General Insurance (Reinsurance)
Regulations, 2000 procedure to be followed for
reinsurance arrangements are-:
1) The Reinsurance Programme shall continue to be
guided by the following objectives to:
a) maximise retention within the country;
b) develop adequate capacity;
c) secure the best possible protection for the
reinsurance costs incurred;
d) simplify the administration of business.

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