Exposure Draft
Date:17-11-2015
Insurance Regulatory and Development Authority of India
Regulations on Preparation of Financial Statements and Auditor s Report of Insurance companies
Pursuant to the notification of the Insurance Laws (Amendment) Act, 2015 on 23rd March 2015, there is a need to carry out suitable amendments to the IRDA (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the Regulations) as it will be impacted by some of the sections like
· Section 2- Recognizing the re-insurance business and Health Insurance business as a separate verticals;
· Section 6A: Permitting other forms of capital
· Some general changes like
o Name of the IRDA changed to IRDAI;
o References to the Indian Companies Act, 1913 replaced with the Companies Act, 2013
The Authority, in exercise of the powers conferred by Section 114A (2) (f) of the Insurance Act, 1938 (4 of 1938) read with section 26 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), in consultation with the Insurance Advisory Committee, proposes to notify the regulations as per the attached draft as IRDAI (Preparation of Financial Statements and Auditor’s Report of Insurer) Regulations, 2015.
The draft regulations include the following:
· Formats to capture ‘Preference Share Capital’
· Format for Head Office Account (applicable to foreign reinsurer operating through branch office established in India)
· Separation of Shareholders funds and Policyholders funds of other than life insurance companies
· New Schedule to capture ‘Policy Liabilities’ under ‘Other than life Insurance’ is introduced
· Stipulation that no investment property is to be purchased for self use from funds of participating business is expressly quoted
Exposure Draft of Regulations is provided for valuable comments / suggestions latest by 9th December, 2015 in the format attached to Shri R.K. Sharma, JD (F&A-Non-life) at rksharma [at] irda [dot] gov [dot] in, B. Padmaja, DD-F&A-Life at padmaja [at] irda [dot] gov [dot] in copy to Dr. Mamta Suri, HOD-F&A at mamta [at] irda [dot] gov [dot] in