ANNUAL REPORT 2007-08
2007-08 302830 156861
Note: Figure in brackets indicates ratio (in per cent) of claims settled to the total claims received.
said period and (ii) the annual obligations as indicated in the Regulations shall be reckoned from the next financial year which shall be considered as the first year of operations for the purpose of compliance. In cases where an insurance company commences operations in the first half of the financial year, the applicable obligations for the first year shall be 50 per cent of the obligations as specified in these Regulations.’
Obligations of life insurers:
Rural Sector Obligations: All the eighteen life insurers including LIC have fulfilled their obligations towards the rural sector. The number of policies underwritten by them in the rural sector as a per cent of the total policies underwritten in the year 2007-08 was as per the obligations applicable to them. LIC policies in rural sector more than the prescribed 24 per cent for 2007-
Social Sector Obligations:
All the eighteen life
insurance companies fulfilled their social sector obligations during 2007-08. The number of lives covered by them in the social sector was above the stipulated obligations. The LIC, while complying with its social sector obligations covered a more number of lives than the prescribed 20.00 lakh lives as obligations for 2007- 08.
Obligations of non-life insurers:
Rural Sector Obligations: Out of the twelve private sector non-life insurers except TATA-AIG and Iffco-Tokio all others met their rural sector obligations in 2007-
The gross direct premium underwritten by them in the said sector, as a percentage of total premiums underwritten in 2007-08, was above the prescribed stipulations. Out of four public sector insurers three complied with the rural sector obligations for 2007-08 and Oriental Insurance Co. Ltd did not fulfil the obligation. With respect to the public sector insurers their obligations are six per cent of the quantum of insurance business done by them in the accounting year 2007-08.
Social Sector Obligations: Among the private sector non-life insurers except HDFC Chubb all companies met their social sector obligations in 2007-08. The number of lives covered by them in the social sector was also higher than the regulatory stipulations. While two public sector insurers viz., United India and Oriental Insurance complied with the social sector obligations for 2007-08, New India and National Insurance fell short of compliance towards the sector. With respect to the public sector insurers their obligations for the financial year 2007-08 are the average of the number of lives covered by the respective insurer in the Social Sector from the financial years 2002-03 to 2004-05 or 5.50 lakhs, whichever is higher.
Financial Reporting and Actuarial Standards
Additional measures taken by the Authority to improve transparency and disclosures in reporting in the financial statements:
As part of the review of the financial statements filed with the Authority on an annual basis and based on the analysis, clarifications are sought and/or attention is drawn to various non-compliances/ non-disclosures. While specific non-compliances/deviations are communicated to the respective insurers, some common deficiencies were observed in the compliance of various regulatory requirements connected to the preparation of financial statements. With a view to ensuring compliance and avoiding recurrence of the