(1) Abstracts and statements shall be prepared separately in respect of ---
(a) Participating;
(b) Non-Participating business
(2) An insurer shall prepare the following statements which shall be annexed to the abstract prepared in accordance with these regulations, namely:- A. Detailed Statements
(a) In respect of Participating Business:
i. Form DD ii. Form DDD iii. Form NLB-1 iv. Form NLB-2 v. Form VIPNLB 1 vi. Form VIPNLB 2 vii. Form VIPLB 1 viii. Form VIPLB 2 ix. Form VIPLB 3 x. Form ULB-1 xi. Form ULB-2 xii. Form ULB-3 xiii. Form IA PAR
(b) In respect of Non-Participating Business 4 i. Form DD ii. Form DDD iii. Form NLB-1 iv. Form NLB-2 v. Form VIPNLB 1 vi. Form VIPNLB 2 vii. Form VIPLB 1 5 viii. Form VIPLB 2 ix. Form VIPLB 3 x. Form ULB-1 xi. Form ULB-2 xii. Form ULB-3 xiii. Form IA NPAR B. Summary statements:
(a) Statement of Liabilities – Form H
(b) Statement of Assets - Form AA
(c) Valuation balance Sheet – Form I
(d) Form KT1
(e) Form KT2
(f) Statement of Available Solvency Margin and Solvency Ratio - Form KT3
(g) Composition and Distribution of Surplus – Form S C. Any forms as prescribed by the Authority from time to time
(3) Each Abstract shall show-
(a) The Valuation Date- The date on which valuation (investigation) is done;
(b) Products- A list of all products/riders included in the valuation along with their respective UIN;
(c) Foreign Operations- A brief description of the foreign operations of the insurer, during the inter-valuation period;
(d) Valuation data - The Appointed Actuary shall comment on the steps taken to verify consistency, completeness and accuracy of data provided by the CEO.
(e) Valuation Method.- A brief description of ----
(i) the methods adopted in the determination of mathematical reserves in respect of insurance products;
(ii) the method by which age at entry, premium term, maturity date, valuation age, period from the valuation date to the maturity date, have been treated for the purpose of valuation;
(iii) the manner in which reinsurance has been taken into account in arriving at the valuation reserves net of reinsurance
(iv) the method of allowing fora) incidence of premium income: and 6 b) premiums payable otherwise than annually;
(v) valuation methodology for various options and guarantees:
a) Provide the details of various options that are provided under various products included in investigation.
b) Summarize the methods used to make suitable provisions for these options, wherever explicitly provided.
c) Provide the details of various guarantees that are offered under various products included in investigation.
d) Summarize the methods used to make provisions for these guarantees, wherever explicitly provided.
(f) Other Adjustments (Provisions), - The methods by which provisions, if any, have been made for the following matters, along with a statement of bases as part of Valuation bases, wherever necessary,-
(i) Policies in respect of which extra premiums have been charged on account of underwriting of under-average lives that are subject to extra risks such as occupation hazard, over-weight, under-weight, smoking history, health, climatic or geographical conditions;
(ii) Lapsed policies not included in the valuation but under which a liability exists or may arise;
(iii) Options available under individual and group insurance policies
(iv) Guarantees available to individual and group insurance policies
(v) The rates of exchange at which benefits in respect of policies issued in foreign currencies have been converted into Indian Rupees and what provision has been made for possible increase of mathematical reserves arising from future variations in rates of exchange;
(g) Valuation bases- Valuation parameters used in the valuation shall be furnished in the manner as specified in the table hereunder:- Description Mortality basis used Morbidity basis used Inflation rate Interest Rate Expenses Lapse / Surrender, if any Future bonuses, if any Others please specify Remarks
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
(a) Insurance Product:
i) Regular Premium ii) Single premium and Fully paid up iii) Reduced Paid up
(b) Insurance Product:
i) Regular Premium 7 ii) Single premium and Fully paid up iii) Reduced Paid up Notes:
(i) Summarize the Margins for Adverse Deviations for these parameters.
(ii) Provide the basis for arriving at the valuation parameters along with experience, if any
(iii) Summarize and justify any material changes made to the assumptions during the inter-valuation period along with the impact.
(iv) Specify separately the expenses related to premiums, sum assured, annuity, etc., and per policy under Column (6) of the table;
(v) Specify items such as terminal bonus in respect of with profit contracts and management charges, unit growth rate, policy account growth rate etc. in respect of linked business under Column (9) of the table;
(vi) Include items related to Other Provisions, if any, as part of Column (9)
5. Negative Reserves and Guaranteed Surrender Value Deficiency Reserves- A brief description of treatment adopted for negative reserves and guaranteed surrender value deficiency reserves shall be furnished.
6. Return on Assets: The yield on investment will be the investment income as a percentage of the mean fund over the period, on assets attributable to blocks of business / segments etc. The value of the assets for this purpose shall be the adjusted values of assets using the asset valuation method prescribed in the regulations issued by the Authority on assets, liabilities and solvency margin of life insurance business. The mean fund would be assessed considering the amount and incidence of cashflow to the fund.