The Insurance Regulatory and Development Authority of India through notification dated 5th May, 2021 has issued the Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) (First Amendment) Regulations, 2021. The amendment provides the manner in which the premium and unearned premium reserve should be recognized by insurers carrying on general insurance business.
Insurers shall follow the method of provisioning of Unearned Premium Reserve in a consistent manner. Any change in the method of provisioning can be done only with the prior written approval of the Authority. The Regulations shall be effective from the first day of the financial year after notification of these regulations.
