Submission of Half-Yearly Reports related to Trade Credit Insurance Business

Circular no. IRDA/NL/Cir/Misc/129/06/2012, dated 7-6-2012

With reference to Para 11 of IRDA circular IRDA/NL/CIR/Cre/205/12/2010 dated 13.12.2010, which mandates non-life insurance companies to submit regular reports to the Authority regarding the performance of Trade Credit Insurance portfolio.

With a view to maintain consistency in reporting and better analysis of the credit insurance portfolio, the authority has devised certain forms for reporting under credit insurance, which are presented in the table below:

Therefore, all non-life companies are advised to submit yearly report for the financial year 2011-12 in the prescribed formats, within 15 days of receiving this circular.

Further on, all insurance companies will submit these forms within 30 days of expiry of Half year (half yearly reports) and the financial year (yearly report).

These forms will also be submitted in excel format by email to the following email IDs

Randip@irda.gov.in

Vikas.jain@irda.gov.in

The copy of prescribed forms is enclosed herewith the circular.

Form 1

Policy holder wise SI and Premium under Trade Credit Insurance (for Domestic policies)

(Frequency of Statement: Half Yearly/Yearly)

Name of the insurer:

Frequency (Half Yearly/Yearly)

period ending on

Note: Totals of GWP, GEP and NEP during the period should equal the corresponding figures in form 4

Form 1A

Policy holder wise SI and Premium under Trade Credit Insurance (for Export Polices)

(Frequency of Statement: Half Yearly/Yearly)

Name of the insurer:

Frequency (Half Yearly/Yearly)

Period ending on

Note: Totals of GWP, GEP and NEP during the period should equal the corresponding figures in form 4

Form 2

Policy holder-Buyer Wise Claims Reserves and Claims paid (for domestic buyers)

–

Note:

1.  Total of Gross Claims Reserve and Net Claims Reserves in the beginning and at the end of the period should match with the corresponding figues in Form 4

2.  Total of Gross Claims Paid and Net claims Paid during the period should tally with the corresponding figures in form 4

Form 2A

Policy holder-Buyer Wise Claims Reserves and Claims paid (for Export buyers)

(Frequency: Half Yearly/Yearly)

Reasons of Claims: Insolvency/Protracted Default/Political Risks

Note:

1.  Total of Gross Claims Reserve and Net Claims Reserves in the beginning and at the end of the period should match with the corresponding figues in Form 5

2.  Total of Gross Claims Paid and Net claims Paid during the period should tally with the corresponding figures in form 5

Form 3

Policy holder-Buyer Wise Claims Recoveries (for domestic buyers)

(Frequency: Half Yearly/Yearly)

Note:

1. Totals of Gross Recovery and Net recovery amount should tally with the corresponding figures in form 4

Form 3A

Policy holder-Buyer Wise Claims Recoveries (for Export buyers)

(Frequency: Half Yearly/Yearly)

Note:

1. Totals of Gross and Net recovery amount from buyer should tally with the corresponding figures in Form 4

Form 4

Credit Insurance Performance Review

(Frequency Half Yearly / Yearly)

Note:

Gross Incurred Claims Ratio- GIC/GEP%

Net Incurred Claims Ratio- NIC/NEP%

Gross Incurred=Gross Claims paid during the period + Gross Claims reserve in the end of the peirod -Gross Claims Reserve at the beginning of the period-Gross recoveries made

Net Incurred Claims Ratio=Net Claims Paid during the Period+Net Claims Reserve in the end- Net claims reserve at the beginning of the period-net recoveries

GWP, GEP and NWP figures should tally with the respective figures in Form 1 and 1A

GCRB, NCRB, GCRE, NCRE, GCP and NCP amount should tally with the res. Figures in Form 2 and 2A

GR and NR amount should tally with the corrresponding figures in form 3 and 3A