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:

Form No	Form Name	Frequency
Form 1	Policy-holder wise SI and premium under trade credit insurance (for domestic sale)	Half Yearly/Yearly
Form 1A	Policy-holder wise SI and premium under trade credit insurance (for export sale)	Half Yearly/Yearly
Form 2	Policy-holder-buyer wise claim reserves and claims paid (for domestic sale)	Half Yearly/Yearly
Form 2A	Policy-holder-buyer wise claim reserves and claims paid (for export sale)	Half Yearly/Yearly
Form 3	Policy-holder-buyer wise claims recoveries (for domestic sale)	Half Yearly/Yearly
Form 3A	Policy-holder-buyer wise claims recoveries (for export sale)	Half Yearly/Yearly
Form 4	Credit Insurance Performance Review (For domestic and Export Policies)	Half Yearly/Yearly

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

								SA in lakhs of Rs			Amount in Rs
Sr. No	Policy No	Policy Period		Name of the Policy Holder	Industry /Sector	Perils covered	No of Buyers	Maximum overall Limit (SI)-in lakhs of Rs	Maximum SI (retained by insurer)-in lakhs of Rs	Gross Written Premium (GWP)-in Rs	Gross Earned Premium (GEP)- In Rs	Net Earned Premium (NEP)- In Rs
		From	To
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total

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

								SA in lakhs of Rs			Premium amount in Rs
Sr. No	Policy No	Policy Period		Name of the Policy Holder	Industry/ Sector	Perils covered (Insolvency/ Protracted default/Pol. Risk cover)	Number of Buyers covered	Maximum Overall Limit	Insurer’s Exposure (SI Retained by Insurer)	Gross Written Premium (GWP)	Gross earned Premium (GEP)	Net Earned Premium (NEP)
		From	To
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total

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)

(Frequency: Half Yearly/Yearly)
Name of the insurer:
Frequency (Half Yearly/Yearly)
period ending on

–

Amount in Rs

Sr. No

Policy No

Name of the Policy Holder

Name of the Buyer

Reason of claims (Insol-vency/ Prot Default

IN the beginn-ing of period

Transferred to reserve

Claims Paid during the period

At the end of period

Amount to be recovered from Re- insurer

Name of Reinsurer

Gross Cl. Res. (Rs)

Net Cl. Res. (Rs)

Date of Overdue Notific- ation

Date of Transfer to Claim Reserve

Amt. Transf- erred to Gross Cl. Res.

Amt. Transf- erred to Net Cl. Res.

Gross claims in paid Rs

Net Claims paid in Rs

Gross Claim Reserves in Rs

Net Claim Reserves

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

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)

Name of the insurer:
Frequency (Half Yearly/ Yearly)
period ending on

 

amount in of Rs

Sr. No

Policy No

Name of the Policy Holder

Industry / Sector

Name of the Buyer

Country of Buyer

Reason of claims (Insolvency/ Prot Default/ political risk)

In the beginning of period

Transferred to reserve during the period

Claims Paid during the period

At the end of period (outstanding)

Amount to be recovered from Re- insurer

Name of Re- insurer

Gross Cl. Reserves

Net Cl. Reserves

Date of Overdue Notific- ation

Date of Transfer to Reserve

Gross Claim Reserves

Net Claim Reserves

Gross claims

Net Claims

Gross Claim Reserves

Net Claim Reserves

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Total

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)

Name of the insurer:
Frequency (Half Yearly/Yearly)
period ending on

 

				amount in Rs
Sr. No	Policy No	Name of the Policy Holder	Name of the Buyer	Recoveries from buyer dur. Period
				Gross Recovery Amt.	Net Recovery Amt.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total

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)

Name of the insurer:
Frequency (Half Yearly/Yearly)
period ending on

 

				amount in Rs
Sr. No	Policy No	Name of the Policy Holder	Name of the Country of Buyer	Recoveries made from buyer
				Gross Amount of Recovery	Net Amount of Recovery
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total

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)

Name of the insurer:
Frequency (Half Yearly/Yearly)
period ending on

 

	Amount in Rs.
Premium and Claims	Domestic Sales	Export Sales	Total
Gross Written Premium(GWP)
Gross Earned Premium (GEP) during the period
Net Earned Premium (NEP) during the period
Gross Claims Paid during the period (GCP)-excl. of recoveries
Net Claims Paid during the period (NCP)- recoveris excluded
Gross Claims Reserve at the beginning of the period (GCRB)
Net claims reserve at the beginning of the period (NCRB)
Gross claims reserve at the end of the period (GCRE)
Net claims reserve at the end of the period (NCRE)
Gross Recoveries made during the period (GR)
Net recoveris made during the period (NR)
Gross Incurred Claims (GIC)=GCP+GCRE-GCRB-GR	0	0	0
Net Incurred Claims (NIC)=NCP+NCRE-NCRB-NR	0	0	0
Gross Incurred Claims Ratio=GIC/GEP%	#DIV/0!	#DIV/0!	#DIV/0!
Net Incurred Claims Ratio=NIC/NEP%	#DIV/0!	#DIV/0!	#DIV/0!

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