Insurers asked to disclose key financial info from April

To safeguard the interest of policyholders and ensure transparency, the sectoral regulator the Insurance Regulatory and Development Authority (Irda) today came out with public disclosures norms for insurers and has asked them to follow it from the next fiscal.

The move comes ahead of several insurers are about to complete a decade of their operations, after which they are allowed to tap capital markets.

"It may be observed that the companies are required to take necessary action to ensure that the compliance of the circular is in place latest from period ending March 31," IRDA said in a circular.

The regulator had issued the exposure draft on public disclosures by the insurers last October, inviting comments from all stakeholders. The circular said several insurers will be completing 10 years shortly, after which they may be allowed to go public.

 

"It is essential that the investors fully aware of the financial performance, company profile, financial position, the risk exposure, the elements of corporate governance in place and the management of the insurance companies the data shall preferably be made available for at least a period of 5 years," it said.

The sectoral regulator has asked insurers to publish the balance sheet, profit and loss account and revenue account, among others, to be made public on an half yearly basis.

The insurance regulator directed players to disclose financial informations for the half year ending September, within two months of the close of the half year or 15 days from the date of approval of the accounts by their boards, whichever is earlier.

For the annual accounts ending March-- within six months of the close of the financial year or within 30 days from the date of adoption of the final accounts by the board, whichever is earlier, it said.

As per the circular, the financial details like balance sheet and profit and loss account, among others should at least be published in one national English daily and in one regional newspaper of the region where the registered office is situated or in Hindi.

"The publication must be made within two months from end of the half year period or within 15 days from the date of approval by their boards, whichever is earlier," it added.