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ANNUAL REPORT 2011-12
Contd.... BOX ITEM 6
The ceding company shall retain 20 per cent of the premium to its account, cede as per the obligatory cessions in
force to GIC (currently 10 per cent of the premium) and cede the balance (currently working to 70 per cent of the
premium) to the declined risk pool.
The estimates of ULR for the business written by the insurer for the declined pool shall be as per above bullet
point 2. The estimates of ULR for the business written to its own account fully may be as per their Appointed Actuary’s
estimate.
The pool actuary shall estimate the ULR for the declined risks based on the data that exists for the past fi ve years
and the insurers shall make provisions as per the latest year ULR, until the underwriting year’s ULR is estimated.
These estimates shall be provided by 31 st March, 2012.
The estimation of ULR for the declined pool risks shall be completed by the pool actuary by following May of each
underwriting year starting from 31 st May, 2013.
The ULR may be determined by the pool’s appointed actuary and approved by the IRDA based on a peer review, if
required.
The declined risk pool shall make quarterly provisional cash settlements amongst its participants.
Such quarterly settlements shall be on a year to date basis and to be fi nally adjusted based on the year-end ULR as
approved by the Authority.
The quarterly settlements shall be done in 45 days from the end of the quarter and the fi nal settlements shall be done
45 days from the date on which the ULR is approved by the Authority.
The non-life insurers participating in the declined risk pool shall take up an advertisement campaign on the declined
risk pool with the message focused in English, Hindi and other Indian languages intensively. The message should
be simple and shall be in the form of cut & keep.
GIC Re shall also participate in the declined risk pool as a member and shall also follow the clean cut methodology
of the declined risk pool.
funds) from the ULIP funds and the remaining
`12,11,287 crore (76.60 per cent) from the traditional
funds. The share of ULIP funds in total investments,
which had shown increase in the recent years, slipped
in the year 2011-12. The ULIP funds dipped by 7.30
per cent when compared to the previous year.
TABLE I.42
TOTAL INVESTMENTS OF THE INSURANCE SECTOR
(As on 31 st March)
(` crore)
INSURER Life Non-Life Total
2011 2012 2011 2012 2011 2012
Public 1148589 1269070 61235 71104 1209824 1340174
(15.75) (10.49) (18.47) (16.12) (15.88) (10.77)
Private 281528 312188 21285 28165 302813 340353
(27.89) (10.89) (44.94) (32.32) (28.96) (12.40)
Total 1430118 1581259 82520 99268 1512638 1680527
(17.95) (10.57) (24.33) (20.30) (18.28) (11.10)
Note: 1. The fi gures of 2011-12 are based on Provisional Returns fi led with IRDA.
2. The fi gures in brackets represent growth in percentage over the previous year.
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