Final Account of Insurance Co.

CBD Insurance Co. Premium on Re-Insurance Accepted

Re-Insurance Premium Received
Re-Insurance Claim Paid
ABC Insurance Co. Premium on Re-Insurance ceded
Premium Received Re- Insurance Premium Paid
BKC Insurance Co.
Claims Paid Re-Insurance Claims Received

Customers

Premium Received Income

Claim Paid Expenses

Premium Received Claims Paid

Add: Re-Insurance Premium Received Add: Re-Insurance Claim Paid
Less: Re- Insurance Premium Paid Less: Re-Insurance Claims Received
Net Premium Net Claim

Income / Expenses
Less: Op OS PY O/S
Add: Cl OS CY O/S
Add: Op Advance Advance in PY
Less: Cl Advance Advance in CY
Total Income / Expenses
Solution Q 5
Form B-RA (Prescribed by IRDA)
Sagar Bhima Co. Ltd
Revenue Account for the year ended 31st March, 2010
Particulars Schedule Rs.
Premiums earned (net) 1 2,521,750
Interest, Dividends and Rent - Gross 2 115,500
Double Income Tax refund 12,000
Profit on sale of motor car 5,000
Total (A) 2,654,250
Claims incurred (net) 3 1,781,000
Commission 4 147,000
Operating expenses related to Insurance business 5 346,000
Indian and Foreign taxes 240,000
Total (B) 2,514,000
Profit from Marine Insurance business (A - B) 140,250

Schedule forming part of Revenue Account

Particulars Rs. Rs.
Schedule 1 : Premium Earned (Net)
A) Premium Received
Direct 2,400,000
Re-insurance 360,000
2,760,000
(-) Receivable – 1st April, 2009 OP OS
Direct 120,000
Re-insurance 21,000 141,000
2,619,000
(+) Receivable – 31st March, 2010 CL OS
Direct 180,000
Re-insurance 28,000 208,000
Total Premium Received 2,827,000
B) Premium Paid
Re-insurance 240,000
(-) Payable – 1st April, 2009 OP OS
Re-insurance 20,000
220,000
(+) Payable – 31st March, 2010 CL OS
Re-insurance 42,000
Total Premium Paid 262,000
Total Premium Earned (A-B) 2,565,000

Adjustment of Unexpired Risk

Opening (Including Additional) 2,650,000
(-) Closing
25,65,000 X 100% 2,565,000
Additional 25,65,000 X 5% 128,250 2,693,250 -43,250
Net Premium Earned 2,521,750

Schedule 2 : Interest, Dividends and Rent - Gross

Interest, Dividend and Rent received (net) 91,000
(+) Income Tax deducted at source 24,500
115,500

Schedule 3 : Claims Paid (Net)

A) Claims Paid
Direct 1,650,000
Re-insurance 125,000
1,775,000
(-) Payable – 1st April, 2009 OP OS
Direct 95,000
Re-insurance 13,000 108,000
1,667,000
(+) Payable – 31st March, 2010 CL OS
Direct 175,000
Re-insurance 22,000 197,000
Total Claims Paid 1,864,000
B) Claims Received
Re-insurance 100,000
(-) Receivable – 1st April, 2009 OP OS
Re-insurance 9,000
91,000
(+) Receivable – 31st March, 2010 CL OS
Re-insurance 12,000
Total Claims Received 103,000
Total Claims Paid (A-B) 1,761,000
(+) Legal Expenses regarding claims 20,000
Total Claims Paid (Net) 1,781,000

Schedule 4 : Commission Paid

Commission Paid
Direct 150,000
Re-insurance 11,000
161,000
(-) Commission Received
Re-insurance 14,000
 147,000

Schedule 5 : Operating expenses

Salaries 260,000
Rent, Rates and Taxes 18,000
Printing and Stationery 23,000
Legal Expenses 60,000 - 20,000 40,000
Bad Debts 5,000

346,000

Q6 Form B-RA (Prescribed by IRDA)

Krishna General Insurance Co.
Revenue Account for the year ended 31st March, 2010
Particulars Schedule Rs.
1 Premiums earned (net) 1 2,703,000
2 Interest, Dividends and Rent - Gross 2 30,000
3 Other -
4 Profit on sale of motor car -
Total (A) 2,733,000
5 Claims incurred (net) 3 1,944,000
6 Commission 4 68,400
7 Operating expenses related to Insurance business 5 120,000
8 Indian and Foreign taxes -
Total (B) 2,132,400
Profit from Fire Insurance business (A - B) 600,600

Schedule forming part of Revenue Account

Particulars Rs. Rs.
Schedule 1 : Premium Earned (Net)
A) Premium Received
Direct 3,000,000
Re-insurance 240,000
 3,240,000
(-) Receivable – 1st April, 2009 OP O/S
Direct 180,000
Re-insurance 24,000 204,000
3,036,000
(+) Receivable – 31st March, 2010 Cl O/S
Direct 240,000
Re-insurance 36,000 276,000
Total Premium Received 3,312,000
B) Premium Paid
Re-insurance 360,000
(-) Payable – 1st April, 2009 OP O/S
Re-insurance 30,000
330,000
(+) Payable – 31st March, 2010 CL O/S
Re-insurance 42,000
Total Premium Paid 372,000
Total Premium Earned (A-B) 2,940,000

Adjustment of Unexpired Risk

Opening
24,00,000 X 50% = 1,200,000
24,00,000 X 7.5%= 180,000 1,380,000
(-) Closing
29,40,000 X 50% = 1,470,000
29,40,000 X 5% = 147,000 1,617,000 -237,000
Net Premium Earned 2,703,000

Schedule 2 : Interest, Dividends and Rent - Gross 30,000

Interest, Dividend and Rent received (net)
(+) Income Tax deducted at source
30,000

Schedule 3 : Claims Paid (Net)

A) Claims Paid
Direct 1,800,000
Re-insurance 180,000
1,980,000
(-) Payable – 1st April, 2009 OP OS
Direct 60,000
Re-insurance 12,000 72,000
1,908,000
(+) Payable – 31st March, 2010 CL OS
Direct 120,000
Re-insurance 18,000 138,000
Total Claims Paid 2,046,000
B) Claims Received
Re-insurance 120,000
(-) Receivable – 1st April, 2009 OP OS
Re-insurance 18,000
102,000
(+) Receivable – 31st March, 2010 CL OS
 Re-insurance 12,000
Total Claims Received 114,000
Total Claims Paid (A-B) 1,932,000
(+) Legal Expenses regarding claims 12,000
Total Claims Paid (Net) 1,944,000

Schedule 4 : Commission Paid

Commission Paid
Direct 72,000
Re-insurance 10,800
82,800
(-) Commission Received
Re-insurance 14,400
Commission Paid (Net) 68,400

Schedule 5 : Operating expenses

Management Exp 132,000
(-) Legal Exp 12,000 120,000

120,000
Q3 Form B-RA (Prescribed by IRDA)
Insurance Co.
Revenue Account for the year ended 31st March, 2013
Particulars Schedule Rs.
1 Premiums earned (net) 1 406,000
2 Interest, Dividends and Rent - Gross 2 24,000
3 Other -
4 Profit on sale of Investment 3,000
Total (A) 433,000
5 Claims incurred (net) 3 344,000
6 Commission 4 48,050
7 Operating expenses related to Insurance business 5 100,800
8 Indian and Foreign taxes -
Total (B) 492,850
Loss from Fire Insurance business (A - B) -59,850

Schedule forming part of Revenue Account

Particulars Rs. Rs.
Schedule 1 : Premium Earned (Net)
A) Premium Received
Premiums recovered 486,000
(+) Premiums on re-insurance accepted 32,000
Total Premium Received 518,000
B) Premium Paid
Premiums on re-insurance ceded 43,000
Total Premium Paid 43,000
Total Premium Earned (A-B) 475,000

Adjustment of Unexpired Risk

Opening
50% 180,000
Additional 36,000 216,000
(-) Closing 36,000 / 1,80,000 X 100 = 20%
2,37,500 X 20% = 47,500
50% (4,75,000 x 50%) 237,500
Add (2,37,500 X 36,000 / 1,80,000) 47,500 285,000 -69,000
Net Premium Earned 406,000
Schedule 2 : Interest, Dividends and Rent - Gross
Interest, Dividend and Rent received (net) 24,000
(+) Income Tax deducted at source
24,000

Schedule 3 : Claims Paid (Net)

A) Claims Paid
Claims Paid 365,000
(-) Outstanding at beginning 31,000
334,000
(+) Outstanding at end 42,000
Total Claims Paid 376,000
B) Claims Received
Re-insurance Recoveries 32,000

Total Claims Received 32,000

Total Claims Paid (A-B) 344,000
(+) Legal Expenses regarding claims -
Total Claims Paid (Net) 344,000

Schedule 4 : Commission Paid

Commission on Direct Business 48,600
(+) Commission on re-insurance accepted 1,600
50,200
(-) Commission on re-insurance ceded 2,150
48,050

Schedule 5 : Operating expenses

Expenses of Management 90,000
Legal Expenses 6,000
Medical Expenses 4,000
Bad Debts 800

100,800
Q 29 Form B-RA (Prescribed by IRDA)
Insurance Co.
Revenue Account for the year ended 31st March, 2013
Particulars Schedule Rs. Lakhs
1 Premiums earned (net) 1 530
2 Interest, Dividends and Rent - Gross - -
3 Other -
4 Profit on sale of Investment -
Total (A) 530
5 Claims incurred (net) 2 255
6 Commission - 100
7 Operating expenses related to Insurance business - 150
8 Indian and Foreign taxes -
Total (B) 505
Loss from Fire Insurance business (A - B) 25

Schedule forming part of Revenue Account

Particulars Rs. Lakhs Rs. Lakhs
Schedule 1 : Premium Earned (Net)
Premiums received 600
Less: Premium Paid 60
Total Premium Earned (A-B) 540

Adjustment of Unexpired Risk

Opening 260
(-) Closing (540 X 50%) 270 -10
Net Premium Earned 530

Schedule 2 : Claims Paid (Net)

A) Claims Paid
Claims Paid 235
(-) Outstanding at beginning 20
215
(+) Outstanding at end 35
Total Claims Paid 250
(+) Legal Expenses regarding claims 5
Total Claims Paid (Net) 255
Q4 Form B-RA (Prescribed by IRDA)
Nano Insurance Co.
Revenue Account for the year ended 31st March, 2010
Particulars Schedule 2006 Rs. 2007 Rs.
1 Premiums earned (net) 1 307,000 445,000
2 Interest, Dividends and Rent - Gross 2 20,000 5,000
3 Other - -
4 Profit on sale of Investment
Total (A) 327,000 450,000
5 Claims incurred (net) 3 86,750 153,050
6 Commission 4 18,000 31,000
7 Operating expenses related to Insurance business 5 217,000 267,250
8 Indian and Foreign taxes - -
Total (B) 321,750 451,300
Profit / (Loss) from Marine Insurance business (A - B) 5,250 -1,300

Schedule forming part of Revenue Account

Particulars Rs. 2006 Rs. 2007 Rs.
Schedule 1 : Premium Earned (Net)
A) Premium Received
Premium Received 500,000 600,000
(-) Premium on Reinsurance Ceded 50,000 100,000
Total Premium Earned 450,000 500,000

Adjustment of Unexpired Risk

Opening 320,000 450,000
Additional 32,000 45,000
Total Opening (a) 352,000 495,000
(-) Closing 450,000 500,000
Additional 45,000 50,000
Total Closing (b) 495,000 550,000
Adjustment of Unexpired Risk -143,000 -55,000
Net Premium Earned 307,000 445,000

Schedule 2 : Interest, Dividends and Rent - Gross

Dividend Received 20,000 5,000
(+) Income Tax deducted at source
20,000 5,000

Schedule 3 : Claims Paid (Net)

A) Claims Paid
 Claims Paid 86,250 162,250
(-) Outstanding at beginning 31/12/2005 & 31/12/2006 34,250 44,750
- 52,000 117,500
(+) Outstanding at end 31/12/2006 & 31/12/2007 44,750 55,550
Total Claims Paid A 96,750 173,050
B) Claims Received
Re-insurance Recoveries 10,000 20,000
Total Claims Received B 10,000 20,000
Total Claims Paid (A-B) 86,750 153,050
(+) Legal Expenses regarding claims - -
Total Claims Paid (Net) 86,750 153,050

Schedule 4 : Commission Paid

Commission on Direct Business 22,500 30,000
(+) Commission on re-insurance accepted 17,500 25,000
40,000 55,000
(-) Commission on re-insurance ceded 22,000 24,000
18,000 31,000

Schedule 5 : Operating expenses

Audit fees 10,000 10,000
Salaries to staff 125,750 157,500
Printing, Postage & Stationery 46,500 57,500
Legal Expenses 5,000 4,000
Miscellaneous Expenses 29,750 38,250

217,000 267,250

Q8 Form B-RA (Prescribed by IRDA)

Universal General Insurance Co.
Revenue Account for the year ended 31st March, 2010
Particulars Schedule Fire Rs. Marine Rs.
1 Premiums earned (net) 1 39,210 25,000
2 Interest, Dividends and Rent - Gross - - -
 3 Other - -
4 Profit on sale of Investment
Total (A) 39,210 25,000
5 Claims incurred (net) 2 10,900 8,700
6 Commission 3 4,900 4,100
7 Operating expenses related to Insurance business 4 8,600 6,800
8 Indian and Foreign taxes - -
Total (B) 24,400 19,600
Profit from Fire & Marine Insurance business (A - B) 14,810 5,400

Schedule forming part of Revenue Account

Particulars Rs. Fire Rs. Marine Rs.
Schedule 1 : Premium Earned (Net)
A) Premium Received
Premiums recovered 37,400 29,700
(+) Outstanding at end 3,300 1,500
Total Premium Earned 40,700 31,200

Adjustment of Unexpired Risk

Opening 21,000 24,000
Additional 6,000 1,000
Total Opening (a) 27,000 25,000
(-) Closing 40,700 X 50% 20,350 31,200 31,200 X 100%
Additional 8,140 -
Total Closing (b) 40,700 X 20% 28,490 31,200
Adjustment of Unexpired Risk -1,490 -6,200
Net Premium Earned 39,210 25,000

Schedule 2 : Claims Paid (Net)

A) Claims Paid
Claims Paid 10,000 8,700
(-) Outstanding at beginning 2,600 1,700
- 7,400 7,000
(+) Outstanding at end 4,600 1,700
Total Claims Paid A 12,000 8,700
B) Claims Received
Re-insurance Recoveries 1,100
Total Claims Received B 1,100 -
Total Claims Paid (A-B) 10,900 8,700
(+) Legal Expenses regarding claims - -
Total Claims Paid (Net) 10,900 8,700

Schedule 3 : Commission Paid

Commission on Direct Business 6,200 5,100
(+) Commission on re-insurance accepted - -
6,200 5,100
(-) Commission on re-insurance ceded 1,300 1,000
4,900 4,100

Schedule 4 : Operating expenses

Expenses of Management 8,600 6,800

8,600 6,800

Profit & Loss Account for the year ended 31st March, 2010
 Particulars Schedule Rs.
Operating Profit / (Loss)
a) Fire Insurance 14,810
b) Marine Insurance 5,400
c) Miscellaneous Insurance -
Income from Investments
a) Interest, Dividends and Rent - Gross 6,300
b) Profit on sale of Investment
(-) Loss on sale of Investment -800
Other Income (to be specified)
Total (A) 25,710
Provision Other than Taxation -
Depreciation 3,600
Other Expenses
Audit Fees 1,300
Directors’ Remuneration 3,600
Total (B) 8,500
Profit Before Tax 17,210
Provision for Tax -
Profit After Tax 17,210

Q9 Form B-RA (Prescribed by IRDA)

Prude General Insurance Co.
Revenue Account for the year ended 31st March, 2013
Particulars Schedule Fire Rs. Marine Rs.
1 Premiums earned (net) 1 427,500 140,000
2 Interest, Dividends and Rent - Gross - - -
3 Other - -
4 Profit on sale of Investment
Total (A) 427,500 140,000
5 Claims incurred (net) 2 102,000 88,000
6 Commission 3 40,000 20,000
7 Operating expenses related to Insurance business 4 70,000 50,000
8 Indian and Foreign taxes - -
Total (B) 212,000 158,000
Profit from Fire & Marine Insurance business (A - B) 215,500 -18,000
 Form-B-PL-Profit & Loss Account for the year ended 31st March, 2010
Particulars Schedule Rs.
Operating Profit / (Loss)
a) Fire Insurance 215,500
b) Marine Insurance -18,000
c) Miscellaneous Insurance -
Income from Investments
a) Interest, Dividends and Rent 5 129,000
b) Profit on sale of Investment
(-) Loss on sale of Investment
Other Income (to be specified)
Total (A) 326,500
Provision Other than Taxation -
Depreciation 90,000 X 10% 9,000
Other Expenses
Audit Fees
Directors’ Fees 80,000
Total (B) 89,000
Profit Before Tax 237,500
Provision for Tax WN 99,138
Profit After Tax 138,362

Schedule forming part of Revenue Account

Particulars Rs. Fire Rs. Marine Rs.
Schedule 1 : Premium Earned (Net)
A) Premium Received
Premiums recovered 450,000 330,000
(-) Re-Insurance Premium ceded Debit 25,000 15,000
425,000 315,000
(+) Outstanding at end 30,000 20,000
Total Premium Earned 455,000 335,000

Adjustment of Unexpired Risk

Opening 200,000 140,000
(-) Closing 227,500 335,000
Adjustment of Unexpired Risk -27,500 -195,000
Net Premium Earned 427,500 140,000

Schedule 2 : Claims Paid (Net)

A) Claims Paid
Claims Paid 100,000 80,000
(-) Outstanding at beginning 28,000 7,000
- 72,000 73,000
(+) Outstanding at end 30,000 15,000
Total Claims Paid 102,000 88,000
(+) Legal Expenses regarding claims - -
Total Claims Paid (Net) 102,000 88,000

Schedule 3 : Commission Paid

Commission on Direct Business 40,000 20,000
(+) Commission on re-insurance accepted - -
40,000 20,000
(-) Commission on re-insurance ceded - -
40,000 20,000

Schedule 4 : Operating expenses

 Expenses of Management 60,000 45,000
(+) Outstanding at end 10,000 5,000

70,000 50,000

Schedule 5 : Interest, Dividends and Rent

Dividend received 100,000
(+) Interest received 19,000
(+) Interest accrued on investment 10,000 29,000
129,000

Dr. Provision for Taxation Account Cr.

Particulars Rs. Particulars Rs.
To Bank A/c (Paid) 60,000 By Balance b/d (Opening) 85,000

To Balance c/d (Liab) 124,138 By Profit & Loss A/c (Bal) 99,138
184,138 184,138
Q 10 Form B-RA (Prescribed by IRDA)
Prude General Insurance Co.
Revenue Account for the year ended 31st March, 2013
Particulars Schedule Fire Rs. Marine Rs.
1 Premiums earned (net) 1 1,275,000 1,640,000
2 Interest, Dividends and Rent - Gross - - -
3 Other - -
4 Profit on sale of Investment
Total (A) 1,275,000 1,640,000
5 Claims incurred (net) 2 360,000 760,000
6 Commission 3 -20,000 -40,000
7 Operating expenses related to Insurance business 4 320,000 824,000
8 Indian and Foreign taxes - -
Total (B) 660,000 1,544,000
Profit from Fire & Marine Insurance business (A - B) 615,000 96,000

Form-B-PL-Profit & Loss Account for the year ended 31st March, 2010
Particulars Schedule Rs.
Operating Profit / (Loss)
a) Fire Insurance 615,000
b) Marine Insurance 96,000
c) Miscellaneous Insurance -
Income from Investments
a) Interest, Dividends and Rent 28,000
b) Profit on sale of Land 120,000
(-) Loss on sale of Investment
Other Income (to be specified)
Bad Debts recovered 2,400
Share transfer fees 1,600
Difference in Exchange (Cr) 600
Miscellaneous Receipts 10,000
Total (A) 873,600
Provision Other than Taxation -
 Depreciation 70,000
Other Expenses
Audit Fees 2,400
Directors’ Fees 10,000
Total (B) 82,400
Profit Before Tax 791,200
Provision for Tax -
Profit After Tax 791,200

Schedule forming part of Revenue Account

Particulars Rs. Fire Rs. Marine Rs.
Schedule 1 : Premium Earned (Net)
A) Premium Received
Premiums recovered 1,200,000 2,160,000
(+) Re- Insurance Premium Receivable 300,000 640,000
Total Premium Earned 1,500,000 2,800,000

Adjustment of Unexpired Risk

Opening 500,000 1,640,000
Additional 100,000 -
Total Opening (a) 600,000 1,640,000
(-) Closing 750,000 2,800,000
Additional 15,00,000 X 5% 75,000 -
Total Closing (b) 825,000 2,800,000
Adjustment of Unexpired Risk -225,000 -1,160,000
Net Premium Earned 1,275,000 1,640,000

Schedule 3 : Claims Paid (Net)

Claims Paid & Outstanding 360,000 760,000
Total Claims Paid 360,000 760,000

Schedule 4 : Commission Paid

Commission on Direct Business
(+) Commission on re-insurance accepted - -
- -
(-) Commission on re-insurance ceded earned 20,000 40,000
-20,000 -40,000

Schedule 5 : Operating expenses

Expenses of Management 290,000 800,000
(+) Sundry Expenses 20,000 -
(+) Bad Debts 10,000 24,000
320,000 824,000
 5 X 25%

10 X 25%

Loss 20 - 18

Gain 105 - 100

X 5% = 1.25

50 X 20% X 5% = 2.50

25 X 20%