Basics are similar to basics of other forms of accounting. However, there are certain peculiarities that make for specialization of insurance accounting (A) General Accounting: Items such as “Balance Sheet, Receipt and Payments Accounts, cash Flow Statement, and Profit and Loss Account etc will be in line with the accounting standard (AS) issued by the ICAI to the extent applicable to insurers carrying on general insurance business with 3 exceptions. The 3 exceptions are: (a) Cash Flow statement to be prepared only under direct method (b) Accounting for investments is not applicable, and (c) Segment reporting applies to all insurers. (B) Premium: Premium is to be recognized as income over the contract period or the period of risk. Premium received in advance not relating to the current accounting period to be disclosed separately under the head current liabilities. Premium reserve for unexpired risks has to be created. Premium deficiency to be recognized if the expected claim costs and related expenses exceed the related reserve for unexpired risks. (C) Acquisition Costs: Acquisition costs to be placed in the period in which they are incurred (D) Claims: The ultimate cost of claims to an insurer comprises claim under the policies and specific claims settlement costs. Claims under policies comprise the claims made for losses incurred, and those estimated or anticipated under the policies following a loss occurrence. A liability for outstanding claims shall be brought to account in respect of both direct business and inward reinsurance business. The liabilities shall include (i) the future payments in relation to unpaid reported claims (ii) Claims incurred but not reported including inadequate reserves. (E) Investments: Detailed procedure is prescribed for determining value of various investments, such as Real Estate, Investment Property, debt securities, equity securities and derivative instruments. (F) Loans: at historical costs (G) Catastrophe Reserve to be created in accordance with the norms, if any, prescribed by the authority. (H) Accounting Module: to be introduced and implemented.

A professionally qualified, experienced and IRDA accredited person who, for any consideration whatsoever, engages in business or accepts employment to furnish, or agrees to make, or make, any investigation for the purpose of obtaining, information in the course of adjusting or otherwise participating in the disposal of, any claim under or in connection with a proof of loss or engages in soliciting insurance adjustment business.
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A person charged with investigating a claim to establish whether the company is liable and to what extent. The investigation can include interviews of the parties involved, property inspections, and reviewing hospital records or police reports.

Insurance advertisement means any communication directly or indirectly related to a policy and intended to result in the eventual sale or solicitation of a policy from the members of the public and includes all forms of printed and published materials or any material using the print and or electronic medium for public communication such as (i) newspapers, magazines and sales tasks; (ii) billboards, hoardings, panels (iii) radio, television, website e-mail, portals (iv) representations by intermediaries (v) leaflets (vi) descriptive literature/circulars (vii) sales aids flyers (viii) illustrations from letters (ix) telephone solicitations (x) business cars (xi) videos (xii) faxes, or (xiii) any other communication with a prospect or a policyholder that urges him to purchase, renew, increase, retain or modify a policy of insurance.

The IRDA (Insurance Advertisements) Regulations, 2000 seeks to regulate and control every insurance advertisement issued by the insurer, intermediary or insurance agent. For this purpose every insurer, intermediary or insurance agent is required to maintain a system of control over the contents, form and method of dissemination of all advertisements concerning its policies and such advertisement should be filed with the Authority. As per regulations every advertisement for insurance shall state clearly and unequivocally that insurance is the subject matter of the solicitation and state the full registered name of the insurer/intermediary/insurance agent. A third party or group shall not distribute information about an insurance policy, intermediary or insurer on its letterhead.

A term of sale for goods in transit whereby the price paid by the buyer includes the insurance premium and the shipping charges.

According to Sec. 64A of Insurance Act, 1938 all insurers carrying on insurance business in India will constitute a body corporate known as “Insurance Association of India.” The Insurance Associate of India will consist of (01) Members: All the insurers that are incorporated or domiciled in India (02) Associate Members: All Insurers incorporated and domiciled outside India. Sec. 64C of the Act provides for two Insurance Councils viz., (i) The Life Insurance Council: consisting of all the members and associate members of the association who carry on life insurance business in India, and (ii) The General Insurance Council, consisting of all the members and associate members of the association who carry on general insurance business in India.

An attorney who practices the law as it relates to insurance matters. Attorneys might be solo practitioners or work as part of a law firm. Insurance companies who retain attorneys to defend them against law suits might hire in-house attorneys to work for them or they might retain attorneys on an as-needed basis.

Insurance that covers potential losses that would not be financially serious.