As per IRDA guidelines it is essential for every general insurance company in India to file with IRDA its underwriting policy duly approved by the whole Board of Directors. The underwriting policy shall cover the underwriting philosophy in the matter of underwriting profit expectation and whether ach product shall stand on its own or be cross-subsidized among products sold to one client – it is important that even though a client’s total portfolio may be profitable overall on gross basis, the position on net of reinsurance basis can be a loss because different percentages are reinsured in different classes of business. If the insurer want to write any business on a planned underwriting loss basis how the Board will control the effect of the same on solvency margin. Product design, rating, terms and conditions of cover and underwriting activity shall be consistent with the approved underwriting policy. The company has to designate two senior executives who are not directly one above the other in the line of authority to approve the decision. Responsibility for overall compliance vests with the Chief Executive Officer.