Insurers to file quarterly reconciliation reports

Insurance Regulatory and Development Authority (Irda) has directed all insurers to file a reconciliation statement on purchase and sale of investments on a quarterly basis with the authority.

The statement has to be submitted within 21 days from the end of the quarter. The objective is to establish reconciliation between the purchase and sale of investments made during the quarter.

All purchases made during the period shall be shown at the consolidated weighted average value, security wise, and be listed as per the "category of investments", Irda said.

The book value shall be the consolidated weighted average value of each security purchased during the quarter.

The cost of sales shall be the weighted average cost of the investment.

The closing balance shall be the sum of weighted average cost of opening balance and purchases made during the period reduced by the cost of sales for that period, which shall be listed security wise, Irda said.

This shall be the investment that will be carried forward to the next period.

For each quarter, mutual fund units shall be reported at the weighted average cost, and the insurer shall mention the market value of such mutual funds reflecting the increase or decrease in the net asset value.