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Under Section 11 of the Insurance Act 1938 (post-2015 amendment), every insurer must prepare at the end of each financial year:
A{'text': 'A cash-flow statement only', 'letter': 'A'}
B{'text': 'Balance sheet + profit and loss + receipts & payments + revenue account', 'letter': 'B'}
C{'text': 'A management report only', 'letter': 'C'}
D{'text': 'A bank reconciliation', 'letter': 'D'}
Answer & Solution
Correct answer: B. {'text': 'Balance sheet + profit and loss + receipts & payments + revenue account', 'letter': 'B'}
1. Section 11 (amended by the Insurance Laws (Amendment) Act 2015) lays out annual reporting.
2. It prescribes a multi-document set of financial statements.
3. Every insurer shall prepare a balance sheet, profit and loss account, separate account of receipts and payments, and a revenue account.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "Every insurer ... shall, at the expiration of each financial year, prepare with reference to that year, balance sheet, a profit and loss account, a separate account of receipts and payments, a revenue account in accordance with the regulations"_