UIDAI ‘Registrar’ insurers to disclose expense in P&L account

India Infoline News Service | Mumbai |

Income shall be shown under the major head of 'Other Income' and expenses shall be show below the line item "Expenses other than those directly related to the insurance business”

Insurance companies working as registrars to Unique Identification Authority of India (UIDAI) would have to provide the income / expense arising out of 'Aadhaar' enrolment process, while preparing financial statements.

Insurance Regulatory and Development Authority (IRDA)—in a circular on 4th April to chief executive officers (CEOs) of all insurers—said that these details should be disclosed as a separate line item under the profit & loss account.

“Currently UIDAI has primarily engaged with state governments, central ministries and public sector organizations to act as Registrars. As per the information available with the Authority, in the insurance sector only Life Insurance Corporation of India (LIC) is registered as Registrar with UIDAI,” the circular added.

“All insurers are advised that while preparing the financial statements in compliance with the IRDA Regulations, 2002, Income/expense arising out of enrolment process of Aadhaar by the insurers acting as registrars to UIDAI shall henceforth, be disclosed as a separate line  item under the Profit & Loss Account,” the circular further said.

“Income shall be shown under the major head of 'Other Income' and expenses shall be show below the line item "Expenses other than those directly related to the insurance business", it added.

This circular is effective from the financial year 2012-13, the regulator added.



 

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