This is a summary of key definitions and guidance related to ...

Insurance Contracts Demystified: Ind AS 104 Guidance Defining insurance risk, contracts & parties Assessing risk transfer significance Handling deposits & unbundling Scoping in/out examples.

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October 1, 2024

This is a summary of key definitions and guidance related to insurance contracts under Indian Accounting Standard (Ind AS) 104. It covers the definition of an insurance contract, insurance risk, insured event, insurer, policyholder, reinsurance, and related terms. It provides guidance on identifying insurance contracts, assessing significance of insurance risk transfer, treatment of components like deposits, and examples of contracts within and outside the scope. The appendix details aspects like uncertain future events, payments in kind, distinction between insurance and financial risks, and changes in insurance risk level over the contract term. Key points include the requirement of significant insurance risk transfer for a contract to qualify as insurance, and the focus on the insurance component when unbundling deposits.

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