14 - Chapter 6 Reinsurance

CHAPTER 6
FINANCIAL REPORTING PRACTICES OF

GENERAL INSURANCE COMPANIES
CHAPTER 6
FINANCIAL REPORTING PRACTICES OF GENERAL
INSURANCE COMPANIES
The deregulation of insurance sector in India resulted in a steady growth of

general insurance business (Sinha, 2008). The financial statements for a general
insurance company are heavily dependent on estimates and the investor is interested not
only in the position shown in the statements but also in knowing how the results would
be affected if the outturn differs significantly from the estimates (Wood and Wilkinson,
1985). Further detariffication of the general insurance sector resulting in unfair and
uninformed competition enhances the need for transparency to ensure public confidence
in the insurance industry (Rao, 2008). The present chapter gives detailed analysis of
disclosure practices of general insurance companies in India. The study is based on 18
companies including 7 public and 11 private sector companies. After scanning the
annual reports of these companies an index of 110 items is prepared. These items are
further classified as voluntary disclosure (45 items) and mandatory disclosure (65
items). Disclosure scores are calculated separately for public and private sector
companies. Comparative results of life and general insurance sector as a whole,
irrespective of their grouping into public and private sector companies have also been
discussed. Extent of disclosure has been measured for 8 years i.e. from 2002-03 to
2009-10 as item-wise, company-wise and area –wise disclosure.
In order to compare the disclosure practices of public and private sector general
insurance companies, following two null hypotheses have been formulated. These
hypotheses are tested with the help of t-test and F-test.
Ho1 - There is no significant difference in the mean disclosure score of an item in the
public and private sector general insurance companies.
Ho2 - There is no significant difference in the variation of items of disclosure in the

6.1 Item-Wise Mandatory Disclosure
To check the compliance of reporting requirements issued by various regulatory

bodies from time to time, 45 items have been selected. To facilitate the analysis of data
these items has been divided into four sub-heads i.e. statutory disclosure as per IRDA
(Insurance Regulatory Development Authority), directors report, balance sheet abstract
and disclosure as per accounting standards issued by ICAI (Institute of Chartered
Accountants of India). To interpret the data, mean disclosure score, standard deviation
and percent change in disclosure score over the year have been calculated (Table 6.1
and 6.2).
6.1.1 Statutory Disclosure as Per IRDA
Insurance Regulatory Development Authority issued various regulations for

preparing financial statements of insurance companies in 2002, known as statutory
disclosure as per IRDA. There are 24 items under this head, including important items
i.e. balance sheet, revenue account, profit and loss account, receipts and payments
account, auditors report, management report and managerial remuneration etc. Data
given in table 6.1 and 6.2 reveals that there is 100 percent mean disclosure for majority
of the items under this head. When compared the results of two sectors there are 16
items (balance sheet, revenue account, profit and loss account, schedules forming part
of financial statements, significant accounting policies, notes to accounts, receipts and
payments account, auditors report, management report, contingent liabilities managerial
remuneration, accounting and performance ratios, basis of allocation of investment,
commitment in respect of loans and investments, encumbrances on assets and
shareholders and policyholders funds) out of 24 items having 100 percent disclosure in
public sector but only 6 items (balance sheet, revenue account, profit and loss account,
schedules forming part of financial statements, sector wise details of policies issued and
encumbrances on assets) are having 100 percent disclosure in private sector companies.
Minimum average disclosure is 47.02 in public sector and 11.05 in private sector for the
same item called ‘performance of social sector schemes for last five years’. Remaining
majority of the items have more than 50 percent disclosure score in both the sectors.
Standard deviation (S.D.) is the highest for item ‘certificate as per schedule C’
(17.99) in public sector and it is the highest for item ‘summary of financial statements
of last five years’ (22.30) in private sector. In private sector other items having high
S.D. value are ‘certificate as per schedule C (15.54)’, ‘claim settlement and age wise
analysis (14.58)’, and ‘auditors report (14.00)’. In public sector higher S.D. is found for
items ‘claim settlement and age wise analysis’ (15.00), ‘employee benefit plans’ (14.38)
and ‘allocation of income and expenditure’ (12.14). Results of S.D. values show that
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there is comparatively greater variation in the disclosure values of the items in private
sector companies than public sector.
There is more improvement in the disclosure score in 2009-10 over the year
2002-03 for public sector companies as the highest percent change in disclosure score
is 328.49 percent for item certificate as per schedule C in this sector. The highest
percent change in disclosure score is only 190.92 percent for item ‘summary of
financial statements of last five years’ in case of private sector companies.
6.1.2 Directors Report
Directors Report is the most important part of an annual report. Every company
registered under the Companies Act 1956 is required to prepare directors report under
Section 217 of this Act. There are ten items under this head.
Results of mean disclosure show that public sector companies have 100 percent
mean disclosure for two items i.e. particulars of employees and additional
information disclosure; and in private sector 100 percent mean disclosure is for items
i.e. particulars of employees’ and directors responsibility statement. This shows that
all the public and private sector companies are disclosing information regarding
particulars of employees as per the requirements of section 217(2A). As per the
requirements of section 217(2AA) of the Companies (Amendment) Act 2000 all the
companies are required to include directors responsibility statement in their directors
report, but only private sector companies are complying with these regulations. In
case of private sector companies, there is no disclosure for three items called
addendum to director’s report, adoption of accounts by shareholders and submission
of accounts before parliament as against it, in
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Table 6.1 Mandatory Disclosures (%) of Public Sector General Insurance Companies
S.No. Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
03 04 05 06 07 08 09 10 change
Statutory Disclosure As Per IRDA
1 Balance sheet 100 100 100 100 100 100 100 100 100 0 0
2 Revenue account 100 100 100 100 100 100 100 100 100 0 0
3 Profit and loss account 100 100 100 100 100 100 100 100 100 0 0
4 Schedules forming part of financial 100 100 100 100 100 100 100 100 100 0 0
statements
5 Significant accounting policies 100 100 100 100 100 100 100 100 100 0 0
6 Notes to accounts 100 100 100 100 100 100 100 100 100 0 0
7 Receipts and payments account 100 100 100 100 100 100 100 100 100 0 0
8 Auditors report 100 100 100 100 100 100 100 100 100 0 0
9 Management report 100 100 100 100 100 100 100 100 100 0 0
10 Contingent Liabilities 100 100 100 100 100 100 100 100 100 0 0
11 Claim Settlement and Age wise Analysis 66.67 71.43 85.71 71.43 100 100 100 100 86.91 15.00 49.99
12 Summary of Financial Statements of last 83.33 85.71 85.71 85.71 85.71 85.71 85.71 100 87.20 5.24 20.00
five years
13 Sector wise Details of Policies Issued 100 85.71 85.71 85.71 85.71 85.71 85.71 85.71 87.50 5.05 -14.29
14 Employee Benefit Plans 66.67 71.43 100 100 100 100 100 100 92.26 14.38 49.99
15 Allocation of Income and Expenditure 66.67 85.71 100 100 100 100 100 100 94.05 12.14 49.99
16 Managerial Remuneration 100 100 100 100 100 100 100 100 100 0 0
17 Accounting and performance Ratios 100 100 100 100 100 100 100 100 100 0 0
18 Basis of allocation of investment 100 100 100 100 100 100 100 100 100 0 0
19 Certificate as per schedule C 16.67 42.86 42.86 42.86 42.86 57.14 71.43 71.43 48.51 17.99 328.49
20 Premium Deficiency 50.00 57.14 71.43 57.14 71.43 71.43 57.14 71.43 63.39 8.90 42.86
21 Performance of Social Sector Schemes 33.33 42.86 42.86 42.86 42.86 57.14 57.14 57.14 47.02 8.98 71.44
for Last Five years
22 Commitment in Respect of Loans and 100 100 100 100 100 100 100 100 100 0 0
Investments
23 Encumbrances on Assets 100 100 100 100 100 100 100 100 100 0 0
24 Shareholders and Policyholders funds 100 100 100 100 100 100 100 100 100 0 0
Contd……………………….
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Table 6.1 contd………………….
S.No. Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
03 04 05 06 07 08 09 10 change
Director’s Report
25 Particulars of employees(Sec 217(2A)) 100 100 100 100 100 100 100 100 100 0 0
26 Addendum to Directors Report 16.67 28.57 42.86 57.14 42.86 57.14 57.14 57.14 44.94 15.45 242.77
27 Directors responsibility statement 83.33 100 100 100 100 100 100 100 97.92 5.89 20.00
28 Compliance with section 40C 50.00 71.43 85.71 85.71 71.43 71.43 71.43 85.71 74.11 12.03 71.42
29 Additional Information 100 100 100 100 100 100 100 100 100 0 0
Disclosure(Disclosure Rules 1988)
30 Adoption of Accounts by Shareholders 33.33 28.57 28.57 28.57 28.57 28.57 14.29 14.29 25.60 7.17 -57.13
31 Submission of Accounts before 66.67 57.14 57.14 57.14 57.14 57.14 57.14 71.43 60.12 5.66 7.14
Parliament(Sec. 619 A)
32 Subsidiary companies 66.67 57.14 57.14 57.14 57.14 57.14 57.14 57.14 58.33 3.37 -14.29
33 Corporate governance report 0 14.29 42.86 42.86 71.43 71.43 71.43 100 51.79 33.23 -
34 Right To Information Act 2005 - - - 57.14 57.14 71.43 85.71 100 74.28 18.63 75.01
Balance Sheet Abstract
35 Registration Details 100 100 100 100 100 100 100 100 100 0 0
36 Capital Raised During The Year 0 0 0 0 0 0 0 0 0 0 -
37 Position of Mobilization and Deployment 100 100 100 100 100 100 100 100 100 0 0
of Funds
38 Performance of the company 100 100 100 100 100 100 100 100 100 0 0
39 Services of the company 0 0 0 0 0 0 0 0 0 0 -
Disclosure As Per Accounting Standards
40 Employee Benefits as per (AS-15) 0 0 0 0 0 57.14 71.43 71.43 25.00 34.78 -
41 Segment Reporting as per ( AS-17) 100 85.71 85.71 85.71 85.71 85.71 85.71 100 89.28 6.61 0
42 Related Party Disclosure as per (AS-!8) 100 100 100 100 100 100 100 100 100 0 0
43 Leases as per AS-19 0 14.29 14.29 14.29 14.29 14.29 14.29 14.29 12.50 5.05 -
44 EPS(earnings per share) as per (AS-20) 50.00 57.14 57.14 57.14 85.71 85.71 85.71 100 72.32 18.87 100
45 Deferred Tax Liability as per (AS-22) 66.67 57.14 57.14 71.43 100 85.71 85.71 100 77.98 17.44 49.99
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Table 6.2 Mandatory Disclosures (%) of Private Sector General Insurance Companies
S.No Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD % t-value F-value
03 04 05 06 07 08 09 10 change
1 Balance sheet 100 100 100 100 100 100 100 100 100 0 0 NA NA
2 Revenue account 100 100 100 100 100 100 100 100 100 0 0 NA NA
3 Profit and loss account 100 100 100 100 100 100 100 100 100 0 0 NA NA
4 Schedules forming part of financial 100 100 100 100 100 100 100 100 100 0 0 NA NA
statements
5 Significant accounting policies 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 6.87* NA
6 Notes to accounts 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 6.87* NA
7 Receipts and payments account 87.5 100 100 100 100 100 100 100 98.44 4.42 14.29 0.93 NA
8 Auditors report 100 100 100 100 77.78 72.73 72.73 72.73 87.00 14.00 -27.27 2.46* NA
9 Management report 75 87.5 87.5 87.5 77.78 72.73 72.73 72.73 79.18 7.09 -3.03 7.77* NA
10 Contingent Liabilities 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 6.87* NA
11 Claim Settlement and Age wise 50 62.5 75 62.5 77.78 81.82 90.91 90.91 73.93 14.58 81.82 1.64 1.06
Analysis
12 Summary of Financial Statements of last 25 25 62.5 75 77.78 72.73 72.73 72.73 60.43 22.30 190.92 3.09* 18.11**
five years
13 Sector wise Details of Policies Issued 100 100 100 100 100 100 100 100 100 0 0 -6.55* NA
14 Employee Benefit Plans 75 87.5 87.5 87.5 77.78 72.73 72.73 72.73 79.18 7.09 -3.03 2.16* 4.11**
15 Allocation of Income and Expenditure 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 2.47* 2.68
16 Managerial Remuneration 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 6.87* NA
17 Accounting and performance Ratios 75 87.5 100 100 100 100 100 100 95.31 9.30 33.33 1.33 NA
18 Basis of allocation of investment 100 87.5 100 100 100 100 100 100 98.44 4.42 0 0.93 NA
19 Certificate as per schedule C 25 25 37.5 37.5 44.44 54.55 63.64 63.64 43.91 15.5 154.56 0.51 1.34
4
20 Premium Deficiency 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 -3.97* 1.44
21 Performance of Social Sector Schemes 12.5 12.5 12.5 12.5 11.11 9.09 9.09 9.09 11.05 1.69 -27.28 10.41* 28.23**
for Last Five years
22 Commitment in Respect of Loans and 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 6.87* NA
Investments
23 Encumbrances on Assets 100 100 100 100 100 100 100 100 100 0 0 NA NA
24 Shareholders and Policyholders funds 75 87.5 87.5 87.5 77.78 72.73 72.73 72.73 79.18 7.09 0 7.77* NA
Contd………………………..
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Table 6.2 contd…………….
S.No Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD % t-value F-value
03 04 05 06 07 08 09 10 change
Director’s Report
25 Particulars of employees(Sec 217(2A)) 100 100 100 100 100 100 100 100 100 0 0 NA NA
26 Addendum to Directors Report 0 0 0 0 0 0 0 0 0 0 - 7.70* NA
27 Directors responsibility statement 100 100 100 100 100 100 100 100 100 0 0 -0.93 NA
28 Compliance with section 40C 12.5 12.5 12.5 12.5 11.11 9.09 9.09 9.09 11.05 1.69 -27.28 13.73* 50.67**
29 Additional Information 87.5 87.5 87.5 87.5 77.78 72.73 72.73 72.73 80.75 7.41 -16.88 6.87* NA
30 Adoption of Accounts by Shareholders 0 0 0 0 0 0 0 0 0 0 - 9.45* NA
31 Submission of Accounts before 0 0 0 0 0 0 0 0 0 0 - 28.10* NA
32 Subsidiary companies 12.5 12.5 12.5 12.5 22.22 18.18 18.18 18.18 15.85 3.81 45.44 22.10* 1.28
33 Corporate governance report 0 25 25 25 22.22 27.27 27.27 54.55 25.79 14.69 - 1.89 5.12**
34 Right To Information Act 2005 - - - 0 0 0 0 9.09 1.82 4.07 - 10.05* 21.00**

35 Registration Details 50 75 75 75 66.67 63.64 63.64 63.64 66.57 8.57 27.28 10.33* NA
36 Capital Raised During The Year 0 12.5 12.5 25 11.11 18.18 9.09 18.18 13.32 7.42 - -4.75* NA
37 Position of Mobilization and Deployment 25 50 62.5 75 66.67 54.55 63.64 63.64 57.63 15.17 154.56 7.39* NA
of Funds
38 Performance of the company 25 37.5 50 62.5 66.67 45.45 54.55 54.55 49.53 13.50 118.20 9.89* NA
39 Services of the company 0 0 0 0 0 0 0 0 0 0.00 - NA NA
40 Employee Benefits as per (AS-15) 12.5 12.5 12.5 12.5 22.22 63.64 72.73 81.82 36.30 30.73 554.56 -0.64 1.28
41 Segment Reporting as per ( AS-17) 87.5 100 100 100 88.89 81.82 81.82 81.82 90.23 8.52 -6.49 -0.23 1.66
42 Related Party Disclosure as per (AS-!8) 100 100 100 100 100 100 100 100 100 0 0 NA NA
43 Leases as per AS-19 12.5 25 25 37.5 33.33 27.27 27.27 27.27 26.89 7.26 118.16 -4.31* 2.07
44 EPS(earnings per share) as per (AS-20) 25 37.5 37.5 75 55.56 54.55 63.64 63.64 51.55 16.76 154.56 2.18* 1.27
45 Deferred Tax Liability as per (AS-22) 50 50 75 75 66.67 63.64 63.64 72.73 64.59 10.11 45.46 1.76 2.98
* indicates that these values are significant at 5% level of significance and 14 degrees of freedom having table value of t =2.15
** indicates that these values are significant at 5% level of significance and 7,7 degree of freedom having tabulated value of F=3.79
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public sector companies these three items have got 44.94, 25.60 and 60.12 percent disclosure
score, respectively (Table 6.1). There is better disclosure for corporate governance and Right to
Information Act 2005 in public sector companies compared to private sector companies. Right to
information Act was introduced in the year 2005-06, so mean disclosure score has been
calculated for five years.
Greater variation (SD = 33.23) is found in disclosure of item ‘corporate governance

report’ in public sector companies. Other items having higher standard deviation values in public
sector companies are ‘Right to Information Act 2005’ (18.63), addendum to directors’ report
(15.45). In private sector the highest standard deviation is 14.69 for item ‘corporate governance
report’ showing less volatility in the disclosure values of this sector.
Table 6.1 and 6.2 show the results of percentage change in disclosure score of director’s
report in the year 2009-10 over 2002-03. There is the highest (242.77) percent change in
disclosure score of addendum to directors’ report; in public sector companies as compared to
only 45.44 percent for item subsidiary companies in private sector.
6.1.3 Balance Sheet Abstract
Every company registered under the Companies Act 1956, is required to prepare a
balance sheet abstract as per the requirements of Part IV schedule VI of this Act. Comparative
results of general insurance companies show that there is greater disclosure in public sector
companies than private sector. Out of five items there is 100 percent disclosure for three items
(registration details, position of mobilization and deployment of funds and performance of the
company) in public sector companies. In private sector there is only 66.57, 57.63 and 49.53
percent mean disclosure, respectively for these three items. There is no disclosure for item,
capital raised during the year in case of public sector companies. But 13.32 percent companies
are disclosing this item in private sector.
The disclosure values in public sector companies are same throughout the period of the
study. There is variation in the disclosure scores of private sector companies as the highest S.D.
is found to be 15.17 for item position of mobilization and deployment of funds followed by
performance of the company (13.50), registration details (8.57) and capital raised during the year
(7.42).
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Percentage change in disclosure score is the highest (154.56) for item ‘position of
mobilization and deployment of funds’ in private sector companies. There is no change in
percent disclosure in public sector companies as there is 100 percent disclosure for three items
and 0 disclosures for two items during all the years of study.
6.1.4 Disclosure as per Accounting Standards
Insurance companies registered under the Companies Act 1956 have to comply with the
accounting standards issued by the Institute of Chartered Accountants of India referred in
Section 211 (3C) of this Act. To check the compliance of insurance companies regarding
disclosure under this head, six items have been studied. Item ‘related party disclosure as per AS-
18’ has got the highest (100) percent mean disclosure score in both public and private sector
companies. The least average disclosure is for item ‘leases as per AS-19’ in both the sectors but
the value of mean disclosure is 26.89 for private sector and it is only 12.50 for public sector
indicating greater disclosure by private sector companies for this item. Disclosure score for
items, ‘EPS as per AS-20 (72.32), and deferred tax liability as per AS-22 (77.98)’ is better in
public sector than private sector as these items have disclosure scores of 51.55 and 64.59 percent,
respectively. Two items, ‘employee benefits as per AS-15 (36.30) and segment reporting as per
AS-17 (90.23)’ are having better disclosure in private sector companies as compared to public
sector companies having 25.00 and 89.28 percent disclosure, respectively for these items.
Standard deviation results show that in both the sectors greater variation is found
in case of item, ‘employee benefits as per AS-15’ as value of S.D. is found to be the highest
34.78 and 30.73, respectively in public and private sector for this item. Other items having large
standard deviation in public sector and private sector are ‘EPS as per AS-20 (18.87 & 16.76)’
and ‘deferred tax liability as per AS-22 (17.44 & 10.11)’, respectively.
Data reveals that percentage improvement in disclosure score over the period is the
highest for item, ‘employee benefits as per AS-15 (554.56)’ in private sector companies where as
the maximum percentage change is found to be 100.00 percent for ‘earnings per share as perAS-
20’ in public sector. Other items having more than 100 percent change in disclosure score in
private sector companies are, ‘leases as per AS-19 (118.16) and EPS as per AS-20 (154.56)’.But
there is no item in public sector which has more than 100 percent change in disclosure score, as
already there is better disclosure in case of public sector companies. The results of this head
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indicate that comparatively there is improvement over time in disclosure score in private sector
companies.
6.2 Item-Wise Voluntary Disclosure
Voluntary disclosure is that information which is disclosed to supplement the mandatory

disclosure. A company may disclose more information in their annual reports to help various
users for taking different decisions. In order to analyze the voluntary disclosure practices of
general insurance companies an index of 65 items is studied. The index is further classified into
four sub-heads i.e. information on accounting and finance, information on human resource and
marketing, business specific information and general information (Table 6.3 and 6.4).
6.2.1 Information on Accounting and Finance
Information on accounting and finance is the most important part of an annual report.
Majority of the users are interested in this part of information as it helps in various financial
decisions. This head consists of 15 items. Table 6.3 highlights that there is 100 percent disclosure
in public sector companies for three items i.e. gross domestic premium, underwriting results and
net incurred claims. It is clear from table 6.4 that in private sector also three items are having 100
percent disclosure viz gross domestic premium, additional unexpired risk reserve and net
incurred claims. Data shown in Table 6.3 and 6.4 further reveals that more than 50 percent
disclosure is found for 12 items in public sector companies but only 9 items are having more
than 50 percent disclosure scores in private sector. These items for public sector companies are
financial highlights (96.13), gross domestic premium (100), solvency margins (68.75), additional
unexpired risk reserve (98.21), certain expenses of management (86.61), underwriting results
(100), net incurred claims (100), class wise performance (85.41), foreign currency transactions
(77.68), taxation provision (88.39), provision for claims incurred but not reported (73.81) and
salvage (52.38). For private sector companies these items are financial highlights (71.37), gross
domestic premium (100), additional unexpired risk reserve (100), underwriting results (98.44),
net incurred claims (100), class wise performance (77.05), foreign currency transactions (76.06),
taxation provision (71.37) and provision for claims incurred but not reported (72.93). One item,
financial consultants is having zero disclosure in public sector companies and the minimum
disclosure score of 2.27 in private sector companies. Results show that average disclosure is
better in public sector compared to private sector companies.
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Table 6.3 Voluntary Disclosure (%) of Public Sector General Insurance Companies
S. Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
No. 03 04 05 06 07 08 09 10 change
Information On Accounting And Finance

1 Financial Highlights 83.33 85.71 100 100 100 100 100 100 96.13 7.19 20.00
2 Gross Domestic Premium 100 100. 100 100 100 100 100 100 100 0 0
3 Solvency Margins 50.00 57.14 57.14 57.14 71.43 85.71 85.71 85.71 68.75 15.24 71.42
4 Additional Unexpired Risk Reserve 100 85.71 100 100 100 100 100 100 98.21 5.05 0
5 Certain Expenses of Management 50.00 42.86 100 100 100 100 100 100 86.61 24.87 100
6 Employee Stock Option Scheme 0 0 0 0 0 0 0 14.29 1.79 5.05 NR
7 Financial Consultants 0 0 0 0 0 0 0 0 0 0 NR
8 Underwriting results 100 100 100 100 100 100 100 100 100 0 0
9 Net Incurred Claims 100 100 100 100 100 100 100 100 100 0 0
10 Class wise performance 83.33 85.71 85.71 85.71 85.71 85.71 85.71 85.71 85.41 0.84 2.86
11 Foreign Currency transactions 50.00 57.14 85.71 85.71 85.71 85.71 85.71 85.71 77.68 15.00 71.42
12 Taxation Provision 50.00 57.14 100 100 100 100 100 100 88.39 21.58 100
13 Provision for Claims incurred But 33.33 28.57 85.71 85.71 85.71 85.71 85.71 100 73.81 26.94 200.03
Not Reported
14 Detariffing 16.67 14.29 14.29 42.86 42.86 42.86 42.86 42.86 32.44 14.39 157.11
15 Salvage/ Claims Recoveries 33.33 28.57 57.14 57.14 57.14 57.14 57.14 71.43 52.38 14.17 114.31
Information On Human Resource And Marketing
16 Staff Welfare Schemes 66.67 71.43 71.43 71.43 85.71 85.71 100 100 81.55 13.33 49.99
17 Training of Employees 83.33 71.43 71.43 71.43 85.71 85.71 100 100 83.63 11.90 20.00
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Table 6.3 contd……………….
S.No Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
03 04 05 06 07 08 09 10 change
18 Gender Issues and Empowerment 16.67 14.29 14.29 14.29 14.29 14.29 28.57 14.29 16.37 5.00 -14.28
19 Sports Activities 16.67 28.57 28.57 28.57 28.57 28.57 28.57 28.57 27.08 4.21 71.39
20 SCs, STs, OBCs, and Ex- 33.33 57.14 71.43 71.43 71.43 85.71 85.71 85.71 70.24 17.95 157.16
Servicemen
21 Customer Service 83.33 71.43 71.43 71.43 85.71 85.71 85.71 100 81.84 10.01 20.00
22 Distribution Offices 33.33 28.57 28.57 42.86 57.14 71.43 71.43 100 54.17 25.57 200.03
23 Corporate Agents 0 0 14.29 28.57 28.57 28.57 42.86 37.14 22.50 16.12 NR
24 Riders 0 0 0 0 0 0 0 0 0 0 0
25 Grievance Redressal 50.00 57.14 57.14 71.43 57.14 57.14 71.43 85.71 63.39 11.73 71.42
26 Techno-Marketing 16.67 14.29 14.29 14.29 14.29 14.29 42.86 57.14 23.52 16.81 242.77
27 Publicity Activities 33.33 57.14 71.43 71.43 71.43 85.71 85.71 85.71 70.24 17.95 157.16
28 Voluntary Retirement Schemes 50.00 57.14 71.43 71.43 57.14 57.14 57.14 57.14 59.82 7.58 14.28
29 Retirement Benefits of Employees 66.67 71.43 85.71 85.71 85.71 85.71 85.71 100 83.33 10.18 49.99
Business Specific Information
30 Business Overview 66.67 57.14 85.71 85.71 100 100 100 100 86.90 16.84 49.99
31 Product Portfolio 16.67 28.57 57.14 71.43 71.43 71.43 85.71 100 62.80 27.94 499.88
32 Branch Network 66.67 71.43 71.43 71.43 85.71 85.71 85.71 100 79.76 11.31 49.99
33 Industrial Relations 33.33 28.57 42.86 57.14 57.14 85.71 85.71 100 61.31 26.50 200.03
34 Rural Insurance, Special sector 33.33 42.86 57.14 57.14 71.43 71.43 71.43 71.43 59.52 14.84 114.31
insurance and Special Schemes
35 Vigilance Activities 50.00 42.86 57.14 71.43 71.43 85.71 85.71 85.71 68.75 17.05 71.42
36 Organization Structure 33.33 28.57 28.57 42.86 57.14 57.14 57.14 57.14 45.24 13.47 71.44
37 Market Scenario in the Industry 50.00 57.14 71.43 71.43 85.71 85.71 85.71 85.71 74.11 14.25 71.42
38 Market Share 50.00 85.71 85.71 85.71 100 100 100 100 88.39 17.05 100
39 Micro and Small Scale Business 0 0 14.29 18.57 28.57 28.57 28.57 42.86 20.18 15.01 NR
Entities
40 Industry Premium Growth 16.67 14.29 28.57 42.86 42.86 42.86 42.86 71.43 37.80 18.20 328.49
41 Contribution to Retail Business 0 0 14.29 14.29 14.29 28.57 28.57 28.57 16.07 11.92 NR
42 Reinsurance 100 100 100 100 100 100 100 100 100 0 0
Contd……………………
118
S.No Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
03 04 05 06 07 08 09 10 change
43 Foreign operations 83.33 71.43 71.43 71.43 85.71 85.71 85.71 85.71 80.06 7.19 2.86
44 Internal Audit 83.33 85.71 85.71 100 85.71 85.71 100 100 90.77 7.68 20.00
45 Name of Statutory Auditors of the 50.00 42.86 42.86 57.14 57.14 57.14 57.14 85.71 56.25 13.46 71.42
company
General/Other Information
46 Company’s Vision/Mission 16.67 28.57 42.86 28.57 42.86 57.14 57.14 71.43 43.16 18.20 328.49
47 Chairman Report 66.67 71.43 71.43 71.43 57.14 42.86 57.14 57.14 61.91 10.18 -14.29
48 Names of board of Directors 100 100 100 100 100 100 100 100 100 0 0
49 Message from the CEO 16.67 14.29 14.29 0 0 14.29 14.29 14.29 11.02 6.85 -14.28
50 Awards and Recognition 50.00 42.86 42.86 42.86 57.14 57.14 42.86 42.86 47.32 6.54 -14.28
51 Notice of AGM 83.33 71.43 71.43 71.43 85.71 85.71 85.71 85.71 80.06 7.19 2.86
52 Bi-Lingual Presentation 83.33 71.43 71.43 57.14 71.43 71.43 71.43 71.43 71.13 7.02 -14.28
53 Glossary 0 0 0 0 0 0 0 0 0 0 0
54 Disclosure through Charts, Graphs 100 85.71 85.71 85.71 85.71 71.43 71.43 85.71 83.93 9.15 -14.29
and Diagrams
55 Acknowledgements 100 100 100 100 100 100 100 100 100 0 0
56 Citizens‘ Charter 33.33 42.86 42.86 42.86 42.86 28.57 28.57 28.57 36.31 7.17 -14.28
57 Contribution to Terrorism Pool 16.67 14.29 0 0 0 0 0 0 3.87 7.19 -100
58 Contribution to Motor Third Party 0 0 0 0 28.57 42.86 71.43 71.43 26.79 31.89 NR
Pool
59 Contribution to Solarium fund 0 0 0 0 0 0 0 0 0 0 0
60 Contribution to Environment Relief 0 0 0 0 0 0 14.29 14.29 3.57 6.61 NR
Fund
61 Plans for Future 66.67 85.71 85.71 85.71 85.71 85.71 85.71 85.71 83.33 6.73 28.56
62 Associate companies 0 0 0 0 0 0 14.29 0 1.79 5.05 NR
63 Information Technology 33.33 57.14 71.43 71.43 85.71 100 100 100 77.38 23.98 200.03
64 Office language implementation 83.33 71.43 71.43 85.71 71.43 85.71 85.71 85.71 80.06 7.19 2.86
65 Corporate Communication 33.33 28.57 28.57 42.86 28.57 14.29 28.57 57.14 32.74 12.58 71.44
119
Table 6.4 Voluntary Disclosure (%) of Private Sector General Insurance Companies
S.No. Description of Item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD % t-value F-value
03 04 05 06 07 08 09 10 change

1 Financial Highlights 62.5 62.5 75.00 75.00 77.78 72.73 72.73 72.73 71.37 5.74 16.37 7.12* 1.57
2 Gross Domestic Premium 100 100 100 100 100 100 100 100 100 0 0 N.A NA
3 Solvency Margins 0 0 12.5 37.5 33.33 54.55 63.64 72.73 34.28 28.25 - 2.84* 3.44
4 Additional Unexpired Risk Reserve 100 100 100 100 100 100 100 100 100 0 0 -0.94 NA
5 Certain Expenses of Management 25.00 25.00 37.5 37.5 33.33 27.27 27.27 36.36 31.15 5.58 45.44 5.76* 19.86**
6 Employee Stock Option Scheme 0 0 0 0 11.11 18.18 18.18 27.27 9.34 10.89 - -1.66 4.65**
7 Financial Consultants 0 0 0 0 0 9.09 0 9.09 2.27 4.21 - -1.43 NA
8 Underwriting results 87.5 100 100 100 100 100 100 100 98.44 4.42 14.29 0.93 NA
9 Net Incurred Claims 100 100 100 100 100 100 100 100 100 0 0 NA NA
10 Class wise performance 62.5 75.0 62.5 75.0 77.78 81.82 90.91 90.91 77.05 10.95 45.46 2.01 169.93*
*
11 Foreign Currency transactions 62.5 75.00 87.5 87.5 77.78 72.73 72.72 72.73 76.06 8.31 16.37 0.25 3.26
12 Taxation Provision 50.0 50.0 87.5 87.5 77.78 72.73 72.73 72.73 71.37 14.54 45.46 1.73 2.20
13 Provision for Claims incurred But 62.5 62.5 75.0 87.5 77.78 72.73 72.73 72.73 72.93 8.09 16.37 0.08 11.09**
Not Reported
14 Detariffing 0 0 25.0 37.5 55.56 54.55 54.55 54.55 35.21 24.28 - -0.26 2.85
15 Salvage/ Claims Recoveries 12.5 25.0 37.5 50.0 44.44 36.36 45.45 45.45 37.09 12.60 263.60 2.13 1.26
16 Staff Welfare Schemes 0 12.5 25.0 25.0 22.22 18.18 36.36 54.55 24.23 16.18 - 7.23* 1.47
17 Training of Employees 0 12.5 37.5 50.0 55.56 54.55 63.64 72.73 43.31 25.24 - 3.82* 4.50**
18 Gender Issues and Empowerment 0 0 0 0 0 0 9.09 9.09 2.27 4.21 - 5.71* 1.41
Contd…………………….
120
03 04 05 06 07 08 09 10 change
19 Sports Activities 0 0 0 0 0 0 0 0 0 0 - 17.02* NA

20 SCs, STs, OBCs, and Ex- 0 0 0 0 0 0 0 0 0 0 - 10.35* NA
Servicemen
21 Customer Service 25.0 37.5 37.5 37.5 44.44 63.64 54.55 63.64 45.47 13.90 154.56 5.62* 1.93
22 Distribution Offices 37.5 37.5 37.5 37.5 44.44 63.64 63.64 90.91 51.58 19.57 142.43 0.21 1.71
23 Corporate Agents 12.5 12.5 12.5 0 11.11 27.27 27.27 45.45 18.58 14.07 263.60 0.48 1.31
24 Riders 0 0 0 0 0 0 0 0 0 0 - NA NA
25 Grievance Redressal 0 0 0 0 11.11 36.36 45.45 81.82 21.84 30.21 - 3.39* 6.63**
26 Techno-Marketing 0 0 0 0 11.11 9.09 9.09 36.36 8.21 12.38 - 1.94 1.84
27 Publicity Activities 0 0 0 0 11.11 9.09 27.27 63.64 13.89 22.22 - 5.22* 1.53
28 Voluntary Retirement Schemes 0 0 0 0 0 0 0 0 0 0 - 20.88* NA
29 Retirement Benefits of Employees 37.5 75.0 75.0 75.0 66.67 54.55 63.64 54.55 62.74 13.30 45.47 3.25* 1.71
30 Business Overview 50.0 75.0 75.0 87.5 77.78 72.73 81.82 81.82 75.21 11.26 63.64 1.53 2.24
31 Product Portfolio 25.0 37.5 37.5 37.5 55.56 54.55 63.64 81.82 49.13 18.28 227.28 1.08 2.34
32 Branch Network 50.0 62.5 62.5 62.5 100 100 100 100 79.69 22.10 100 0.01 3.82**
33 Industrial Relations 0 0 0 0 33.33 18.18 27.27 27.27 13.26 14.75 - 4.19* 3.23
34 Rural Insurance, Special sector 0 12.5 12.5 37.5 44.44 54.55 54.55 72.73 36.10 25.39 - 2.11 2.93
35 Vigilance Activities 0 0 0 0 0 0 0 0 0 0 - 10.67* NA
36 Organization Structure 0 0 0 12.5 11.11 9.09 9.09 18.18 7.50 6.82 - 6.61* 3.90**
37 Market Scenario in the Industry 0 25 37.5 37.5 44.44 36.36 45.45 63.64 36.24 18.31 - 4.32* 1.65
38 Market Share 25 25 25 37.5 55.56 54.55 63.64 72.73 44.87 19.18 190.92 4.49* 1.27
39 Micro and Small Scale Business 0 0 0 0 0 18.18 18.18 18.18 6.82 9.41 - 2.00 2.54
Entities
40 Industry Premium Growth 12.5 50.0 50.0 50.0 44.44 36.36 45.45 63.64 44.05 14.86 409.12 -0.70 1.50
Contd………………..
121
03 04 05 06 07 08 09 10 change
41 Contribution to Retail Business 12.5 25.0 25.0 50.0 44.44 36.36 36.36 45.45 34.39 12.71 263.60 -2.78* 1.14
42 Reinsurance 62.5 87.5 87.5 87.5 88.89 90.91 90.91 90.91 85.83 9.56 45.46 3.92* NA
43 Foreign operations 50.0 50.0 50.0 62.5 55.56 54.55 54.55 63.64 55.10 5.43 27.28 7.33* 1.75
44 Internal Audit 12.5 12.5 12.5 12.5 11.11 18.18 9.09 9.09 12.18 2.84 -27.28 25.39* 7.31**
45 Name of Statutory Auditors of the 0 12.5 12.5 12.5 22.22 18.18 18.18 18.18 14.28 6.78 - 7.37* 3.94**
company
46 Company’s Vision/Mission 62.5 50.0 50.0 50.0 55.56 72.73 81.82 81.82 63.05 13.97 30.91 -2.29* 1.70
47 Chairman Report 12.5 0 0 0 11.11 9.09 9.09 27.27 8.63 9.20 118.16 10.27* 1.22
48 Names of board of Directors 37.5 50.0 50.0 75.0 66.67 72.73 81.82 90.91 65.58 18.21 142.43 5.00* NA
49 Message from the CEO 0 12.5 12.5 12.5 22.22 27.27 27.27 27.27 17.69 9.93 - -1.46 2.10
50 Awards and Recognition 12.5 25.0 25.0 25.0 33.33 36.36 36.36 45.45 29.88 10.08 263.60 3.84* 2.38
51 Notice of AGM 12.5 12.5 12.5 12.5 11.11 9.09 9.09 18.18 12.18 2.84 45.44 23.23* 6.41**
52 Bi-Lingual Presentation 0 0 0 0 0 0 0 0 0 0 - 26.81* NA
53 Glossary 0 0 0 0 11.11 9.09 9.09 27.27 7.07 9.51 - -1.97 NA
54 Disclosure through Charts, Graphs 12.5 12.5 12.5 12.5 33.33 27.27 27.27 45.45 22.92 12.47 263.60 10.44* 1.86
and Diagrams
55 Acknowledgements 12.5 75.0 75.0 75.0 66.67 72.73 72.73 72.73 65.30 21.51 481.84 4.27* NA
56 Citizens‘ Charter 0 0 0 0 0 0 0 0 0 0 - 13.40* NA
57 Contribution to Terrorism Pool 25 50 50 62.5 55.56 54.55 54.55 54.55 50.84 11.14 118.20 -9.37* 2.40
58 Contribution to Motor Third Party 0 0 0 0 11.11 63.64 63.64 63.64 25.25 32.01 - 0.09 1.01
Pool
59 Contribution to Solarium fund 12.5 25 25 50 44.44 45.45 45.45 45.45 36.66 13.76 263.60 -7.05* NA
Contd…………………..
122
Table 6.4 contd……………..
03 04 05 06 07 08 09 10 change
60 Contribution to Environment Relief 0 0 0 25 22.22 27.27 36.36 36.36 18.40 16.03 - -2.26* 5.88**
Fund
61 Plans for Future 50 87.5 87.5 87.5 77.78 63.64 63.64 63.64 72.65 14.36 27.28 1.78 4.55**
62 Associate companies 0 0 0 0 0 0 0 0 0 0 - 0.94 NA
63 Information Technology 25 37.5 37.5 37.5 44.44 36.36 36.36 36.36 36.38 5.32 45.44 4.42* 20.32**
64 Office language implementation 0 0 0 0 0 0 0 0 0 0 - 29.46* NA
65 Corporate Communication 0 12.5 12.5 12.5 22.22 18.18 18.18 45.45 17.69 13.01 - 2.20* 1.07
123
The standard deviation (S.D), which measures the absolute variability of the data is
found to be the highest for item ‘solvency margins (28.25)’followed by detariffing (24.28) and
‘taxation provision (14.54) in private sector companies. Where as the same is high for items
provisions for claims incurred but not reported (26.94); certain expenses of management (24.87)
and taxation provision (21.58) in public sector companies. The lowest standard deviation is 0 in
both the sectors indicating that there is consistency in the disclosure values of such items. There
are four items (gross domestic premium, financial consultants, underwriting results and net
incurred claims) in public sector companies and only three items (gross domestic premium,
additional unexpired risk reserve and net incurred claims) in private sector having the lowest
standard deviation as ‘0’. This shows that there is more variation in the disclosure values of
private sector companies.
The highest percent change in disclosure score during 2009-10 over the 2002-03 is found
to be 263.60 for item ‘salvage’ in private sector but this is the highest (200.03) for item,
provision for claims incurred but not reported in public sector. In public sector there are three
items i.e. provision for claims incurred but not reported (200.03), detariffing (157.11) and
salvage (114.31) having more than 100 percent change in disclosure score but there is only one
such item i.e. salvage (263.60) in private sector companies. Results in percent change over the
year indicate more improvements in disclosure scores of public sector companies as compared to
private sector.
6.2.2 Information on Human Resource and Marketing
This is another important area of disclosure in which various users are interested to take
various strategic decisions. There are14 items under this head. Results given in table 6.3 show
that the highest mean disclosure is 83.63 for item, ‘training of employees’ and there is only one
item, ‘riders’ having ‘0’ disclosure in public sector companies. On the other hand data shows
(Table 6.4) that the highest mean disclosure is 62.74 for item ‘retirement benefits of employees’
and there is 0 disclosure for four items (sports activities, SC’S, ST’S, OBC and Ex-servicemen,
riders and voluntary retirement schemes) in private sector general insurance companies. Data
further reveals that in public sector companies, there are nine items i.e. staff welfare schemes
(81.55), training of employees (83.63), SC’ST’S, OBC’s and ex-serviceman (70.24), customer
service (81.84), distribution offices (54.17), grievance redressal (63.39), publicity activities
(70.24),voluntary retirement schemes (59.82) and retirement benefits to employees (83.33)
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having more than 50 percent disclosure but only two items i.e. distribution offices (51.58) and
retirement benefits of employees (62.74) have more than 50 percent disclosure in private sector.
It reflects that average disclosure for this head is better in public sector companies.
The highest standard deviation is found for item grievance redressal (30.21) in private
sector and for distribution offices (25.27) in public sector. Other items having larger standard
deviation are training of employees (25.24), publicity activities (22.22), distribution offices
(19.57), and staff welfare schemes (16.18) in private companies. In public sector companies,
items having larger S.D. are SC’s, ST’S, OBC’s and ex-servicemen (17.95), publicity activities
(17.95), and techno marketing (16.81). Standard deviation results indicate that there is greater
variability in the disclosure values of private sector companies and public sector companies are
comparatively consistent over the period of study.
As far as percentage change in disclosure score over the year 2002-03 is concerned there
is a mixed trend. The highest percent change in disclosure score is 263.60 for item, corporate
agents in private sector and 242.77 for item, techno marketing in public sector. There is more
than 100 percent growth in disclosure score for four items i.e. SC, ST’S, OBC and ex-
serviceman (157.16), distribution offices (200.03), techno-marketing (242.77) and publicity
activities (157.16) in public sector companies where as only three items, customer service
(154.56), distribution offices (142.43) and corporate agents (263.60) have more than 100 percent
change in disclosure score in private sector companies. One item, gender issues and
empowerment is having negative (-14.28) growth in disclosure score in public sector companies.
6.2.3 Business Specific Information
Business Specific Information is the third important head under the voluntary disclosure
practices. This includes information relating to business overview, product portfolio, branch
network, industrial relations and market share etc. There are 16 items under this head. Data given
in Table 6.3 and 6.4 reveals that there is 100 percent disclosure for item ‘reinsurance’ in case of
public sector and the same item has got 85.83 mean disclosures, which is the highest in private
sector. One item’ vigilance activities’ has got 68.75 percent mean disclosure in public sector but
there is no disclosure (0) for this item in private sector. Further results show that two items
‘reinsurance (100) and ‘internal audit (90.77) have more than 90 percent mean disclosure score
in public sector but none of the item has got such a large disclosure in private sector. Remaining
items have got moderate average disclosure. So the mean results show that disclosure practices
125
regarding business specific information are better in public sector companies against private
sector companies.
The highest standard deviation is for item ‘product portfolio (27.94) followed by
industrial relations (26.50), industry premium growth (18.20) in public sector and it is the highest
for rural insurance, special sector insurance and special schemes (25.39) followed by branch
network (22.10), market share (19.18) and product portfolio (18.28) in private sector. Standard
deviation results shows that there is greater variation in disclosure values of both the sectors.
Percentage change in disclosure score in the year 2009-10 over the year 2002-03 is the
highest for item product portfolio (499.88) in public sector and the highest percentage change is
for industry premium growth (409.12) in private sector. Other items having more than 100
percent change in disclosure score in case of public sector are industrial relations (200.03), rural
insurance, special sector insurance and special schemes (114.31) and industry premium growth
(328.49) and for private sector these are product portfolio (227.28), market share (190.02) and
contribution to retail business (263.60). Private sector is having negative growth for one item
called internal audit (-27.28) but there is positive growth for all items in the public sector.
Results of this head show that there is improvement in disclosure scores of majority of items in
both the sectors.
6.2.4 General Information
Most of the users are interested in general information about the companies, which
includes company’s vision, chairman report, notice of AGM (annual general meeting), disclosure
through charts, graphs and diagrams, plans for future etc. There are 20 items under this head.
Public sector companies are having 100 percent disclosure for two items named ‘names of board
of directors’ and ‘acknowledgments’ depicting that all the public sector companies are disclosing
this information in their annual reports. On the other hand in private sector companies the highest
mean disclosure is 72.65 percent for item, plans for future in private sector companies. There is
no disclosure for 4 items i.e. bi-lingual presentation, citizens’ charter, associate companies and
office language implementation in private sector companies but in public sector these items are
disclosed by bi-lingual presentation (71.13), citizens’ charter (36.31), associate companies (1.79)
and office language implementation (80.06) percent companies. There are only two items i.e.
glossary and contribution to solarium fund having zero disclosure score in public sector. It is
126
clear from the mean results that average disclosure is better in case of public sector companies as
compared to private sector companies.
Greater variation is found for item contribution to motor third party pool in both public
and private sector companies as the value of S.D. is 31.89 and 32.01, respectively. Other items
having larger S.D. in public sector are ‘information technology (23.98), company’s vision
(18.20) and ‘corporate communication (12.58) and in private sector these are acknowledgements
(21.51), contribution to environment relief fund (16.03) and plans for future (14.36). Items
having larger S.D. indicate more variation in the disclosure values over the period of study. For
remaining items there is consistency in disclosure values.
The highest percent change in disclosure score over the year is 481.84 percent for item,
acknowledgements in private sector but it is 328.49 percent for item ‘company’s vision’ in
public sector. In private sector companies there are seven items i.e. chairman report (118.16),
names of board of directors (142.43), awards and recognition (263.60), disclosure through charts,
graphs and diagrams (263.60), acknowledgements (481.84), contribution to terrorism pool
(118.20) and contribution to solarium fund (263.60) having more than 100 percent change in
disclosure score. Only two items i.e. company’s vision (328.49) and information technology
(200.03) are having more than 100 percent changes in disclosure score in public sector. In public
sector, 7 items i.e. chairman report (-14.29), message from the CEO (-14.28), awards and
recognition (-14.28), bilingual presentation (-14.28), disclosure through graphs and charts (-
14.29), citizens charter (-14.28) and contribution to terrorism pool (-100) have negative change
in disclosure score over the year. There is more improvement in disclosure scores of private
sector companies.
6.3 Company Wise Disclosure
With a view to analyze the disclosure practices of general insurance companies on an

individual basis, company-wise disclosure scores are calculated. Company wise disclosure score
is calculated by dividing the actual score of an individual company for a particular year by the
total disclosure score of that year. Company wise mandatory disclosure and voluntary disclosure
has been calculated separately. There are 18 general insurance companies having 7 in public
sector and 11in private sector.
127
6.3.1 Company-Wise Mandatory Disclosure
Company wise mandatory disclosure of general insurance companies given in table 6.5
and figure 6.1, highlights the mean disclosure score, standard deviation and percent change in
disclosure score in 2009-10 over the year in which company started its operations. When overall
results of public and private sectors are compared, The New India Assurance Company Ltd. is on
the top position having the highest mean disclosure of 90.28 percent. Among the private sector
general insurance companies the highest mean disclosure is 78.33 for Bajaj Allianz General
Insurance Co. Ltd. Minimum average disclosure score in public sector is 64.76 for Agriculture
Insurance Company of India Ltd and it is only 28.89 in private sector for two companies i.e. Star
Health and Allied Insurance Co. Ltd and Apollo D.K. Insurance Company Ltd. There is less than
50 percent mean disclosure in three companies Tata AIG General Insurance Company (30.83),
Star health and Allied Insurance Co. Ltd (28.89 ) and Apollo D.K. Insurance Co. Ltd (28.89) in
the private sector indicating that these companies are disclosing less than 50 percent items in
their annual reports. But on the other side all the public sector companies are disclosing more
than 50 percent items in their annual reports. It is evident from the results that there is
comparatively better disclosure in case of public sector companies for mandatory disclosure.
Greater variation is found in the disclosure scores of private sector companies against
public sector companies, as standard deviation is the highest in private sector company, ICICI
Lombard General Insurance Company Ltd (10.95) followed by Reliance General Insurance Co.
Ltd (8.14) and Royal Sundaram Alliance Insurance Co. Ltd (7.61). Among public sector
companies, The Oriental Insurance Co. Ltd (8.10) has the highest standard deviation followed by
National Insurance Co. Ltd (7.55) and United India Insurance Co. Ltd (5.04).The companies
having higher standard deviation indicate that there is greater variability in the disclosure scores
of these companies.
128
Table 6.5 Company-Wise Mandatory Disclosure (%) of General Insurance Companies
S Name of Company 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
No. 03 04 05 06 07 08 09 10 change
Public Sector Companies
1 General Insurance Corporation of india 71.11 73.33 75.56 75.56 75.56 80.00 80.00 80.00 76.39 3.35 12.50
2 The Oriental Insurance Co. Ltd. 64.44 71.11 80.00 82.22 82.22 82.22 86.67 88.89 79.72 8.10 37.94
3 The New India Assurance Co. Ltd. 84.44 86.67 86.67 88.89 88.89 95.56 95.56 95.56 90.28 4.59 13.17
4 National Insurance Co. Ltd. 64.44 71.11 75.56 80.00 80.00 82.22 82.22 88.89 78.06 7.55 37.94
5 United India Insurance Co. Ltd. 73.33 75.56 75.56 77.78 82.22 84.44 84.44 86.67 80.00 5.04 18.19
6 Export Credit Guarantee Corporation Ltd. 73.33 75.56 75.56 75.56 77.78 82.22 84.44 86.67 78.89 4.90 18.19
7 Agriculture Insurance Co. of India Ltd.* - 60.00 62.22 60.00 66.67 66.67 64.44 73.33 64.76 4.70 22.22
Private Sector Companies
8 Royal Sundaram Alliance Insurance Co. Ltd. 64.44 64.44 64.44 80.00 75.56 77.78 77.78 82.22 73.33 7.61 27.59
9 Reliance general Insurance Co. Ltd. 55.56 55.56 62.22 64.44 66.67 64.44 75.56 77.78 65.28 8.14 39.99
10 IFFCO TOKIO General Insurance Co. Ltd. 64.44 73.33 75.56 75.56 77.78 80.00 80.00 82.22 76.11 5.54 27.59
11 Tata AIG General Insurance Co. Ltd. 28.89 31.11 31.11 31.11 31.11 31.11 31.11 31.11 30.83 0.79 7.68
12 Bajaj Allianz General Insurance Co. Ltd. 73.33 75.56 77.78 77.78 80.00 82.22 80.00 80.00 78.33 2.85 9.10
13 ICICI Lombard General Insurance Co. Ltd. 44.44 62.22 71.11 71.11 73.33 75.56 75.56 77.78 68.89 10.95 75.02
14 HDFC-Chubb General Insurance Co. Ltd. 68.89 71.11 71.11 71.11 73.33 75.56 75.56 80.00 73.33 3.56 16.13
15 Cholamadlam MS General Insurance Co. Ltd. 60.00 64.44 64.44 66.67 66.67 66.67 66.67 68.89 65.56 2.66 14.82
16 Star Health and Allied Insurance Co. Ltd.** - - - - 28.89 28.89 28.89 28.89 28.89 0.00 0.00
17 Future Generali India Insurance Co. Ltd.*** - - - - - 75.56 75.56 75.56 75.56 0.00 0.00
18 Apollo D.K.Insurance Co. Ltd.*** - - - - - 28.89 28.89 28.89 28.89 0.00 0.00
*Started its operations in 2003-04, ** Started its operations in 2006-07, *** Started its operations in 2007-08
129
As far as change in disclosure score over the period of study is concerned, ICICI
Lombard General Insurance Co. Ltd has got the highest percent change (75.02) in disclosure
score. All other companies are having less than 50 percent change in disclosure score. Minimum
percent growth is only 7.68 percent for Tata AIG General Insurance Co. Ltd. in private sector
companies.
Overall company-wise results highlight that public sector companies are disclosing more
items than private sector companies. Greater variation is found in the disclosure scores of private
sector companies. There is more improvement in the disclosure practices of private sector
companies against public sector companies.
6.3.2 Company-Wise Voluntary Disclosure
Table 6.6 and figure 6.1 highlights the results of voluntary disclosure of public and
private sector general insurance companies. To interpret the results mean disclosure scores,
standard deviation value and percentage change in the year 2009-10 over the initial year of the
company are calculated. Results show that the highest mean disclosure is for New India
Assurance Co. Ltd (74.62) in public sector and for IFFCO TOKIO General Insurance Co. Ltd
(51.92) in private sector. Least mean disclosure value is 40.00 for Agriculture Insurance Co. of
India Ltd in public sector and11.35 for Tata AIG general Insurance Co’ Ltd in private sector.
Mean disclosure values show that public sector companies are taking the lead in voluntary
disclosure.
In private sector, the maximum S.D. is 19.19 for ICICI Lombard General Insurance
Co.Ltd. In public sector companies it is for ‘Export Credit Guarantee Corporation Ltd (15.07)’.
Other companies having higher standard deviation in private sector are HDFC-Chubb General
Insurance Co. Ltd (15.45), Reliance General Insurance Co. Ltd (14.15), Royal Sundaram
Alliance Insurance Co. Ltd (13.44) and Cholamandlam MS General Insurance Co. Ltd
(11.99).Hence greater variation is found in the disclosure values of private sector companies.
And other public companies having larger standard deviation values are Oriental Insurance Co.
Ltd (14.44) and National Insurance Co. Ltd (10.88). There is comparatively less volatility in the
disclosure values of public sector companies.
There is a great improvement over the period of study in the voluntary disclosure
practices of both the sectors. Data reveals that overall highest percentage change over the initial
130
year of the company is found in Reliance General Insurance Co. Ltd. (357.10) in private sector
and the lowest percentage change is for General Insurance Corporation of India (21.21) in public
sector. Among the public sector companies highest growth in disclosure score is found in case of
Export Credit Guarantee Corporation Ltd (159.97).In case of private sector companies out of
total eleven companies six are getting more than 100 percent change in disclosure score. These
are Reliance General Insurance Co. Ltd (357.10), Cholamandlam MS General Insurance Co Ltd
(266.57),ICICI Lombard general Insurance Co. Ltd (261.55), Royal Sundardam General
Insurance Co. Ltd (233.37),HDFC-Chubb General Insurance Co. Ltd (176.52) and Tata AIG
General Insurance Co. Ltd (100.16).But in public sector out of total seven companies there are
three companies i.e. ECGC Ltd (159.97), Agriculture Insurance Co. of India Ltd (157.10)and
Oriental Insurance Co. Ltd (112.01) having more than 100 percent change in disclosure score.
6.4 Area-Wise Disclosure
Total items have been grouped into 8 important areas i.e. statutory disclosure as per
IRDA, directors’ report, balance sheet abstract, disclosure as per accounting standards,
accounting and finance, human resource and marketing, business specific information and
general information. First four areas are related to mandatory disclosure and remaining four to
voluntary disclosure items. Area-wise disclosure results of public and private sector general
insurance companies are shown in the figure 6.2 and table 6.7 & 6.8, respectively.
6.4.1 Public Sector General Insurance Companies
A cursory look at the table 6.7 reflects that there is the highest mean disclosure for
statutory disclosure as per IRDA (92.26) in case of public sector general insurance companies. It
indicates that majority of the public sector companies in the general insurance sector are showing
statutory information required by IRDA. Business specific information has got the lowest mean
disclosure score i.e. 47.22, indicating that only 47.22 percent companies were showing
information relating to this area. All the other six areas have got more than 50 percent mean
disclosure scores. When we compare the values of standard deviation given in table 6.7 highest
variation is found in the disclosure scores of business specific information ( 13.21) followed by
disclosure as per accounting standards (12.97).Table further highlights that there is complete
consistency in the disclosure of balance sheet abstract, as there is zero standard deviation for this
area. Data reveals (Table 6.7) that disclosure as per accounting standards (86.82) have
recorded
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Table 6.6 Company-Wise Voluntary Disclosure (%) of General Insurance Companies
S. Name of Company 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
No. 03 04 05 06 07 08 09 10 change
Public Sector Companies
1 General Insurance Corporation of India 50.77 50.77 50.77 50.77 50.77 52.31 52.31 61.54 52.50 3.72 21.21
2 The Oriental Insurance Co. Ltd. 38.46 49.23 61.54 67.69 72.31 72.31 75.38 81.54 64.81 14.44 112.01
3 The New India Assurance Co. Ltd. 67.69 72.31 73.85 70.77 70.77 73.85 83.08 84.62 74.62 6.05 25.01
4 National Insurance Co. Ltd. 41.54 50.77 64.62 66.15 66.15 67.69 67.69 75.38 62.50 10.88 81.46
5 United India Insurance Co. Ltd. 55.38 61.54 61.54 69.23 75.38 72.31 73.85 73.85 67.89 7.42 33.35
6 Export Credit Guarantee Corporation Ltd. 23.08 26.15 35.38 35.38 47.69 56.92 60.00 60.00 43.08 15.07 159.97
7 Agriculture Insurance Co. of India Ltd. -- 21.54 38.46 40.00 38.46 41.54 44.62 55.38 40.00 10.05 157.10
Private Sector Companies

8 Royal Sundaram Alliance Insurance Co. Ltd. 18.46 30.77 36.92 38.46 47.96 49.23 50.77 61.54 41.76 13.44 233.37
9 Reliance general Insurance Co. Ltd. 10.77 15.38 18.46 18.46 24.62 33.85 44.62 49.23 26.92 14.15 357.10
10 IFFCO TOKIO General Insurance Co. Ltd. 38.46 49.23 50.77 50.77 52.30 53.85 56.92 63.08 51.92 7.02 64.01
11 Tata AIG General Insurance Co. Ltd. 6.15 10.77 12.31 12.31 12.31 12.31 12.31 12.31 11.35 2.17 100.16
12 Bajaj Allianz General Insurance Co. Ltd. 41.54 43.08 43.08 49.23 50.77 56.92 56.92 66.15 50.96 8.60 59.24
13 ICICI Lombard General Insurance Co. Ltd. 20.00 32.31 30.77 41.54 60.00 60.00 66.15 72.31 47.89 19.18 261.55
14 HDFC-Chubb General Insurance Co. Ltd. 26.15 26.15 29.23 36.92 38.46 40.00 50.77 72.31 40.00 15.45 176.52
15 Cholamadlam MS General Insurance Co. Ltd. 13.85 29.23 36.92 43.08 43.08 46.15 46.15 50.77 38.65 11.99 266.57
16 Star Health and Allied Insurance Co. Ltd. - - - - 20.00 21.54 21.54 21.54 21.16 0.77 7.70
17 Future Generali India Insurance Co. Ltd. - - - - - 47.96 41.54 49.23 46.24 4.12 2.65
18 Apollo D.K.Insurance Co. Ltd. - - - - - 21.54 21.54 21.54 21.54 0.00 0.00
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Table 6.7 Area-Wise Disclosure (%) of Public Sector General Insurance Companies
S. No. Area 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009 Mean SD %
03 04 05 06 07 08 09 -10 change
1 Statutory disclosure as per IRDA 89.29 92.26 91.07 92.86 94.05 94.05 95.24 89.29 92.26 2.23 0
2 Director’s report 51.67 55.71 61.43 68.57 68.57 71.43 71.43 78.57 65.92 8.96 52.06
3 Balance sheet abstract 60 60 60 60 60 60 60 60 60.00 0 0
4 Disclosure as per accounting standards 43.33 52.38 52.38 54.76 64.29 71.43 73.81 80.95 61.67 12.97 86.82
5 Accounting and finance 56.67 56.19 72.38 74.28 75.24 76.19 76.19 79.05 70.77 9.05 39.49
6 Human resource and marketing 39.29 42.86 47.96 51.02 53.06 56.12 63.26 67.96 52.69 9.70 72.97
7 Business specific information 45.83 47.32 57.14 63.66 69.64 73.21 75.00 82.14 64.24 13.21 79.23
8 General/other information 44.17 44.29 45.00 44.29 47.14 47.86 51.43 53.57 47.22 3.58 21.28
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Table 6.8 Area-Wise Disclosure (%) of Private Sector General Insurance Companies
S. Area 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD % t- value F-value
No. 03 04 05 06 07 08 09 10 change
1 Statutory disclosure as per IRDA 79.69 82.29 85.94 85.94 81.95 79.93 80.68 80.68 82.14 2.51 1.24 7.97* 1.27
2 Director’s report 31.25 33.75 33.75 33.75 33.33 32.73 32.73 36.36 33.46 1.45 16.35 9.46* 38.18**
3 Balance sheet abstract 20.00 35.00 40.00 47.50 42.22 36.36 38.18 40.00 37.41 8.01 100 7.46* NA
4 Disclosure as per accounting 47.92 54.17 58.33 66.67 61.11 65.15 68.18 71.21 61.59 7.81 48.60 0.01 2.76
standards
5 Accounting and finance 48.33 51.67 60.00 65.00 64.44 64.85 66.06 68.49 61.11 7.30 41.71 2.20* 1.54
6 Human resource and marketing 8.04 13.39 16.07 16.07 19.84 24.03 28.57 40.91 20.87 10.27 408.83 5.96* 1.17
7 Business specific information 18.75 29.69 30.47 36.72 43.06 42.05 44.89 51.71 37.17 10.49 175.79 4.25* 1.51
8 General/other information 13.75 22.50 22.50 26.88 29.44 32.27 33.64 39.09 27.51 7.91 184.29 6.01* 4.88**
135
136
the highest percentage change in disclosure scores in the year 2009-10 over the period of
study and there is no change in the disclosure scores of balance sheet abstract and statutory
disclosure as per IRDA.
6.4.2 Private Sector General Insurance Companies
In case of private sector general insurance companies again maximum disclosure is

found in area statutory disclosure as per IRDA (82.14) and only 20.87 companies are
showing information relating to human resource and marketing (Table 6.8). Two other
areas i.e. disclosure as per accounting standards (61.59) and accounting and finance (61.11)
are disclosed by more than 50 percent companies in their annual reports. For remaining
areas mean disclosure score is less than 50 percent. Great variation is found in the
disclosure values of business specific information (10.49) and human resource and
marketing (10.27).Standard deviation is the lowest for directors report (1.45) so there is less
variation in the disclosure values.
Three areas have got more than 100 percent change in disclosure scores; these are
human resource and marketing (408.83), general information (184.29) and business specific
information (175.79). But there is only 1.24 percent change in disclosure score of statutory
disclosure as per IRDA.
Overall area-wise results reveal that areas concerned with mandatory items have
better disclosure scores than areas which are concerned with voluntary items in both public
and private sector companies. It shows that companies are disclosing less voluntary
information as evidenced by (Ubha, 1999), (Singh, 2005) and (Riaz etal, 2006).
6.5 Comparative Analysis of Financial Reporting - Public and Private Sector
6.5.1 Comparison of item-wise mandatory disclosure
Results of comparative analysis of financial reporting practices of public and private

sector general insurance companies are given in table 6.2. A look at the table shows that t-
value is significant for 27 and insignificant for 10 out of 45 items. For 8 items‘t’-test is not
applicable as the value of standard deviation is zero. F- test applied to check the difference
in variation of items of disclosure is not applicable on 29 items of disclosure. There is
significant variation in the disclosure values of 6 items and insignificant variation is found
in the disclosure values of 10 items.
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Detailed analysis of the table 6.2 reveals that out of 24 items under the head
statutory disclosure as per IRDA the significant difference exists in mean disclosure scores
of 14 items. So, the null hypotheses i.e. ‘There is no significant difference in the mean
disclosure score of an item in the public and private sector general insurance companies’
has been rejected for these items. These items are, significant accounting policies, notes to
accounts, auditors report, management report, contingent liabilities, summary of financial
statements of last five years, sector wise details of policies issued, employee benefit plans,
allocation of income and expenditure, managerial remuneration, premium deficiency,
performance of social sector schemes of last five years, commitment in respect of loans and
investments, and shareholders and policyholders funds. This null hypothesis has been
accepted for 5 items i.e. receipts and payments account, claim settlement and age wise
analysis, accounting and performance ratios, basis of allocation of investment and
certificate as per schedule C, as there is insignificant difference between the mean
disclosure scores. There are five such items on which t test is not applicable as the value of
S.D. is zero for these items. Table 6.2 further shows that calculated value of F is more than
the tabulated value of F for three items called summary of financial statements of last five
years, employee benefit plans and performance of social sector schemes for last five years.
So the null Ho2 i.e. ‘There is no significant difference in the variation of items of disclosure
in the public and private sector general insurance companies’ is rejected for these three
items. The same null hypotheses has been accepted for 4 items as the calculated value of F
is less than the tabulated value of F. Name of items for which null Ho2 is accepted are claim
settlement and age wise analysis, allocation of income and expenditure, certificate as per
schedule C and premium deficiency. F-test is not applicable on remaining 17 items under
this head.
Under the head, directors report, t value is significant for 7 items .So the null
hypotheses, Ho1 ‘There is no significant difference in the mean disclosure score of an item
in the public and private sector general insurance companies’ is rejected for these 7 items
i.e. addendum to directors report, compliance with section 40C, additional information
disclosure( disclosure rules 1988), adoption of accounts by shareholders, submission of
accounts before parliament, subsidiary companies and Right to Information Act 2005. For
all these 7 items there is better mean disclosure in case of public sector companies. Two
items directors’ responsibility statement and corporate governance report are having non-
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significant t-values, so the null hypotheses has been accepted for these 2 items. This test is
not applicable on one item i.e. particulars of employees as the mean disclosure score in
both the sectors is 100 percent. Results of F value show that under the head directors’
report, null hypotheses i.e. ‘Ho2 - There is no significant difference in the variation of items
of disclosure in the public and private sector general insurance companies’ is rejected for 3
items as the calculated value of F is more than its tabulated value. Items for which null Ho2
is rejected are compliance with section 40C, corporate governance report and Right to
Information Act 2005.Data further depicts that Ho2 has been accepted for item subsidiary
companies as there is no significant difference in variation of the disclosure values. F test is
not applicable on six items i.e. particulars of employees, addendum to directors report,
directors’ responsibility, additional information disclosure, adoption of accounts by
shareholders and submission of accounts before parliament.
The head i.e. balance sheet abstract includes 5 items. Out of these
null hypotheses has been rejected for 4 items, as calculated value of t is more than the
tabulated value of t for these four items. The items having significant difference in mean
values and also higher mean values in public sector are registration details, position of
mobilization and deployment of funds and performance of the company. But private sector
companies are getting better mean disclosure in case of one item i.e. capital raised during
the year. This test is not applicable on one item i.e. services of the company as mean
disclosure score for this item in both the sectors is zero. F -test is not applicable on all the
items under this head.
Last head i.e. disclosure as per accounting standards under the mandatory disclosure
includes 6 items. There is significant difference in the mean disclosure scores of only 2
items called leases as per AS-19 and EPS as per AS-20.So the null hypotheses has been
rejected for these two items. Three items are having insignificant difference in the mean
disclosure values, hence the hypotheses Ho1 has been accepted for these items named as
employee benefits as per AS- 15, segment reporting as per AS-17 and deferred tax liability
as per AS-22.This test is not applicable on item, related party disclosure as value of S.D. for
both the sectors is zero for this item. Data reveals that null Ho2 is accepted for five items
called employee benefits as per AS-15, segment reporting as per AS-17, leases as per AS-
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19, EPS as per AS-20 and deferred tax liability as per AS-22. F-test is not applicable on one
item called related party disclosure.
Comparative analysis of disclosure practices of public and private sector

reveal that overall public sector companies are following better disclosure practices than
private sector companies. (Chander, 1992), (Rao and Samra, 1997) and (Singh, 2005) have
also given the same results.
6.5.2 Comparison of item-wise Voluntary Disclosure
A cursory look at the table 6.4 reveals that out of the 65 items, there is a
significant difference in the mean disclosure of 38 items as the calculated value of ‘t’ is
more than the tabulated value of ‘t’ for all these 38 items. Out of 38 items having
significant difference in the disclosure scores of public and private sector general insurance
companies, mean disclosure score for 33 items is greater in case of public sector companies
as compared to private ones whereas there are only 5 items for which mean disclosure
values are more in case of private companies.There is insignificant difference in the
disclosure scores of public and private sector for 24 items in general insurance companies.
This test is not applicable on remaining 3 items.
There are total fifteen items under the head information on accounting and finance
and out of these there is significant difference in disclosure scores of public and private
sector insurance companies for only 3 items i.e. financial highlights, solvency margins and
certain expenses of management. So the null hypothesis i.e. Ho1- ‘There is no significant
difference in the mean disclosure score of an item in the public and private sector general
insurance companies’ is rejected for these items. For all these three items there is better
mean disclosure score in case of public companies. The null hypothesis has been accepted
for 10 items of disclosure as the tabulated value of t is less than the calculated value of ‘t’
for these ten items. Detail of items having insignificant difference in the mean disclosure
scores of public and private sector general insurance companies is additional unexpired risk
reserve, employee stock option scheme, financial consultants, underwriting results, class
wise performance, foreign currency transactions, taxation provision, provision for claims
incurred but not reported, detariffing and salvage. This test is not applicable on two items
i.e. gross domestic premium and net incurred claims, as the value of standard deviation is
zero in these items and there is 100 percent mean disclosure for both the items. Results of
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F-test show that there is significant difference in the variation of items of disclosure in the
public and private sector general insurance companies for 4 items under this head. So the
null hypothesis i.e. Ho2 - There is no significant difference in the variation in the of items
of disclosure public and private sector general insurance companies is rejected for items
called certain expenses of management, employee stock option scheme, class wise
performance and provision for claims incurred but not reported. Insignificant difference is
found in the variation of items of disclosure in case of 6 items, so the null hypothesis i.e.
Ho2 has been accepted for these 6 items. The name of items is financial highlights,
solvency margins, foreign currency transactions, taxation provision, detariffing and
salvage. F-test is not applicable on remaining 5 items of disclosure under this head.
Second head information on human resource and marketing consists of

fourteen items. Results of t-value show that there is significant difference in the mean
disclosure scores of public and private sector general insurance companies for 10 items, so
the null hypothesis i.e. Ho1 has been rejected for these items. Detail of these items is staff
welfare schemes, training of employees, gender issues and empowerment, sports activities,
Scs, Sts, OBCs, ex-servicemen, customer service, grievance redressal, publicity activities,
voluntary retirement schemes and retirement benefits of employees. There is insignificant
difference in the disclosure scores of three items i.e. distribution offices, corporate agents
and techno marketing, so the null hypothesis is accepted for these three items. As there is
zero mean disclosure for both public and private sector companies for one item ‘riders’ t-
test is not applicable on this item. Further results of F-test highlight that significant
difference is found in the variation of items of disclosure for 2 items called training of
employees and grievance redressal. So the null hypothesis Ho2 has been rejected for these
two items. But there is no significant difference in the variation of items of disclosure for 8
items, so the null hypothesis Ho2 has been accepted for these items. Detail of items is staff
welfare schemes, gender issues and empowerment, customer service, distribution offices,
corporate agents, techno marketing, publicity activities and retirement benefits of
employees. On remaining 4 items F-test is not applicable.
There are sixteen items under business specific information, out of which
null hypotheses i.e. Ho1 is rejected for 10 items as calculated value of t is more than the
tabulated value of t for these items. Out of these 10 items, mean disclosure score is better in
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case of public sector companies as compared to private sector companies for the following
9 items i.e. Industrial relations, vigilance activities, organization structure, market scenario
in the industry, market share, reinsurance, foreign operations, internal audit and name of
statutory auditors of the company. And for one item ‘contribution to retail business’ mean
disclosure score is better for private sector companies as compared to public sector
companies. The null hypotheses Ho2 is accepted for remaining 6 items as there is
insignificant difference in the mean disclosure scores of public and private sector
companies. The names of these items are business overview, product portfolio, branch
network, rural insurance, special sector insurance and special schemes, micro and small
scale business entities and industry premium growth. Results of F-test given in Table 6.4
depict that there is significant difference in the variation of items of disclosure for 4 items
called branch network, organization structure, internal audit and name of statutory auditors
of the company. So, the null hypothesis Ho2 has been rejected for these items. But
insignificant difference is found in the variation of items of disclosure for 10 items under
this head i.e. business overview, product portfolio, industrial relations, rural insurance,
market scenario in the industry, market share, micro and small scale business entities,
industry premium growth, contribution to retail business and foreign operations. F-test is
not applicable on remaining 2 items.
The last head under voluntary disclosure called general information consists
of 20 items. Out of which, the null hypotheses i.e. Ho1 has been rejected for 15 items as the
calculated value of t is more than the tabulated value of t for these fifteen items. These 15
items includes 4 such items (company’s vision, contribution to terrorism pool, contribution
to Solarium fund and contribution to environment relief fund) in which mean disclosure
score of private companies is better as against public companies where as for remaining 11
items (chairman report, names of board of directors, awards and recognition, notice of
AGM, bi-lingual presentation, disclosure through charts graphs and diagrams,
acknowledgements, citizens’ charter, information technology, office language
implementation and corporate communication) it is better for public sector companies. Null
hypotheses i.e. Ho1 has been accepted for other 5 items, as there is insignificant difference
in the mean disclosure values of both the sectors. Details of these items are message from
the CEO, glossary, contribution to motor third party pool, plans for future and associate
companies. Results of F-test show that there is significant difference in the variation of
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items of disclosure for four items called notice of AGM; contribution to environment relief
fund; plans for future and information technology. So the null hypothesis Ho2 has been
rejected for these 4 items. But the same null hypothesis has been accepted for 8 items as
there is no significant difference in the variation of items of disclosure of these items. There
are remaining 8 items on which F-test is not applicable.
6.5.3 Comparative Analysis of Area Wise Disclosure
Comparative analysis of area-wise disclosure of public and private sector general

insurance companies is given in Table 6.8. To compare the area-wise disclosure practices
of public and private sector general insurance companies, following null hypothesis have
been formulated:
Ho1-There is no significant difference between area-wise mean disclosure scores of public

and private sector general insurance companies.
Ho2-There is no significant difference in the variation of disclosure of different areas of

To test Ho1, students ’t’-test has been applied and for testing Ho2 F-test has been
applied.
Detailed analysis of the results of t-values reveal that significant difference is found
in the mean disclosure scores of seven areas i.e. accounting and finance, human resource
and accounting, business specific information, general information, directors report,
balance sheet abstract and statutory disclosure as per IRDA(Table 6.8). For all the 7 areas
having significant difference, there is better mean disclosure in case of public sector
companies. So, the null hypothesis Ho1 has been rejected for these areas. Null hypothesis
Ho1 has been accepted for only one area called disclosure as per accounting standards as
insignificant difference exists between the mean disclosure values of this area. Results of F-
test show that significant difference is found in the variation of disclosure scores of only 2
areas i.e. directors report and general information (Table 6.8). So, the null hypothesis Ho2
has been rejected for these two areas. There is insignificant difference in the variation of
disclosure scores of 5 areas, so the null hypothesis Ho2 has been accepted for these items.
There is one area i.e. balance sheet abstract on which this test is not applicable.
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6.6 Comparison of Life and General Insurance Sector
Disclosure practices followed by life and general insurance companies irrespective

of their grouping into public and private sector companies are discussed in this section.
Analysis has been done by taking combined means and combined standard deviation of
both the sectors.
6.6.1 Item wise Mandatory Disclosure
Results of item-wise mandatory disclosure scores of life and general insurance

companies are given in table 6.9 and 6.10, respectively.
6.6.1.1 Statutory Disclosure as Per IRDA
There are 24 items under this head. Table 6.10 highlights that all the insurance
companies in the general insurance sector are disclosing information relating to 5 items i.e.
balance sheet, revenue account, profit and loss account, schedules forming part of financial
statements, and encumbrances on assets. But it is evident from Table 6.9 that there is 100
percent disclosure for only 4 items i.e. balance sheet, revenue account, profit and loss
account and schedules forming part of financial statements in the life insurance sector. Data
further reveals that there is more than 90 percent disclosure for 5 items i.e. receipts and
payments account (99.11), auditors report (92.19), sector-wise details of policies issued
(94.63), accounting and performance ratios (97.38) and basis of allocation of investment
(99.17) in general insurance sector and for 3 items in life insurance sector i.e. receipts and
payments account (90.69), accounting and performance ratios (93.92) and shareholders and
policyholders fund (93.78). Other items are having moderate disclosure in both the sectors.
Hence mean results indicate that general insurance sector is leading in disclosing statutory
information as per IRDA.
The highest(17.08) variation in disclosure scores in life insurance sector is

for certificate as per schedule C (Table 6.9) and in general insurance sector it is the
highest(14.28) for claim settlement and age wise analysis (Table 6.10). Other items having
larger standard deviation in life insurance sector are summary of financial statements of last
five years (16.34), claim settlement and age wise analysis (12.22), sector-wise details of
policies issued (13.97), encumbrances on assets (11.97), employee benefit plans (11.88)
and allocation of income and expenditure (11.52). But comparatively less standard
144
deviation values of general sector are indicating that there is consistency in the disclosure
scores of general insurance sector.
There is only one item, certificate as per schedule C (211.10) having more than 100
percent change in disclosure score in the year 2009-10 over the year 2002-03 in general
insurance sector (Table 6.10). On the other hand two items having more than 100 percent
change in disclosure score in case of life insurance sector (Table 6.9) are summary of
financial statements of last five years (158.88) and Certificate as per schedule C (103.91)
Over all results of statutory disclosure as per IRDA indicate that there is better
disclosure in general insurance sector. More variation is found in the disclosure scores of
life insurance sector and also there is more improvement in the disclosure score of life
insurance sector in the year 2009-10 over the year 2002-03.
6.6.1.2 Director’s Report
All the companies in the general insurance sector are disclosing information relating
to particulars of employees (Table 6.10) but in life insurance sector only 78.13 percent
companies are disclosing this information in their annual reports (Table 6.9). Director’s
responsibility statement is disclosed by 99.11 percent general insurance companies and
52.02 percent life insurance companies. Four items i.e. addendum to directors’ report,
adoption of accounts by shareholders, submission of accounts before parliament, and
subsidiary companies are disclosed by 19.07 percent, 11.13 percent, 25.73 percent, and
34.15 percent general insurance companies, respectively. But there is no disclosure
regarding these items in life insurance sector. Corporate governance report is given by
36.44 percent general insurance companies and 33.18 percent life insurance companies.
Mean results of this head indicate that there is better disclosure in general insurance sector
than life insurance sector.
Standard deviation results of general insurance companies show that the highest
variation is found in the disclosure score of item corporate governance report (20.97)
followed by right to information act (7.91). In life insurance sector greater variation is
found in the disclosure scores of additional information disclosure (17.67) followed by
directors’ responsibility statement (16.17) and Right to Information Act
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(15.63).Comparatively more variation is found in the disclosure scores of general insurance
companies.
Percent change in disclosure score in 2009-10 over 2002-03 is the highest for item
additional information disclosure (293.91) in life insurance sector. Other items having more
than 100 percent change in disclosure score are directors’ responsibility statement (140.64)
and corporate governance report (250.14). The highest growth in disclosure score in general
insurance sector is 211.03 percent for addendum to directors’ report. More percent change
in disclosure score is found in life insurance sector as compared to general insurance sector.
6.6.1.3 Balance Sheet Abstract
There are five items under this head. More than 50 percent general insurance
companies are disclosing information for three items i.e. registration details (80.75),
position of mobilization and deployment of funds (75.77), and performance of the company
(71.19) whereas none of the item has got more than 50 percent disclosure in life insurance
sector (Table6.9& 6.10). The highest disclosure in life sector is only 35.74 percent for
registration details. Mean disclosure results show that there is better disclosure in case of
general insurance sector.
The highest standard deviation is for performance of the company (18.30) in life
insurance sector and 8.79 for position of mobilization and deployment of funds in general
insurance sector. Other items having higher standard deviation values in life insurance
sector are registration details (14.86), services of the company (12.05) and position of
mobilization and deployment of funds (13.55). There is more variation in the disclosure
scores of items covered under this area in life insurance sector.
There is more than 100 percent change in disclosure score in life insurance
sector (Table 6.9) for two items i.e. registration details (250.14) and position of
mobilization and deployment of funds (206.37). But in general insurance sector, the highest
change in disclosure score is only 36.12 percent for position of mobilization and
deployment of funds. So, there is more growth in the disclosure in the year 2009-10 over
the year 2002-03 of life insurance sector as general insurance sector is having good scores
even in the initial year.
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6.6.1.4 Disclosure as per Accounting Standards Issued By ICAI
All the companies in general insurance sector are giving information on related
party disclosure as per AS-18 (Table 6.10) and in life insurance sector, 98.21 percent
companies are providing information on this item (Table 6.9). In general insurance sector
89.49 percent companies are disclosing information on segment reporting as per AS-17 but
98.21 percent companies in life sector are providing this information .There is more than 50
percent disclosure for other two items i.e. EPS as per AS-20 (60.14) and deferred tax
liability as per AS-22 (69.94) in case of general insurance companies but there is 49.29
percent and 41.94 percent disclosure respectively for these items in case of life insurance
sector. There is moderate disclosure for other two items in both the sectors.
The highest standard deviation is for employee benefits as per AS-15 (32.69)
followed by EPS as per AS-20 (15.01) and deferred tax liability as per AS-22 (10.55) in
general insurance sector, whereas in life insurance sector the highest standard deviation is
30.51 for EPS as per AS-20 followed by employee benefits as per AS-15(29.49), deferred
tax liability (21.14) and lease as per AS-19(16.32). Other items in life insurance sector are
having less standard deviation values indicating that there is less variation in the disclosure
scores of life insurance sector. More variation is found in the disclosure scores of life
insurance companies.
The highest percent change in disclosure score in the year 2009-10 over 2002-03 is
for employee benefits (988.91) in general insurance sector and for EPS (512.74) in life
147
Table 6.9 Mandatory Disclosure (%) of Life Insurance Companies
S.No. Description of item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
03 04 05 06 07 08 09 10 change
1 Balance sheet 100 100 100 100 100 100 100 100 100 0 0
2 Revenue account 100 100 100 100 100 100 100 100 100 0 0
3 Profit and loss account 100 100 100 100 100 100 100 100 100 0 0
4 Schedules forming part of financial 100 100 100 100 100 100 100 100 100 0 0
statements
5 Significant accounting policies 62.50 62.50 66.67 60.00 81.25 82.35 88.24 88.24 73.97 12.20 41.18
6 Notes to accounts 62.50 62.50 66.67 60.00 81.25 82.35 88.24 88.24 73.97 12.20 41.18
7 Receipts and payments account 75.00 75.00 88.89 86.66 100 100 100 100 90.69 11.07 33.33
8 Auditors report 87.50 87.50 77.78 80.00 93.75 94.12 94.12 94.12 88.61 6.67 7.57
9 Management report 62.50 62.50 66.67 73.33 87.50 94.12 94.12 100.0 80.09 15.54 60.00
0
10 Contingent Liabilities 50.00 50.00 55.56 60.00 68.75 64.71 76.47 76.47 62.74 10.70 52.93
11 Claim Settlement and Age wise 50.00 50.00 66.67 60.00 62.50 76.47 76.47 82.35 65.56 12.22 64.70
Analysis
12 Summary of Financial Statements of 25.00 25.00 33.33 19.99 31.25 35.29 58.82 64.71 36.67 16.34 158.88
last five years
13 Sector wise Details of Policies Issued 62.50 62.50 88.89 80.00 93.75 94.12 94.12 94.12 83.75 13.97 50.59
14 Employee Benefit Plans 50.00 50.00 44.44 53.33 62.50 70.59 70.59 76.47 59.74 11.88 52.93
15 Allocation of Income and 62.50 62.50 66.67 73.33 87.50 88.24 88.24 82.35 76.42 11.52 31.77
Expenditure
16 Managerial Remuneration 62.50 62.50 66.67 66.66 81.25 82.35 82.35 82.35 73.33 9.49 31.77
17 Accounting and performance Ratios 75.00 87.50 88.89 100 100 100 100 100 93.92 9.33 33.33
18 Basis of allocation of investment 62.50 75.00 77.78 86.66 81.25 88.24 88.24 88.24 80.99 9.09 41.18
19 Certificate as per schedule C 37.50 37.50 55.56 59.99 75.00 76.47 76.47 76.47 61.87 17.08 103.91
20 Premium Deficiency 0 0 0 0 0 5.88 5.88 11.76 2.94 4.45 -
21 Performance of Social Sector 0 0 0 6.66 6.25 17.65 17.65 29.41 9.70 10.81 -
Schemes for Last Five years
22 Commitment in Respect of Loans 62.50 87.50 100 80.00 87.50 88.24 88.24 88.24 85.28 10.69 41.18
and Investments
23 Encumbrances on Assets 62.50 87.50 100 80.00 93.75 94.12 94.12 94.12 88.26 11.97 50.59
24 Shareholders and Policyholders funds 87.50 100 100 86.66 93.75 94.12 94.12 94.12 93.78 4.90 7.57
Contd…………………….
148
Table 6.9 contd……………..
S.No. Description of item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
03 04 05 06 07 08 09 10 change
Director’s Report
25 Particulars of employees(Sec 217(2A)) 71.43 71.43 87.50 64.28 86.67 81.25 81.25 81.25 78.13 7.68 13.75
26 Addendum to Directors Report 0 0 0 0 0 0 0 0 0 0 -
27 Directors responsibility statement 28.57 28.57 50.00 42.86 60.00 68.75 68.75 68.75 52.03 16.17 140.64
28 Compliance with section 40C 0 0 12.50 7.14 6.67 18.75 18.75 25.00 11.10 8.62
29 Additional Information 14.28 14.28 25.00 21.43 33.33 56.25 56.25 56.25 34.63 17.67 293.91
30 Adoption of Accounts by Shareholders 0 0 0 0 0 0 0 0 0 0 -
31 Submission of Accounts before 0 0 0 0 0 0 0 0 0 0 -
32 Subsidiary companies 0 0 0 0 0 0 0 0 0 0 -
33 Corporate governance report 14.28 14.28 37.50 28.57 33.33 37.50 50.00 50.00 33.18 12.94 250.14
34 Right To Information Act 2005 0 12.50 18.75 37.50 17.19 15.63 -

35 Registration Details 14.28 14.28 25.00 35.71 46.67 50.00 50.00 50.00 35.74 14.86 250.14
36 Capital Raised During The Year 0 0 0 0 0 18.75 12.50 12.50 5.47 7.29 -
37 Position of Mobilization and 14.28 14.28 25.00 35.71 46.67 50.00 43.75 43.75 34.18 13.55 206.37
Deployment of Funds
38 Performance of the company 0 0 12.50 28.57 40.00 43.75 43.75 43.75 26.54 18.30 -
39 Services of the company 0 0 0 14.28 20.00 31.25 25.00 25.00 14.44 12.05 -
40 Employee Benefits as per (AS-15) 0 14.28 12.50 7.14 26.67 62.50 75.00 75.00 34.14 29.49
41 Segment Reporting as per ( AS-17) 85.71 100 100 100 100 100 100 100 98.21 4.72 16.67
42 Related Party Disclosure as per (AS-!8) 85.71 100 100 100 100 100 100 100 98.21 4.72 16.67
43 Leases as per AS-19 14.28 14.28 12.50 7.14 20.00 37.50 50.00 50.00 25.71 16.32 250.14
44 EPS as per (AS-20) 14.28 14.28 12.50 42.86 66.67 68.75 87.50 87.50 49.29 30.51 512.74
45 Deferred Tax Liability as per (AS-22) 14.28 28.57 37.50 21.43 40.00 43.75 75.00 75.00 41.94 21.14 425.21
149
Table 6.10 Mandatory Disclosure (%) of General Insurance Companies
S. Description of item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD % t-value F-value
No. 03 04 05 06 07 08 09 10 change
1 Balance sheet 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00 NA NA
2 Revenue account 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00 NA NA
3 Profit and loss account 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00 NA NA
4 Schedules forming part of financial 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00
NA NA
statements
5 Significant accounting policies 92.86 93.33 93.33 93.33 87.50 83.34 83.34 83.34 88.80 4.92 -10.25 -2.98* 6.15**
6 Notes to accounts 92.86 93.33 93.33 93.33 87.50 83.34 83.34 83.34 88.80 4.92 -10.25 -2.98* 6.15**
7 Receipts and payments account 92.86 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.11 2.53 7.69 -1.96 19.23**
8 Auditors report 100.00 100.00 100.00 100.00 87.50 83.34 83.34 83.34 92.19 8.46 -16.67 -0.88 1.61
9 Management report 85.71 93.33 93.33 93.33 87.50 83.34 83.34 83.34 87.90 4.72 -2.78 -1.27 10.83**
10 Contingent Liabilities 92.86 93.33 93.33 93.33 87.50 83.34 83.34 83.34 88.80 4.92 -10.25 -5.85* 4.73**
11 Claim Settlement and Age wise 57.14 66.67 80.00 66.67 87.50 88.89 94.45 94.45 79.47 14.28 65.27 -1.96 1.37
Analysis
12 Summary of Financial Statements of 50.00 53.33 73.33 80.00 81.25 77.78 77.78 83.34 72.10 12.98 66.67 -4.49* 1.59
last five years
13 Sector wise Details of Policies 100.00 93.33 93.33 93.33 93.75 94.44 94.44 94.44 94.63 2.23 -5.56 -2.04 39.28**
Issued
14 Employee Benefit Plans 71.43 80.00 93.33 93.33 87.50 83.34 83.34 83.34 84.45 7.17 16.67 -4.71* 2.74
15 Allocation of Income and 78.57 86.66 93.33 93.33 87.50 83.34 83.34 83.34 86.18 5.16 6.06 -2.05 4.98**
Expenditure
16 Managerial Remuneration 92.86 93.33 93.33 93.33 87.50 83.34 83.34 83.34 88.80 4.92 -10.25 -3.83* 3.72
17 Accounting and performance Ratios 85.71 93.33 100.00 100.00 100.00 100.00 100.00 100.00 97.38 5.26 16.67 -0.85 3.15
18 Basis of allocation of investment 100.00 93.33 100.00 100.00 100.00 100.00 100.00 100.00 99.17 2.36 0.00 -5.12* 14.86**
19 Certificate as per schedule C 21.43 33.33 40.00 40.00 43.75 55.56 66.67 66.67 45.93 15.98 211.10 1.80 1.14
20 Premium Deficiency 71.43 73.33 80.00 73.33 75.00 72.22 66.67 72.22 73.03 3.72 1.11 -31.97* 1.43
21 Performance of Social Sector 21.43 26.67 26.67 26.67 25.00 27.78 27.78 27.78 26.22 2.15 29.63 -3.96* 25.31**
Schemes for Last Five years
22 Commitment in Respect of Loans 92.86 93.33 93.33 93.33 87.50 83.34 83.34 83.34 88.80 4.92 -10.25 -0.79 4.72**
and Investments
23 Encumbrances on Assets 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00 -2.59* NA
24 Shareholders and Policyholders funds 85.71 93.33 93.33 93.33 87.50 83.34 83.34 83.34 87.90 4.72 -2.78 2.29* 0.93
Contd………………
150
Table 6.10 contd…………………..
No. 03 04 05 06 07 08 09 10 change
Director’s Report
25 Particulars of employees(Sec 217(2A)) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00 -7.05* NA
26 Addendum to Directors Report 7.14 13.33 20.00 26.67 18.75 22.22 22.22 22.22 19.07 6.14 211.03 -8.22* NA
27 Directors responsibility statement 92.86 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.11 2.53 7.69 -7.13* 46.82**
28 Compliance with section 40C 28.57 40.00 46.66 46.66 37.50 33.33 33.33 38.89 38.12 6.41 36.10 -6.37* 2.07
29 Additional Information 92.86 93.33 93.33 93.33 87.50 83.34 83.34 83.34 88.80 4.92 -10.25 -7.34* 14.75**
30 Adoption of Accounts by Shareholders 14.28 13.33 13.33 13.33 12.50 11.11 5.56 5.56 11.13 3.56 -61.10 -8.28* NA
31 Submission of Accounts before 28.57 26.67 26.67 26.67 25.00 22.22 22.22 27.78 25.72 2.39 -2.78 -28.45* NA
32 Subsidiary companies 35.72 33.33 33.33 33.33 37.50 33.33 33.33 33.33 34.15 1.59 -6.68 -56.86* NA
33 Corporate governance report 0.00 20.00 33.33 33.33 43.75 44.44 44.44 72.23 36.44 20.97 - -0.34 2.3
34 Right To Information Act 2005 - - - 26.67 25.00 27.78 33.33 44.44 31.44 7.91 - -2.15* 3.9

35 Registration Details 71.43 86.67 86.67 86.67 81.25 77.78 77.78 77.78 80.75 5.59 8.89 -7.07* 8.08**
36 Capital Raised During The Year 0.00 6.67 6.67 13.33 6.25 11.11 5.56 11.11 7.59 4.19 -0.63 3.45
37 Position of Mobilization and 57.14 73.33 80.00 86.67 81.25 72.23 77.78 77.78 75.77 8.79 36.12 -6.50* 2.72
Deployment of Funds
38 Performance of the company 57.14 66.67 73.33 80.00 81.25 66.66 72.23 72.23 71.19 7.78 26.39 -5.61* 6.32**
39 Services of the company 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.97* NA
40 Employee Benefits as per (AS-15) 7.14 6.67 6.67 6.67 12.50 61.11 72.22 77.78 31.34 32.69 988.91 0.16 1.08
41 Segment Reporting as per ( AS-17) 92.86 93.33 93.33 93.33 87.50 83.33 83.33 88.89 89.49 4.40 -4.27 3.44* 1.32
42 Related Party Disclosure as per (AS-!8) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00 -0.94 NA
43 Leases as per AS-19 7.14 20.00 20.00 26.67 25.00 22.22 22.22 22.22 20.69 5.93 211.11 0.72 8.67**
44 EPS as per (AS-20) 35.71 46.67 46.67 66.67 68.75 66.67 72.22 77.78 60.14 15.01 117.78 -0.80 4.72**
45 Deferred Tax Liability as per (AS-22) 57.14 53.33 66.67 73.33 81.25 72.22 72.22 83.34 69.94 10.55 45.83 -2.97* 4.59**
151
insurance sector (Table 6.9 and 6.10). Other two items having more than 100 percent change in
disclosure score in general insurance sector are leases as per AS-19 (211.11) and EPS as per AS-
20 (117.78) and in life insurance sector items having more than 100 percent disclosure are i.e.
deferred tax liability (425.21) and leases as per AS-19(250.14).One item segment reporting (-
4.27) is having negative change in disclosure score in general insurance sector, but there is no
such item in life insurance sector.
From the above results it can be summarized that mean disclosure scores are in favour of
general insurance sector, grater variation is found in the disclosure values of life insurance
sector. There is better change in disclosure scores of both the sector in the year 2009-10 over the
year 2002-03.
6.6.2 Item-Wise Voluntary Disclosure
Voluntary disclosure index includes 65 items in general insurance sector and 58 items in
life insurance sector. The disclosure results of life and general insurance sector are given in table
6.11 and 6.12, respectively.
6.6.2.1 Information on Accounting and Finance
Results of general insurance sector depict that two items i.e. gross domestic premium
and net incurred claims have got 100 percent mean disclosure (Table 6.12) whereas none of the
item has got 100 percent disclosure in life insurance sector (Table 6.11). The items, additional
unexpired risk reserve (99.17) and underwriting results (99.11) in general insurance sector got
more than 90 percent disclosure but not even a single item in life insurance sector got this
percentage. Maximum disclosure score in life insurance sector is 87.66 percent for net incurred
claims (Table 6.11).
There is greater variation in the disclosure scores of both the sectors. In life insurance
sector, maximum variation is for solvency margins (19.96) as the value of standard deviation is
the highest for this item. Other items having larger standard deviation values in life insurance
sector are taxation provision (16.97), financial highlights (16.18) and provision for claims
incurred but not reported (13.43). Items having larger standard deviation in general insurance
sector are solvency margins (21.35), detariffing (19.72) and taxation provision (17.06).
152
Table 6.11 Voluntary Disclosure (%) of Life Insurance Companies
No. 03 04 05 06 07 08 09 10 change
1 Financial Highlights 37.50 50.00 55.56 53.33 62.50 70.59 76.47 88.24 61.77 16.18 135.30 -3.08* 6.89**
2 Gross Domestic Premium 50.00 62.50 77.78 73.33 81.25 82.35 82.35 88.24 74.73 12.61 76.48 -5.30* NA
3 Solvency Margins 50.00 37.50 66.67 73.33 68.75 82.35 94.12 94.12 70.85 19.96 88.24 1.95 1.14
4 Certain Expenses of Management 12.50 12.50 11.11 13.32 12.50 11.76 23.53 23.53 15.09 5.25 88.31 -7.40* 6.26**
5 Employee Stock Option Scheme 0.00 0.00 11.11 6.66 12.50 17.65 17.65 17.65 10.40 7.49 - 0.98 1.17
6 Financial Consultants 0.00 12.50 0.00 6.66 6.25 17.65 23.53 23.53 11.26 9.59 - 2.63* 13.9**
7 Underwriting results 37.50 50.00 55.56 46.67 43.75 47.06 47.06 52.94 47.57 5.55 41.18 -22.35* 4.84**
8 Net Incurred Claims 75.00 87.50 88.89 80.00 87.50 94.12 94.12 94.12 87.66 7.03 25.49 -4.65* NA
9 Class wise performance 62.50 75.00 88.89 80.00 87.50 88.24 88.24 94.12 83.06 10.19 50.59 0.48 2.57
10 Foreign Currency transactions 62.50 62.50 66.67 53.33 62.50 70.59 70.59 70.59 64.91 5.99 12.95 -2.62* 2.81
11 Taxation Provision 37.50 50.00 44.44 53.33 56.25 70.59 82.35 82.35 59.60 16.97 119.62 -2.07 1.01
12 Provision for Claims incurred But 12.50 37.50 33.33 40.00 37.50 47.06 47.06 58.82 39.22 13.43 370.78 -4.35* 1.33
Not Reported
13 Staff Welfare Schemes 12.50 25.00 22.22 13.33 18.75 17.65 29.41 41.18 22.50 9.45 229.54 -4.28* 1.95
14 Training of Employees 12.50 12.50 22.22 13.33 12.50 23.53 35.29 35.29 20.90 9.94 182.35 -5.36* 2.91
15 Gender Issues and Empowerment 12.50 12.50 11.11 6.67 6.25 5.88 5.88 5.88 8.33 3.11 -52.94 0.00 1.46
16 Sports Activities 0.00 12.50 11.11 6.67 6.25 5.88 5.88 5.88 6.77 3.78 - -2.97* 3.3
17 SCs, STs, OBCs, and Ex-Servicemen 12.50 12.50 11.11 6.67 6.25 5.88 5.88 5.88 8.33 3.11 -52.94 -7.70* 4.66**
18 Customer Service 50.00 50.00 44.44 26.67 25.00 35.29 41.18 47.06 39.96 9.97 -5.89 -3.92* 1.06
19 Distribution Offices 50.00 50.00 77.78 60.00 68.75 64.71 82.35 88.24 67.73 14.31 76.46 1.54 2.33
20 Corporate Agents 25.00 25.00 22.22 13.33 18.75 11.76 17.65 17.65 18.92 4.93 -29.40 -0.27 6.83**
21 Riders 0.00 0.00 11.11 6.66 6.25 5.88 5.88 5.88 5.21 3.66 - 3.77* NA
22 Grievance Redressal 50.00 75.00 77.78 80.00 68.75 70.59 70.59 88.24 72.62 11.12 76.46 3.65* 3.42
23 Techno-Marketing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.88 0.74 2.08 - -2.77* 39.95**
24 Publicity Activities 12.50 12.50 11.11 6.67 6.25 5.88 11.76 11.76 9.80 2.97 -5.88 -4.34* 33.18**
25 Voluntary Retirement Schemes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - -13.75* NA
26 Retirement Benefits of Employees 37.50 37.50 44.44 46.67 56.25 64.71 64.71 70.59 52.79 13.02 88.24 -3.01* 1.84
Contd…………………..
153
No. 03 04 05 06 07 08 09 10 change
27 Business Overview 37.50 37.50 44.44 26.67 31.25 47.06 76.47 76.47 47.17 19.22 103.93 -3.84* 2.67
28 Product Portfolio 37.50 37.50 44.44 26.67 31.25 47.06 52.94 58.82 42.02 10.86 56.87 -1.42 3.89**
29 Branch Network 25.00 25.00 33.33 26.67 31.25 35.29 47.06 58.82 35.30 11.94 135.34 -5.65* 2.06
30 Industrial Relations 0.00 0.00 0.00 0.00 0.00 0.00 5.88 11.76 2.21 4.38 -4.76* 14.83**
31 Rural Insurance, Special sector 25.00 37.50 44.44 40.00 43.75 52.94 52.94 52.94 43.69 9.70 111.81 -0.33 4.23**
32 Vigilance Activities 12.50 12.50 11.11 6.67 6.25 5.88 5.88 11.76 9.07 3.14 -5.88 -8.19* 3.24
33 Organization Structure 0.00 0.00 0.00 0.00 0.00 0.00 5.88 5.88 1.47 2.72 -6.58* 9.54**
34 Market Scenario in the Industry 25.00 25.00 22.22 13.33 18.75 17.65 35.29 41.18 24.80 9.29 64.74 -4.03* 2.81
35 Market Share 25.00 25.00 22.22 13.33 25.00 17.65 47.06 47.06 27.79 12.59 88.27 -4.68* 1.62
36 Micro and Small Scale Business 0.00 0.00 0.00 0.00 0.00 17.65 29.41 41.18 11.03 16.47 -0.20 2.42
Entities
37 Industry Premium Growth 25.00 25.00 22.22 19.99 31.25 35.29 41.18 52.94 31.61 11.15 111.81 -1.35 1.71
38 Contribution to Retail Business 12.50 12.50 11.11 13.33 12.50 11.76 11.76 17.65 12.89 2.03 41.23 -3.08* 31.26**
39 Reinsurance 25.00 25.00 33.33 20.00 25.00 41.18 35.29 35.29 30.01 7.24 41.18 -18.10* 1.78
40 Foreign operations 12.50 12.50 11.11 13.33 18.75 23.53 23.53 29.41 18.08 6.78 135.29 -15.82* 2.64
41 Internal Audit 12.50 12.50 11.11 13.33 18.75 17.65 23.53 23.53 16.61 5.02 88.24 -12.86* 2.3
42 Name of Statutory Auditors of the 0.00 0.00 0.00 0.00 12.50 17.65 23.53 29.41 10.39 12.09 - -4.09* 2.85
cmpany
43 Company’s Vision/Mission 12.50 12.50 11.11 6.66 18.75 17.65 29.41 29.41 17.25 8.39 135.39 -5.65* 3.33
44 Chairman Report 12.50 12.50 11.11 6.66 6.25 5.88 5.88 5.88 8.33 3.11 -52.92 -10.51* 2.68
45 Names of Board of Directors 62.50 75.00 77.78 86.66 87.50 94.12 94.12 94.12 83.97 11.39 50.59 0.58 1.34
46 Message from the CEO 0.00 0.00 0.00 0.00 6.25 5.88 11.76 11.76 4.46 5.23 - -3.32* 1.56
47 Awards and Recognition 12.50 12.50 11.11 20.00 18.75 17.65 23.53 23.53 17.45 4.95 88.24 -6.69* 1.57
48 Notice of AGM 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - -48.86* NA
49 Bi-Lingual Presentation 12.50 12.50 11.11 6.67 6.25 5.88 5.88 5.88 8.33 3.11 -52.94 -12.72* 1.19
50 Glossary 0.00 0.00 0.00 0.00 0.00 0.00 5.88 5.88 1.47 2.72 - -1.15 4.5**
Contd………………………….
154
Table 6.11 contd…………………..
No. 03 04 05 06 07 08 09 10 change
51 Disclosure through Charts, Graphs 12.50 12.50 11.11 6.67 12.50 11.76 11.76 11.76 11.32 1.94 -5.88 -15.92* 9.66**
and Diagrams
52 Acknowledgements 37.50 37.50 44.44 33.33 37.50 47.06 58.82 58.82 44.37 9.92 56.87 -5.98* 1.55
53 Citizens‘ Charter 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - -9.70* NA
54 Plans for Future 25.00 25.00 22.22 19.99 25.00 29.41 58.82 58.82 33.03 16.14 135.34 -6.04* 2.4
55 Associate companies 0.00 0.00 0.00 6.67 6.25 5.88 5.88 5.88 3.82 3.17 - 2.22* 2.61
56 Information Technology 12.50 12.50 11.11 6.67 12.50 17.65 29.41 52.94 19.41 15.13 323.53 -4.74* 1.74
57 Office language implementation 12.50 12.50 11.11 6.67 6.25 5.88 5.88 5.88 8.33 3.11 -52.94 -16.82* 1.4
58 Corporate Communication 25.00 25.00 33.33 19.99 18.75 23.53 41.18 52.94 29.96 11.84 111.81 0.91 1.13
155
Table 6.12 Voluntary Disclosure (%) of General Insurance Companies
S.No Description of item 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
03 04 05 06 07 08 09 10 change
1 Financial Highlights 71.43 73.33 86.67 86.67 87.50 83.34 83.34 83.34 81.95 6.17 16.67
2 Gross Domestic Premium 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00
3 Solvency Margins 21.43 26.67 33.33 46.67 50.00 66.67 72.22 77.78 49.34 21.35 262.96
4 Additional Unexpired Risk Reserve 100.00 93.33 100.00 100.00 100.00 100.00 100.00 100.00 99.17 2.36 0.00
5 Certain Expenses of Management 35.71 33.33 66.67 66.67 62.50 55.55 55.55 61.11 54.64 13.13 71.10
6 Employee Stock Option Scheme 0.00 0.00 0.00 0.00 6.25 11.11 11.11 22.22 6.34 8.09 -
7 Financial Consultants 0.00 0.00 0.00 0.00 0.00 5.56 0.00 5.56 1.39 2.57 -
8 Underwriting results 92.86 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.11 2.53 7.69
9 Net Incurred Claims 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00
10 Class wise performance 71.43 80.00 73.33 80.00 81.25 83.33 88.89 88.89 80.89 6.35 24.45
11 Foreign Currency transactions 57.14 66.67 86.66 86.66 81.25 77.78 77.78 77.78 76.47 10.04 36.11
12 Taxation Provision 50.00 53.33 93.33 93.33 87.50 83.34 83.34 83.34 78.44 17.06 66.67
13 Provision for Claims incurred But Not 50.00 46.67 80.00 86.66 81.25 77.78 77.78 83.34 72.93 15.49 66.67
Reported
14 Detariffing 7.14 6.67 20.00 40.00 50.00 50.00 50.00 50.00 34.23 19.73 599.91
15 Salvage/ Claims Recoveries 21.43 26.67 46.67 53.33 50.00 44.44 50.00 55.55 43.51 12.58 159.27
16 Staff Welfare Schemes 28.57 40.00 46.67 46.67 50.00 44.44 61.11 72.23 48.71 13.18 152.77
17 Training of Employees 35.71 40.00 53.33 60.00 68.75 66.67 77.78 83.34 60.70 16.95 133.35
18 Gender Issues and Empowerment 7.14 6.67 6.67 6.67 6.25 5.56 16.67 11.11 8.34 3.76 55.54
19 Sports Activities 7.14 13.33 13.33 13.33 12.50 11.11 11.11 11.11 11.62 2.08 55.52
20 SCs, STs, OBCs, and Ex-Servicemen 14.28 26.67 33.33 33.33 31.25 33.33 33.33 33.33 29.86 6.71 133.35
21 Customer Service 50.00 53.33 53.33 53.33 62.50 72.22 66.67 77.78 61.15 10.28 55.56
22 Distribution Offices 35.71 33.33 33.33 40.00 50.00 66.67 66.67 94.45 52.52 21.84 164.46
23 Corporate Agents 7.14 6.67 13.34 13.33 18.75 27.78 33.33 42.22 20.32 12.90 491.06
24 Riders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - - -
25 Grievance Redressal 21.43 26.67 26.67 33.33 31.25 44.44 55.55 83.33 40.33 20.56 288.89
26 Techno-Marketing 7.14 6.67 6.67 6.67 12.50 11.11 22.22 44.44 14.68 13.14 522.05
27 Publicity Activities 14.28 26.67 33.33 33.33 37.50 38.89 50.00 72.22 38.28 17.11 405.61
28 Voluntary Retirement Schemes 21.43 26.67 33.33 33.33 25.00 22.22 22.22 22.22 25.80 4.96 3.70
29 Retirement Benefits of Employees 50.00 73.33 80.00 80.00 75.00 66.67 72.22 72.23 71.18 9.61 44.45
Contd………………………
156
Table 6.12 contd………………….
03 04 05 06 07 08 09 10 change
30 Business Overview 57.14 66.67 80.00 86.66 87.50 83.34 88.89 88.89 79.89 11.77 55.55
31 Product Portfolio 21.43 33.33 46.67 53.33 62.50 61.11 72.22 88.89 54.94 21.41 314.79
32 Branch Network 57.14 66.67 66.67 66.67 93.75 94.44 94.44 100.00 79.97 17.16 75.00
33 Industrial Relations 14.28 13.33 20.00 26.67 43.75 44.44 50.00 55.55 33.50 16.85 288.92
34 Rural Insurance, Special sector 14.28 26.67 33.33 46.67 56.25 61.11 61.11 72.22 46.46 19.96 405.62
35 Vigilance Activities 21.43 20.00 26.67 33.33 31.25 33.33 33.33 33.33 29.08 5.65 55.55
36 Organization Structure 14.28 13.33 13.33 26.67 31.25 27.78 27.78 33.33 23.47 8.41 133.34
37 Market Scenario in the Industry 21.43 40.00 53.33 53.33 62.50 55.55 61.11 72.22 52.43 15.56 237.04
38 Market Share 35.71 53.33 53.33 60.00 75.00 72.23 77.78 83.34 63.84 16.02 133.34
39 Micro and Small Scale Business 0.00 0.00 6.67 8.67 12.50 22.22 22.22 27.78 12.51 10.58 -
Entities
40 Industry Premium Growth 14.29 33.34 40.00 46.67 43.75 38.89 44.44 66.67 41.00 14.58 366.55
41 Contribution to Retail Business 7.14 13.33 20.00 33.34 31.25 33.33 33.33 38.89 26.33 11.38 444.68
42 Reinsurance 78.57 93.33 93.33 93.33 93.75 94.45 94.45 94.45 91.96 5.43 20.20
43 Foreign Operations 64.28 60.00 60.00 66.67 68.75 66.67 66.67 72.22 65.66 4.17 12.35
44 Internal Audit 42.86 46.66 46.66 53.33 43.75 44.44 44.44 44.44 45.82 3.31 3.71
45 Name of Statutory Auditors of the 21.43 26.67 26.67 33.33 37.50 33.33 33.33 44.44 32.09 7.16 107.37
cmpany
46 Company’s Vision/Mission 42.86 40.00 46.67 40.00 50.00 66.67 72.22 77.78 54.52 15.31 81.48
47 Chairman Report 35.72 33.33 33.33 33.33 31.25 22.22 27.78 38.89 31.98 5.08 8.88
48 Names of Board of Directors 64.29 73.33 73.33 86.67 81.25 83.34 88.89 94.45 80.69 9.83 46.91
49 Message from the CEO 7.14 13.34 13.34 6.67 12.50 22.22 22.22 22.22 14.96 6.54 211.05
50 Awards and Recognition 28.57 33.33 33.33 33.33 43.75 44.44 38.89 44.44 37.51 6.20 55.55
Contd………………………………
157
03 04 05 06 07 08 09 10 change
51 Notice of AGM 42.86 40.00 40.00 40.00 43.75 38.89 38.89 44.44 41.10 2.23 3.70
52 Bi-Lingual Presentation 35.71 33.33 33.33 26.67 31.25 27.78 27.78 27.78 30.45 3.40 -22.22
53 Glossary 0.00 0.00 0.00 0.00 6.25 5.56 5.56 16.67 4.25 5.78 -
54 Disclosure through Charts, Graphs and 50.00 46.66 46.66 46.66 56.25 44.44 44.44 61.11 49.53 6.04 22.21
Diagrams
55 Acknowledgements 50.00 86.67 86.67 86.67 81.25 83.34 83.34 83.34 80.16 12.35 66.67
56 Citizens‘ Charter 14.28 20.00 20.00 20.00 18.75 11.11 11.11 11.11 15.80 4.31 -22.22
57 Contribution to Terrorism Pool 21.43 33.34 26.67 33.33 31.25 33.34 33.34 33.34 30.75 4.43 55.56
58 Contribution to Motor Third Party Pool 0.00 0.00 0.00 0.00 18.75 55.56 66.67 66.67 25.96 31.48 -
59 Contribution to Solarium fund 7.14 13.33 13.33 26.67 25.00 27.78 27.78 27.78 21.10 8.41 288.85
60 Contribution to Environment Relief 0.00 0.00 0.00 13.33 12.50 16.67 27.78 27.78 12.26 11.67 -
Fund
61 Plans for Future 57.14 86.66 86.66 86.66 81.25 72.22 72.22 72.22 76.88 10.43 26.39
62 Associate companies 0.00 0.00 0.00 0.00 0.00 0.00 5.56 0.00 0.69 1.96 -
63 Information Technology 28.57 46.67 53.33 53.33 62.50 61.11 61.11 61.11 53.47 11.48 113.89
64 Office language implementation 35.71 33.33 33.33 40.00 31.25 33.33 33.33 33.33 34.20 2.63 -6.67
65 Corporate Communication 14.28 20.00 20.00 26.67 25.00 16.67 22.22 50.00 24.35 11.12 250.01
158
There is improvement in the disclosure scores of both the sectors in 2009-10 over 2002-
03.In general insurance sector, the item, detariffing has the highest (599.91) percent change in
disclosure score followed by solvency margins (262.96) and salvage (159.26). The highest
percent change in disclosure score in life insurance sector is 370.78 percent for item; provision
for claims incurred but not reported followed by financial highlights (135.30) and taxation
provision (119.62).
6.6.2.2 Information on Human Resource and Marketing
This is another important area of information in which different users are interested to
take various strategic decisions. A cursory look at the tables 6.11 and 6.12 show that there are
very less companies in life insurance sector which are giving information relating to human
resource and marketing in their annual reports. The highest mean disclosure in general insurance
sector is 71.18 percent for retirement benefits of employees and is only 72.62 percent for
grievance redressal in life insurance sector. In general insurance sector 4 items and in life
insurance sector 3 items are having more than 50 percent disclosure. These items are training of
employees (60.70), customer service (61.15), and distribution offices (52.52) and retirement
benefits of employees (71.18) in general insurance sector and grievance redressal (72.62),
distribution offices (67.73) and retirement benefits of employees (52.79) in life insurance sector.
There is no disclosure for item voluntary retirement schemes in life insurance sector whereas
25.80 percent companies are disclosing this item in general insurance sector. Other items are
having moderate disclosure scores. It is clear from the results that general insurance sector is
having better disclosure as far as information on human resource and marketing is concerned.
In both the sectors the highest variation is found in the item distribution offices, but the
value of standard deviation for distribution offices is greater in case of general insurance sector
(21.84) than in life insurance sector (14.31). Other items having more volatility in the disclosure
scores in general insurance sector are grievance redressal (20.56), publicity activities (17.11) and
corporate agents (12.90) and in life insurance sector these are retirement benefits of employees
(13.02) and grievance redressal (11.12). Minimum variation is 2.08 for item, sports activities in
general insurance sector and for techno- marketing in life insurance sector. Standard deviation
results reflect that more variation is found in the values of general insurance sector.
There is more improvement in the disclosure score of general insurance

companies (Table 6.10) in 2009-10 over 2002-03 as highest change in the disclosure score is
159
522.05 percent for item techno-marketing in general sector but it is only 229.54 percent for staff
welfare schemes in life insurance sector (Table 6.9). Other items in general insurance sector
having more than 100 percent change in disclosure score are corporate agents (491.06), publicity
activities (405.61), grievance redressal (288.89), staff welfare schemes (152.78), distribution
offices (164.46), training of employees (133.35) and SCs, STs, OBCs, and Ex-Servicemen
(133.35) and only one other item is having more than 100 percent disclosure in life insurance
sector i.e. training of employees (182.35). It is clear from the results of percentage change that
more improvement is found in the disclosure scores of general insurance sector than life
insurance sector.
6.6.2.3 Business Specific Information
Business specific information also influences the decisions of various stakeholders as it

includes important items i.e. product portfolio, industrial relations, market share, foreign
operations, internal audit and branch network. There are 16 items under this head. Mean
disclosure results reveal that there is better disclosure by general insurance companies regarding
business specific information as compared to life insurance companies. In general insurance
sector 91.95 percent companies are disclosing information on reinsurance but only 30.01
percent companies are disclosing the same item in life insurance sector (Table 6.11 and 6.12).
There are 7 items in general insurance sector disclosed by more than 50 percent companies in
their annual reports. These items are reinsurance (91.95), branch network (79.97), business
overview (79.89) foreign operations (65.66) market share (63.84) product portfolio (54.94) and
market scenario in the industry (52.43). But there is no item having more than 50 percent
disclosure in life insurance sector, even the highest disclosure score is only 47.17 for item
business overview.
There is greater variation in the disclosure scores of both the sectors. Items having larger
standard deviation values in general insurance sector are product portfolio (21.41), rural
insurance, special sector insurance and special schemes (19.96), branch network (17.16) and
industrial relations (16.85). In life insurance sector items; business overview (19.22), micro and
small scale business entities (16.47), name of statutory auditors of the company (12.09) and
branch network (11.94) are having larger standard deviation.
Results of percent change in disclosure score over the year indicate that there is good
improvement in the disclosure practices of both the sectors. The highest growth in disclosure
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score is for item, contribution to retail business (444.68) in general insurance sector and is for
two items i.e. branch network and foreign operations (135.29) in the life insurance sector. Other
items having more than 100 percent change in disclosure score in general insurance sector are
industry premium growth (366.55), product portfolio (314.79), industrial relations (288.73),
market scenario in the industry (237.00), organization structure (133.34) and name of statutory
auditors of the company (107.37). Items having more than 100 percent change in disclosure
score in life sector are business overview (103.93) and rural insurance, special sector insurance
and special schemes (111.81).
6.6.2.4 General/Other Information
This head consists of non- monetary information i.e. company’s vision, notice of
AGM, plans for future, information technology, glossary etc., which supports the decisions of
different users. Table 6.11 depicts that in life insurance sector only one item ‘names of board of
directors (83.97)’ is disclosed by more than 50 percent companies. Table 6.12 shows that in
general insurance sector item, acknowledgments is having the highest mean disclosure score
(80.16). Four other items having more than 50 percent disclosure in this sector are names of
board of directors (80.69), plans for future (76.88), company’s vision (54.52), and information
technology (53.47). In life insurance sector two items i.e. notice of AGM, citizen’s charter, are
not disclosed by even a single company, but 41.10, 15.80 percent companies are disclosing these
items respectively in general insurance sector. Four items i.e. contribution to terrorism pool,
contribution to motor third party pool, contribution to solarium fund and contribution to
environment relief fund are disclosed by 30.75, 25.96, 21.10, 12.26 percent companies in
general insurance sector. Mean results of general information reflect that there is better
disclosure by general insurance companies, where as life insurance sector is reluctant to disclose
this information in their annual reports.
Standard deviation results (Table 6.11 and 6.12) show that in general insurance
sector there is greater variation in the disclosure values of contribution to motor third party pool
(31.48) followed by company’s vision/mission (15.31), acknowledgements (12.35) and in life
insurance sector more variation is in items like plans for future (16.14), information technology
(15.13), corporate communication (11.84) and names of board of directors (11.39).
Results of percent change in disclosure score in the year 2009-10 over 2002-03 indicate
that the highest change is for contribution to solarium fund (288.85) in general insurance sector
161
and for item information technology (323.53) in life insurance sector. There are 4 items having
more than 100 percent changes in disclosure score in both the sectors. These items for life
insurance sector are company’s vision (135.39), plans for future (.135.34), information
technology (323.53) and corporate communication (111.81) and for general sector message from
the CEO (211.05), contribution to solarium fund (288.85), information technology (113.89) and
corporate communication (250.01). There is negative growth in disclosure score of two items i.e.
bi-lingual presentation (-22.21) and office language implementation (-6.66) in case of general
insurance sector and 4 items chairman’s report (-52.92), bi-lingual presentation (-52.94), office
language implementation (-52.94) and disclosure through charts, graphs and diagrams (-5.88) are
having negative growth in disclosure score of life insurance sector. It is clear from the data that
there is more improvement in the disclosure scores of general insurance companies for the head
other information.
On the basis of above analysis of voluntary disclosure practices of general and life
insurance sector, it can be summarized that overall there is better voluntary disclosure in general
insurance sector than life insurance sector. Greater variation is found in the disclosure scores of
both the sectors. There is improvement in the disclosure scores in the year 2009-10 over the year
2002-03 in both the sector.
6.6.3 Item-Wise Comparison of Life and General Insurance Sector.

To compare the item-wise results of general insurance sector and life insurance sector
following two hypotheses have been formulated. To test these hypotheses students’t-test and F-
test have been applied.
Ho1 –There is no significant difference in the mean disclosure score of an item in the life
insurance sector and general insurance sector.
Ho2 - There is no significant difference in the variation of items of disclosure in the life
insurance sector and general insurance sector.
Table 6.10 shows the item-wise t-value and F-value for mandatory disclosure items and
Table 6.11 gives the t-values and F-values for voluntary disclosure items.
6.6.3.1 Comparative Analysis of mandatory disclosure
Table 6.10 highlights the comparative analysis of mandatory disclosure of general

and life insurance companies. A glance at the table depicts that significant difference is found in
162
the mean disclosure scores of both the sectors for 26 items. There is insignificant difference in
the mean disclosure scores of general and life insurance sectors for 15 items and t-test is not
applicable on 4 items.
A look at the table 6.10 reveals that there is significant difference in the mean disclosure
scores of general and life insurance sector for 11 items under the head ‘statutory disclosure as per
IRDA’. So the null hypothesis i.e. Ho1 has been rejected for these items. The items having
significant difference is significant accounting policies, notes to accounts, contingent liabilities,
summary of financial statements of the last five years, employee benefit plans, managerial
remuneration, basis of allocation of investment, premium deficiency, performance of social
sector schemes for last five years, encumbrances on Assets and shareholders and policyholders
funds. There is better disclosure in general insurance sector for all the above items except 2
items, certificate as per schedule C and shareholders and policyholders funds. Null hypothesis
Ho1 has been accepted for 9 items named as receipts and payments account, auditors report,
management report, claim settlement and age wise analysis, sector wise details of policies issued,
allocation of income and expenditure, accounting and performance ratios, certificate as per
schedule C and commitment in respect of loans and investments. For these 9 items insignificant
difference is found in the mean disclosure scores of general and life insurance sectors. The ‘t-
test’ is not applicable on remaining 4 items as standard deviation values are zero for these items.
Null hypothesis Ho2 has been rejected for 10 items as there is significant difference in the
variation of items of disclosure for general and life insurance sector. These items are significant
accounting policies, notes to accounts, receipts and payments account, management report,
contingent liabilities, sector-wise details of policies issued, allocation of income and expenditure,
basis of allocation of investment, performance of social sector schemes of last five years and
commitment in respect of loans and investments. The same null hypothesis i.e. Ho2 has been
accepted for 9 items as there is no significant difference in the variation of items of disclosure in
general and life insurance sector. These items are auditor’s report, claim settlement and age wise
analysis, summary of financial statement of last five years, employee benefit plans, managerial
remuneration, accounting and performance ratios, certificate as per schedule c, premium
deficiency and shareholders and policyholders fund. F-test is not applicable on remaining 5
items.
163
Results show that out of 10 items included in directors’ report, there is a significant
difference between the mean disclosure scores of 9 items, so the null hypothesis Ho1 “There is
no significant difference in the mean disclosure score of an item in the life insurance sector and
general insurance sector” is rejected for these 9 items. Items having significant difference are
particulars of employees, addendum to directors’ report, directors’ responsibility statement,
compliance with section 40 C, additional information disclosure, adoption of accounts by
shareholders, submission of accounts before parliament, subsidiary companies and Right to
Information Act 2005. For all these 9 items, mean disclosure scores of general insurance
companies are better as compared to life insurance companies. Null Ho1 has been accepted for
item, corporate governance report. The hypotheses Ho2 i.e. - There is no significant difference in
the variation of items of disclosure in the life insurance sector and general insurance sector has
been rejected for 2 items (directors’ responsibility statement and additional information
disclosure) as significant difference is found in the variation of items of disclosure in both the
sectors. The same null hypothesis has been accepted for 3 items (compliance with section 40 C,
corporate governance report and Right to Information Act 2005) as no significant difference is
found in the variation of items of disclosure. F-test is not applicable on remaining 5 items.
The third head, balance sheet abstract includes 5 items. Out of these 5 items, null
hypothesis Ho1 has been rejected for 4 items as there is a significant difference in the mean
disclosure values of general and life insurance sector. The items are registration details, position
of mobilization and deployment of funds, performance of the company and services of the
company. General insurance companies are having better disclosure score for all the items except
services of the company, which is better in life insurance sector. Insignificant difference is found
in the mean disclosure scores of item called capital raised during the year. Null hypothesis Ho2 -
‘There is no significant difference in the variation of items of disclosure in the life insurance
sector and general insurance sector’ has been rejected for the 2 items (registration details and
performance of the company) as there is significant difference in the variation of these items.
The same null hypothesis has been accepted for 2 items (position of mobilization and
deployment of funds and capital raised during the year) as there is insignificant difference in the
mean disclosure scores of both the sectors.
Last head under the mandatory disclosure index is disclosure as per accounting
standards, which includes 6 items. Significant difference is found in the mean disclosure values
164
of 2 items i.e. segment reporting as per AS-17 and deferred tax liability as per AS-22. The null
hypothesis Ho1 has been rejected for these two items. There exists insignificant difference in the
mean disclosure score of remaining 4 items, so the same null hypothesis has been accepted for
these items. Further data reveals that there is significant difference in the variation of items of
disclosure for 3 items known as leases as per AS-19, EPS as per AS-20 and deferred tax liability
as per AS-22. So the null hypothesis Ho2 has been rejected for these items. But there is no
significant difference in the variation of items of disclosure for items employee benefits and
segment reporting, so null Ho2 has been accepted for these 2 items. F- Test is not applicable on
one item i.e. related party disclosure.
6.6.3.2 Comparative analysis of voluntary disclosure
A cursory look at the table depicts that out of total 58 items covered under the
index of voluntary disclosure; there is significant difference in the mean disclosure scores of 44
items of general insurance companies and life insurance companies. But 14 items are such in
which no significant difference is found in the mean values of general and life insurance
companies.
A detailed analysis of the table 6.11 reveals that out of total 12 items covered
under the head information on accounting and finance, there is significant difference in the mean
disclosure scores of 8 items. So the null hypothesis Ho1 –“There is no significant difference in
the mean disclosure score of an item in the life insurance sector and general insurance sector” is
rejected for these items. Mean disclosure scores of general insurance companies are
comparatively better than life insurance companies for 7 items i.e. financial highlights, gross
domestic premium, certain expenses of management, underwriting results, net incurred claims,
foreign currency transactions and provision for claims incurred but not reported. But mean
disclosure score of life insurance sector is better for item financial consultants. Null hypothesis
Ho1 has been accepted for 4 items(solvency margins, employee stock option scheme, class wise
performance and taxation provision) as there is insignificant difference between the mean
disclosure scores of general and life insurance sector for these items. Null hypothesis Ho2 –
“There is no significant difference in the variation of items of disclosure in the life insurance
sector and general insurance sector” is rejected for 4 items i.e. financial highlights, certain
expenses of management, financial consultants and underwriting results as there is significant
difference in the variation of items of disclosure for these items. Null hypothesis Ho2 is accepted
165
for 6 items, as insignificant difference is found in the variation of items of disclosure in the life
and general insurance companies. These items are solvency margins, employee stock option
scheme, class wise performance, foreign currency transactions, taxation provision and provision
for claims incurred but not reported. F-test is not applicable on other 2 items.
Information on human resource and marketing includes 14 items. There is significant

difference in the mean disclosure scores of general and life insurance companies for 11 items.
These items are staff welfare schemes, training of employees, sports activities, SCs, STs, OBCs
and ex-serviceman, customer service, riders, grievance redressal, techno-marketing, publicity
activities, voluntary retirement schemes and retirement benefits of employees. Out of these items
mean disclosure score of 2 items i.e. riders and grievance redressal is better for life insurance
companies but for other items general insurance companies are having better disclosure scores.
The null hypothesis, Ho1 has been rejected for these 11 items and accepted for remaining 3
items. Null hypothesis Ho2 – “There is no significant difference in the variation of items of
disclosure in the life insurance sector and general insurance sector” is rejected for 4 items i.e.
SCs, STs, OBCs, and Ex-Servicemen, corporate agents, techno marketing and publicity activities
and accepted for 8 items of disclosure, staff welfare schemes, training of employees, gender
issues and empowerment, sports activities, customer service, distribution office, grievance
redressal and retirement benefit of employees. F-test is not applicable on item voluntary
retirement schemes and riders as the mean disclosure score and value of standard deviation is
zero.
Business specific information includes 16 items. Significant difference is found in the

mean disclosure scores of general and life insurance sector for 12 items of disclosure. So the null
hypothesis Ho1 has been rejected for 12 items i.e. business overview, branch network, industrial
relations, vigilance activities, organization structure, market scenario in the industry, market
share, contribution to retail business, reinsurance ,foreign operations, internal audit and name of
statutory auditors of the company. There exists insignificant difference in the mean disclosure
scores of general and life insurance companies for 4 items, so the null Ho1 has been accepted for
these 4 items i.e. rural insurance, special sector insurance and special schemes, micro and small
scale business entities, industry premium growth and product portfolio. Null hypothesis Ho 2 has
been rejected for 5 items i.e. product portfolio, industrial relations, rural insurance, special sector
insurance and special schemes, organization and contribution to retail business. The same null
166
hypothesis Ho2 has been accepted for other 11 items as insignificant difference is found in the
variation of disclosure of both the sectors.
There are 16 items in the head general information. Null hypothesis Ho1 is
rejected for 13items of disclosure. The items are- company’s vision ,chairman report, message
from the CEO, awards and recognition, notice of AGM, bi-lingual presentation, disclosure
through charts, graphs and diagrams, acknowledgements, citizens’ charter, plans for future,
associate companies, information technology and office language implementation. The same null
hypothesis Ho1 has been accepted for 3 items (names of board of directors, glossary, and
corporate communication) having insignificant difference in the mean disclosure scores of both
the sectors. Ho2 has been rejected for 2 items i.e. glossary and disclosure through graphs, charts
and diagrams as there is significant difference in the disclosure scores of two sectors (Table
6.11). Null hypothesis Ho2 has been accepted for 12 items as insignificant difference is found in
the variation of disclosure scores of these items. These items are company’s vision, chairman
report, names of directors, message from the CEO, awards and recognition, bi-lingual
presentation, acknowledgements, plans for future, associate companies, information technology,
office language implementation and corporate communication. F-test is not applicable on
remaining 2 items.
6.6.4 Area-Wise Disclosure
Table 6.13 and 6.14 highlights the results of area-wise disclosure of life and general
insurance companies, respectively. Table also shows the mean disclosure score, standard
deviation and percentage change in disclosure score over the year.
Mean disclosure results reveal that in both the sectors the highest mean disclosure
score is for statutory disclosure as per IRDA, as it comes under mandatory disclosure. In general
insurance sector 86.23 percent companies are disclosing information relating to statutory
disclosure as per IRDA and in life insurance sector mean disclosure for the same is 74.26
percent. Area known as accounting and finance, which is voluntary in nature, is getting better
disclosure score in the general insurance sector. Mean disclosure score for accounting and
finance is 65.23 percent in general insurance sector but it is only 52.18 percent in life insurance
sector. Data further shows that mean disclosure score for disclosure as per accounting standards
is again in favour of general insurance sector (61.93) than in life insurance sector(57.92).
Remaining areas are getting moderate disclosure scores in both the sectors.
167
Grater variation is found in the disclosure values of life insurance sector as is evident
from the data given in Table 6.13. The highest standard deviation values are for area disclosure
as per accounting standards (17.48) in life insurance sector and for business specific information
(10.92) in general insurance sector. In life insurance sector other area having larger standard
deviation values are balance sheet abstract (13.64). Disclosure values of general insurance sector
are comparatively consistent.
Table 6.13 highlights the more improvement in the disclosure scores in life
insurance sector as compared to general insurance sector. There are 4 areas out of 8 for which
percentage change in disclosure score in the year 2009-10 over the year 2002-03 is more than
100 percent in life insurance sector. These areas are balance sheet abstract (512.75), directors’
report (123.14), business specific information (116.07) and disclosure as per accounting
standards (127.53) .On the other hand results of general insurance sector depict that there are
only 2 areas having more than 100 percent change in disclosure score and these are human
resource and marketing (140.00) and business specific information (109.31).
Overall, area wise results reflect that general insurance sector is better in
disclosing information in all the areas but more variation is found in the disclosure values of life
insurance sector. There is good disclosure in the early years in general insurance sector
compared to life insurance sector
6.6.4.1 Comparasion of Area Wise Disclosure of General and Life Insurance Sector
To compare the area-wise disclosure practices of general and life insurance sector,
following null hypothesis have been constructed:
168
Table 6.13 Area-Wise Disclosure (%) of Life Insurance Companies
S. Area 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD %
No 03 04 05 06 07 08 09 10 change
.
1 Statutory disclosure as per IRDA 62.50 66.15 71.30 69.72 77.86 80.39 82.35 83.82 74.26 7.94 34.12
2 Director’s report 14.28 14.28 23.61 18.25 22.00 27.50 29.38 31.88 22.65 6.70 123.14
3 Balance sheet abstract 5.71 5.71 12.50 22.85 30.67 38.75 35.00 35.00 23.27 13.64 512.75
4 Disclosure as per accounting 35.71 45.24 45.83 46.43 58.89 68.75 81.25 81.25 57.92 17.48 127.53
standards
5 Accounting and finance 36.46 44.79 50.00 48.33 51.56 58.33 62.25 65.69 52.18 9.59 80.18
6 Human resource and marketing 19.64 23.21 26.19 20.48 21.43 22.69 26.89 30.67 23.90 3.74 56.15
7 Business specific information 17.19 17.97 19.44 14.58 19.14 24.26 32.35 37.13 22.76 7.98 116.07
8 General/other information 14.84 15.62 15.97 14.17 16.41 18.01 24.26 26.47 18.22 4.59 78.35
169
Table 6.14 Area-Wise Disclosure (%) of General Insurance Companies
S.No. Area 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- Mean SD % t- F-
03 04 05 06 07 08 09 10 change value value
1 Statutory disclosure as per IRDA 82.74 85.56 88.89 88.33 86.72 85.42 85.88 86.34 86.23 1.90 4.36 -3.88* 17.52*
*
2 Director’s report 44.44 48.89 51.85 50.00 48.75 47.78 47.78 52.78 49.03 2.60 18.75 -9.71* 6.66**
3 Balance sheet abstract 37.14 46.67 49.33 53.33 50.00 45.56 46.67 47.78 47.06 4.70 28.64 -4.36* 8.42**
4 Disclosure as per accounting standards 50.00 53.33 55.56 61.11 62.50 67.59 70.37 75.00 61.93 8.72 50.00 -0.54 4.02**
5 Accounting and finance 51.90 53.78 65.78 69.33 69.17 69.26 70.00 72.59 65.23 7.88 39.86 -2.78* 1.48
6 Human resource and marketing 21.43 27.14 30.95 32.38 34.37 36.51 42.06 51.43 34.53 9.18 140.00 -2.84* 6.02**
7 Business specific information 30.36 37.92 42.92 49.29 54.69 54.17 56.60 63.54 48.68 10.92 109.31 -5.07* 1.87
8 General/other information 26.79 32.67 33.00 35.00 37.19 38.33 40.56 44.72 36.03 5.47 66.96 -6.60* 1.42
170
Ho1-There is no significant difference between area-wise mean disclosure scores of general and
life insurance sector.
Ho2-There is no significant difference in the variation of disclosure of various areas of general

and life insurance sectors.
To test Ho1, students‘t’-test has been applied and for testing Ho2 F-test has been applied.
Detailed analysis of the comparative area-wise results (Table 6.14) reveal that there is
significant difference between the mean disclosure scores of 7 areas. So, the null hypothesis Ho1-
‘There is no significant difference between area-wise mean disclosure scores of general and life
insurance sector’ has been rejected for these 7 areas. These areas are statutory disclosure as per
IRDA, directors’ report, balance sheet abstract, accounting and finance, human resource and
marketing, business specific information and general information. But insignificant difference is
found in the mean disclosure scores of one area, disclosure as per accounting standards. So the
null hypothesis has been accepted for this area. Results of F-test show that significant difference
is found in the variation of items of disclosure of general and life insurance sector for 5 areas
(statutory disclosure as per IRDA, directors report, balance sheet abstract, disclosure as per
accounting standards and human resource and marketing) so, the null hypothesis Ho2- ‘There is
no significant difference in the variation of items of disclosure of general and life insurance
sectors’ is rejected for these 5 areas. The same hypothesis has been accepted for remaining 3
areas as there is insignificant difference in the variation of items of disclosure between general
and life insurance sector.
From the above discussion of item-wise, company-wise and area-wise disclosure of

general insurance companies and comparative analysis of general insurance sector and life
insurance sector as a whole following conclusions can be drawn:
1. Public sector companies both In life and general are having better corporate disclosure
behavior as compared to private sector companies for both item-wise mandatory and
voluntary disclosure.
2. Item-wise voluntary disclosure results reveal that there is more variation in the disclosure
scores of private sector companies for items concerning accounting and finance and human
171
resource and marketing but grater variation is found in public sector companies for disclosure
of items relating to business specific information and general information.
3. There is improvement in the disclosure scores in 2009-10 over 2002-03 in both the sectors.
Comparatively there is more percent change in the disclosure scores of private sector
companies as in public sector there is good disclosure in initial year.
4. Public sector companies are taking the lead both in mandatory and voluntary disclosure
results. The highest disclosure is for ‘New India Assurance Co. Ltd’. Among the private
sector companies ‘Bajaj Allianz General Insurance Co. Ltd.’ is having the highest disclosure
for mandatory items and ‘IFFCO-TOKIO General Insurance Co. Ltd. for voluntary items
5. Area-wise disclosure results indicate that in both public and private sector companies’
maximum disclosure is found for ‘statutory disclosure as per IRDA’. When both sectors
compared, disclosure score is better in public sector companies than private sector companies.
6. Comparative analysis of disclosure in public and private sector general insurance companies
reveals that differences are significant for majority of the items with better disclosure in
public sector companies.
7. Overall results of general and life insurance sector reflect that disclosure practices of general
insurance sector are better as compared to life insurance sector. There is improvement in
disclosure scores over the period of study in both the sectors.
172
References
Chander, Subhash (1992). Corporate Reporting Practices. ISBN 81-7100-411-5, Deep and
Deep Publications, New Delhi.p:1-2
Rao, G. V. (2008). Change of Guard at IRDA. Insurance Chronicle. VIII (X):22-26.
Rao, K. Rajeshwar and Sarma, M. Subramanya (1997). Accounting Standards and their
Relevance to Corporate Reporting Practices in India. Contemporary Issues in
Accounting, Accounting Standards and Policies Theory and Practice edited by
M.C.Khandelwa and Sugan C. Jain,Pointer Publishers Jaipur.
Riaz, Uddin, Mausm, Iqbal and Syed, Maruf Reza (2006). Disclosure Practice: A Comparison
of Commercial Banks and Insurance Companies in Bangladesh. The Cost and
Management 34 (1).
Singh, Kashmir (2005). Financial Reporting Practices of Banking Companies in India. A Ph.D.
Thesis submitted to H.N.B. Garhwal University, Srinagar.
Sinha, Ram Partap (2008). Financial Inclusion, Micro Insurance and the Indian Insurance Sector.
Insurance Chronicle VIII (XI) : 27.
Ubha, Dharminder Singh (1999). Corporate Disclosure Practices in India. A Ph. D. Thesis
submitted to Punjabi University Patiala.
Wood, G.N.C. and Wilkinson, R.C. (1985). Disclosure by General Insurance Companies.
Presented in the Institute of Actuaries Studies Society on 14 May 1985.
173

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CHAPTER 6

FINANCIAL REPORTING PRACTICES OF

The deregulation of insurance sector in India resulted in a steady growth of

Ho2 - There is no significant difference in the variation of items of disclosure in the

6.1 Item-Wise Mandatory Disclosure

To check the compliance of reporting requirements issued by various regulatory

6.1.1 Statutory Disclosure as Per IRDA

Insurance Regulatory Development Authority issued various regulations for

6.1.2 Directors Report

Balance Sheet Abstract

Greater variation (SD = 33.23) is found in disclosure of item ‘corporate governance

6.1.3 Balance Sheet Abstract

6.1.4 Disclosure as per Accounting Standards

6.2 Item-Wise Voluntary Disclosure

Voluntary disclosure is that information which is disclosed to supplement the mandatory

6.2.1 Information on Accounting and Finance

Information On Accounting And Finance

Information On Accounting And Finance

19 Sports Activities 0 0 0 0 0 0 0 0 0 0 - 17.02* NA

6.2.2 Information on Human Resource and Marketing

6.2.3 Business Specific Information

6.2.4 General Information

6.3 Company Wise Disclosure

With a view to analyze the disclosure practices of general insurance companies on an

6.3.2 Company-Wise Voluntary Disclosure

6.4 Area-Wise Disclosure

6.4.1 Public Sector General Insurance Companies

Private Sector Companies

6.4.2 Private Sector General Insurance Companies

In case of private sector general insurance companies again maximum disclosure is

6.5 Comparative Analysis of Financial Reporting - Public and Private Sector

6.5.1 Comparison of item-wise mandatory disclosure

Results of comparative analysis of financial reporting practices of public and private

Comparative analysis of disclosure practices of public and private sector

6.5.2 Comparison of item-wise Voluntary Disclosure

Second head information on human resource and marketing consists of

6.5.3 Comparative Analysis of Area Wise Disclosure

Comparative analysis of area-wise disclosure of public and private sector general

Ho1-There is no significant difference between area-wise mean disclosure scores of public

Ho2-There is no significant difference in the variation of disclosure of different areas of

Disclosure practices followed by life and general insurance companies irrespective

6.6.1 Item wise Mandatory Disclosure

Results of item-wise mandatory disclosure scores of life and general insurance

6.6.1.1 Statutory Disclosure as Per IRDA

The highest(17.08) variation in disclosure scores in life insurance sector is

6.6.1.2 Director’s Report

6.6.1.3 Balance Sheet Abstract

Balance Sheet Abstract

Balance Sheet Abstract

6.6.2 Item-Wise Voluntary Disclosure

6.6.2.1 Information on Accounting and Finance

6.6.2.2 Information on Human Resource and Marketing

There is more improvement in the disclosure score of general insurance

6.6.2.3 Business Specific Information

Business specific information also influences the decisions of various stakeholders as it

6.6.2.4 General/Other Information

6.6.3 Item-Wise Comparison of Life and General Insurance Sector.

6.6.3.1 Comparative Analysis of mandatory disclosure

Table 6.10 highlights the comparative analysis of mandatory disclosure of general

6.6.3.2 Comparative analysis of voluntary disclosure

Information on human resource and marketing includes 14 items. There is significant

Business specific information includes 16 items. Significant difference is found in the

6.6.4 Area-Wise Disclosure