The Insurance Regulatory and Development Authority
has issued new clarifications on premium recognition for variable
insurance products.
In case of unit-linked VIPs, the premium will be
recognized on the date of creation of units whereas for non-linked VIPs,
it will be recognized on the date of receipt of premium.
The changes have been introduced by IRDA to ensure
uniformity in adopting the principles for recognition of income by all
insurers and also to align it with respect to the method used for the
purpose of actuarial valuation of such products.
Source: IRDA