Question

A general insurer bundles motor policies with a roadside

Q: Answer-A general insurer bundles motor policies with a roadside assistance service delivered by a third par...

For stand-ready services, revenue is recognized over the coverage period passage of time.

assistance service delivered by a third party. Premium is collected upfront for 12 months; assistance is stand-ready and can be used any time. Insurer pays the third party per call. Under Ind AS 115, how is revenue timing determined?

A Recognize entire premium at inception as significant performance occurs on issue

B Recognize premium over time; assistance is a distinct stand-ready service

C Allocate all premium to claims expected and recognize when claims occur

D Defer only reinsurance portion; recognize net immediately

E Recognize when cash is collected because consideration is fixed

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A general insurer bundles motor policies with a roadside

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