(1) Provisions for claims outstanding are to be formed for the liabilities arising from claims that have occurred up to the end of the financial year but have not yet been adjusted. In this context, the total ultimate cost of settling the claims is to be taken into account.
(2) The provisions for claims that have occurred as per the balance sheet date but that have not yet been reported for purposes of the claims inventory, are to be valued as a lump sum. In this context, regard is to be had to the prior experience gained concerning the number of claims reported after the balance sheet date and the expenses they entail.
(3) In the case of health insurance enterprises, the provisions are to be calculated using a statistical approximation method. In the process, the payments made in the first months of the financial year following the balance sheet date for the claims that have occurred up to the balance sheet date are to be used as a basis.
(4) In the case of co-insurance, the amount of the provisions must correspond, in pro-rata terms, to no less than that reserve that the leading insurance enterprise must form in accordance with the rules or customary practice prevailing in the country from which that enterprise operates.
(5) Where insurance benefits resulting from a claim are to be paid in the form of an annuity on the basis of a final and unappealable judgment, accord or acknowledgement, the provisions must be computed in accordance with recognised actuarial methods.