How compute premium income, claims expense and commission expense?

Premium income : The payment made by the insured as consideration for the grant of insurance is known as premium. The amount of premium income to be credited to revenue account for a year may be computed as:

Premium received on risks undertaken during the year (direct & re-insurance accepted)-
Add : Receivable at the end of year (direct & re-insurance accepted)-

Less : Receivable at the beginning of year (direct & re-insurance accepted) -

Less : Premium on re-insurance ceded: –
    Paid during the year –
    Add : Payable at the end of year –
    Less : Payable at the beginning of year –
=Total Premium income –

Claims expenses: A claim occurs when a policy falls due for payment. In the case of a life insurance business, it will arise either on death or maturity of policy that is, on the expiry of the specified term of years. In the case of general insurance business, a claim arises only when the loss occurs or the liability arises.
The amount of claim to be charged to revenue account may be worked out as under : 

Claims settled during the year—direct & re-insurance accepted –
(including legal fees, survey charges etc.)
Add : Payments to co-insurers

Less : Received from co-insurers and re-insurers –
=Net payment –
Add : Estimated liability at the end of the year –
(After deducting recoverable from co-insurers and re-insurers)
Less : Estimated liability at the beginning of the year –
(after deducting recoverable from co-insurers and re-insurers)
=Claims expense –

Commission expenses: Insurance Regulatory and Development Authority Act, 1999 regulates the commission payable on policies to agents. Commission expense to be charged to revenue account is computed as follows:

Commission paid (direct & re-insurance accepted) –
Add : Commission payable at the end of the year –
(direct & re-insurance accepted)
Less : Commission payable at the beginning of the year –
(direct & re-insurance accepted)
=Total Commission expense –