What is the most restrictive way to allow IPv6 ICMP requests on iptables?

This is what I have so far but it is pretty open.

*filter
:INPUT DROP [0:0]
:FORWARD DROP [0:0]
:OUTPUT DROP [0:0]
-A INPUT -p ipv6-icmp -j ACCEPT
-A INPUT -i lo -j ACCEPT
-A OUTPUT -p ipv6-icmp -j ACCEPT
-A OUTPUT -o lo -j ACCEPT
-A OUTPUT -m state --state RELATED,ESTABLISHED -j ACCEPT
COMMIT

If you have time, explaining the rules would be amazing.