AFTER many a dilly-dallying and revision spanning close to three years, the new surrender value norms by regulator Irdai, which is effective from October 1, will significantly alter the life insurance landscape.
The new norms mandate life insurers to pay back higher amount to a policyholder who chooses to switch or surrender her policy. This goes a long way to protect customer interest and make insurers become more professional and also contain misselling, one of the biggest pains plaguing the insurance sector.
For the uninitiated to the life insurance lexicon, the surrender value is the money a policyholder receives if she terminates her policy before maturity.
It's usually the cash value of the policy minus any surrender fees/penalties. The new norms will also help a life policyholder in many more ways including higher early-exit payouts with higher surrender value, easier portability, lesser deductions and penalties, and fewer chances of misselling as the agent may lose money if the policyholder stops paying premium early, and the customer, if not made the king yet, is assured of getting a fair treatment.
New regulations
The Insurance Regulatory and Development Authority of India (IRDAI) released new regulations on the surrender value of life policies in June 2024 with effective implementation from October 1. The initial draft was out in December 2022 which proposed a higher surrender value but underwent many revisions.
Denne historien er fra October 07, 2024-utgaven av The Morning Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 07, 2024-utgaven av The Morning Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Understanding The Importance Of Investing
INVESTING is an absolute necessity - I would call it part of the 5th R-Money! It is also scary! Imagine it is at a cross of politics, mathematics, emotions, markets, salesmen, and your own future.
Insurance Surrender Value: What It Means For Policyholders?
IRDAI's new norms will help policyholders as they can get a higher refund on discontinuation under the new calculation method even after paying one year premium
Cheering from stands, UAE stars take lessons
THE Dubai International Stadium was absolutely buzzing on the bright Sunday afternoon for India versus Pakistan.
Ten Hag future up in air after United draw at Villa
MANCHESTER United's winless run in all competitions extended to five games after a 0-0 draw at Aston Villa in the Premier League on Sunday, leaving manager Erik ten Hag's position uncertain heading into a two-week international break.
REAL JEM: RUN RODRIGUES RUN
Thrust in the all-important No.3 role, Jemimah holds fort at one end against Pak, after throwing herself in the field
Varun steals show on India comeback
WHEN India took the field against Bangladesh in the first T20I on Sunday, it was always going to be about one player Mayank Yadav.
HOW TO GROW YOUR WEALTH PASSIVELY
THE Securities and Exchange Board of India recently relaxed rules to enable mutual funds to launch passive investment schemes swiftly.
Ola founder Agarwal and comedian Kamra spar over service quality issues
OLA founder Bhavish Agarwal and stand-up comedian Kunal Kamra on Sunday engaged in a heated exchange on social media platform X, following Kamra's criticism of the company's electric scooters.
LIC increases stake in Bank of Maharshtra to 7.10% through QIP
STATE-OWNED Life Insurance Corporation (LIC) has increased its stake in Bank of Maharashtra from 4.05% to 7.10% after the life insurer acquired 25,96,86,663 equity shares through the bank's qualified institutional placement (QIP).
After funding, Anil Ambani group plans growth strategies
THE Anil Ambani group is poised to execute its growth startegies after it raised ₹17,600 crore fund and two of its operational firms Reliance Infrastructure Ltd and Reliance Power Ltd became near zero debt companies, sources with the company said.
