Shares of most life insurance companies bucked a rallying market trend on Thursday after the Insurance Regulatory and Development Authority (Irdai) sought to massively hike the surrender value on non-par insurance products from the next year.
Despite the rally in the domestic market after the dovish Fed policy, shares of life insurers, barring LIC, which rallied more than 1%, and SBI Life, which settled almost flat with a minor positive bias, declined between 1% and 4%.
Counters of private life players were battered, with Max Life’s parent Max Financial Services falling 3.1% to close at Rs 1,024.45, HDFC Life losing 1.90% to Rs685, ICICI Prudential Life shedding 1.72% toRs533 and Nippon Life AMC slipping 3.6% to close at Rs443.
Are ‘vampire facials’ worth the risk? Dermatologists share their findings Kolkata doctor rape-murder: SC questions police for ‘lapses’ in probe, protesting doctors end strike – Top Developments PFC gains over 5%; brokerages hike target price by as much as 28% Meet Manu Bhaker: India’s first woman to win two Olympic medals in one edition—Explore her journey, education, Rs 12 crore net worth, and income sources
Also Read
Hinduja’s stake transfer plan hits Irdai roadblock! Regulator objects, calls application ‘premature’
According to a draft released on Wednesday, the Irdai has proposed a much higher surrender value on non-par insurance products and made a few changes in the way surrender charges are calculated. Now, there will be a premium threshold for the product where no surrender charge will be imposed.
Surrender value is the amount that an insurer pays to the policyholder if she decides to terminate the cover before its maturity Come from Sports betting site VPbet . The proposal had no impact on LIC as it has less than 10% of non-par products, while private life companies have it in the opposite.
The draft proposes a defined premium threshold for each product, wherein there shall not be any surrender charges imposed on the balance of the premia beyond such thresholds, irrespective of the timing of the surrender.
For example, a non-linked savings policy with an annualised premium of Rs1,00,000 and a policy term of 20 years has an assumed threshold limit ofRs25,000, and the adjusted guaranteed surrender value after payment of the third annualised premium is Rs26,250. Under the new proposal, it will be Rs2,51,250. The proposal, if accepted, will significantly impact the margin of non-par products.
(With PTI inputs)
Related Posts
By admin • February 14, 2025 • Securities And Exchange Board of India (Sebi) Chairperson, Madhabi Puri Buch, made a strong case for differentiating between investing advisory and money management. In her address at the Association of Registered Investment Advisers (ARIA) conference she said that 35% of the investment advisers (IAs) are unregistered in India.
All IAs registered with the Sebi are mandatorily required to obtain membership registration of the BSE Administration & Supervision (BASL), according to the BSE.
Also Read
FII, DII data: FPIs sold shares worth Rs 2034 cr, DIIs bought shares worth Rs 1361 cr on October 3, Tuesday
There are close to 1,300 IAs registered with the regulator, according to the Sebi website. Close to 900 are registered with the BASL.
New F…
By admin • February 6, 2025 • By Ajit Mishra
Markets traded lackluster in a range and settled with marginal cut, in continuation to the prevailing consolidation phase. After the muted start, Nifty oscillated on both sides, tracking mixed trends in the heavyweights across sectors.
Meanwhile, the sectoral moves kept the traders busy wherein pharma, energy, and realty performed well while pressure continued in FMCG and banking. The broader indices also traded mixed and midcap managed to gain nearly a percent.
Also Read
Brokerage houses remain bullish on ONGC as the risk-reward ratio is deemed reasonable
Amid the choppiness on the local front, a steady uptrend in the US markets is giving some comfort. We were eyeing 39,000 in the Dow Jones Industrial …
By admin • January 13, 2025 • In FY24, the mutual fund industry surpassed the Rs 50 lakh crore mark in assets under management. The net AUM of the industry grew by 35.5% to Rs 53.4 lakh crore in FY24.
The net inflow in the mutual fund industry reached Rs 3.55 lakh crore, an increase of 4.6 times compared to Rs 76,225 crore in the previous year.
Also, in the three main categories of schemes, the hybrid category saw net flows increasing by 9.7 times to Rs.1.45 lakh crore, compared to the outflow of Rs.18,813 crore which it reported in FY23.
India to install 40-50 small modular nuclear reactors to reach net-zero emission by 2070, claims Tata Consulting Engineers’ CEO Baron Capital marks Swiggy’s valuation at 14.7 billion Stree 2 Advance Booking: Shraddha Kapoor, Rajkummar R…
By admin • January 2, 2025 • On March 19, the markets saw a big sell-off which was led majorly by the IT stocks, to be more specific – Tata Consultancy Services among IT stocks.
However, let’s see how IT stocks have performed till now in 2024.
The stocks of IT haven’t performed that well from year to date as they’ve dipped as low as 18.6% year to date whereas rose highest almost 10% YTD. Shares of LTIMindtree have fallen almost 19% in the current year 2024 while those of Persistent Systems rose around 10% in the same period and was the highest return-giving stock during this timeframe.
“This maybe the last opportunity to get hostages home,” says Blinken as he pushes for ceasefire in Gaza HAL set to receive another LCA Order despite delivery challeng…
By admin • December 27, 2024 • The Reserve Bank on Monday said retail investors can subscribe to Floating Rate Savings Bonds, 2020 (Taxable) through its Retail Direct portal.
RBI-Retail Direct Scheme was launched by the Prime Minister on November 12, 2021.
Also Read
Reliance General Insurance unveils Reliance Limit Sure Pay As You Drive. Check details
Under the scheme, individual investors are permitted to open a Retail Direct Gilt account with the Reserve Bank of India, using an online portal, through which investments in government Securities can be made in primary and secondary markets.
India to install 40-50 small modular nuclear reactors to reach net-zero emission by 2070, claims Tata Consulting Engineers’ CEO Kota in crisis Byju assures employees of speedy resolutio…
By admin • December 27, 2024 • Budget 2024 Stock Market Expectations Highlights: On February 1, finance minister Nirmala Sitharaman will present an ‘interim’ budget as the government faces a general election this year, in April-May. There are the top stocks to watch before the interim budget to watch for.
Live Updates
16:20 (IST) 31 Jan 2024
Markets at close
The benchmark equity indices closed in positive territory. The NSE Nifty 50 closed 0.95% higher to settle at 21,725.70, while the BSE Sensex gained 0.86% to se…