On March 24, the Insurance Regulatory and Development Authority of India (IRDAI) released the final surrender value regulations.
According to these laws, which go into effect on April 1, 2024, if policies are surrendered within three years, the surrender value is anticipated to stay the same or even decrease. The surrender value of policies surrendered between the fourth and seventh year may experience a slight increase.
The earnings and savings component will be paid to the policyholder in the event of their surrender within the policy’s term.
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This occurs just days after Moneycontrol released a report claiming that the idea for a greater surrender value would probably be watered down by the IRDAI.
Life insurers had previously expressed worry about potential problems with asset-liability management that might arise during the implementation of the IRDAI’s December 2023 recommendation. Higher surrender values and threshold premiums for endowment insurance had been suggested in the draft.
