Insurance regulator may up special surrender value

showed a growth of 8.7 percent as against 11.6 percent in February. “The natural gas output stood at 6.3 percent as against 11.3 percent in February, while refinery products output was down by 0.3 percent as against growth of 2.6 percent in February,” the ministry data said.

“Similarly, the fertiliser output was down by 1.3

To ensure fair treatment to policyholders, the Insurance Regulatory and Development Authority of India (Irdai) is in discussions with life insurers to raise the final surrender value paid to policyholders. According to industry sources, the regulator could look at increasing the special surrender value (SSV) or could define a principle on how it should move. Special

percent as against a contraction of 9.5 percent in February and steel output up 5.5 percent as against 9.1 percent in the previous month. Cement output stood at 10.6 percent as against 9.1 percent in February, while electricity output rose 8.0 percent against 7.5 percent in February,” the data said.

Meanwhile, the Indian economy could grow more surrender value reflects the value of investments and depends on factors like sum assured, bonuses, policy term and premiums paid.

“Life insurance is a long term contract. There could be a situation such as a medical emergency where the policyholder may require funds. So, the long-term contract should provide liquidity. Irdai could look at raising the SSV or define a principle on how it could move,” said a source.

“Regulator’s stand is clear that insurers should not make undue profits from surrenders and policyholders should be paid appropriate surrender value,” added the official.