Good News for Policy Holders of Insurance

Good News for Policy Holders of Insurance

Insurance Regulatory development Authority (Irda) the apex regulatory body for insurance is planning minimum death benefit at the  five times of premium paid by policy holder .The irda is wary of low life risk covers associateted with some traditional policies planning to introduce a minimum death benefit plan at five times the annual premium.

The move comes after a surge in sales of traditional plans across the industry. Since September last year when the stringent norms on unit – linked guidelines came into force, insurances companies started focusing more on traditional plans. As a results, sale of ulips, which earlier constituted 80 percent on the total volume, came down drastically. During April-July this year, life insurance companies collected 26,794 crore by written new policies and traditional plans accounted  for nearly 80 percent of that.

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