The Insurance Regulatory and Development Authority of India (IRDAI) has announced the final set of rules on surrender value from 1st April 2024.

Banking & Finance

The Insurance Regulatory and Development Authority of India (IRDAI) has announced the final set of rules on surrender value from 1st April 2024. The surrender value is expected to remain the same or even lower if policies are surrendered up to a period of within three years. A surrender value in insurance is the sum disbursed by the insurer to the policyholder when terminating the policy prematurely. If surrendered during the policy term, the policyholder receives the earnings and savings component. This provision offers a way to access funds in case of need before the policy matures. The proposed slabs for the surrender value percentages are: > 30% of total premiums paid if surrendered during the second year > 35% of total premiums paid if surrendered during the third year > 50% of total premiums paid if surrendered between the fourth and seventh years > 90% of total premiums paid if surrendered during the last two years.


     

     

     

 

     


Insurance Regulatory and Development Authority of India(IRDAI)

Chairperson- Debasish Panda
HQ- Hyderabad
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