The Insurance Regulatory and Development Authority of India (IRDAI) has finalized regulations on surrender value of insurance policies effective from April 1, providing clarity and stability for insurers. Under the new norms, individual non-linked non-single premium products must offer a guaranteed surrender value after two years of consecutive premium payments. Surrender values vary, with the guaranteed surrender value set at 30% of total premiums paid in the second year, rising to 35% in the third year and 50% between the fourth and seventh years. For single premium products, surrender values range from 75% within three years to 90% in the last two years. This decision aims to enhance governance in product design, pricing, and disclosure, potentially fostering a positive market response.
IRDAI Maintains Surrender Value Norms, Offering Relief to Life Insurance Companies
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