Indian Insurance Industry

#2
:eek: Life fund In deficit but they are declaring bonus

16th April 2007

IRDA/F&A/002/Apr-07

Re : Declaration of Bonus under Section 49 of the Insurance Act, 1938

1. Introduction

This is further to Circular No.:F& A/CIR/011/MAR-04 dated 23 rd March, 2004 issued by the Authority on the said subject.

The Authority vide the Circular under reference, had issued instructions to clarify the manner of interpretation of the provisions of section 49 of the Insurance Act, 1938 for the purpose of declaration of bonus in respect of life insurance companies which had set up operations post opening up of the sector.

2. Provisions of Section 49

Section 49 of the Insurance Act, 1938 provides that no insurer shall declare bonus to the policyholders except out of a surplus shown in the valuation Balance Sheet which may arise as a result of actuarial valuation of the assets and liabilities of the insurer; nor shall such surplus be increased by contributions out of any reserve fund or otherwise unless such contributions have been brought in as revenue through the Revenue Account on or before the date of valuation.

3. Relaxation for Life Insurance Companies

With a view to facilitating declaration of bonus by an insurance company, where the Life Fund is in deficit, the Authority has laid down the manner of funding of the bonus and has stipulated conditions which are required to be strictly complied with. This relaxation has been made available to the insurers only during the first five financial years, beginning from the year in which the life insurance company commences operations.

While laying down the stipulated conditions, it was expected that after five years of operations, the operations of the life insurers would have stabilized, thereby enabling declaration of bonus from generation of surplus within the life fund without recourse to contribution from the shareholders.

4. Extension of the Relaxations

The Authority has been receiving representations from life insurance companies for extension of the relaxation for the purpose of declaration of bonus in cases where the Life Fund is in deficit, for a period of another two years, i.e., upto the seventh year of operations of the life insurance company.

After examining the request of the insurance companies, the Authority hereby extends the applicability of the Circular No. F& A/CIR/011/MAR-04 dated 23 rd March, 2004 upto the first seven financial years, commencing from the year in which the life insurance business operations are started.

All conditions as stipulated in the Circular under reference would continue to be applicable and are required to be complied with by the life insurance companies.

/Sd.
(C. S. Rao)
Chairman

link......
http://www.irdaindia.org/Finance_And_Analysis/IRDA-F&A-002-Apr-07.htm
 
#3
Further relaxation

29th May, 2009

IRDA/F&A/CIR/014/May-09

Declaration of Bonus under Section 49 of the Insurance Act, 1938

To,

All Life Insurers,

Please refer to Circular Nos: F& A/CIR/011/MAR-04 dated 23rd March, 2004 and IRDA/F&A/002/Apr-07 dated 16th April 2007 issued by the Authority on declaration of bonus by life insurance companies which have set up operations post opening up of the sector.

With a view to facilitating declaration of bonus by an insurance company, where the Life Fund is in deficit, the Authority has laid down the manner of funding of the bonus subject to specified conditions to be strictly complied with. This special dispensation was available to the insurers only for the first seven financial years, beginning from the year in which the life insurance company commences operations.

Extension of the Relaxations

The Authority had received representations from life insurance companies for further extension of the period of dispensation considering the current stage of the growth of the insurance sector.

After examining the request of the insurance companies, the Authority has decided to allow the life insurers in the private sector to declare bonus to policyholders where the Life fund is in deficit for a further period of three years i.e., upto the tenth year of operations commencing from the year in which the life insurance business operations are started. The insurers should comply strictly with all the conditions as stipulated in the Circulars under reference in case they would like to avail themselves of this dispensation.


(C. R. Muralidharan)
Member
link.....(check for circulars 2009-10)
http://www.irdaindia.org/
 
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#4
Number of registered life insurers in india
PUBLIC SECTOR
Life Insurance Corporation of India

Private
Bajaj Allianz Life Insurance Co. Ltd.
Birla Sun Life Insurance Co. Ltd. (BSLI)
HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE)
ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU)
ING Vysya Life Insurance Co. Ltd. (ING VYSYA)
Max New York Life Insurance Co. Ltd. (MNYL)
MetLife India Insurance Co. Pvt. Ltd. (METLIFE)
Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
SBI Life Insurance Co. Ltd. (SBI LIFE)
TATA AIG Life Insurance Co. Ltd. (TATA AIG)
Reliance Life Insurance Company Ltd.
Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
Sahara India Life Insurance Co. Ltd. (SAHARA LIFE)
Shriram Life Insurance Co. Ltd (SHRIRAM LIFE)
Bharti AXA Life Insurance Co. Ltd. (BHARTI AXA)
Future Generali India Life Insurance Co. Ltd.
IDBI Fortis Life Insurance Co. Ltd.
Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
Aegon Religare Life Insurance Company Limited.
DLF Pramerica Life Insurance Co. Ltd.
Star Union Dai-ichi
 

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#10
sorry to ask....where do new india insurance data missing?

Asking becoz i m about to get a policy and there is going to be a seminar where the guy from them coming...so wanted to know the details