IRDAI advised insurers to prudently manage the financial resources of the insurers

Apr 28, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on April 24, 2020, has directed all insurers to align dividend pay-out for the FY 2019-20 to be in conformity with their strategies to ensure that they have adequate capital and resources available with them to ensure protection of the interests of the policyholders in reference to IRDAI Circular No. IRDA/F&A/CIR/MISC/089/04/2020 dated April 13, 2020. The insurers are requested to refrain from dividend pay-outs from profits pertaining to the financial year 2020, till further instructions to conserve capital with the insurance companies in the interests of the policyholders. This position shall be reassessed by the Authority based on financial results of insurers for the quarter ending September 30, 2020.

[IRDAI Circular No. IRDA/F&A/CIR/MISC/099/04/2020]


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