In addition, the surrender value for various products and tenures will increase under the new standards from the present 30% to between 70 and 75 percent of the premium.
“The IRDAI has issued new surrender value restrictions, which will take effect on October 1, 2024. The product and commission structure are anticipated to change significantly, resulting in erratic premium movement in the second half of the current fiscal year,” stated Gaurav Dixit, Director at CareEdge Ratings, in the research.
According to a report by Care Edge, life insurance premium collections may experience instability in the second half of the current fiscal year due to the introduction of new surrender value standards on life plans beginning next month.