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This insurance company pays annual bonus of over ₹860 crore to policyholders. See details

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TATA AIA Life on Tuesday announced a record annual bonus of 861 crore for its policyholders for the financial year 2021-22. According to the company, it is its fifth consecutive annual bonus for its policyholders. The FY22 bonuses have exceeded the bonus paid in FY2021 by 20%, Tata AIA Life said in a statement.

“Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of the fastest-growing private life insurers has declared a bonus of INR 861 crores for FY2022 to all eligible participating policyholders,” the company said in a statement.

It added, “All participating policies in-force as of March 31st, 2022, are eligible to receive this annual bonus, which will be added to the policyholders’ benefits”.

“At Tata AIA, the long-term financial wellbeing of our consumers is at the core of everything we do, and it is our endeavor to make sure they are financially secure. Our long-term fund management philosophy and prudent investment & risk management policies have enabled us to declare a robust bonus to our consumers. We are sure this will go a long way in meeting their protection and long-term saving needs. We remain committed to offering significant value to our consumers through our highly rated and consumer-friendly insurance solutions,” Samit Upadhyay, Chief Financial Officer, Tata AIA Life said.

As per the Morningstar Ratings, 99.83% of the rated AUM of Tata AIA is rated either 4 stars or 5 stars on a 5-year basis as of March 31st, 2022.

The company recorded an Individual Weighted New Business Premium (IWNBP) income of 4,455 crore for the financial year 2021-22, a growth of 30% compared to 3,416 crore for FY22.

How is the life insurance bonus calculated?

The bonus declared by a life insurance company is based on the return from securities and other investments made.

It can be a certain amount per Rs. 1000. For example, suppose the bonus is Rs. 50 for every 1,000. In that case, if the sum assured for a life insurance policy is 5 lakhs, then the bonus amount is 25,000.

The calculated bonus is generally provided as a maturity benefit or to the nominee in case of a death benefit. It is also provided when the policy is surrendered. Some of the insurers allow the policyholders to encash the bonus during the policy term.

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