Yielding to general insurers’ demand, the segment regulator, Insurance Regulatory Development Authority (Irda), has agreed to reduce the solvency ratio threshold limit from 150% to 135% to enable them to pay bonus and dividend to their employees. “After getting requests from the general insurers , We have agreed to reduce the solvency ratio threshold limit to 135% from 150% for the payment of dividend and bonus,’’ said a senior Irda official. Earlier in a notification issued in December 2011, Irda, as a part of revamping the loss making third-party motor portfolio, had directed the insurers to make higher provisioning on the portfolio and put restriction on the general insurers to pay any bonus and dividend if their solvency ratio is below 150%.
Source: Financial Express
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