This insurance company pays an annual bonus of 861 cr to policyholders. See the details


TATA AIA Life has an annual record bonus of 861 crore for its policyholders for the 2021-22 fiscal year. According to the company, it is the fifth consecutive annual bonus for its policyholders. 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 awarded 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 effect on March 31, 2022 are eligible for this annual bonus, which will be added to policyholder benefits”.

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“At Tata AIA, the long-term financial wellbeing of our consumers is at the heart of everything we do, and our commitment is to ensure they are financially secure. Our long-term fund management philosophy and prudent investment and risk management policy have enabled us to award our consumers a substantial bonus. We are confident that this will go a long way towards meeting their long-term protection and savings needs. We remain committed to providing significant value to our consumers through our highly regarded and consumer-friendly insurance solutions,” said Samit Upadhyay, Chief Financial Officer, Tata AIA Life.

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According to Morningstar Ratings, 99.83% of Tata AIA’s AUM is rated 4 stars or 5 stars on a 5-year basis as of March 31, 2022.

The company posted an Individually Weighted New Business Premium (IWNBP) income of 4,455 crore for FY 2021-22, a 30% growth 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 on securities and other investments made.

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It can be a certain amount per Rs. 1000. For example, suppose the bonus is Rs. 50 for each 1,000. Then, if the insured amount for a life insurance policy is 5 lakhs, then the bonus amount 25,000.

The calculated bonus is generally provided as a payment at maturity or to the nominee in the event of a death benefit. It is also provided when the policy is surrendered. Some insurers allow policyholders to cash out the bonus during the term of the insurance.

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