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

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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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