This bonus will be paid out of the profit earned by the participating policyholders of the Company for the financial year 2020-21.
New Delhi. Private life insurance company Reliance Nippon Life Insurance on Monday announced a bonus of Rs 306.88 crore for its participating policyholders for 2020-21. The company said that this bonus will benefit its 6,85,000 participating policyholders.
The company said that the declared bonus will be paid on all participating policies in force till March 31, 2021 . In policies with Reversionary Bonus, it will be an increase in the Guaranteed Benefit on Death and Maturity. This bonus will be paid out of the profit earned by the participating policyholders of the company for the financial year 2020-21. The company has made a profit after tax of Rs 50 crore for the financial year ended March 31, 2021.
Reliance Nippon Life Insurance is a joint venture between Reliance Capital and Nippon Life Insurance, Japan. Its total Asset Under Management (AUM) as on March 31, 2021 was Rs 24,383 crore and total Sum Assured was Rs 78,847 crore. The claim settlement ratio of the company is 98.48%.
Government is working on amendments in GIBNA to privatize public insurance companies
The government is working on amendments to the General Insurance Business (Nationalisation) Act (GIBNA) to privatize public sector general insurance companies. A bill in this regard may be brought in the upcoming monsoon session of Parliament. Parliament’s monsoon is expected to start from July 19. This law came into existence in 1972. Under this, the shares of Indian insurance companies and other existing insurance companies’ undertakings can be acquired and transferred, so as to better meet the needs of the economy through the development of general insurance business.
Sources said that the work on amendments in GIBNA is going on. These can be placed in the upcoming session of Parliament to help in privatization of general insurance companies. Finance Minister Nirmala Sitharaman had announced the privatization of two public sector banks and one general insurance company in the budget for 2021-22. As part of the disinvestment strategy for the financial sector, the government has decided to launch a huge initial public offering (IPO) of Life Insurance Corporation (LIC) and sale of the remaining stake in IDBI Bank. The government has set a target of raising Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions in 2021-22.
