[ad_1]
HYDERABAD: With companies facing disruption in the wake of the Covid-19 crash, the Insurance Development and Regulation Authority of India (Irdai) has advised insurers to manage financial resources wisely to ensure they have adequate capital and take a “conscious call” in dividend payment for fiscal year 2019-20.
“In view of emerging market conditions, and to conserve capital with insurance companies in the interest of policyholders and the broader economy, insurers are urged to make a conscious call to refrain from paying dividends on earnings corresponding to the financial year. until March 31, 2020, until further instructions are received, “the insurance regulator said in a circular.
This current position will be reassessed by the authority based on insurers’ financial results for the quarter ending September 30, 2020, he added.
In a circular on April 13, Irdai had advised insurers to critically examine their capital availability and solvency margins, as required in the current financial year 2020-21, and devise strategies to ensure they have adequate capital and resources. available with them. He had also advised them to streamline management expenses for fiscal year 2020-21.
[ad_2]
“In view of emerging market conditions, and to conserve capital with insurance companies in the interest of policyholders and the broader economy, insurers are urged to make a conscious call to refrain from paying dividends on earnings corresponding to the financial year. until March 31, 2020, until further instructions are received, “the insurance regulator said in a circular.
This current position will be reassessed by the authority based on insurers’ financial results for the quarter ending September 30, 2020, he added.
In a circular on April 13, Irdai had advised insurers to critically examine their capital availability and solvency margins, as required in the current financial year 2020-21, and devise strategies to ensure they have adequate capital and resources. available with them. He had also advised them to streamline management expenses for fiscal year 2020-21.
