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Bajaj Allianz Life Insurance declares all-time high bonus of ₹1,383 crore
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
All participating policies in force as on March 31, 2024, are eligible to receive this bonus. The FY24 bonus marks a 15% increase over what was paid in FY23.
Private life insurer Bajaj Allianz Life has announced its all-time high bonus of ₹1,383 crore for the financial year 2023-2024 (FY24) for over 11.66 lakh policyholders.
Policyholders with traditional participating (with-profit) policies are eligible to receive this bonus, which is declared from the surplus generated under the participating (with-profits) funds, the insurer said.
All participating policies in force as on March 31, 2024, are eligible to receive this bonus.
Policyholders of participating products like Bajaj Allianz Life Flexi Income Goal, Bajaj Allianz Elite Assure, Bajaj Allianz Life Ace, among others, stand to benefit from the bonus declared.
The FY24 bonus marks a 15% increase over FY23 bonus, which stood at ₹1,201 crore, the insurer said.
Decoding bonus in insurance
Some life insurance policies allocate a share of their profits as a bonus and pay to the insured person when they reach certain milestones.
Put simply, just like employees receive bonus as extra amount or reward over and above their base salary, a similar concept exists in the realm of life insurance companies.
Firms make bonus payments to their policyholders on a yearly basis beyond the basic sum assured they are entitled to.
How is it determined?
The bonus is dependent on several factors such as return on company assets, bonuses declared in the previous year, claims filed, expected interest rates in the future and several other estimates.
How is life insurance bonus calculated?
Bonus is either computed as a percentage of sum assured or as a certain amount per ₹1,000 of sum assured.
For example, if the bonus is ₹50 per ₹1,000 for a policy with a sum assured of ₹1 lakh, the annual bonus will be ₹5,000.
Are all policies eligible for bonuses?
Not all life insurance policies are entitled to receive the bonus amount.
Only participating (with-profit) policies qualify for the bonus and the policyholders who hold a participating life insurance policy will qualify for the bonus payout.
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