Tata AIA life, Max Life, PNB MetLife, Kotak and Bajaj Allianz Life insurance companies' have declared bonuses for policyholders for FY23. Generally, insurers declare bonuses in each financial year accrued and paid out to policyholders at the time of maturity or exit or sudden demise. The insurer pays cash bonuses or special one-off bonuses on specific policy events as per policy conditions.
Look at how much bonuses have been declared by these life insurance companies and which all firms paid the highest-ever bonus for their policyholders.
Tata AIA: It has declared its highest-ever bonus of Rs 1,183 crore for participating (PAR) policyholders for FY23. The company has been paying bonuses to its eligible policyholders over the years, and the FY23 bonus was 37% higher than the Rs 861 crore bonus announced in FY22. A total of 749,229 participating policies are eligible for this bonus. Samit Upadhyay,President and Chief Financial Officer, Tata AIA Life Insurance, said, “Our endeavour is to partner our consumers in their financial wellbeing and this bonus announcement demonstrates our commitment to our policyholders in this regard.”
PNB MetLife: The life insurance company has declared highest-ever bonus of Rs 768.6 crore, benefiting 552,000 policyholders. This bonus is 29% higher than the previous year. The announcement reaffirms PNB MetLife’s commitment to delivering financial security for its policyholders. Ashish Kumar Srivastava, MD & CEO, PNB MetLife, said, “The Rs 768.6 crore bonus is the highest we have given out till date, and this is a testament to PNB MetLife’s robust financial performance, sound investment strategies, and efficient risk management practices. It highlights the company’s strong position and our ability to generate sustainable returns for our policyholders. This bonus will benefit approximately 550,000 PNB MetLife policyholders and enable us to assist our clients in building a more secure and confident future.”
Max Life Insurance: The insurance company has announced its highest-ever participating (PAR) bonus of Rs 1,604 crore for its eligible policyholders in FY23. This is the company’s 21st consecutive annual bonus; around 8% higher than the bonus declared in the last fiscal. Prashant Tripathy, MD & CEO, Max Life, said, “The declared annual bonus will be added to benefits of approximately 2.1 million eligible participating policyholders, aiding their long-term financial goals. Max Life has consistently announced bonuses for its eligible policyholders over the past two decades, demonstrating its customer commitment and a focus on offering superior risk-adjusted returns.”
Kotak Mahindra Life Insurance: The life insurance company has announced a bonus of Rs 840 crore to more than 650,000 eligible participating policyholders for FY23. This is an increase of 24% over the bonus declared for FY 2022. This marks the 22nd consecutive year of bonus payment to policyholders. Mahesh Balasubramanian, Managing Director, Kotak Mahindra Life Insurance Company Limited, said, “We are pleased to announce an increased bonus for our valued customers. We have strengthened our customer engagement initiatives through enhanced digital capabilities and analytics and will continue to provide convenient and easy solutions for them.”
Bajaj Allianz Life: The insurance company announced bonuses for the 22nd consecutive year. The Company has declared a bonus of Rs 1,201 crores for its participating policyholders, which includes a regular reversionary bonus of Rs. 872 crores and a Terminal & Cash bonus of Rs. 329 crores. The bonuses will benefit 11.43 lakh eligible loyal policyholders who have remained committed to their Life Goals with Bajaj Allianz Life.
The Regular Reversionary Bonus declared by the company will be payable at the time of maturity or death of the policyholder. The funds for the bonus will be sourced from the surplus generated by the Company's participating policyholders' funds for FY2023.
The inputs have been taken from the respective insurers’ press releases.