Consider benefits, costs before agreeing to insurance policy splitting
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar explained how splitting works in practice, giving the example of an agent advising a buyer to spread a ₹1 crore cover across four policies of ₹25 lakh each.
More of Abhishek's views on insurance
An IRDAI master circular says insurance policies may be split only when the customer asks for it and agrees. The article explains what policy splitting means, how it can raise premiums or lead to surrender charges, when holding several smaller policies can help, and why agents sometimes push for it.
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Consider benefits, costs before agreeing to insurance policy splitting