Insurance regulator proposes increasing surrender value of non-linked policies: Explained
Last Update Date: 06-10-2026
Published by Business Insider India
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that the proposal would let insurers set a premium threshold above which no surrender charges apply, leaving more money with policyholders who choose to exit a policy.
More of Abhishek's views on insurance
The article explains an IRDAI exposure draft from December 2023 that proposed changing how surrender value is worked out for non-linked life insurance policies. The draft would separate the savings part of the premium from the risk part, so surrender charges hit only a portion of it. It also urges policyholders to weigh their situation before surrendering.
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Insurance regulator proposes increasing surrender value of non-linked policies: Explained