Your returns can be hit if insurers overspend4 min read 24 Jul 2019, 11:50 PM IST
Policyholders with participating plans may get hit if insurer crosses budget
High expenditure depress the insurer’s profits and, in turn, shrink the pool available for distribution for policyholders
The Insurance Regulatory and Development Authority of India (Irdai) recently issued an order against Reliance Nippon Life Insurance Co. Ltd for exceeding expenses of management (EoM) beyond the permissible limits. It was found that the insurer’s actual EoM for FY15-16 were ₹1,632.24 crore against the limit of ₹1,069.20 crore.
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