The life insurers think that it will help the industry to report positive growth.
Recently, private Life insurance players had made a representation to IRDA highlighting the importance of extension of bonus to be paid to policyholders, considering the current situation in the industry.
Earlier the authority had declared that this advantage was to be offered by companies to policy holders for the first ten years of their operation only. But considering the current situation in the life insurance sectors, the regulator has granted an extension for further two years.
Private insurers had reported a 20 percent dip in premium figures for the first year premium on year on year basis.
“The industry is happy by this decision of IRDA because it will help us retain our policy holders. We also look forward to positive growth,” said a CEO of private Life Insurance company.