India: Insurers to suspend dividend payments for FY2020
Source: Asia Insurance Review | Jun 2020
In view of emerging market conditions, IRDAI has directed insurers to suspend dividend payments from profits pertaining to the financial year ended 31 March 2020 till further instructions. The move seeks to enable insurers to conserve capital in the interests of policyholders and the economy at large.
According to a circular issued by the regulator, the issue will be reassessed based on financial results of insurers for the quarter ending 30 September 2020.
In response, some industry players stated that IRDAI should allow insurers to pay dividends on a case-to-case basis rather than issuing an omnibus directive. A