Irdai removes curbs on dividend payout as insurers deliver better results

But, it has advised them to take a conscious call while declaring dividends for FY21, keeping in mind their capital position, solvency margin and liquidity position

The insurance regulator has withdrawn an April 2020 circular, which asked insurance companies to refrain from paying dividends from FY20 profits. The insurers can now declare dividend for the current financial year.
 
"Dividend can be declared from the recent profit or the current year's profit. That is their (insurers) call,” said an Irdai official.
 
"There is good growth in both general and life insurance companies. But, all companies are not alike. Some companies might have recovered but some might be still struggling,” he added.
 
The move comes as the business performance of insurers has been reviving gradually,