Bajaj Allianz declares Rs 1,156 cr bonus for participating policyholders

This includes one-time bonus of Rs 315 cr, over and above regular bonus; company says it is the 20th consecutive year that it is declaring a bonus

Private sector life insurer Bajaj Allianz Life Insurance has declared an annual bonus of Rs 1,156 crore for its 1.2 million participating policyholders for FY21.

The bonus amount includes a one-time bonus of Rs 315 crore, which is over and above the regular bonus. The company, in a statement, said it is the 20th consecutive year that it is declaring a bonus, delivering long-term value for its policyholders.

The bonus declared will be for all ‘par product’ policies that are in force for full sum assured as of March 31, 2021, and for which customers are paying premiums regularly while the one-time special bonus and the regular revisionary bonus will be payable at the time of maturity or death of the policyholders.

Bonus is the share of profits generated by the company's participating policyholder's funds which are added to their guaranteed maturity benefits, thus enhancing the corpus.

Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance said, “Our employees and our customers’ life goals continue to be our key priorities as we collectively move ahead in these tough times”.

ICICI Prudential Life Insurance, a few days back, had also announced an annual bonus of Rs 867 crore, up 10 per cent from last financial year, for all eligible participating policyholders for FY21, the highest ever bonus declared by the insurer. Around 9.8 lakh participating holders are said to benefit from this bonus announced by the insurer.