Tata AIA Life Insurance has declared a bonus of ₹1,842 crore for the financial year 2024-25 under its participating life insurance plans. This is the highest bonus announced by the company to date and represents a 26% increase compared to the ₹1,465 crore paid out in the previous year.
The bonus will be distributed among policyholders of select participating plans, including the Diamond Savings Plan, Smart Value Income Plan, Value Income Plan, and Shubh Flexi Income Plan. More than 8.15 lakh policyholders are expected to benefit from this payout.
Participating (Par) plans are traditional life insurance policies where policyholders are eligible to receive a portion of the insurer’s profits through annual bonuses. These bonuses are not guaranteed and depend on the performance of the insurer’s participating fund during the year. Bonuses are either added to the policy value or paid out at maturity or surrender, as per the policy terms.
Read more: Tata AIA Launches Two New Consumption Based Funds
The announcement from Tata AIA is in line with a broader trend among private insurers declaring higher bonuses for FY25. Bajaj Allianz Life Insurance declared a bonus of ₹1,833 crore this month, which includes a special reversionary bonus of ₹206 crore and covers around 11.7 lakh policyholders.
Kotak Mahindra Life Insurance also announced a bonus of ₹1,178 crore for the year, marking its 24th consecutive year of bonus payments and covering over 7 lakh policyholders.
Tata AIA Life reported a total premium income of ₹25,692 crore for FY24, up 25% from the previous year. The insurer recorded ₹7,413 crore in Individual Weighted New Business Premium and was among the top 3 private insurers in this metric.
The ₹1,842 crore bonus will be credited across eligible Tata AIA plans for FY25, marking the company’s highest-ever payout under its participating policy framework.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 22, 2025, 1:56 PM IST
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