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As part of the financial prudence measures in the wake of Covid-19 pandemic, the insurance regulator has directed insurers not to pay dividend for the financial year 2019-20.
All insurers have been directed to align dividend payout for the FY 2019-20 so as to be in conformity with their strategies to ensure that they have adequate capital and resources available with them to ensure protection of the interests of the policyholders, the Insurance Regulatory and Development Authority of India (IRDAI) said in a circular.
In view of the emerging market conditions and to conserve capital with the insurance companies in the interests of the policyholders and of the economy at large, ``insurers are urged to take a conscious call to refrain from dividend payouts from profits pertaining financial year ending March 31, 2020 till further instructions,’’ the Authority said.
The regulator will take a review of its postion on dividend payments after the September quarter financial results this year.
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