"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, said Irdai
after assessing the financial results for Q2FY21 and Q3FY21.
It, however, asked insurers
to take a conscious call while declaring dividends for FY21, keeping in mind their capital position, solvency margin, and liquidity position.
“Considering the revival phase of the economy in general and the insurance industry
in particular, and taking into account the solvency position of the insurers, it has been decided to withdraw the applicability of the circular with immediate effect,” the regulator said.
“The authority has been assessing the economic position both at global level and Indian, in general and the insurance sector in particular. It is observed that the performance of the insurers in terms of business is gradually reviving, albeit at a slower pace vis-a-vis the pre-Covid levels,” it added.
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