The Authority has been assessing the economic position both at global level and at the Indian context, in general and the insurance sector in particular, Irdai said on Thursday.
The regulator said it has assessed the situation based on the financial results of the insurers for quarters ended September and December 2020.
It 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.
"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 dated 24thApril 2020 mentioned above with immediate effect," it said.
However, insurers are requested to take a conscious call in the matter of declaring dividends for FY 2020-21 considering their capital, solvency and liquidity positions, it said further.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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