<p>More than 2.3 crore life insurance policies were surrendered by policyholders before their maturity in 2021-22 compared to 69.78 lakh policies that were closed prematuredly the previous year, according to a <a href="https://indianexpress.com/article/india/covid-distress-sharp-surge-in-surrender-of-insurance-policies-8110025/" target="_blank">report</a> by <em>The Indian Express. </em></p>.<p>The three-fold rise in the number of policies surrendered prematurely in 2021-22 indicate the financial distress during the second year of the Covid-19 pandemic. </p>.<p>Amid the Covid-19 outbreak, the Union government imposed a nationwide lockdown on March 24,2020. Owing to this, several people across the country lost their jobs, while others faced salary cuts. These unprecedented circumstances forced people to surrender their non-matured life insurance policies to arrange for funds. More number of people resorted to selling their insurance policies prematuredly the following year as well to cope with financial distress. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/how-to-claim-in-case-of-multiple-health-insurance-policies-1127570.html" target="_blank">How to claim in case of multiple health insurance policies</a></strong></p>.<p>According to the report, 16 out of 24 insurers witnessed an increase in premature selling of policies in 2021-22 compared to the previous year.</p>.<p>The average surrender value paid to policyholders in 2021-22 was Rs 62,552, less than half the average surrender value of Rs 1,67,427 paid in 2020-21. </p>.<p>For Life Insurance Corporation policyholders, the average value of over 2.12 crore policies surrendered during 2021-22 was just Rs 43,306. However, in the previous year, LIC policyholders surrendered 53.35 lakh policies and the average surrender value paid to them was Rs 1,49,997.</p>
<p>More than 2.3 crore life insurance policies were surrendered by policyholders before their maturity in 2021-22 compared to 69.78 lakh policies that were closed prematuredly the previous year, according to a <a href="https://indianexpress.com/article/india/covid-distress-sharp-surge-in-surrender-of-insurance-policies-8110025/" target="_blank">report</a> by <em>The Indian Express. </em></p>.<p>The three-fold rise in the number of policies surrendered prematurely in 2021-22 indicate the financial distress during the second year of the Covid-19 pandemic. </p>.<p>Amid the Covid-19 outbreak, the Union government imposed a nationwide lockdown on March 24,2020. Owing to this, several people across the country lost their jobs, while others faced salary cuts. These unprecedented circumstances forced people to surrender their non-matured life insurance policies to arrange for funds. More number of people resorted to selling their insurance policies prematuredly the following year as well to cope with financial distress. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/how-to-claim-in-case-of-multiple-health-insurance-policies-1127570.html" target="_blank">How to claim in case of multiple health insurance policies</a></strong></p>.<p>According to the report, 16 out of 24 insurers witnessed an increase in premature selling of policies in 2021-22 compared to the previous year.</p>.<p>The average surrender value paid to policyholders in 2021-22 was Rs 62,552, less than half the average surrender value of Rs 1,67,427 paid in 2020-21. </p>.<p>For Life Insurance Corporation policyholders, the average value of over 2.12 crore policies surrendered during 2021-22 was just Rs 43,306. However, in the previous year, LIC policyholders surrendered 53.35 lakh policies and the average surrender value paid to them was Rs 1,49,997.</p>
