“Even if there is no life cover in the annuity product there is a longevity risk, which can only be managed by the insurance companies and hence there is no violation,” IRDA Member (Actuary) R Kannan, told PTI here.
Annuity product is an insurance product that features a predetermined periodic payout amount until the death of the annuitant. “These products issued by life insurance companies are well within the ambit of Section 211 of Insurance Act,” Kannan said.
Published 31 December 2009, 16:10 IST