Reply To: Non Negative Claw Back Additions

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February 20, 2019 at 2:15 pm #24505
Arpit Surana
Participant

    RISHABH wrote:

    IRDAI puts a cap on the maximum reduction in yield. If the difference between calculated reduction in yield and maximum return in yield required is positive then an equivalent number of units shall be added to the Policyholders’ Fund in such a way that the calculated reduction in yield shall be equal to the maximum reduction in yield. This is called as Non-negative claw-back addition. The units of the Non-negative claw-back shall be based on the NAV declared as on the date of Non-negative claw-back addition.

    Sent from my SM-A605G using Actuarial Info mobile app

    Can you explain it further, I am not able to get it.