Question

    A life insurance company estimates future policyholder

    liabilities at ₹900 crore and holds total assets of ₹1,200 crore. It also reports a solvency margin requirement of ₹250 crore. Calculate whether the company is in a surplus or deficit position as per IRDAI norms.
    A Deficit of ₹50 crore Correct Answer Incorrect Answer
    B Surplus of ₹100 crore Correct Answer Incorrect Answer
    C Surplus of ₹250 crore Correct Answer Incorrect Answer
    D Surplus of ₹50 crore Correct Answer Incorrect Answer
    E Balanced position Correct Answer Incorrect Answer

    Solution

    Surplus = Assets – (Liabilities + Solvency Margin) = ₹1,200 – ₹900 – ₹250 = ₹50 crore

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