It is hereby informed to the esteemed policyholders of the Company that as per the directions issued by IRDA vide circular REF:IRDA/F&I/CIR/INV/173/08/2011 dated 29th July 2011 and a subsequent clarification vide corrigendum Ref:IRDA/F&I/CIR/INV/187/08/2011 dated 17th August 2011, the Company with effect from 18th August 2011 has carried out a change in the methodology for calculation of NAV funds which is applicable to all unit linked products/policies of the Company, including the existing unit linked policies issued by the Company.The policy documents shall accordingly stand modified.
Market value of investment held by the fund plus / (minus) the expenses incurred in the purchase / (sale) of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any. This gives the net asset value of the fund. Dividing by number of units existing at the valuation date (before any new units are allocated/ redeemed), gives the unit price of the fund under consideration.
Market value of the investment held by the fund plus value of current assets less value of current liabilities and provisions, if any. This gives the net asset value of the fund. Dividing by the number of units existing on the valuation date (before creation/redemption of units) ),gives the unit price of the fund under consideration.
The Company hereby confirms that implementation of the new methodology for calculation of NAV does not in any way change the number of units to be credited to the policyholder.