Max India Limited Financial Overview
MAX
Key Assumptions (2/2)
MAX
LIFE
INSURANCE
Expense and Inflation
■ Maintenance expenses are based on the recent expense studies performed internally by the Company. The VIF is
reduced for the value of any maintenance expense overrun in the future. The overrun represents the excess
maintenance expenses expected to be incurred by the Company over the expense loadings assumed in the
calculation of PVFP.
Expenses are denominated in fixed Rupee terms and are inflated at 6.25% per annum.
■ The commission rates are based on the actual commission payable (if any).
Tax
The corporate tax rate is assumed to be 14.42% for life business and nil for pension business.
■ For participating business, the transfers to shareholders' resulting from surplus distribution are not taxed as tax is
assumed to be deducted before surplus is distributed to policyholders and shareholders.
■ The mark to market adjustments are also adjusted for tax.
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