Financial Daily from THE HINDU group of publications
Tuesday, May 13, 2003
Financial Daily from THE HINDU group of publications Tuesday, May 13, 2003 |
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Money & Banking
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Life Insurance Corporate - Performance HDFC Standard crosses Rs 5,000 cr in cumulative insurance coverage R.Y. Narayanan
COIMBATORE, May 12 HDFC Standard Life Insurance Company has crossed Rs 5,000 crore in cumulative insurance coverage during 2002-03. The premium income from new business has more than trebled during last fiscal compared with the previous year. The company declared the third successive bonus to the participating policyholders. But its Chairman, Mr Deepak Parekh, has cautioned that the continuous fall in long-term interest rates may lead to a fall on the quantum of reversionary bonuses that may be declared in the future. According to the results declared and posted on May 8 on the Web site of HDFC Standard Life Insurance Company, for the financial year ended March 31, 2003 the premium generated from new business was Rs 132 crore compared to Rs. 36 crore in the previous year. The cumulative insurance coverage, i.e. the sum assured for the policyholders, crossed Rs 5000 crore. HDFC Standard Life extended life insurance coverage to over 1,50,000 lives during this period. Mr. Deepak Satwalekar, Managing Director and CEO, said the business growth was due to introduction of new insurance solutions, increased presence across locations, increase in its sales force and adding corporate agents to its distribution mix.The directors have also declared the company's third bonus for participating policyholders. Mr Parekh, however, has observed that long term interest rates have fallen by over one per cent since it declared bonus last year and this has had an impact on the rates of interest that all financial institutions can pay their customers. In view of this fall in long-term interest rates, the company had reduced interim bonus rates this year and unless there was a recovery in long term interest rates, reversionary bonus rates would also have to be reduced in future years, he added. Mr Satwalekar said the company would continue to add to its insurance solutions portfolio to offer increased flexibility in structuring individualised insurance solutions. He claimed that HDFC Standard Life's Personal Pension Plan continued to gain in popularity and among the private insurers it currently had a 25 per cent market share in the pension segment. Its group business also grew significantly in 2002-03 covering over 22,000 lives for a sum assured of over Rs 2,000 crore. Bonus declared for participating policyholders for the financial year 2002-03: Reversionary bonus (for policies in force on March 31, 2003) Regular premium policies: Bonus at the annual rate of 3.75 per cent of the sum assured for all regular premium endowment assurance policies, children's plans, money back policies and personal pension plans and have paid all premiums in full when due. Single premium whole of life policies: Reversionary bonus at the annual rate of seven per cent of the sum assured plus attaching bonus. Single premium personal pension plans: Reversionary bonus at the annual rate of seven per centof the sum assured. These rates will apply from April 1, 2002 to March 31, 2003.
Interim bonus
Regular premium policies: Interim bonus at the annual rate of 3.25 per cent of the sum assured for all regular premium endowment assurance policies, children's plans, money back policies and personal pension plans that become claims before the next bonus declaration and have paid all premiums in full when due. Single premium whole of life policies: Interim bonus at the annual rate of six per cent of the sum assured plus attaching bonus for single premium whole of life policies that are still in force and become claims before the next bonus declaration. Single premium personal pension plans: Interim bonus at the annual rate of six per cent of the sum assured for all single premium personal pension plans that are still in force and become claims before the next bonus declaration.
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