Eligible participating policyholders will get a share in the surplus to be created in their ‘Participating Fund’ as well as increase their benefit amount by declaration of bonus every year.
New Delhi. The country’s leading private insurer HDFC Life ( HDFC Life ) has announced a bonus of Rs 2,180 crore for the policyholders of participating insurance plans on Wednesday. Under the Partnership Scheme, the policyholders are entitled to share in the profits of the company. This profit is given to them as a bonus. The current bonus of Rs 2180 crore is 44 per cent higher than last year. The proposal was approved in the company’s board meeting held in April 2021. 15.49 lakh policyholders of the company are eligible to get this bonus.
HDFC Life said in a statement that the eligible participating policyholders will get a share in the surplus being created in their ‘Participating Fund’ as well as increase their benefit amount by declaration of bonus every year. Vibha Padalkar, MD & CEO, HDFC Life said, “We are delighted to announce the bonus for our policyholders. The company is committed to provide its policyholders with the best in terms of financial products and services.
Out of the total amount of Rs 2180 crore, Rs 1438 crore will be paid to policyholders in the current financial year as bonus or cash bonus on mature policies. The balance bonus amount will be paid in future when the policy matures/death claim/surrender. HDFC Life Insurance Company Limited is a listed life insurance company promoted by HDFC Limited and Standard Life Aberdeen. Established in the year 2000, HDFC Life is a leading long-term life insurance solutions provider in India.
Retention of customers challenging for housing finance companies
Deepak Parekh, Chairman, HDFC Bank, the largest private sector bank, said that there is no penalty/fee for premature repayment making it challenging for housing finance companies to retain customers. is. He said that there is no provision of any fee on prepayment of housing loan with variable interest rate. Thereby, other lenders are wooing the borrowers through lower rates and increased loan amount.
Parekh, in his message to the shareholders in the company’s Annual Report 2020-21, said that engaging customers for housing loans takes a lot of effort and cost. Retaining customers is a challenging task for home loan companies. He said the lending companies do not want to let their existing customers go to other lenders, who often lure them through low interest rates to increase the loan amount. HDFC Bank Chairman said that due to transfer of surplus of loans, only one asset passes from one company to another. This neither expands the loan business nor increases the home buyers.