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In view of the fact that majority of the population in India is under-insured despite having <keyword id="6406875" type="COMPANY" weightage="20" keywordseo="life-insurance">life insurance</keyword>, Tata AIA Life <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">Insurance</keyword> - a joint venture between the <keyword id="46894" type="PERSON" weightage="20" keywordseo="Tata-Sons">Tata Sons</keyword> and AIA Group - has recently kick-started a new digital campaign titled ‘Catch Up with the Times’. 
 Its foremost aim is to make Indians aware of the alarming protection gap of 92.2% that is prevailing in the country and encourage more people to use what’s called a ‘Catch up calculator’. This tool, the company says, will help people learn about their protection gap so that they can update their <keyword id="598808" type="UNKNOWN" weightage="20" keywordseo="life-insurance-cover">life insurance cover</keyword> accordingly. 
 
Now, what is a protection gap exactly? It’s the difference between the resources needed and the resources already available for dependents to maintain their living standards when the prime working member is no longer able to support the family. 
 
Notably, the protection gap for Indian households, as per the company, has grown significantly in the last few years. Citing a recent study in this regard, <a href="https://apps.tataaia.com/tataaia/?utm_source=AdAge&amp;utm_medium=Article&amp;utm_term=Article&amp;utm_content=Content&amp;utm_campaign=CatchUp&amp;cid=soc13">Tata AIA Life</a> states that the protection gap for the entire population of India has been estimated at $8,555 billion (approximately Rs 563 lakh crore) in 2014. According to the Asia Pacific mortality protection gap by Swiss Re, a typical Indian household has only 7.8 % of savings and insurance in place, leaving a huge mortality protection gap of about 92.2%. 
 
Highlighting this, the new campaign showcases a nostalgic video that takes us back in time and, ends with a powerful message that many Indian families are living behind the times and how it’s time to catch up! 
 
 
 
Describing the video, Tata AIA Life says, “that every year we update our homes, our cars, our phones… our standards of living. This year many Indian families will be updating their life insurance cover as well. You too can resolve to fully protect your family by choosing a cover that’s right for your current needs and lifestyle.” 
 
Since India’s mortality protection gap reflects a worrying figure, Tata AIA Life’s campaign will help India understand the importance of ‘Catch Up Calculator’ – a tool which will be instrumental in exploring the need for long-term savings and protection solutions in the country. 
 
(This article is sponsored by Tata AIA Life Insurance)

Tata AIA
Life Insurance asks Indians to Catch Up with the Times

The <keyword id="6406875" type="COMPANY" weightage="20" keywordseo="life-insurance">Life Insurance</keyword> Corporation (<keyword id="6367143" type="ORGANIZATION" weightage="100" keywordseo="LIC">LIC</keyword>) has pulled off a record claim performance by settling 99.92 per cent of death claims in 2016-17 as against industry average of 95 per cent, according to a PTI news reporter. The <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword> behemoth is keen to push the boundary further, looking to settle 99 per cent claims on a monthly basis too in future. "LIC has settled 99.92 per cent of death claims in 2016- 17, which is undoubtedly one of the best performances not only in the country, but in the world," an LIC source told PTI here. According to industry body <keyword id="75047" type="ORGANIZATION" weightage="20" keywordseo="Life-Insurance-Council">Life Insurance Council</keyword>, there are a total of 24 players, including LIC, active in the life insurance space and the industry average of death claim settlement stands at around 95 per cent. "One of the fundamental reasons for the strong brand of LIC is our service delivery and... our claim settlement operations in particular," the source said, adding that "we would expect that not only we continue to focus on this area, but further strengthen it by settling 99 per cent claims on month on month basis". Till date, LIC has had nearly 11 lakh such cases outstanding and expects that each and every case needs to be followed up to its logical end. According to the source, the customer relationship management (CRM) department of LIC has been asked to ensure claim particular sheis prepared for every outstanding case and regular monitoring is done. LIC, the source said, is making further efforts in the CRM space, where the corporation would like to see visible and perceptible changes in the quality of response to customers, turnaround time in attending to customer complaints or queries, courteous attitude and business etiquette of officials dealing with customers. According to the source, prompt handling of queries by the SMS-based helpline has brought down the number of complaints drastically and it would revive the helpdesk in each branch so that customer is attended to promptly. "Further, to provide instant service, we need to ensure our customers are empowered to use e-services. Their mobile numbers, e-mails and <keyword id="285745" type="ORGANIZATION" weightage="20" keywordseo="NEFT">NEFT</keyword> details are registered as early as possible to provide instant services," the source added. As for information technology, LIC's immediate focus is to ensure comprehensive cyber security for data, software as well as hardware. This is all the more relevant in the wake of the Wannacry malware attack that hit computers across globe. The corporation may go for a net addition of 69,000 agents, potentially taking its agency strength to 11,31,181 at the end of March 2017.

LIC sets record on claims front, settles 99.92 per cent cases

<keyword id="6367143" type="UNKNOWN" weightage="20" keywordseo="LIC">LIC</keyword> merchants are those authorized persons who collect the premiums for <keyword id="6365973" type="ORGANIZATION" weightage="20" keywordseo="life-insurance-corporation">Life Insurance Corporation</keyword> of India. LIC Merchant Login provides the complete suite of premium collection solution for LIC Merchants in India. For logging into this site as a LIC merchant, you will need a Merchant ID and Password. What are the functions of LIC Merchant Premium Collection Portal? LIC Merchant Premium Collection Portal is the online mode of collecting the LIC policy premiums via internet. Those individuals involved in the collection of premiums on behalf of the LIC of India are called as Merchants. By logging into the LIC Merchants Portal, these members can collect the premiums and also view or update the policy details through the merchant tools made available to them on the website. How to login to the LIC Merchants portal website? Here are the simple steps to Register and then login to the LIC Merchant Portal First, visit the official website of the Life Insurance Corporation of India. Click on the link ‘Merchant Portal’ which you will find under the ‘Online Services’ menu. You will find the link ‘LIC Merchant Login’ Click on “Login” You will be promoted to input the user name and password. Once you enter these details, click on “Submit” How to Login to the LIC Merchant portal if you have forgotten the password? If you have forgotten the password, use the following steps to login to this site. Visit the official website of the Life Insurance Corporation of India. Click on the link “Merchant Portal” you will see under the menu tab “Online Services”. Click on “Login” and then click on the option “Forgot Password” Enter the User ID and Email ID and click on the option “Mail New Password” You will get the password mailed to your registered email account. Input this password and then proceed further. LIC Merchant Customer Care Helpline numbers The LIC of India has also provided helpline numbers to assist those who find any difficulties in the merchant login facility and using the merchant tools and others. Call: 022-67090501/022-67090502 Email: agent_support@licindia.com / dev_support@licindia.com How to change the password? Here are the simple steps to follow if you want to change your LIC merchant password. Visit the official website of the Life Insurance Corporation of India. Click on the link “Merchant Portal” you will see under the menu tab “Online Services”. Click on “Login” and then click on the option “Change Password” Input your user ID and the correct password. Enter the new password and then confirm password. Click on ‘Reset’. Now your password is reset to the new one you opted for. Henceforth you have to login using your new password. What are the benefits of using the LIC Merchant Portal? Here are the benefits of using the LIC Merchant Portal. Once you have signed up as a LIC merchant, you can login as a cashier. You can perform different tasks on the website as a merchant including generating invoices, querying, view the pending invoices, view the receipts, and pay the transaction fees and others.

LIC Merchant portal helpline number

Agile, digital, truly differentiated — what sets Max Life Insurance apart from the other players in the space

India's top financial institution, <keyword id="6365973" type="CITY" weightage="20" keywordseo="Life-Insurance-Corporation">Life Insurance Corporation</keyword> (<keyword id="6367143" type="ORGANIZATION" weightage="100" keywordseo="LIC">LIC</keyword>), has said it won’t give green signal to the $13-billion Essar-Rosneft deal unless Essar clears all dues from its end. 
 
This deal is going to be the <a href="http://www.businessinsider.in/Indias-biggest-deal-worth-Rs-72800-crores-Essar-oil-sellsto-Russias-Rosneft/articleshow/54877758.cms">largest FDI inflow</a> in India. 
 
“The agreement of the loan that <a href="http://www.businessinsider.in/LIC-gearing-up-to-give-tough-fight-to-private-insurers-Know-how/articleshow/47628777.cms">LIC</a> had given to Essar Oil requires its consent for change of management,” an LIC spokesman told ET. "We had received proposal from group companies for flexible restructuring and it was decided before considering (the) proposal... the company has to clear all the dues (sic)," the official added. 
 The loan outstanding to Essar Oil is worth $125 million, while its exposure to <keyword id="6440383" type="COMPANY" weightage="20" keywordseo="Essar-Power">Essar Power</keyword> is around Rs 1,500 crore. 
 
Also read: <a href="http://www.businessinsider.in/Indias-Essar-deal-with-Russias-Rosneft-does-not-violate-sanctions-by-the-US/articleshow/54901296.cms">Essar deal with Russia’s Rosneft does not violate sanctions by the US</a> 
 
Now that LIC has taken a stand, it remains to be seen whether the all-cash transaction gets all the necessary approvals before the end of this fiscal. 
 Industry experts are of the view that the reason behind LIC's unusually tough attitude could be that once the deal with <keyword id="174417" type="COMPANY" weightage="100" keywordseo="Rosneft">Rosneft</keyword> goes through, it could be difficult to recover the loan amount. 
 
Also read: <a href="http://www.businessinsider.in/cheques-lic-agents-to-get-pos-machines-for-premium-collection/articleshow/57387887.cms">Forget cash/cheques! LIC agents to get PoS machines for premium collection</a> 
 
"<a href="http://www.businessinsider.in/Rosneft-carrying-out-due-diligence-in-buying-stake-says-Essar-Oil/articleshow/50928046.cms">Rosneft</a> is keen to enter India and Essar is the only available avenue. Paying off $125 million to LIC and another $44 million to some of the government-owned general <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword> companies is not exactly a big deal. But LIC would be a loser if only the Essar Oil loan is paid back...the company is making money and may have a ratings upgrade once the deal closes. That would be losing a good asset," a senior banker familiar with the negotiations told ET. 
 
(Image source: PhotoBucket)

LIC wants Essar to clear all dues to give NOC to its deal with Rosneft

<keyword id="8144144" type="UNKNOWN" weightage="20" keywordseo="PPF-and-Life-Insurance">PPF and Life Insurance</keyword> are completely dissimilar products. Since <keyword id="6406875" type="UNKNOWN" weightage="20" keywordseo="life-insurance">Life insurance</keyword> protects your family in the unfortunate event of your death, it must always be given the first priority. Once protection is assured, then you can start focusing on other goals of your life including the education and marriage of your children and your retirement. However, if you want to compare between the two as investment options, here are the facts to consider. <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword> overview PPF expanded as Public Provident Fund is an investment scheme backed by the government. In a PPF account, an investor can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakhs per financial year. If this criteria is met, Section 80 C assures tax exemption for the principal, returns and the maturity amount. Life insurance overview Life insurance schemes require that you pay the premium at regular intervals in order to be eligible for the protection. How much risk cover the given policy provides depends on the sum assured by the policy. Depending on the type of life insurance purchased, the assured sum is paid out in the event of the death of the policy holder or upon the maturity of the plan. Comparing between PPF and Life Insurance plans Your investments in both PPF and life insurance are safe and legal. While PPF is a central government backed scheme, life insurance products are offered wither by the government-owned Life Insurance Corporation (LIC) or by some private insurance companies that are regulated by the government body IRDAI. Returns PPF investments assure 8.7 % yield as per the present interest rates. The returns are compounded yearly. The returns in a Life Insurance plan differs between policies and between the provider companies. The death benefit of a life insurance plan is several times the invested amount depending on the time of death of the policy-holder. The yield on the maturity benefits can be between 4% and 6%. Flexibility The investor can choose to invest anywhere between Rs 500 and Rs 1.5 lakhs per year in a PPF scheme and hence the amount that can be invested in flexible. In case of Life insurance plan, the premium payable is fixed and is never flexible. The premium payable varies between different life insurance plans depending on the sum assured in the event of death of the policy-holder. In general terms, the minimum lock-in period after which you can encash or surrender the life insurance policy is 3 years. After this lock in period, you can take a loan on the policy. In case of PPF, you can withdraw from every 7th financial year from the date of opening the account. There are restrictions on how much you can withdraw and the plan cannot be closed until the 15th year. Status as a financial instrument A life insurance policy is a kind of property carrying a legal status. You can mortgage, transfer, gift, sell, or hypothecate it provided you meet the applicable laws. You can also take a loan on the policy from the insuring company. Whereas, a PPF cannot be hypothecated or used for collateral purposes. Final word Since the best stand regarding investments is protection first and savings next. In this way, only when you have protected your family with the right kind of Life Insurance plan, you can think of saving in a PPF scheme.

comparison between PPF vs LIC which is better

<ul><li>We bring to you a series of columns from industry experts, looking back at the last 10 years.</li><li>The columns will explore how the media, marketing and advertising industry has transformed in the last decade.</li><li>Tarun Chugh, MD and CEO, <keyword id="151079" type="COMPANY" weightage="20" keywordseo="Bajaj-Allianz-Life-Insurance">Bajaj Allianz Life Insurance</keyword> tries to decode evolving consumer behaviour and shares a few ways in which the BFSI sector is reaching out to them in today's digital era.</li></ul>New-age Indians are unlike their previous generations. As a demographic, India’s population is getting younger and with more exposure to the world, the demands of the younger generation are changing. This change is forcing all industries to innovate, and the shift is more visible in the insurance space than anywhere else. For instance, young people are considering life insurance not simply for protection but to achieve their life goals. Ambitions such as entrepreneurship, world travel, preventive healthcare and having a parallel career demand financial planning by young people. According to a recent survey conducted by Kantar IMRB, 2 in 5 Indians have retirement related goals and the number is even higher in the metros with every second person wishing for a comfortable retirement as one of their life goals. In fact, retirement related life goals feature in the list of top 5 life goals for Indian millennials as well. This has led to a paradigm shift in the way financial planning has been so far. Indians are now looking at planning their retirement early on in life to maintain their standard of living and achieve life goals even post retirement. There’s a lot more interest towards long term life insurance products and the appearance of new-age online ULIPs has really helped the takeoff for these products as they offer transparency and convenience. Customers’ expectations from insurance products are rapidly changing as they demand more efficient service which match their lifestyle and needs example, Digital touchpoints, self-service apps and automated payment reminders. Increasingly, the product demand is also shifting towards new-age products which can be bought and redeemed online, have more transparency and don’t tangle the customers in complex terms and conditions. It’s not hard to see that the industry is responding to these shifts comprehensively. And regulatory changes by the Insurance Regulatory Development Authority of India have also helped. For instance, IRDAI’s regular interventions have meant that products in the market are transparent and customer-friendly with more benefits than the terms and conditions attached to them. The intervention has also ensured that new products are innovative in terms of their structures and payouts rather than refurbished old schemes launched with newer names. This has led to renewal premium collections going up recently which has greatly helped affirmed people’s faith in life insurance as a product. Insurance premiums as a percentage of GDP have been steadily climbing up as it reached 3.69% in 2017 from 2.71% in 2001. Gross premiums in India reached Rs 5.53 trillion in FY18, with Rs 4.58 trillion contributed by life insurance and Rs 1.51 trillion coming from non-life insurance. Even though it’s a significant development, the penetration level at 3.69% of the total addressable population remains quite low and provides itself as an opportunity for companies to innovate and reach the last mile. The way to reaching new consumers is largely going to be phygital -- physical + digital. A recent research survey by PwC stated 47% of people research insurance online before making a buying decision as compared to 22% relying on agents. Moreover, 49% of consumers said that they prefer digital mode as their preferred channel for purchasing insurance followed by 32% who still prefer to call an agent. Interestingly, 18% of people want their insurance companies to communicate with them through emails – clearly emphasizing the increasing importance of two-way communication rather than a one-time sale model. The life insurance sector is set for a big boost with the increase in digital proliferation and customer awareness. According to the Kantar IMRB survey, Indians choose life insurance as their preferred investment option for 60% of their life goals. This is a clear signal of the latent demand in the country which the insurance industry is eager to fulfil with innovative products, tech-enabled seamless services and newer distribution channels. Further, with the right pace of technology adoption and customer-centric business processes, India’s life insurance sector is poised to be the fastest growing sector. - By Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance

How consumer behavior has evolved in the life insurance sector

If you wish to explore investment options, you will find an array of financial products in the market. <keyword id="74427" type="PERSON" weightage="20" keywordseo="fixed-deposit">Fixed deposit</keyword> and <keyword id="6406875" type="UNKNOWN" weightage="20" keywordseo="life-insurance">Life insurance</keyword> plans are among the investment vehicles that provide high returns on your investment. They are also highly popular investments products that most people are aware of. Though life insurance is an insurance product, quite a many people use it as an investment option. On the other hand, fixed deposit is an insurance product that can let you invest for varying tenures. When you want to decide which among them is a better investment option, read on to throw more light on the topic. Why invest in fixed deposits? Banks and other financial firms offer fixed deposit schemes and you can reap a wide range of benefits by investing in them. FD schemes give you higher returns compared to what you get on your <keyword id="114757" type="PERSON" weightage="20" keywordseo="Savings-Account">savings account</keyword>. The returns are assured and you can make premature withdrawal in case of arising needs and emergencies. The interest accumulated can be claimed either monthly or annually or on maturity of the investment. You can choose the investment tenure from 7 days to 10 years. Why invest in life insurance schemes? Similar to FDs, life insurance plans also come with a set of attractive benefits. On your fixed deposits, you can get tax benefits under Section 80C and 80D of the Income Tax Act of India 1961. In the event of the policy holder’s death, the life insurance plan provides a risk coverage to the dependents in the family. The coverage provided by the life insurance plan stretches far beyond the period for which the premium is paid. The different types of life insurance plans available are term insurance plans, whole life plan, retirement plan, senior citizen plan and others. Comparing between FD and Life Insurance Plan Fixed deposit is considered as a better investment option as it is exclusively designed for your investment as well as saving needs. If you wish to save and also invest for future, it is always advised to invest in FDs. On the other hand, life insurance plans are meant to offer risk protection as well as protect the financial interests of your family in your absence. Thinking of short and long term investments, FDs are better. Life insurance plan are suitable only as long term investment options. The minimum period of investment in a life insurance plan is about 10 years. The minimum amount that you can deposit in a FD plan is Rs. 1,000. The minimum period differs between plans in a life insurance plan. You will know the returns in case of a fixed deposit scheme in the beginning of the investment whereas in some unit linked life insurance plans, the returns are subject to market conditions. Fixed deposits are made for saving needs and life insurance plans are bought in order to relieve your near and dear ones from the financial risks in case of your unexpected absence. Final word Life Insurance Vs FD If fixed returns is your expectation, FD is a good investment option though you might not get any tax benefits. Even if you look forward to regular earnings from your invested amount, FD is a better option. It is also the best choice for senior citizens. Life insurance plan is a good one only when viewed as a risk coverage measure.

Life Insurance vs FD: which is better for investment

<ul><li>In our latest interview series, we talk to brands to understand how they are coping with the new normal and their strategies towards navigating these difficult times.</li><li>We speak to <keyword id="7539054" type="PERSON" weightage="20" keywordseo="Aalok-Bhan">Aalok Bhan</keyword>, Director &amp; Chief Marketing Officer, <keyword id="6374257" type="COMPANY" weightage="20" keywordseo="max-life-insurance">Max Life Insurance</keyword> about the impact of the <keyword id="91743" type="PERSON" weightage="20" keywordseo="lockdown">lockdown</keyword> on the brand, and the <keyword id="6406875" type="UNKNOWN" weightage="20" keywordseo="life-insurance">life insurance</keyword> industry in general and all that they have been doing to minimize <keyword id="7036687" type="UNKNOWN" weightage="20" keywordseo="business-impact">business impact</keyword> and ensure business continuity.</li></ul>The recent Covid-19 lockdown has impacted different sectors in different ways. Hospitality, travel, retail and aviation are perhaps the most impacted. With the lockdown now extended by another 2 weeks, its still some time till we understand what things look like in the post-Covid world. At the same time, there are a few sectors like FMCG, Telecom, Healthcare and Life insurance that haven’t been as severely affected. Brands have been trying their best to adapt to the new normal, not just in terms of how their businesses function but also in the way they communicate with their audiences. If one were to look at the positives, most brands have learnt how to become more agile and quickly adapt to changing needs at times of crisis. We recently caught up with Aalok Bhan, Director &amp; Chief Marketing Officer, Max Life Insurance to understand the impact on their brand, and the life insurance industry in general and all that they have been doing to minimize business impact and ensure business continuity. Edited excerpts: Q) How have the past few weeks been for the brand, considering the country has been in a complete lockdown? Has this affected your business? Just like every other economic sector, the lockdown has had a significant impact on the life insurance industry over the past few weeks. However, insurers across the board are navigating the crisis with extreme resilience and ingenuity and we are already seeing a robust industry response. By enabling organizations for effective remote work, recalibrating ecosystems with digital technologies and maintaining business continuity with strategic communications plans, insurers are doing enough and more to serve to the best of their capacity. Strengthening our digital initiatives at Max Life, we initiated a Business Continuity Plan a week before the lockdown was implemented. Our investment in remote user technology over the years enabled us to quickly ensure that 80% of our employees could work from home effectively within 3-4 days of the announcement. To keep the ball rolling, we have effectively digitized our entire sales process, training more than 9,000 frontline sellers and over 25,000 specified persons of banks and agents digitally in just two weeks, who sold almost 24,000 policies in the last week of March alone. We have also digitized our claims management to ensure that all support documents are accepted online, and customers are able to submit claims in a timely manner, using self-service options available on the website, digital bots and AI driven Interactive Voice Response. Q) How have you been trying to continue building a connect with your audience? Has there been a change in your media mix? At Max Life Insurance, we are consistently practicing empathetic communication and staying connected with the customer to create value and reassure them in the midst of a life altering crisis. As new-age marketers, we are also staying on top of the latest trends, watching data for insights, and understanding new consumer behaviors that will be key in driving successful conversations moving forward. For instance, new consumption patterns during the period of lockdown reflected that urban India is spending an average of 3.5 hours on digital, consumption dominated by news, social media and video streaming. At Max Life Insurance, we quickly adapted to change by channelizing our resources onto social media and digital marketing. Recent efforts include accelerating campaigns and being creative on social media, where we drove engagement on the back of a 21-day quarantine challenge through which we hope to stay connected with our customers. Keeping our connect with customers during social distancing, through Super Customer Week, now becoming e-Super Customer Week, changing the nature of customer engagement by going the digital way. Q) What are a few key learnings for you as a brand in the last few weeks? The impact of COVID-19 will be felt by all, small and big businesses. The biggest learning has been that marketing leaders need to stay the course and adapt to the new normal that is evolving. It is crucial to constantly keep experimenting and modifying marketing plans to find what works best given the situation. Q) When it comes to communicating with your consumers, what has your primary motive been? Times like these are important for us to remain connected with our customers and build trust by providing them the right kind of reassurance. Firstly, we are constantly informing customers that death due to Covid-19 is covered in their policies including term plans through multiple media such as sms, e-mail. Secondly, a dedicated Covid-19 section on our website proactively takes care of customer queries related to the topic. Q) With so much negativity in the minds of people, the biggest challenge is to build and strengthen trust. How are you doing that in these adverse times? Trust is what one must harness during COVID-19 by driving contextual and clear communication. At Max Life, we are driving utmost transparency in our coverage and communication to reinforce trust in the idea of true, hassle-free financial protection at the time of need. Q) There's a thin line in terms of a brand's communication in times of crisis where marketing communications can be misread as opportunist or even insensitive. How are you working around this tightrope and ensuring there isn't any miscommunication? We are focused on living up to our key responsibility of providing financial guidance to customers and therefore are leading our communication strategy with care and empathy. We are also consciously anchoring the messaging around fundamental themes such as financial protection, health and safety to create value and reassure customers in the midst of a life altering crisis.

Marketing in the times of Covid-19: Max Life Insurance

<ul><li>With the proposed buyout deal, <keyword id="268065" type="General" weightage="20" keywordseo="hdfc-life-insurance" source="Orion">HDFC Life Insurance</keyword> is said to enhance its agency business and benefit from Exide Life's strong presence in south Indian cities.</li><li>Shares of HDFC Life Insurance were down 3% after the announcement of the <keyword id="30334" type="General" weightage="20" keywordseo="acquisition" source="Orion">acquisition</keyword> as investors were not pleased with the huge deal.</li><li>Meanwhile, shares of Exide Industries were up 7%.</li></ul>HDFC Life Insurance has made plans to consolidate its business by acquiring another life insurance company <keyword id="2226848" type="General" weightage="20" keywordseo="exide-life-insurance" source="Orion">Exide Life Insurance</keyword> for ₹6,687 crore. This is said to be one of the largest acquisitions in India’s life insurance space, which has 23 private insurers. However, this deal has not impressed investors given the shares of the company slipped 3% and those of Exide Industries were up 7% as of 11:35 a.m., on September 3. <div type="image" title="HDFC Life chart" height="900" width="1200" msid="85891332" hostid="261"></div> On Thursday, September 2, shares of HDFC Life Insurance had surged 6% hitting a record high on expectation that the private insurer is likely to raise <a href="https://economictimes.indiatimes.com/markets/stocks/news/market-movers-what-sparked-a-stunning-rally-in-hdfc-life-insurance/articleshow/85866337.cms">₹1 billion</a> from investors as per a report by Economic Times. This was because on Tuesday HDFC Life had announced that its board will meet on Friday to raise funds through issue of equity shares on a preferential basis. Analysts feel that it is a good deal for Exide Life in terms of valuation, but a not-so-good deal for HDFC Life as it might be paying more. “There is little as such to gain for HDFC Life in the short term (in terms of this deal) and it will have to turn it around [towards] profitability over the next 12-15 months, which is why the stock (HDFC Life) has corrected. Market feels HDFC Life is clearly paying more, which is also why Exide’s stock is higher,” said an analyst at a broking firm on condition of anonymity. HDFC Life has a market share of 8% as of 31 July in terms of new business premium while Exide has a market share of 0.34%. New business premium is the premium acquired from new policies in a particular year. <div type="image" title="market share" height="900" width="1200" msid="85891352" hostid="261"></div> HDFC Life expects Exide Life to add 40% of topline agency business and 35% of agency pays, said a report by CNBC-TV18. Exide’s strong foothold in south India, especially in tier 2 and 3 towns will provide access to a wider market. In the past, HDFC Life had reportedly intended to acquire Max Life Insurance, but the deal did not go through because of regulatory hurdles. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-shares-rise-on-hope-that-modi-government-will-use-these-rescue-options/articleshow/85890407.cms">Market hopes Vodafone Idea will be saved and these are the rescue options</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/personal-finance/news/if-you-contribute-more-than-2-5-lakh-yearly-to-provident-fund-it-will-now-be-taxed-all-you-need-to-know/articleshow/85890029.cms">If you contribute more than ₹2.5 lakh yearly to provident fund, it will now be taxed — All you need to know</a>

Here’s why HDFC Life Insurance shareholders aren’t excited about the buyout of Exide Life

The <keyword id="6406875" type="COMPANY" weightage="20" keywordseo="life-insurance">life insurance</keyword> sector in India is believed to be the largest in the world. But <keyword id="161880" type="PERSON" weightage="20" keywordseo="Yashish-Dahiya">Yashish Dahiya</keyword>, co-founder of <keyword id="161885" type="COMPANY" weightage="20" keywordseo="Policy-Bazaar">Policy Bazaar</keyword> believes it to be otherwise. 
	 
	“When I look at life insurance, this segment of the industry is out of steam. And the government is making a big mistake by protecting this particular segment. As a proportion of the overall insurance industry, India is very lopsided in favour of life insurance. But most of the products sold are not pure life insurance,” Dahiya told BI India while comfortably seated in his office in Gurgaon. 
	 
	Besides protecting the segment, he noted that consumers are kept in dark about life insurance products. “But the problem is that at present people are sold insurance products without being told what the product really is,” asserted Dahiya. 
	 
	Explaining his statement, Dahiya noted that the life insurance products that are sold to the customers are pitched as investment products. He pointed out that at present; people are buying insurance products for investment purposes. “It is true that investment part of the insurance attracts people to buy insurance products. We have done an analyses of almost 1000 customers and almost all of them said that their primary objective is to make investment and not insurance,” he said. 
	 
	But it isn’t that pure life insurance products are not available in the market. According to Dahiya, this category of insurance product is sold on digital platforms only. “Pure life insurance has seen some action in the last five years. And it would not have grown, had there not been any digital platform available to the consumers, which is where consumers are buying pure life insurance products. For instance, a consumer can buy Rs 1 crore cover for Rs 10,000,” he noted. 
	 
	Substantiating his point, Dahiya elaborated that the cost of physical distribution of pure life insurance has made it financially unviable. “For a physical distributor to make such a policy viable, he will have to sell one policy a day, which is quite a challenge. Hence, the physical distribution of the product cannot sustain that product. But that is where the market will eventually lie,” he averred. 
	 
	Dahiya told BI India that the segment is evolving—from being price competitive to feature rich. So what does he mean when he says feature rich? “When I say feature rich, it means pay-outs over time among others. So, we are moving into more and more pure risk zone. But it is just the mechanism of payouts is changing because people prefer pay-outs in regular intervals than a one-time lumpsum amount,” he said. 
	 
	Citing an example, he added, “For instance, when I take a policy and if something happens to me, then I would want my wife to get a regular pension for the entire life from the policy that I have taken. I would want my children’s educational expenses covered. I would like to create almost corpuses on incidents that are objective oriented. I see the market moving in this direction and that is where the growth will really come from.” 
	 
	However, it should be noted that at present, the pay-outs happen when there is a death, disability or illness. In a no-death scenario, the pay-outs don’t happen. 
	 
	Currently, for Policy Bazaar, nearly 90% of their sales in the life insurance segment comes from pure life insurance. The company is now foraying into investment products such as Fixed Deposits and Mutual Funds through its new venture Paisa Bazaar.

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