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<a target="_blank" class="" href="https://www.businessinsider.com/tiktoker-unlimited-pto-scam-experts-say-she-has-a-point-2024-7">Unlimited vacation</a> is the ultimate test of judgment.For employees, it's a high-stakes bet on whether an employer will stay true to their word. It's also a gamble — take too little vacation and risk <a target="_blank" class="" href="https://www.businessinsider.com/highly-engaged-burned-out-employees-turnover-risk-2021-12">burnout</a>; take too much vacation and risk being secretly judged.In 2021, Lucille, who is in her mid-20s, took a chance on a New York-based PR firm offering unlimited vacation. It was her first time working for a <a target="_blank" class="" href="https://www.businessinsider.com/unlimited-pto-vacation-scam-time-off-managers-fight-burnout-culture-2023-1">company with unlimited PTO</a>.After using their policy sparingly, she realized she would need to test its boundaries by asking for 17 days off — a request that meant she would likely exceed what she refers to as the "unofficial" company average of taking three to four weeks a year.She used her colleagues as a sounding board, then anxiously approached her manager about the request and, to her surprise, found them supportive."It wasn't like I took a bunch of vacations," said Lucille, who requested the days off to work on assignments for her <a target="_blank" class="" href="https://www.businessinsider.com/freelance-writer-failed-went-back-full-time-job-2023-5">freelance writing career</a>. "I'm not sure the same thing would have happened if I needed to take weeks and weeks off to go on personal vacation."Unlike Lucille's company average, four weeks of vacation is far from the norm in the US.A <a target="_blank" href="https://affiliate.insider.com?h=8f8da8a1b199b029f06bab16481d7c4e8e031b96b1e0d90c26f3bbd3e83f941a&amp;postID=66b6228be3c9582388cdb32a&amp;postSlug=unlimited-vacation-pto-wins-risks-2024-8&amp;site=bi&amp;u=https%3A%2F%2Fwww.expedia.com%2Fnewsroom%2Fglobal-vacation-deprivation-at-a-ten-year-high-expedia-reports%2F">2023 survey</a> from Expedia found US workers with unlimited time off take an additional three and a half days off a year compared to the country's national average of 11 days.Similarly, the HR platform Namely looked into the PTO trends of 1,000 of its company clients in 2022. It found workers at these employers with unlimited plans took an average of 12.09 days a year compared with 11.36 days for those with fixed plans.Even with unlimited PTO encouraging workers to take more time off, America <a target="_blank" href="https://affiliate.insider.com?h=b3930d00e47fe4fb3969753b7501b5e08b4b41c66db9085512fc6c3175ea8539&amp;postID=66b6228be3c9582388cdb32a&amp;postSlug=unlimited-vacation-pto-wins-risks-2024-8&amp;site=bi&amp;u=https%3A%2F%2Fwww.expedia.com%2Fnewsroom%2Fexpedia-report-finds-americans-win-the-gold-medal-for-taking-fewest-vacation-days-globally%2F">remains</a> one of the most vacation-deprived countries.Workers in the US take an average of 11 days off a year — those working in places like France, Germany, Hong Kong, and the United Kingdom average more than 20, according to Expedia's 2024 Annual Vacation Deprivation Report.Business Insider spoke with employees who have tested their companies' unlimited-vacation policies to mixed results, showing how it can be a high-stakes gamble with either huge rewards or losses.(People identified only by a first name were given pseudonyms because they were not authorized to speak with the media or feared career-related repercussions. Their identities are known to BI.)<h2>With great rewards come big risks</h2>Daniel, a <a target="_blank" class="" href="https://www.businessinsider.com/microsoft-employees-china-iphones-for-work-not-android-report-2024-7">Microsoft employee</a> in his early 30s based out of Seattle, also far exceeded the US average of 11 vacation days this year by using the company's discretionary vacation program.From December 2023 through the end of this year, the program manager will have taken 51 days of vacation to visit spots throughout Canada, Europe, Mexico, and the US. The colleagues he's spoken to typically take four to seven weeks, he said.For him, unlimited vacation is invaluable."I have a kid now, and being able to take her around the world to different destinations so she can experience different cultures and things like that are very important to me," he added.Although Daniel uses discretionary vacation to travel the world, many of his colleagues that he's spoken to use it for flexibility — whether that's a side hustle or giving themselves a <a target="_blank" class="" href="https://www.businessinsider.com/4-day-workweek-could-be-here-sooner-than-you-think-2024-3">four-day workweek</a>.Christopher, a US-based software developer in his early 30s, has also taken advantage of his company's unlimited vacation policy to travel the world. In 2022, he took 33 days off."I didn't take much time off at the beginning," Christopher, who began working at the company in 2020, said. "But when the pandemic happened, and there was an abundance of tech jobs, I started taking more."He said his company's unlimited vacation policy allowed him to become a <a target="_blank" class="" href="https://www.businessinsider.com/digital-nomad-lifestyle-lessons-drawbacks-challenges-2023-8">digital nomad</a>. Many tech companies were hiring when Christopher started the job in 2020, but the landscape started to change rapidly two years later as inflation and interest rates started to soar and companies looked for <a target="_blank" class="" href="https://www.businessinsider.com/recession-2022-companies-prepare-economic-downturn-netflix-layoffs-meta-hiring-2022-5">ways to cut costs</a>.By November 2022, amid a management change, Christopher said he was flagged as having the highest vacation usage in the company and told not to take any more unless there was an emergency.He said he was also told to work during the week of Christmas even though the rest of his team and the direct employees of the client they were working for were on vacation.After that, he said, the company implemented a "flexible PTO policy" with a three-week minimum. A few months later, in March 2023, he was let go as part of company layoffs, which he believes was linked to his vacation usage.<div type="image" title="Man with laptop on the beach" height="1414" width="2121" msid="112529503" hostid="261" sizebytes="111242"></div>Although Business Insider could not verify why Christopher was laid off, taking employers up on unlimited vacation might be a risky move in the current job market, where <a target="_blank" href="https://www.businessinsider.com/why-hard-to-find-job-us-though-unemployment-low-2024-2">hiring is slow</a> and low, <a target="_blank" href="https://www.businessinsider.com/economy-adding-low-paying-healthcare-retail-jobs-high-wages-scarce-2024-5">especially for high-paying roles</a>.The boundaries may be especially dangerous in tech, which had some of the <a target="_blank" class="" href="https://www.businessinsider.com/tech-layoffs-way-down-from-2023-why-so-grim-2024-2">worst layoffs</a> in 2023 and has yet to recover.It was a marked change from the near decade of overhiring by technology companies, which engaged in <a target="_blank" href="https://www.businessinsider.com/banks-hedge-funds-hiring-technologists-engineers-developers-fast-interview-process-2021-12">talent wars</a>, launched <a target="_blank" href="https://www.businessinsider.com/top-tech-recruiters-weigh-in-on-coding-bootcamp-grads-2021-10">coding camps</a> to find new recruits, and <a target="_blank" class="" href="https://www.businessinsider.com/why-big-tech-companies-laying-off-spoiled-workers-perks-2023-2">spoiled workers</a> with six-figure salaries and an abundance of perks.Tech still hasn't recovered from the bloodbath — <a target="_blank" class="" href="https://www.businessinsider.com/tech-layoffs-way-down-from-2023-why-so-grim-2024-2">layoffs</a> have continued throughout 2024, though the cuts have tended to be smaller and more concentrated.Even before the industry shifted, Christopher said many colleagues were scared to take PTO. He added that several coworkers had commented on his vacation usage, saying they wished they could take the same amount.They technically could, he told BI, but most of them "probably maxed out at around 15 days."It's not uncommon that unlimited vacation policies, which are ill-defined by definition, lead to periods where no one takes days off because of uncertainty and fear of standing out negatively, wrote Bruno Luco, head of people at online walking-tour platform GuruWalk, in a message to BI.In some cases, he added, team leaders or influential people within the organization must use vacation to set an example for a company."Once a group of people within the company start taking vacation, a collective group conscience develops that encourages more people to take their vacation, creating the virtuous circle," he wrote.<h2>Finding the breaking point</h2><a target="_blank" href="https://www.marketwatch.com/guides/business/pto-statistics/">Less than 10%</a> of US <a target="_blank" href="https://www.shrm.org/topics-tools/research/employee-benefits-survey">employers</a> offer unlimited PTO as of 2023. Although it sounds like a perk for employees, it's not without benefits to employers who give it.It's a well-known <a target="_blank" href="https://www.fastcompany.com/90934662/the-real-and-problematic-reason-companies-offer-unlimited-vacation">financial accounting hack</a>. Under a traditional paid time-off policy, when an employee has earned their vacation time, a company must set aside funds to pay an employee for any owed PTO if they depart.With an unlimited vacation policy, no such line item is needed.In the absence of a policy, employees often use their managers, colleagues and an understanding of their own work capacity to gauge how much time to take, weighing up the career risks and life benefits of such a request.Carlos Arbona, a midlevel account executive in his late 20s at digital platform CoachHub, said he intends to take around 30 days off this year using his company's unlimited vacation policy.He's already taken 14 days off to <a target="_blank" class="" href="https://www.businessinsider.com/american-moved-to-istanbul-loves-it-cheap-cost-of-living-2024-1">travel to Turkey</a> and Greece and plans to visit Spain later this year.Although Arbona could push the limits beyond two months, he said it wouldn't be in his best interest as it would mean a full quarter off from his sales role, which is his priority.Similarly, Daniel believes six to seven weeks is his limit."That's the sweet spot where the team doesn't miss me too much, and my presence is still felt," he said, adding that anything more would mean his coworkers would have to carry the burden of his "excessive time off."The breaking point often comes when there is a noticeable decline in an employee's performance or availability, which can manifest in missed deadlines, unresponsiveness, or lack of participation, wrote Paul Lee, cofounder and CEO of AI platform Patlytics, in a statement to BI.Lucille said she's found that planning for how the vacation will impact the rest of the team is also a big factor in how receptive management will be to repeated PTO requests.On a similar note, Arbona and Daniel said they can only take this much vacation because they never fully switch off.Arbona checks his laptop and takes calls on holiday to keep things at work ticking along. Daniel keeps his phone on him and brings his laptop on vacation.Employees can plan ahead and not fully take off yet still be directly or indirectly penalized for taking PTO — but that doesn't mean they shouldn't request time off.Lucille describes herself as getting lucky with her company's unlimited vacation policy — but she'd steer clear of places with it in the future because of how dependent it can be on the whims of management and how easily its often poorly defined boundaries can be used against employees.She said if you have unlimited PTO you can take, you should."Everyone should be afforded the dignity of saying, 'I am an adult, I'm going on vacation' without having it framed as taking advantage," she added.

Unlimited vacation is a high-stakes gamble 

<ul class="summary-list"><li>Warren Buffett's secret stock is Chubb, an insurance giant.</li><li>Berkshire Hathaway quietly built a 6.4% stake in under nine months, worth $6.7 billion as of March.</li></ul>Warren Buffett has finally revealed his company's mystery stock: <a target="_blank" href="https://markets.businessinsider.com/stocks/cb-stock">Chubb</a>.The famed investor's <a target="_blank" rel="" href="https://markets.businessinsider.com/stocks/brk-b-stock?utm_medium=ingest&amp;utm_source=markets">Berkshire Hathaway</a> first bought into the insurance giant in the third quarter of 2023, but secured regulatory permission to keep the holding confidential until it finished building its stake.Buffett's company initially purchased 8.1 million Chubb shares worth $1.7 billion at the end of September, then boosted the position to 20.1 million shares valued at $4.5 billion at December's close. It raised the bet to 25.9 million shares worth $6.7 billion at the end of March, <a target="_blank" href="https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&amp;CIK=0001067983&amp;type=&amp;dateb=&amp;owner=include&amp;start=0&amp;count=40">SEC filings</a> revealed on Wednesday.Assuming Berkshire hasn't touched its stake since then, it owns about 6.4% of Chubb — a company with a roughly $100 billion market capitalization.Chubb operates in 54 countries and provides everything from property and casualty insurance to health insurance, reinsurance, and life insurance.It's a stock that Buffett will feel comfortable owning, given Berkshire has a large insurance business with subsidiaries like Geico and Alleghany.Buffett and his team also slashed their biggest holding, Apple, by 13% to 789 million shares last quarter. The sales fueled a $39 billion decline in the position's value to $135 billion at March's close.The Apple disposals won't surprise Buffett's close followers as they were <a target="_blank" href="https://www.businessinsider.com/warren-buffett-berkshire-hathaway-stock-sales-earnings-cash-pile-buybacks2024-5">clearly telegraphed</a> in Berkshire's recent annual report. The sales of the iPhone maker's stock accounted for virtually all of Berkshire's $20 billion of stock sales in the period.Berkshire investors will likely welcome the Chubb reveal, as Buffett has struggled to find assets worth buying in recent years. The <a target="_blank" href="https://www.businessinsider.com/warren-buffett-bargain-drought-apple-stock-portfolio-market-oakley-oxbow-2024-5">bargain drought</a> reflects the stock market trading at record highs, and fierce competition for acquisitions from private equity firms.The upshot has been an increase in Berkshire's hoard of cash and Treasury bills to a <a target="_blank" href="https://www.businessinsider.com/warren-buffett-berkshire-apple-stock-sales-dietrich-market-crash-recession-2024-5">record $189 billion</a> at the end of March. Buffett also predicted during Berkshire's recent annual meeting that it would surpass $200 billion by the end of June.

Warren Buffett's company reveals its mystery bet is a nearly $7 billion stake in insurance giant Chubb

“I started <keyword id="20024281" type="General" weightage="20" keywordseo="investing" source="keywords">investing</keyword> when I was 24, and had just taken up my first job. At first, it felt like a herculean task, setting aside Rs 15,000 every month for long-term investing. But now, at 29, I have a comfortable corpus with me, and I am able to even fund my sister’s education. I now realise how investing is the first step towards achieving some level of financial independence”. That was Yumna, a 29-year-old Delhi-based communication professional’s “tryst with her finances”. Tomorrow, India will celebrate its “tryst with destiny”, its 78th day of independence from Britishers. And so, it is certainly the right time to revisit our personal journeys towards independence, at least financially. If we heavily rely on our monthly salaries, being broke towards the end of the month, and desperately waiting for that end-of-the-month fund credit “ting”, then are we really independent? So, this Independence Day, consider gifting yourself (and your friends and loved ones) these five presents that promise you financial freedom. <h2>Start SIP-ing in Mutual Funds, stocks</h2>The British ruled India for almost 200 years, starting from the battle of Plassey in 1757, to when India finally ousted the British Raj in 1947. Nearly 200 years of tireless persistence, struggle and revolution was what it took to achieve freedom. Keep that in mind when you feel constantly investing for 10-15 years is “way too long!”. Consider this. Yumna started investing Rs 15,000 every month, five years ago. Assuming 12% p.a. in return, she has already amassed over Rs 12,00,000, out of which her investments are worth Rs 9,00,000, while her returns come to Rs 3,37,295. What if Yumna continues to invest at this pace for the next 20 years? If she invests Rs 15,000 (and assuming 12% p.a. return), she’d have invested Rs 36,00,000, while her returns would be a whopping Rs 1,13,87,219, making her total corpus worth Rs 1,49,87,219. The best time to start investing in the market was yesterday. So, if you’re yet to start investing, do so right away. But remember, it’s a marathon, and not a sprint, so remember to stay in and invested for the long run. <keyword id="20481917" type="General" weightage="20" keywordseo="index-funds" source="keywords">Index funds</keyword>, which basically mirror popular market indices like Nifty and Sensex are a good place to start. <h2>Insure yourself</h2>Getting a term and <keyword id="19894985" type="General" weightage="20" keywordseo="health-insurance" source="keywords">health insurance</keyword> should be at the top of your to-do list, immediately after you start earning. And no, don't rely just on your employer-provided <keyword id="19996817" type="General" weightage="20" keywordseo="insurance" source="keywords">insurance</keyword>. Plus, having term insurance can also help you save on taxes (an annual premium paid of up to Rs 25,000 for those aged less than 60 is tax-free under old tax regime), apart from saving you during medical emergencies. Says Sabyasachi Sarkar, Appointed Actuary, Go Digit Life Insurance, “a life insurance plan is a tool that provides a safety net for your family in case of unexpected events and for your need of savings or pension. Ideally one should take a term life cover that is at least 10-15 times your annual income. Moreover, adding riders like death benefits or disability coverage to your policy can offer protection and advantages beyond the basic coverage. Moreover, when picking a life insurance company, consider factors like the claim settlement ratio, returns etc”. Once you’ve insured your life, it's time to safeguard your health as well, with a solid health insurance policy. As Vivek Chaturvedi, CMO and Head of Direct Sales at Go Digit General Insurance notes, “Ensure the plan that you are picking does not come with any cap on the choice of room or ICU as this may impact your overall hospitalization bill. Second, make sure your policy provides a sum insured backup or reinstatement benefit.” Also, check for the pre- and post-hospitalization benefits in your health coverage. Ensure that expenses like diagnostic tests, doctor’s fees, medical check-ups, etc. that you might have to incur before you get hospitalized or after you are discharged are covered. A good plan should provide at least 60/90 days of pre- and post-hospitalization coverage. And lastly, check the coverage for organ donor expenses. While it is a low-probability event, any organ transplant is an expensive affair. This ensures such costs are covered by the insurer. <h2>Save for a rainy day</h2>“It can’t happen to us until it does”. When you are flooded with a daily deluge of news about accidents, deaths, fires, train wrecks and more, it’s easy to disassociate and think “Oh, this won’t happen to me”. But when emergencies arrive at your doorstep, they don't knock but rather break the door down. As such, it's best to be financially prepared for any contingencies, and the best way to do so is to have an <keyword id="20747810" type="General" weightage="20" keywordseo="emergency-fund" source="keywords">emergency fund</keyword> handy. For this, you can set aside 3-6 times your monthly income in a liquid mutual fund, recurring deposit (RD) or savings bank account. This will help you tide over a medical emergency, job loss and more. But remember, this is not to be broken into for funding those impromptu vacations! <h2>Upskill, Upskill</h2>Earning money is hard, but still easier than effectively managing it. Most of us run away from managing and investing our own hard-earned money because it sounds difficult and looks too complicated and jargon-y. This Independence Day, gift yourself a basic course on <keyword id="20762784" type="General" weightage="20" keywordseo="money-management" source="keywords">money management</keyword>, budgeting and investing. You won’t become <keyword id="19921921" type="General" weightage="20" keywordseo="warren-buffett" source="keywords">Warren Buffett</keyword> overnight, but it will certainly be a good start. Start with a basic budget and importantly, stick to it. Write and track how much you earn and spend on a monthly basis, so that you’re more in charge of your funds, and not looking (hopefully!), at maxed-out credit cards and empty wallets at the end of the month. <h2>Be free of anything that looks easy money</h2>These days, it’s super easy to get credit, a personal loan, and buy your favourite gadget, or your latest fascination via <keyword id="19985897" type="General" weightage="20" keywordseo="BNPL" source="keywords">BNPL</keyword> (Buy Now Pay Later). And in the short run, it can be incredibly satisfying as well. But then, when you get your monthly statements, and find a never-ending stream of interest charges, and penalties, which eventually pull you into a spiral of debt trap. If something looks too good to be true, it might really just be too good to be true. BNPL and instant credit are very much like that. So, the next time you want to buy something expensive, hold that thought for at least 48 hours, before revisiting it. Most of the time, you’ll find you don't even desire it anymore. If you still have the urge to buy it, try the saving and buying approach, instead of swiping your credit card or signing up for BNPL apps!

Five gifts you can give to yourself, friends, or family, towards achieving financial independence

As the COVID-19 outbreak induced a health emergency across the globe, it also imposed <keyword id="6355515" type="General" weightage="20" keywordseo="business" source="Orion">business</keyword> continuity risks for many industries. Especially for businesses that have traditionally worked on the face-to-face interface with the customers, the pandemic brought a series of challenges. In India, many companies rose to the challenge and seamlessly maneuvered through the crisis, and built in new capabilities and strengths. One such story is that of <keyword id="6374257" type="General" weightage="20" keywordseo="max-life-insurance" source="Orion">Max Life Insurance</keyword>. The Indian insurance major looked at the looming health risk with a growth mind-set and drove a cultural transformation within the organisation and built systems and products that are even more customer-centric and meaningful. In March 2020, as the COVID-19 outbreak led to a nationwide lockdown and a momentary standstill in economic activity, the firm’s sales were heavily impacted. Even as the chances to turn around looked like a herculean task, <keyword id="1118012" type="General" weightage="20" keywordseo="max-life" source="Orion">Max Life</keyword> Insurance focused on setting the wheels in motion to reinvent the insurance business model in a post-pandemic and digital world. <div type="Video" msid="87741071" hostid="261" title="Agile, digital, truly differentiated — what sets Max Life Insurance apart from the other players in the space" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=87741071"></div> <cmsannotation type="cmsannotation" annotationid="The digital mind-set" comment="subhead" text="The digital mind-set">The digital mind-set</cmsannotation> The first thing that the firm focused on is ensuring the ‘ease’ of doing business for a customer from an end-to-end interface point of view. “The most important aspect of enabling this transition was to imbibe a digital mind-set within the organisation. Hence, right from hire to retire all our human resources management systems were moved to digital. Our classroom centric training for agents was impeccably conducted digitally. Our sales training and management processes were also digitally tracked. Moving the entire recruitment and onboarding of agent advisors was a major win, as we recruit close to 35,000 agent advisors in a year. We ensured that the whole ecosystem is up and running in four weeks,” says V Viswanand, Deputy Managing Director, <keyword id="26842" type="General" weightage="20" keywordseo="max" source="Orion">Max</keyword> <keyword id="6406875" type="General" weightage="20" keywordseo="life-insurance" source="Orion">Life Insurance</keyword>. <cmsannotation type="cmsannotation" annotationid="Product-innovation" comment="subhead" text="Product-innovation">Product-innovation</cmsannotation> Owing to the health scare amidst a global pandemic, a lot of customers’ insurance needs and preferences changed. With an impending health risk amid unprecedented volatility in markets and slowdown across economies, the firm focused on protecting innovations with term plans. Historically, for a 40- year term plan, a customer would have to pay a 50% premium upfront. However, given the volatile environment, the firm decided to create a feature wherein the customer gets an option to pay the regular premium or unlimited premium and can choose to take away the entire amount at the age of 65 or continue at will till the age of 80. So the return of premium or the option to continue on the special exit value became an innovation feature. Moreover, keeping in with the post-Covid world’s realities, the firm also came up with the feature of ‘premium holidays’ to ease the burden on the customers. It also enhanced the number of critical illnesses covered under its riders from 30 to 64. “Pure term plans and our retirement focus, which helps cover the risks for a long-life, have actually doubled during the post-COVID time. It’s a muscle that we would like to retain because that's where we are very differentiated from banking products and mutual fund products,” asserts V Viswanand, Deputy Managing Director, Max Life Insurance. <cmsannotation type="cmsannotation" annotationid="Engaging with the prospects" comment="subhead" text="Engaging with the prospects">Engaging with the prospects</cmsannotation> Max Life digitally enabled agent advisors to reach and engage with prospective customers better. An app called ‘I am The Difference’ was developed to help agent advisors have access to digital tools and marketing literature at any given time. The company also built microsites for its agents, with video snippets that helped a prospect familiarise themselves with the agent. With the creation of new products and features, there was a need to educate the sales team too. Hence an app called, M Buddy was built to enable learning and certifications for agents. The company has recorded close to 10,000 to 12,000 certifications completed so far. The next focus was to improve servicing systems for new customers. With the new digital muscle built-in, the company focused on improving its issuance rate. Currently, 1/3rd of the new policy issuances are completed within 30 minutes. Moreover, the medical check-up, a prerequisite in the issuance process, was moved to a visit-to-home model, enabling a seamless experience for the new customers. The company also came up with a ‘Buy now pay later' option. So a new prospective lead could apply for insurance without having to pay anything upfront. Today, nearly 12.5% of India’s population buys insurance online. Max Life has a market share of one in three, so one out of three policies purchased by customers online or via web aggregators is from Max life. So all our engagement and digitally-enabled ecosystem have helped us create a strong recall with our distributors and our customers. The cumulative effort to drive a growth mind-set in times of volatility and nimbleness to create an ecosystem that supports the company’s growth aspirations helped Max Life Insurance turnaround the business efficiently. Max Life Insurance remains among the frontrunners in claims settlement with a 99.35% claims paid ratio, which is a testament to the integrity and trust it has built amongst the customers. The firm outstandingly used the momentary lull to change its back-end and transform it into a new-age cloud native underwriting issuance system. The customer portal was completely rejigged and today 1/3rdof the company’s IT infra is on cloud platform. Thus, creating an end-to-end digitally enabled working platform that benefits the employees, distributors and customers. Disclaimer: This is a sponsored article in partnership with Max Life Insurance

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

Listing of <keyword id="6365973" type="COMPANY" weightage="20" keywordseo="life-insurance-corporation">Life Insurance Corporation</keyword> (LIC) and sale of government's stake in IDBI Bank may be delayed beyond March 2021, due to depressed valuation amid COVID-19 pandemic. The government aims to garner Rs 90,000 crore from the listing of LIC and stake dilution in IDBI Bank out of total the disinvestment target of Rs 2.10 lakh crore during the current fiscal. Finance Minister Nirmala Sitharaman while presenting the Budget 2020-21 had announced stake sale in LIC through an initial public offer in the current financial year. <div type="Youtube" id="WYbWln2KsuA" title="Budget 2020: LIC to get Privatised" thumbUrl="https://i.ytimg.com/vi/WYbWln2KsuA/mqdefault.jpg"></div> Given the prevailing market situation, it seems to be difficult to do the LIC stake sale in the current fiscal as the situation is not conducive, sources said. Besides, they said, there will not be a matching appetite for the mega issue of LIC in the present market condition. Due to COVID situation, the government recently for the second time extended the deadline for bidding for privatisation of India's second-biggest oil marketing company Bharat Petroleum Corp Ltd (BPCL) by over a month to July 31. The government currently owns 100 per cent in LIC, while it holds around a 46.5 per cent stake in IDBI Bank. The sources said, the government will have to cut down its expected realisation from stake dilution of both LIC and IDBI Bank even if the market condition improves. So, selling them at low valuation would be an imprudent decision, they added. Besides valuation, the sources said, listing of LIC involves a lot of regulatory clearances and more importantly amendment to the LIC Act itself. Market participants had already termed the listing of insurance behemoth LIC as IPO of the decade akin to the Saudi Aramco listing. The 60-year-old state-owned firm, LIC is the country's largest insurer, controlling more than 70 per cent of the market share. The insurer has a market share of 76.28 per cent in number of policies and 71 per cent in first-year premiums. LIC has many subsidiaries, including IDBI Bank. Turning the corner, IDBI Bank on Saturday posted a profit of Rs 135 crore for the March quarter on account of recoveries from bad loans. The lender reported a profit after 13 straight quarters of net losses. The bank had posted a net loss of Rs 4,918 crore in the corresponding period of last year. In January 2019, LIC completed acquisition of 51 per cent controlling stake in the lender. The state-owned life insurer infused Rs 21,624 crore into the bank. The bank, which is under the Reserve Bank of India's prompt corrective action (PCA) framework, said it has achieved all PCA parameters for exit except return on asset. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/india-moves-to-unlock-value-from-insurance-behemoth-lic-whose-corpus-is-at-31-lakh-crore/articleshow/73836245.cms">The biggest IPO of the next financial year ⁠— LIC, whose corpus is at ₹31 lakh crore</a> <a href="https://www.businessinsider.in/business/news/nirmala-sitharaman-says-the-lic-ipo-will-benefit-retail-investors/articleshow/74008705.cms">Nirmala Sitharaman says the LIC IPO will benefit retail investors</a> <a href="https://www.businessinsider.in/business/news/govt-to-retain-management-control-in-lic-after-listing-sitharaman/articleshow/74459403.cms">Govt to retain management control in LIC after listing: Sitharaman</a>

India's largest-ever IPO may be shelved until next year

State Bank of India (SBI), the country's largest lender, will divest over 2 per cent stake for at least ₹1,522.50 crore in its subsidiary <keyword id="80292" type="COMPANY" weightage="20" keywordseo="SBI-Life">SBI Life</keyword> to comply with the minimum public shareholding (MPS) norms, and will also decide on raising long-term fund up to USD 1.5 billion through bonds. The decisions were taken at the meeting of the executive committee of the central board (ECCB) of SBI on Thursday. "The executive committee of the central board of directors of State Bank of India approved the divestment of 2,10,00,000 equity shares constituting 2.1 per cent of our stake in SBI Life to adhere to minimum public shareholding of 25 per cent (remaining part of the bank's share for MPS) through offer for sale through stock exchange mechanism as per the regulatory prescription," SBI said in a regulatory filing. SBI Life, in a separate exchange filing, said the floor price for the stake sale by the promoter, SBI, has been fixed at ₹725 per share. The stake sale for non-retail investors will take place on Friday; and for retail investors and for non-retail investors who choose to carry forward their bids, on June 15, SBI Life said. During the second quarter of the previous financial year 2019-20, SBI had sold a certain portion in SBI Life Insurance Company that helped it record a historic net profit during the year. Besides, the bank's ECCB also approved to examine the status and decide on the USD 1.5 billion fundraising through bonds. "The executive committee of the central board in its meeting held today, on June 11, 2020, inter alia approved to examine the status and decide on long-term fundraising in single or multiple tranches up to USD 1.5 billion," the bank said in the regulatory filing. The public sector lender said the capital is proposed to be raised through public and/or private placement placement of senior unsecured notes in US dollar or any other convertible currency during FY 2020-21. On June 4, SBI said it was considering to raise up to USD 1.5 billion (about ₹11,422.5 crore) through a public offer and/or private placement of bonds. Earlier, in November, SBI raised ₹3,813.60 crore through perpetual bonds to fund its business growth. Shares of SBI closed 5.64 per cent down at ₹177.20 a piece on the BSE.

SBI Life shares will be on offer at ₹725 a piece on June 15

<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

New Delhi, Reliance Capital's (RCAP) expression of interest (EOI) for asset monetisation garnered mega response with 60 bids being received. <keyword id="13222" type="DOMAIN" weightage="20" keywordseo="SBI">SBI</keyword> Life and Apollo are among the 10 new bidders who have submitted expressions of interest for Reliance Capital's assets, taking the total number of bids to 60. December 1 was earlier the deadline for the submission of EOIs. Over 60 different bids have been received with SBI Capital Markets Limited and JM Financial Services Limited, the advisors to the lenders. Later the date for submitting the bids was extended to December 17. Over eight bidders have bid for entire RCAP assets on an as-is-where-is basis. The prominent among them are Oaktree, J.C. Flower and multiple ARCs. For Reliance General Insurance, which is owned 100% by RCAP, there are 18 bidders and prominent among them are, Chryscap, J.C. Flower, Blackstone, KKR, CVC Capital Partners, and Bain Capital. For Reliance Nippon Life Insurance, in which RCAP owns 51% controlling stake, has received 16 bids, including Bain Capital, NIIF, Arpwood Partners, Dabur Investments, Bandhan Bank, and <keyword id="884924" type="COMPANY" weightage="20" keywordseo="Multiples-Asset-Management">Multiples Asset Management</keyword> among others. For Reliance Securities, there are eight bidders, including Bain Capital, Religare Broking, Edelweiss Securities and other ARCs. For Reliance ARC, there are six bidders, including Bain Capital, International Asset Reconstruction Company and other ARCs. For Reliance Health, there are eight bidders - Blackstone, Bain Capital, Arpwood Partners, and other ARCs. There are also multiple bidders for RCAP's stake in ICEX and Paytm E-commerce business. Reliance Capital asset monetization process, to unlock value of its underlying businesses and to make RCAP debt free, was launched on October 31, 2020. The monetization process being run under the aegis of Committee of Debenture Holders and <keyword id="10477607" type="COMPANY" weightage="20" keywordseo="the-debenture-trustee-vistra-itcl-india-ltd">the Debenture Trustee Vistra ITCL India Ltd</keyword> - which represents 93% of total outstanding debt of Reliance Capital. EOIs were invited for all or part of RCL's stake in the following key subsidiaries and assets individually or in any combination thereof. This includes 100% stake in Reliance General Insurance Company Limited (RGI). It has a paid up capital of Reliance General Insurance is ₹252 crore as of September 30, 2020. It is the 4th largest <keyword id="10477608" type="COMPANY" weightage="20" keywordseo="private-general-insurance-company">Private General Insurance Company</keyword> with market share of 4.5% as of March 2020 in the General Insurance category. It has shown consistent growth in AUM Year-on-Year with investment book of ₹12,315 crore as on September 30, 2020. The company performed its best even during COVID times with Gross Direct Premium Income of ₹4,501 crore during the first six months of FY20- 21. It has a strong distribution network of 134 branches with amongst largest agency force of 46,742 as of September 30, 2020 across the country. Bids have been invited for 51% stake in <keyword id="10203731" type="COMPANY" weightage="20" keywordseo="reliance-nippon-life-insurance-company-limited">Reliance Nippon Life Insurance Company Limited</keyword> (RNLI). The paid up capital of Reliance Nippon Life Insurance is ₹1196 Cr. as of September 30, 2020. RNLI is a joint Venture with Japan's largest life insurer - Nippon Life which holds 49 % shareholding. It is the 10th largest <keyword id="10203730" type="COMPANY" weightage="20" keywordseo="private-sector-insurer">Private Sector Insurer</keyword> (in terms of Individual WRP) and amongst largest Non-Banca company with a network of 717 offices. It witnessed sharp turnaround in performance during FY19-20 with a profit after tax of ₹35 crore and 75% growth (12% CAGR) in embedded value over last four years. It has an impressive claim settlement ratio of 98.1% in FY19-20 and a higher Solvency ratio of 207% (as against regulatory requirement of 150%). As on September 30, 2020, the AUM was ₹21,912 crore and an individual premium market share of 2.20% amongst private insurers. Bids have been invited for 100% stake in Reliance Securities Limited - Broking &amp; distribution company offering services across asset classes including equities, commodities, derivatives, currency, mutual funds, bonds and corporate FDs. Also on offer is a 100% stake in Reliance Financial Limited - RBI registered NBFC, engaged in the business of financing, money lending, capital market linked financing activities, 49% stake in Reliance Asset Reconstruction Limited which manages portfolio of ₹1,996 crore as on September 30, 2020. A 20% stake in Indian Commodity Exchange is also being bid. Other key shareholders in ICEX are Central Warehousing Corporation, MMTC Limited, Indiabulls Housing Finance Limited, Indian Potash Limited and Bajaj Holdings and Investments. ICEX is a SEBI regulated commodity derivatives exchange. There is also 100% stake in Reliance Health Insurance Limited. Other PE investments like Naffa Innovations Private Limited, Paytm E-Commerce Private Limited. RCL's key businesses and subsidiaries are performing well and business will continue as usual. The management, professional team, customer and partners will be unaffected by the proposed asset monetisation programme of RCAP. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-spicejet-interglobe-aviation-tata-motors-pfizer-asian-paints-niit-lupin-and-others/articleshow/79849749.cms">Top stocks to watch – SpiceJet, InterGlobe Aviation, Tata Motors, Pfizer, Asian Paints, NIIT, Lupin, and others</a> <a href="https://www.businessinsider.in/stock-market/news/how-to-check-mrs-bectors-food-specialities-ipo-allotment-status-online/articleshow/79808672.cms?upcache=2">Mrs Bectors Food Specialities IPO allotment today: Here’s how to check share allotment status</a> <a href="https://www.businessinsider.in/business/startups/news/google-microsoft-invest-in-dailyhunt-for-its-short-video-platform-josh-making-it-the-latest-unicorn-in-india/articleshow/79850804.cms">Google, Microsoft invest in DailyHunt for its short video platform Josh – making it the latest unicorn in India</a>

Reliance Capital asset sale: SBI Life and Apollo join the race, nearly 70 bids received so far

New Delhi, Apr 21 () The outbreak of COVID-19 pandemic has led to increase in demand for pure protection products like <keyword id="171063" type="PERSON" weightage="20" keywordseo="Term-insurance">term insurance</keyword> and this is expected to gain traction post lockdown, said <keyword id="6374257" type="UNKNOWN" weightage="20" keywordseo="max-life-insurance">Max Life Insurance</keyword> CEO Prashant Tripathy. There is pressure on growth due to the lockdown but the life insurance business would be back on its feet once it's lifted, he said. "Insurance is a very fundamental thing of life like food, clothing and shelter...We are finding that the demand for protection business has gone up. People are preferring term rather than saving products to secure the future of their loved ones in these uncertain times," he told . COVID-19 is expected to result in improved awareness and importance of life insurance as a risk cover rather than a mere investment product during the uncertain times, he said. Tripathy also emphasised that like any other business, insurance too is very much connected with economic growth and there will be impact on the industry if there is deceleration as has been projected by various agencies. "There has been an impact on new sales due to the lockdown. We are trying to cover it up with digital means. For the lockdown period, there would be pressure on growth," he said. Sharing details of sales through digital means, he said, "we quickly adapted to new reality and initiated sellers' online training for enabling digital engagement across distribution channels, as an outcome of which around 24,000 policies were issued in the last week of March 2020 since the announcement of lockdown." Within four days of work-from-home, customer-related operations were operating at about 80 per cent efficiency level with more than 1,000 employees engaged in customer facing activities, he said, adding, policy issuance for many medical pending cases was enabled via TeleMER protocol that ensured remote medical underwriting. The company has processed a total of 1,938 death claims in the second half of March 2020 even with the majority of employees operating from home and all supporting documents were accepted online, he added. Self-service options were made available through website, digital bots and AI driven Interactive Voice Response. In the last two weeks around 5,000 policyholders have utilized self-service options on the company's website, he said. DP ANUANU

Demand for term insurance could increase after lockdown as per Max Life CEO

<ul><li>It will give more flexibility to insurance companies to determine what amount of commission they wish to pay to the <keyword id="451509" type="General" weightage="80" keywordseo="Insurance-agents" source="Orion">insurance agents</keyword>. </li><li>The removal of the cap on commission payments would also lead to the development of new distribution models. </li><li>With the potential for increased competition, insurers may need to focus more on meeting customer needs and providing high-quality service.</li></ul>The Insurance Regulatory and Development Authority of India (<keyword id="635172" type="General" weightage="100" keywordseo="IRDAI" source="Orion">IRDAI</keyword>) has removed the cap on commission payments to agents and brokers. While there will still be an overall cap on expenses of management of insurers, the sub limit on commissions have been removed. Expenses of management includes all operating expenses of an insurance company. “The regulatory change announced by IRDAI to remove individual commission payment limits is a major and long-awaited reform in the insurance sector. This shift is anticipated to benefit insurers in a variety of ways, including increased product innovation, the development of new distribution models, and a more customer-centric approach to operations,” says Sanjiv Bajaj, joint chairman and managing director, Bajaj Capital Insurance Broking. <cmsannotation type="cmsannotation" annotationid="Increased product innovation" comment="subhead2" text="Increased product innovation">Increased product innovation</cmsannotation> The removal of the cap on agent commissions will enable insurers to allocate their resources more effectively. “This policy change will encourage insurers to focus on developing new and innovative products,” says Prashant Tripathy, MD and chief executive officer, Max Life Insurance. This development is likely to help in the proliferation of more insurance policies being sold. Companies can introduce new products that cater to all sections of society, thereby penetrating new and previously untapped markets. “The elimination of the commission payment limit is expected to increase competition among insurers, as they will be able to offer more appealing policies and better pricing to customers,” says Vishnu Kumar, chief distribution officer, Aviva India. With the potential for increased competition, insurers may need to focus more on meeting customer needs and providing high-quality service. “This could lead to a more customer-centric approach to business and the development of products and services that better meet the needs of customers,” says Bajaj. <cmsannotation type="cmsannotation" annotationid="More flexibility to manage expenses" comment="subhead2" text="More flexibility to manage expenses">More flexibility to manage expenses</cmsannotation> This will give more flexibility to insurance companies to determine what amount of commission they wish to pay to the insurance agents. This will also increase sales and business. Says Joydeep Roy, partner, PWC, India financial services advisory leader, “Insurers can now decide what commissions they pay for what products and to which distributor. Especially in micro-insurance, the premiums are low, so a premium percentage cap hurts distributors.” That is going to change now. Agrees Bahroze Kamdin, partner, Deloitte India, “So if it is a normal product, insurance companies may pay a lower commission, if it is a new product they may pay higher commissions,” says Kamdin. <cmsannotation type="cmsannotation" annotationid="New distribution models" comment="subhead2" text="New distribution models">New distribution models</cmsannotation> The removal of the cap on commission payments could also lead to the development of new distribution models, which could help insurers reach a wider range of customers. This could in turn lead to increased insurance penetration in India, particularly in remote or underserved areas. Until now, insurance companies were operating under regulated commission structures. This created a challenge for companies as it was difficult to incentivise agents based on their performance. “However, with the recent development by IRDAI, insurance companies now have the freedom to evolve their compensation philosophy. This implies higher pay for higher performance and allows companies to recognise and reward agents who demonstrate higher persistence, therefore retention rates,” says Kumar. Roy believes that it will also help insurance companies to set goals for distribution. Not only will sales matter, but distributors may be incentivised (or penalised) on other parameters like quality of business, better quality of customers, better data collection, and so on, leading to healthier business. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/here-are-the-jobs-chatgpt-says-ai-can-take-from-humans/slidelist/99087522.cms">We asked ChatGPT about jobs that AI can take over from humans – This was its answer</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/as-stores-remain-at-heart-of-business-retail-leasing-to-hit-a-4-year-high-in-2023-cbre/articleshow/99085535.cms">As stores remain at ‘heart of business’, retail leasing to hit a 4-year high in 2023: CBRE</a>

Removal of commission caps for insurance agents likely to boost innovation, customer-centricity

Mumbai, Apr 28 () Private sector lender Axis Bank on Tuesday formally joined peers to have a life insurance joint venture by announcing to raise its stake in Max Life Insurance, the fourth largest player in the life cover space, to 30 per cent for Rs 1,592 crore. The deal, which comes during bleak economic times as the country grapples with the impact of COVID-19 pandemic, was struck due to the opportunity in the life insurance space and also the price at which it could be sealed, Axis Bank's managing director and chief executive Amitabh Chaudhry said. Other large lenders, including HDFC Bank, ICICI Bank and SBI, and also smaller ones have life insurance joint ventures or have promoted companies themselves. According to experts, banks originate a lot of insurance business and "manufacturing" products is more rewarding than merely selling them. India's third largest private sector lender Axis Bank, which already has a minor 1 per cent ownership of the insurer, used to sell Max's policies for over a decade, which has seen 19 lakh customers and over Rs 38,000 crore in premium generated, Chaudhry said. A senior Axis Bank official said the deal includes picking up over 55 crore shares of the insurer at Rs 28.61 per unit, which takes the total deal consideration to Rs 1,592 crore, and underlined that the final figure may wary a bit depending on the date of deal closure. The deal requires nods from the Reserve Bank, Insurance Regulatory and Development Authority and Competition Commission of India, and will take up to six to nine months to consummate. When asked about the timing of the deal, Chaudhry defended the move pointing out to the "big opportunity" that is presented by the life insurance sector and the potential for the upside on the investment presented by the price at which it is signed. It can be noted that the Reserve Bank is pushing lenders not to declare dividends to conserve capital and deploy it for fresh lending, which will be necessary to kickstart the economy once the lockdown ends. Chaudhry said the Max stake buy will dent its overall capital adequacy, which stood at a comfortable level of over 17 per cent, by only 0.10 per cent. Max Life Insurance is a part of the listed Max Financial Services Ltd (MFSL), a diversified financial services company. In a regulatory filing, Max said that the consideration payable by Axis Bank for purchase of the shares shall be arrived basis the valuation of Max Life conducted as per Rule 11UA read with Rule 11UAA of the Income-tax Rules, 1962. Upon the closing of the deal, MFSL will have the right to nominate four directors on the Max Life board, while Axis Bank will have the right to nominate three directors. One nominee director of the promoter group on the board of MFSL shall be a person identified by Axis Bank. Chaudhry denied speculation about the stake being raised in the future by the bank, including murmurs of a complete takeover, saying there are no such plans. At present, products sold through the bank reportedly contribute for 54 per cent of Max Life's revenues. On February 20, a tri-party agreement was signed between Axis, MFSL and Max Life to explore the possibility of a long-term strategic partnership between Axis Bank and Max Life. At present, MFSL holds 72.5 per cent stake in Max Life and Japan-based Mitsui Sumitomo Insurance (MSI) owns 25.5 per cent stake. The proposed transaction with Axis Bank follows the ongoing swapping by MSI of 20.6 per cent stake that it holds in Max Life with a 21.9 per cent stake in MFSL, an official statement said. "MFSL also plans to purchase MSI's balance stake in Max Life. Post completion of the series of transactions, Max Life will become a 70:30 joint venture between MFSL and Axis Bank," it explained. Against the 30 per cent stake, Axis Bank's name will be included in Max Life's tag line. It is to be noted that Max Life had made an attempt to merge with HDFC Life in 2017 which failed as they did not receive regulatory approval due to reported complexity of the deal. Interestingly, the deal was then brokered by the then HDFC Life CEO Amitabh Chaudhry who is now the CEO of Axis Bank. Following failure of the deal, Max Group made several attempts to sell part of its stake. However, it did not meet success. MFSL shares gained 5.14 per cent to close at Rs 475.80 apiece on the BSE, while Axis Bank stock surged 6.61 per cent to close at 455.55 per unit, as against gains of 1.17 per cent on the benchmark. AA DP MKJ

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