HDFC Life, a provider of life insurance policies, announced on Tuesday that it will disburse its highest ever bonus worth Rs 3,660 crore on participating plans.
The firm said that around 23.14 lakh policyholders are eligible to receive the bonus.
Participating plans or par plans are life insurance policies which have profit sharing benefits, providing policyholders bonuses.
According to the company, of Rs 3,660 crore, Rs 2,696 crore will be paid in the current financial year on maturing polices or as cash bonuses. The remaining amount will be paid in future on cessation of policy due to maturity, death claim or surrender pay-outs.
The company said the decision to hand these bonuses was announced in the Company’s Board meeting held in April 2023.
Commenting on the decision, MD and CEO of HDFC Life Vibha Padalkar said, “We are pleased to announce an increase in the bonus declared for our valued policyholders. This is our way of rewarding the loyalty of our policyholders as we continue to do our part to secure India, financially.”
HDFC Life is a joint venture between HDFC Ltd and Global investment firm abrdn. It was established in 2000.
Recently, Moneycontrol had reported that HDFC Ltd has received approval from Reserve Bank of India (RBI) to increase its shareholding in the life insurance provider to more than 50%.
HDFC Bank is also expected to complete its merger with HDFC Ltd by this financial year, with reports stating it will be completed by July. The deal worth around $40 billion was announced in April last year.