HDFC Life has announced its highest-ever bonus of Rs. 3,722 crore on participating plans. According to the insurance provider, this significant bonus is set to benefit approximately 22.23 lakh policyholders.
Participating plans or par plans are a distinctive type of life insurance policy that allow policyholders to share benefits in company profits in the form of bonuses. As these policies allow policyholders to share in the company’s profits, they help in building mutual partnerships between the insurer and policyholders.
In an official statement, HDFC Life said that out of the total bonus amount, Rs. 2,798 cr. will be disbursed to policies in the current financial year, either as maturity bonuses or cash bonuses, and the remaining bonus will be payable in the future upon policy maturity, death or surrender.
Vibha Padalkar, MD & CEO, HDFC Life expressed satisfaction and said, “We are delighted to announce an increase in the bonuses for our valued policyholders this year. Life insurance policies are designed for the long term, and bonuses serve as a reward for the loyalty of policyholders throughout the policy term. We are committed to providing the best products and services to our policyholders, ensuring value for all our stakeholders.”
Recently Bajaj Allianz Life Insurance had announced its highest-ever bonus of Rs 1,383 crore for the financial year 2023-24 (FY24) for over 11.66 lakh policyholders who have invested in the company’s participating products. The FY2024 bonus marked a 15 percent increase over FY2023 bonus, which stood at Rs 1,201 crore, the company said.
A company’s bonus is contingent upon various factors, including the return on company assets, bonuses declared in the previous year, filed claims, expected future interest rates, and several other estimates.