IRDAI Gives Nod To Exide Life To Merge With HDFC Life. What It Means For Policyholders?

The Insurance Regulatory Development Authority of India (IRDAI ) has given the final approval to Exide Life Insurance Company to merge with HDFC Life Insurance Company. This was announced in a regulatory filing by HDFC Life on October 13, 2022.

HDFC Life said in the regulatory filing: “We further wish to inform you that the Insurance Regulatory and Development Authority of India, vide its letter dated October 13, 2022, has provided its final approval to the scheme in accordance with the Insurance Regulatory and Development Authority (Scheme of Amalgamation and Transfer of Life Insurance Business) Regulations, 2013.”

Post the merger, Exide Industries now holds a 4.12 per cent stake in HDFC Life. The merger got the approval of the National Company Law Tribunal (NCLT) last month. The scheme of amalgamation was approved by the Mumbai Bench of NCLT.

In January this year, HDFC Life acquired a 100 per cent stake in Exide Life Insurance Company from Exide Industries, its parent firm, for Rs 6,687 crore to increase its presence across south India.

What This Means For Policyholders

According to experts, this transaction would give the existing customers of Exide Life Insurance access to a wide variety of products and service touchpoints.

The existing Exide Life policyholders will continue to be serviced by Exide Life through its branches, websites, apps, etc. until the transition is complete, which would typically take about 4-6 months.

Exide Life policyholders would also get a formal communication from HDFC Life in case of any changes, such as the transition to HDFC Life’s website, other digital assets, and toll-free numbers, among others.

Once the transition is complete, the customers would also benefit from the increased number of service touchpoints.

Post the completion of the transition, Exide Life customers would also get benefit from the various digital assets available with HDFC Life, such as a three-click claim process, e-mandate facility for premium payment, video life certificate submission for an annuity, and online buying journey.

HDFC Life’s scale, market-leading digital and product innovation capabilities, and wise risk management strategy would also help optimise cost over time and achieve higher margins for the acquired business.

Incidentally, HDFC Life had earlier said in a statement that “Exide Life’s agency-based distribution model, a strong presence in south India, and experience across tier-II and tier-III locations complement HDFC Life, and will help expand its market and bolster its proprietary distribution.”

HDFC Life Insurance Company stock closed at Rs 520.65 apiece on Bombay Stock Exchange, down 1.05 per cent from the previous close.