Page 18 - Insurance Times August 2023

CCI approves acquisition well as lump-sum benefits in the form
HDFC Life gets GST
of bonuses.
of stake by HDFC in 2
demand of Rs. 942 crore The higher payout is due to the
HDFC Life said that it has received a insurers company reporting a multi-fold
notice from tax authorities related to The Competition Commission of India increase in net income at Rs 506 crore
a demand for Rs. 942 crore towards (CCI) granted its approval to mortgage in FY23, up from Rs 71 crore in the
Goods and Services Tax (GST) dues lender HDFC to acquire a certain stake previous fiscal.
between July 2017 to FY22. in HDFC Life Insurance Company and
The income growth was led by the
The notice relates to the claiming of HDFC ERGO General Insurance individual new business premium that
input tax credit against supply of Company Ltd. rose 59 per cent to Rs 7,093 crore in
services, which the tax authorities These approvals will help pave the way the reporting year.
believe are ineligible for such claims. for the merger of HDFC into HDFC Total premium income for the fiscal
HDFC Life has been advised by its
Bank, expected to be finalised by the grew 42 per cent to Rs 20,503 crore
legal and tax counsel that it has a
third quarter of this financial year. from Rs 14,445 crore, helping it book
good contestable case.
a 615 per cent increase in net profit at
"This is an industry-wide issue, and Tata AIA Life to pay Rs. Rs 506 crore from Rs 71 crore in FY22.
the company will be taking
1,183 crore in dividend
appropriate steps in due course to Max Life, DCB Bank join
Tata AIA Life Insurance has declared Rs
reply to the show cause notice and
1,183 crore in dividend payout to hands to offer insurance
contest the matter," it said in a
regulatory filing. participating policyholders for the past products
financial year, which is 37 per cent
The company also said that India's Max Life Insurance has partnered with
higher than the preceding fiscal and
insurance regulator has granted DCB Bank to provide a variety of life
the highest till date.
approval for transfer of HDFC Life insurance products to the latter's
shares owned by HDFC Ltd. to HDFC The Tata Group company has been customers.
Bank in view of their proposed paying bonuses to its policyholders over Term, savings, and retirement plans
amalgamation. the years, and the FY23 bonus is 37 per will be offered under this partnership.
cent higher than Rs 861 crore paid in
Insurance regulator has also V Viswanand, Deputy Managing
FY22, the company said, adding
approved HDFC Ltd to acquire Director, Max Life, said, "We are
7,49,229 policyholders are eligible for
additional shares in HDFC Life to own delighted to join forces with DCB Bank
the bonus, Samit Upadhyay, the
more that 50% of its total share as part of our growing Bancassurance
president & chief financial officer said.
capital. Shares of HDFC Life ended network. DCB Bank's customer-centric
1.9% lower at Rs. 626.9 apiece on The company's participating (Par) approach and widespread reach make
the NSE. products offer life cover, income, as them an ideal partner for Max Life. "
14 August 2023 The Insurance Times