Page 18 - Insurance Times November 2020

on the Flipkart app instantly along with of health emergencies, benefits such its acquisition in Max Life Insurance to
the base life insurance plan. as 'pay on critical illness diagnosis' 17 percent from 29 percent earlier.
which pays a lump sum amount on di-
There is a high risk of lifestyle diseases agnosis of any of the 36 critical ill- Now, what would be the second
such as heart attack, kidney failure, nesses, will be a boon to the policyhold- change in the deal structure, Axis Bank
etc. in the present times due to stress ers". has said that Axis entities which in-
and lifestyle choices. Aegon Life's clude Axis Bank, Axis Capital, and Axis
"Life+ 36 Critical illness Insurance" en- "Our earlier product on Flipkart, Life + Securities will together acquire ap-
sures that the policyholder gets cov- Covid-19 Insurance, witnessed a great proximately 19 percent stake in Max
ered against most of the lifestyle dis- affinity and helped us to understand Life Insurance.
eases along with a life cover to ease the need for more inclusive offerings.
the financial burden. Our association with Flipkart will not As far as individual companies under
only help us increase our distribution Axis entities are concerned, out if the
The policy covers most of the life- base but will also enable us to offer total 19 percent stake, Axis Bank will
threatening illnesses such as Cancer, best in class services to the Flipkart be acquiring a 9 percent stake, Axis
Heart Attack, Kidney Failure, Stroke, customers by providing them relevant Securities and Axis Capital together
Burns, Alzheimer and 30 other dis- protection solutions," says would be acquiring a 3 percent stake
eases. The policy is issued instantly and Balakrishnan. in Max Life Insurance.
requires no medical check-up nor KYC.
On diagnosis of any of the 36 life- RBI refuses to consider Also, Axis entities will have the right to
threatening illness, the policyholder is acquire up to a 7 percent stake in Max
paid a lump sum amount irrespective Axis Bank-Max Life Insur- Life Insurance going forward. The re-
of hospital bills. The Life cover contin- ance deal in current form, vised structure according to Axis Bank
ues with the sum assured reduced seeks restructuring is guided by Para 5(b) of Master Direc-
against the claims paid under the tion- Reserve Bank of India. Under
policy. The lump-sum pay-out helps Reserve Bank of India has refused to Para 5(b) of Master Direction, an en-
consider the direct acquisition of a 17
manage the healthcare expenses, tity does not require RBI approval for
home treatment and other related percent stake in Max Life Insurance by an acquisition involving less than 10
expenses. Axis Bank. percent of the investee company's
paid-up capital.
Speaking on the launch of Life + 36 The lender in its statement to ex-
Critical illness Benefit, Satishwar changes said the Reserve Bank of In- As per stated regulations, Axis Bank
Balakrishnan, Principal Officer, and dia has advised Axis Bank that its ap- may not require any approval from RBI
CFO, Aegon Life Insurance, shared, "We plication for the direct acquisition of to acquire a 9 percent stake in Max Life
remain deeply committed to our vision 17.002 percent has not been consid- Insurance. The same directions would
of creating tension-free lives by mak- ered. also restrict Axis Bank to acquire more
than 10 percent stake in Max Life In-
ing insurance affordable, simple and Axis Bank and Max Financial Services,
accessible, and 'Life + 36 Critical Illness surance. This means the balance 7
on April 28, announced the signing of percent stake in Max Life Insurance
Insurance' is aligned with our vision. In
a definitive agreement to become joint will have to be acquired by the other
the present scenario, healthcare costs
venture partners in Max Life Insur-
pose a burden, especially if diagnosed two companies under Axis entities ie
ance. Under the plan, Axis Bank was
with critical illnesses; the limited physi- Axis Securities and Axis Capital.
to acquire a 29 percent stake in Max
cal activity due to the ongoing pan- Life Insurance to hold a total 30 per- HDFC Life Insurance Q2
demic has added to the high risk of
cent stake in the insurer.
lifestyle diseases. net profit increases
On August 24, Axis Bank announced HDFC Life Insurance registered a 5.6
To ensure that our customers are not changing the deal structure under per cent increase in net profit for the
burdened with the overwhelming costs which it decided to reduce the size of quarter ended September 30, 2020, at

18 The Insurance Times, November 2020