NEW DELHI: HDFC Life Insurance Co. Ltd has agreed to buy Exide Life Insurance Co. Ltd, a unit of battery maker Exide Industries Ltd, for ₹6,687 crore, allowing the country’s most valuable private insurer to bolster its presence in south India.
The process of merging Exide Life insurance into HDFC Life Insurance will be initiated on completion of the acquisition. According to the insurer’s statement, the entire process–acquisition and subsequent merger–is subject to relevant regulatory and other approvals.
The proposed transaction will give customers access to a more expansive bouquet of products and service touch-points. Employees and agents will benefit from a larger, more vital organisation that realises the synergies arising from complementary business models built on similar ethos.
What policyholders should know
Existing Exide life policyholders don’t need to panic. They will continue to be serviced (claims, redemptions, renewals etc.) by Exide Life through its branches, website, app etc., till the transition is complete. Mahavir Chopra, founder, CEO, Beshak.org, said such shifts typically take 4-6 months or even more sometimes. “As soon as the transition is put to effect, customers should expect a formal communication from HDFC Life to all the policyholders of Exide Life regarding any changes – for instance, transition to HDFC Life’s website, other digital assets, toll-free numbers,” Chopra said.
Besides, the process ensures that policy terms and conditions will remain the same as detailed in a customer’s existing policy document.
Niraj Shah, CFO, HDFC Life, has said once the transition is complete, customers will benefit from the increased number of service touch-points. Policyholders will also benefit from enhanced product portfolio available to them.
“Also, the various digital assets available with HDFC Life, for example, 3-click claim process, video life certificate submission for an annuity, e-mandate facility for premium payment, online buying journey will be extended to Exide Life customers. This process will give them access to best-in-class service and sales experience,” said Shah