HDFC Stan Life declares bonus
Our Banking Bureau
23 October 2001
Mumbai: HDFC Standard Life Insurance (HSLI) has declared a reversionary bonus at the annual rate of 4.25 per cent for all its endowment assurance policies. HSLI, which has also declared a one-time non-recurring Founders bonus, is the first private insurance player to declare bonus on its policies.
The bonus will be added to the policies issued during the calendar year 2000, which were still paying premium as on 31 December 2000 and is in force as on 30 September 2001.
The Founders bonus will be added to policies that result from proposals the company receives before the close of business on 31 December 2001. This bonus will be borne by the companys shareholders, whereas the reversionary bonus will be paid from a policyholders surplus fund.
The reversionary bonus and the Founders bonus together are pegged at 5.5 per cent for a 10-year endowment assurance policy, and at 4.75 per cent for a 10-year money-back policy. HSLI officials claim the Founders bonus and the reversionary bonus together will be more than the bonus amount declared for its policyholders by the Life Insurance Corporation of India.
HSLI has also announced interim bonus at the rate of 4.25 per cent of the sum assured for all endowment assurance and money-back policies that are still paying premiums and become claims before the next bonus declaration. An interim bonus of 8 per cent of the sum assured has also been declared for all single-premium, whole-life policies that become claims before the next bonus declaration.