IDBI Federal Q1FY16 Total Premium Growth up by 84% to INR 197 Crores

IDBI Federal Life Insurance, a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe, has reported a growth of 84% in Total Premium at the end of the Q1 FY16.

Commenting on the results, Vighnesh Shahane, CEO & Whole Time Director, IDBI Federal, said, “The growth of the company can be attributed to growing new business premium and expanded in-force book. Further the measures to improve frontline sales productivity, quality of business and selling longer tenured products are showing positive impact. Our clear growth strategy combined with a strong execution infrastructure has also helped us maintain best in class persistency, balanced opex ratio and improved renewal income.”

The company’s New Business Individual Premium grew from 37 crore recorded in Q1 last year to 91 crore this year; reporting a growth of 145%. The company’s ranking improved to 11 from 16 for YTD Individual Life New Business Premium. The total market share amongst private players rose from 1.15% in Jun’14 to 2.37% in Jun’15 for YTD Individual Life New Business Premium. The company’s total premium grew at 84% against the same period last year. The company recorded a 19% renewal premium growth. IDBI Federal’s APE also improved from 41 crore recorded last year to 60 crore, a growth of 47%.

Apart from a superior business performance, the company also introduced a number of customer centric measures. One among them was the 8 days Claims Guarantee, where the company aims to settle the claims in just 8 working days. In case if the company fails to do so, it pays an interest of 8% per annum on the death claim amount for each day of delay beyond 8 working days. Ever since the initiative was launched in July 2014, the Company has not had to pay any penalty/interest on this count. For complaints resolution as well, the company maintains a turnaround time (TAT) of 8 days against the IRDAI norm of 15 days. The result of these initiatives is that the company’s 13th month persistency stands at a healthy 76%.

IDBI Federal has plans to strengthen some of its key areas like brand salience, technology & digitization, distributor engagement and increasing unique lives. In its effort to make its brand presence strong, it has committed to associate with various sports and fitness associations, as well. The most recent among them is the MCA-IDBI Federal Bowling Foundation to partner the discovery and the nurturing of bowling talent in the country.

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IDBI Federal launches Childsurance Savings Protection Plan

MUMBAI: Targeting the future generation, IDBI Federal Life Insurance has launched itsChildsurance Savings Protection Insurance Plan. IDBI Federal Childsurance Savings Protection Insurance Plan helps build savings to fund child’s important milestones even in case of any unforeseen event.

The highlight of Childsurance Savings is the guaranteed annual payouts in the last 3 or last 5 years of the policy, depending on the policy term. These payouts fund the important milestones in the child’s life. The parent has the option to choose how much money he would want as guaranteed annual payouts and thus ensure that there is always enough to fuel his child’s dreams. This plan is a participating plan and offers bonuses to the customer to be paid out at maturity.

The core benefit of this plan is the death benefit. Upon the death of the life insured, say the parent, the plan triggers 3 benefits – (i) death sum assured is paid at the time of death, (ii) future premiums are waived off, (iii) the plan continues as usual. This means that whether the parent is around or not, this plan will ensure that the child gets the guaranteed annual payouts and the bonuses as planned, to fulfil his dreams.


Announcing the launch of Childsurance Savings Protection plan, Vighnesh Shahane, CEO, IDBIFederal Life Insurance, said, “According to our research, securing child’s future is the second most important need for which Indians buy life insurance. Providing for the increasing cost of education and also financial protection for the child in case of the death of the parent are the reasons for people to invest in life insurance. There is also a need for guaranteed payouts to ensure that the child gets a pre-determined amount at important milestones. Childsurance Savings Protection Plan fulfils all these needs and also offers flexibility to invest according to the need.”

Aneesh Khanna, Head – eBusiness, Marketing & Product Management, IDBI Federal Life Insurance, says, “IDBI Federal Childsurance Savings Protection Plan is the perfect combination of guaranteed returns and protection. It combines guaranteed payouts, bonuses and financial protection to offer customers a winning proposition. The key highlight of this plan is that it continues even after the death of the life insured, exactly the same way that he/she had planned for; and all this without any premium being paid after the death of the life insured.”

Childsurance Savings Protection plan gives guaranteed annual payouts either in the last 3 or the last 5 years of the policy, depending on the policy term that one chooses. The plan participates in the profits of the company’s participating policyholders’ life fund by way of bonuses. These bonuses are paid out as a lump sum along with the last guaranteed annual payout.


Key features of the plan include:

• Secured financial future for the child through guaranteed annual payouts and bonuses
• Protection against any unforeseen event with Death Benefit and waiver of premium
• Guaranteed annual payout at key milestones
• Flexibility to choose policy term, premium payment term and the quantum of payouts
• Tax benefits under Sections 80C and 10(10D) of the Income Tax Act, 1961.

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IDBI Federal backs home grown talent; elevates Vighnesh Shahane as CEO

IDBI Federal Life Insurance, a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe, today announced the appointment of Vighnesh Shahane as the Chief Executive Officer & Whole Time Director of the Company.

Speaking on the occasion, R. K. Bansal, Executive Director, IDBI Bank, who in the interim had taken additional charge as the Acting CEO, IDBI Federal, said, “At IDBI Federal, we believe in recognising talent and creating leaders from within the organisation. In his capacity as a channel head, Vighnesh has brought about a positive change and under his leadership, the Bancassurance channel registered unprecedented growth.” Mr. Bansal added, “We are at a defining point in the life insurance industry in India. Despite the challenging macro economic conditions and dynamic regulatory environment, our economy promises huge potential for life insurance in the longer term. Vighnesh, with his diverse exposure across various facets of business, will play a key role in leading IDBI Federal towards achieving its goals.”

Speaking about his new role, Vighnesh said, “IDBI Federal is a young company that has embarked on a journey to change the way life insurance is sold and bought in the country. It is this approach that has helped us withstand the challenge of the times and emerge as a growing company despite these challenges. It is my honour to lead this dynamic company through its next phase of growth.” Having represented Mumbai in the prestigious Ranji Trophy, Vighnesh has modelled his leadership style on team work and collective contribution.

In his career spanning over 20 years, Vighnesh has worked with leading financial organisations across geographies. He brings with him, a rich experience in various facets of business like sales management, strategy and new business development.

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