Exide Life Insurance: Is It Worth The Investment?

Exide Life Insurance Company Limited is a profitable life insurance company that commenced operations in 2001 and is headquartered in Bangalore, India. The company is 100% owned by Exide Industries Limited and has over 40,000 advisors across 200 company offices in India. Exide Life Insurance offers a range of products, including term plans, endowment plans, ULIPs, retirement solutions, and child plans, distributed through multiple channels such as agency, bancassurance, corporate agency, and online. The company focuses on providing long-term protection and savings plans and has a strong traditional product portfolio. In 2022, Exide Life merged with HDFC Life.

Exide Life Insurance's merger with HDFC Life in 2022

HDFC Life Insurance's merger with Exide Life Insurance was first announced in September 2021, with the acquisition of the latter being completed in January 2022. The entire process, from the announcement of the deal to the merger, was completed in less than 14 months. This marked the first-ever merger and acquisition (M&A) transaction in the Indian life insurance sector.

HDFC Life Insurance acquired a 100% stake in Exide Life Insurance from its parent company, Exide Industries, for ₹6,687 crore. This was done through the issuance of 87 million shares at an issue price of ₹685 per share and a cash payout of ₹726 crore. Following the merger, Exide Industries acquired a 4.1% stake in HDFC Life Insurance.

The merger aimed to expand HDFC Life Insurance's presence in the southern states of India, particularly in tier II and III towns, where Exide Life Insurance had a strong presence. It also sought to strengthen HDFC Life Insurance's agency channel and enhance its geographical reach in these markets. The merger was expected to provide customers across both entities with access to a wider range of products and services, while employees and distributors would benefit from the larger, stronger organisation with complementary business models and a shared strong ethos.

Existing Exide Life Insurance policyholders were assured that their policies would remain unchanged, and they would continue to receive services from Exide Life until the transition was complete. Once the transition was finalised, customers would benefit from HDFC Life Insurance's increased number of service touchpoints and enhanced product portfolio.

The company's solvency ratio

Exide Life Insurance Company Limited is a profitable life insurance company that commenced operations in 2001 and is headquartered in Bangalore. The company has a solvency ratio of 2.1 as per the IRDAI annual report of 2023-24. This ratio is a measure of the company's ability to meet its financial obligations and is calculated by dividing its capital relative to all the risk it has taken (total assets minus all liabilities) and helps prospective policyholders assess the financial health of the company.

The solvency ratio for Exide Life Insurance is higher than the minimum solvency ratio of 1.50 mandated by the IRDAI for every insurer, demonstrating the company's strong financial position and ability to promptly pay out claims. Exide Life Insurance's solvency ratio of 2.1 is among the highest in the industry, reflecting the company's financial stability and ability to fulfil its financial commitments.

The solvency ratio is an essential metric for assessing the financial health of an insurance company, and Exide Life Insurance's ratio of 2.1 indicates its ability to meet its financial obligations and provide peace of mind to its policyholders.

Customer service options

Exide Life Insurance offers a range of customer service options to its policyholders, ensuring they can easily access information and support related to their policies. Here is an overview of the customer service options provided by Exide Life Insurance:

Online Portal

Exide Life Insurance policyholders can access their policy details and manage their policies through the company's official website. By logging into their account, customers can view important information such as policy status, maturity amount, and premium payment details. The website also allows users to retrieve their policy number if they have misplaced it.

Mobile App

The Bajaj Finserv App is recommended by Exide Life Insurance for convenient online transactions. Through the app, policyholders can check their policy status, make premium payments, and access other policy-related information. It's important to note that online transactions may incur a convenience fee of up to 2%, depending on the transaction amount and payment method, including applicable taxes.

Customer Service Number

For those who prefer speaking to a representative, Exide Life Insurance provides a customer care number. By calling this number, policyholders can receive updates on their policy status, maturity amount, and other queries. The customer service team can also assist in retrieving policy numbers if needed.

Email Support

Exide Life Insurance offers email support for customers who need assistance. By sending an email to the support team, policyholders can inquire about their policy, retrieve their policy number, or address any other concerns they may have. It is recommended to include relevant details such as your full name, date of birth, and policy-related information for a prompt response.

Branch Offices

Exide Life Insurance has a wide network of branch offices across India. Policyholders can visit their nearest branch for any policy-related queries or claim-related assistance. With over 100 branches PAN India, customers can easily access in-person support and guidance regarding their policies.

Online Tools and Calculators

Exide Life Insurance also provides online tools and calculators on its website to assist customers in financial planning. These tools help individuals assess their financial situation, calculate premiums, and make informed decisions about their insurance needs.

Dedicated Claims Relationship Officer

Exide Life Insurance assigns a dedicated Claims Relationship Officer to each claimant or nominee to guide them through the entire claims process. This ensures that customers receive personalised support and assistance during the claims settlement procedure.

Customer-Friendly Claim Procedures

The company prioritises customer satisfaction and offers easy procedures for policy renewals. Exide Life Insurance is known for providing one of the most customer-friendly claim procedures, giving policyholders peace of mind and assurance that their future is in safe hands.

Wide Premium Collection Network

Exide Life Insurance makes premium payments convenient with multiple payment options. Policyholders can choose from online payment, auto-debit from a bank account, cheque, cash, or utilise multiple cash-only centres located across the country.

Policy Cancellation and Refund

Exide Life Insurance allows policy cancellation and provides a refund process. Policyholders can visit a company branch and submit a duly filled surrender form along with the necessary documents. Once the documents are verified, the company will initiate the refund process.

Customer Education Initiatives

Exide Life Insurance also conducts customer awareness programmes designed to educate customers on financial preparation basics. These initiatives are organised in 2 and 3-tier cities to help individuals make informed financial decisions and understand the significance of insurance.

With these comprehensive customer service options, Exide Life Insurance strives to provide easily accessible and reliable support to its policyholders, ensuring a positive and hassle-free experience.

The company's history and presence

Exide Life Insurance Company Limited was an Indian life insurance company that was established in 2001 and headquartered in Bangalore. The company was a fully owned subsidiary of Exide Industries Limited, which has been one of India's most reliable brands for over six decades. Exide Life Insurance distributed its products through multiple channels, including an agency channel with over 40,000 advisors and more than 200 company offices across the country. The company had a strong presence in India, with a network of over 200 locations and served over 1.5 million customers.

In terms of financial performance, Exide Life Insurance managed assets exceeding INR 18,000 crores (INR 180 billion). The company focused on providing long-term protection and savings options with a strong traditional product portfolio. It offered individual and group life insurance solutions, catering to every financial requirement at all life stages. The company had a consistent bonus track record and was recognised for its financial stability, with a solvency ratio of 2.1 as per the IRDAI annual report 2023-24.

Exide Life Insurance was also known for its emphasis on innovation and was recognised as the Economic Times Best Brand under the BFSI category in 2020. The company constantly upgraded its technology and had a strong relationship with marquee clients. It was committed to customer satisfaction and provided extensive customer service, including easy procedures for policy renewals and one of the most customer-friendly claim procedures in the industry.

In late 2022, Exide Life Insurance merged with HDFC Life, and the combined entity continues to serve the insurance needs of customers across India.

Exclusions of Exide Life Insurance plans

Exclusions in Exide Life Insurance plans are situations or circumstances that prevent beneficiaries from receiving the death benefit. Here is a detailed list of exclusions from Exide Life Insurance plans:

• Sexually transmitted diseases (STDs) and related complications, including Acquired Immune Deficiency Syndrome (AIDS) and the presence of any Human Immunodeficiency Virus (HIV).
• Pre-existing diseases or conditions for which the insured received treatment or medical advice within 48 months before the policy was issued. Pre-existing illnesses will be covered after 48 consecutive months of continuous coverage.
• External congenital anomalies in visible and accessible parts of the body.
• Failure to seek or follow medical advice or treatment from a qualified medical practitioner under reasonable circumstances.
• Intentional self-inflicted injury or attempted suicide, regardless of mental state.
• Alcohol or solvent abuse, or the use of drugs, narcotics, or psychotropic substances unless directed and prescribed by a registered medical practitioner.
• War, invasion, acts of foreign enemies, hostilities, armed or unarmed truce, civil war, mutiny, rebellion, revolution, insurrection, military or usurped power, riot, or civil commotion.
• Taking part in any naval, military, or air force operation during peacetime.
• Participation in criminal or unlawful acts with criminal intent.
• Engaging in professional sports or hazardous pursuits, including but not limited to diving, racing of any kind, underwater activities involving breathing apparatus, martial arts, hunting, mountaineering, parachuting, and bungee-jumping.
• Disability due to psychiatric illnesses, post-traumatic stress disorder, chronic fatigue, chronic pain, and fibromyalgia.
• Nuclear contamination or accidents arising from the radioactive, explosive, or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel.

In addition to these exclusions, there are some common life insurance exclusions that may apply to Exide Life Insurance plans:

• Grace period provision: Policyholders have a grace period after the premium due date to make payments without penalty.
• Ownership clause: The policyholder has the sole right to choose beneficiaries, receive benefits, make changes to the policy, and access cash value during their lifetime.
• Incontestability clause: Protects the policyholder from the insurance provider by stating that benefits cannot be contested due to false information or misrepresentation after a certain period.
• Reinstatement clause: Outlines the conditions under which a lapsed policy can be reinstated, including payment of overdue premiums and proof of eligibility.
• Suicide clause: The insurance carrier is not obliged to pay the death benefit to heirs if the policyholder commits suicide within a specified period (typically two years) after purchasing the policy. Only the value of paid premiums will be returned.
• War exclusion: The insurance company will not pay benefits for deaths resulting from ongoing warfare.
• Aviation exclusion: The insurance company will not pay death benefits if the policyholder dies in a crash of a private plane or as a non-passenger on a commercial flight.
• Dangerous activities exclusion: Deaths related to risky activities such as rock climbing or car racing may be excluded.

Frequently asked questions