USING TECH TO
ANNUAL REPORT 2023-24
INSURE MORE
SERVE MORE
REACH MORE
VISION AND VALUES
Our Values
To be the most admired insurance company that enables the continued progress of customers by being
responsive to their needs.
Our Vision
We will build our business
on empathy and an inherent
understanding of both our internal
and external customers’ needs.
SENSITIVITY
We will honour our commitments
and be transparent in our dealings
with all our stakeholders.
ETHICS
We will always strive to oer innovative
products and services and endeavour
to set new benchmarks to do things
better each time.
EXCELLENCE
We will be proactive with a “can
do” approach.
DYNAMISM
2
17
th
Annual Report
The Parliamentary Standing Committee on Finance issued their
recommendations for the sector, proposing structural changes and
expanding the ambit of insurance to include value added services.
These recommendations, along with the reforms announced by
IRDAI, are expected to significantly impact the industry dynamics in
the coming years.
Ritesh Kumar
MD & CEO
3
CUSTOMER
TESTIMONIALS
I have experienced excellent
service from your company. No
company in the market can settle
claims so fast - thank you very
much! Your oce application
sta is also very helpful in
responding to us properly at the
time of claim process.
Health Insurance Customer (Optima
Restore Insurance)
Policy No. 2805204526716900
Thank you for settling the
claim for the full amount in
the fastest, hassle-free, and
seamless way. The Customer
Service representative guided
well in terms of navigating the
website to register and submit
the documents. It was a great
experience.
Health Insurance Customer (Health
Suraksha Individual Policy - Classic)
Policy No. 2828100853410200
Doing excellent work HDFC
ERGO, keep it up! We are very
happy and privileged to be with
you since the last six years.
Best of luck and thank you for
your best services.
Health Insurance Customer (Optima
Restore Insurance)
Policy No. 2805205481362000
Out of the world customer
service. All agents that I spoke
to were ecient, helpful, and
courteous. More importantly
they are customer service
oriented. Hats o to the reps
and their commitment. I will
surely recommend you to family
and friends.
Motor Insurance Customer (Private
Car Comprehensive Policy)
Policy No. 2311100315659900
Your services are very good.
Your team is excellent in
answering, guiding, and helping
us. I am very happy with your
services. Expecting the same in
future also. Thank you.
Motor Insurance Customer
(Private Car Liability Only)
Policy No. 2319100828422900
I am thankful of your quick
service on my application.
The experience with you so
far is very good. Thank you.
Motor Insurance Customer (Two-
Wheeler Comprehensive Policy)
Policy No. 2312910122819700
So far, I have had a fast and
supportive experience with
HDFC ERGO - service is prompt,
team is respectful of customers’
time, they provide clear and
necessary guidelines as well, so
that really helps.
Travel Insurance Customer (Retail
Travel Insurance Policy - Platinum)
Policy No. 2919205637980500
No worry as of now, your team is
great. I had called the Customer
Executive on two occasions.
Very helpful, knowledgeable, no
escalation delay. Nice support.
Keep it up!
Travel Insurance Customer (Travel
Explorer) - Senior Citizen
Policy No. 3367101409793600
The customer experience is
commendable.
Travel Insurance Customer (Retail
Travel Insurance Policy - Silver)
Policy No. 2919101390257100
4
17
th
Annual Report
TABLE OF CONTENTS
Chairman’s
Message
MD & CEO’s
Message
Board of Directors
& Key Management
Personnel
06 07 08
Company
Highlights
Directors’
Report
Insure More, Serve
More, Reach More
14 15 18
Balance
Sheet
Profit and
Loss Account
Independent
Auditors’ Report
92 9382
Revenue Account Schedules
Receipts and
Payments Account
95 9694
GlossaryOur ProductsManagement
Report
172170163
Awards
174
5
CHAIRMAN’S
MESSAGE
Keki M. Mistry
Chairman
In FY 2023-24, IRDAI continued to undertake
various regulatory reforms to strengthen the
GI industry and facilitate sectoral growth
over the medium term.”
Foremost among the regulatory developments this year was the
Parliamentary Standing Committee on Finance recommending various
major reforms in their report, including introduction of composite
license, open architecture for individual agents and allowing value-
added services ancillary to insurance. IRDAI consolidated various
regulations into nine principle-based regulations – the new regulations
simplify processes to make them more policyholder-friendly and
improve ease of doing business for the insurance industry. IRDAI also
extended de-tarication to all product segments other than Motor
Third Party, enabling insurers further freedom in policy wordings and
premium pricing.
The broad-based growth of the economy resulted in motor, health
and commercial lines insurance segments registering double-digit
growth in FY24. The GI industry grew by
~
13% to
~
`
290,000
crore in FY24. Accident & Health insurance continued to be the
fastest growing and largest segment, reflecting the low levels of
health insurance penetration.
Your Company achieved a 11% growth in Gross Written Premium to
` 18,802 crore, ending the year as the fifth largest General Insurer
in India with a 6.4% market share and the third largest General
Insurer in the private sector with a 9.9% market share. The Profit
After Tax for the year was
` 438 crore, as the Company continued
to be prudent in reserving in light of recent industry trends.
According to the RBI, the Indian economy is projected to grow by
7.2% in FY25 driven by domestic demand. Likewise, inflation is
expected to further ease to 4.5% driven largely by food inflation
levels (assuming a normal monsoon). This outlook continues to be
dependent on geopolitical developments.
The ongoing regulatory changes are expected to encourage
further innovation and support strong growth of the insurance
industry in the coming years, especially in the under-penetrated
geographies and segments.
I would like to thank IRDAI for introducing various reforms aimed
at further development of the insurance industry and improvement
in insurance penetration. I would also like to thank our customers,
partners, shareholders and employees for their support to the
Company and look forward to their continued support in the
coming years.
I also want to take this opportunity to thank our MD & CEO, Ritesh
Kumar, for his leadership and contribution in transforming this
Company into an admired institution. After successfully leading
this Company for 16 years, Ritesh would be superannuating in
June 2024. I also congratulate Anuj Tyagi for his elevation as the
MD & CEO with eect from July 1, 2024. Anuj has been with the
Company since 2008, and has been an integral part of the success
of the Company. I am confident that he will lead the Company to
even greater heights in its next phase of growth.
Although global growth remained resilient and inflation levels
started receding in FY24, the last mile of disinflation was slow.
Therefore, major central banks kept policy rates on hold to ensure
inflation levels stay on target. Ongoing geopolitical conflicts,
disruptions in trade routes and high public debt burden continue
to pose downside risks to the global growth outlook in FY25.
In FY24, India’s GDP grew by 8.2%, marking the third consecutive
year of 7%+ growth. This was mainly driven by significant uplift
in investments. In addition, inflation levels moderated to 5.4%
as core inflation (excluding food and fuel) continued on a steady
declining path.
Last year, the IRDAI had announced its vision of “Insurance for All
by 2047”. I wish to reiterate that your Company is fully committed
to and aligned with this vision and the various initiatives of IRDAI.
6
17
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Annual Report
MD & CEO’S
MESSAGE
Ritesh Kumar
MD & CEO
The Company achieved a 6.4% market
share in FY 2023-24 and is now the fifth
largest general insurance company in India
and third largest in the private sector.”
prominent ones being de-tarication of product segments and
consolidation of various regulations into nine regulations. The
Parliamentary Standing Committee on Finance issued their
recommendations for the sector, proposing structural changes and
expanding the ambit of insurance to include value added services.
These recommendations, along with the reforms announced by IRDAI,
are expected to significantly impact the industry dynamics in the
coming years.
Your Company further upgraded its oerings this year to meet the
evolving customer needs. The key initiatives included launching the
next version of the flagship health insurance product Optima Secure,
institutionalising an internal ombudsman process for repudiations in
health claims, early discharge from hospital for patients undergoing
cashless hospitalisation, etc.
As a Digital Insurer operating at scale, your Company continued to
leverage digital and artificial intelligence to further elevate customer
experience. I am pleased to share that ‘here’, our ecosystem platform
aimed at providing convenience & savings and addressing anxiety,
was well received with over 5 million downloads and over 300,000
policy-related transactions. We continued on our journey of migration
of core technology system to cloud.
As regards our Diversity and Inclusion journey, our gender diversity
ratio improved from 23% in FY23 to 25% this year. As a recognition
of our people practices, we were recognised in ‘India’s Top 25 Best
Workplaces in BFSI sector’ for the second year in a row.
Your Company registered an 11% growth in premiums to
`
18,802 crore
in FY24, ending the year with a 6.4% market share and a 9.9% market
share in the private sector. We are now the fifth largest general insurance
company in the country, and the third largest in the private sector.
Our expense ratio was stable at 24.4% in FY24. In line with our
philosophy of prudence, the Company undertook a strengthening of its
claim reserves basis recent industry trends. As a result, the Combined
Ratio increased from 103.3% in FY23 to 112.1% in FY24. The Profit After
Tax was
`
438 crore in FY24 vis-à-vis
`
653 crore in FY23.
I would like to take this opportunity to congratulate Anuj Tyagi for his
elevation as the Managing Director & CEO w.e.f. July 1, 2024. Anuj has
been a key member of the management team since joining in 2008,
has rich experience across diverse functions and is currently the Joint
Managing Director of our company. I am confident that he will lead
the Company to greater success and that he will enjoy the continued
patronage of all our stakeholders.
I would like to once again thank all our customers, partners, employees
and our shareholders for their support in shaping this Company to its
present level. Lastly, I would also like to express my gratitude to IRDAI
and the fellow members of our Board of Directors for their continued
guidance over the years.
The Indian economy achieved a robust growth of 8.2% in FY24.
The economy is expected to grow by 7.2% in FY25 on the back of
rural demand; however adverse macroeconomic or geopolitical
developments may slow down these growth prospects.
The General Insurance industry registered a growth of 12.8% in
FY24, growing to Gross Direct Premium of
~
`
290,000 crore.
Accident & Health insurance segment grew by 20%, Motor
insurance segment by 13%, while Commercial lines registered
a growth of 10%. While the number of farmers availing Crop
insurance increased, the premiums witnessed a 4% de-growth
due to a change in structure of the Crop insurance schemes
implemented in few states. Private sector insurers (including
standalone health insurers) further improved market share and
now have a 65% market share in the industry.
IRDAI announced further regulatory reforms in FY24, with the
7
BOARD OF
DIRECTORS
Keki M. Mistry (DIN: 00008886) is a qualified Chartered Accountant and a Fellow
Member of the Institute of Chartered Accountants of India.
He was the Vice Chairman & CEO of Housing Development Finance Corporation
(HDFC) Limited. With the amalgamation of HDFC Limited with HDFC Bank Limited,
he superannuated from HDFC Limited and has been appointed as a Non-Executive
Director on the Board of HDFC Bank Limited from June 30, 2023.
He is the Non-Executive Chairman of HDFC ERGO General Insurance Company
Limited and HDFC Life Insurance Company Limited. He is also a Director of several
Companies. Some of these include Tata Consultancy Services Limited, The Great
Eastern Shipping Company Limited and Flipkart Private Limited – Singapore. He is a Senior Advisor to the Ontario Teachers’
Pension Plan (OTPP), a Canada-based pension fund. He has been appointed as a Strategic Advisor for Cyrus Poonawalla
Group’s Financial Services Ventures.
He is a Member of the Primary Market Advisory Committee (PMAC) constituted by the Securities and Exchange Board of
India (SEBI).
He is currently a member of the Expert Committee constituted by SEBI for facilitating ease of doing business and harmonisation
of the provisions of ICDR and LODR Regulations and is the Chairman of Working Group 1 of the Expert Committee. He is also
a member of Standing Committee on Primary Markets, which has been constituted by the International Financial Services
Centres Authority (IFSCA).
Keki M. Mistry
Renu Sud Karnad (DIN: 00008064) was Managing Director of Housing Development
Finance Corporation Limited till June 30, 2023. From July 1, 2023, she is a Non-
Executive and Non-Independent Director on the Board of HDFC Bank Ltd.
She is the Chairperson of GlaxoSmithKline Pharmaceuticals Limited and a director
on the boards of HDFC Asset Management Company Limited, HDFC ERGO
General Insurance Company Limited, HDFC Capital Advisors Limited, Bangalore
International Airport Authority Limited and EIH Limited. She is also a director on the
board of Nudge Lifeskills Foundation and PayU Payments Private Limited.
She holds a Master’s degree in Economics from the University of Delhi and a Bachelor’s degree in Law from the University of
Mumbai. She is a Parvin Fellow – Woodrow Wilson School of Public and International Aairs, Princeton University, USA. She
has to her credit, numerous awards, and accolades. Prominent among them being featured in the list of ‘25 Top Non Banking
Women in Finance’ by U.S. Banker magazine, listed by Wall Street Journal Asia as among the ‘Top Ten Powerful Women to
Watch Out for in Asia’, ‘Outstanding Woman Business Leader’ by CNBC TV18, and ‘25 Most Influential Women Professionals
in India’ by India Today.
Renu Sud Karnad
8
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Annual Report
Dr. Oliver Martin Willmes (DIN: 08876420) is a Non-Executive Director of the Company.
He has studied Business Administration at the University of Cologne. He has done his
MBA from Eastern Illinois University, USA. He is currently the Chairman of the Board of
Management and Chief Operating Ocer at ERGO International AG.
Edward Ler (DIN: 10426805) is a Non-Executive Director of the Company. He holds a
Bachelor of Arts (with distinction) in Risk Management from the Glasgow Caledonian
University in the UK and is a Chartered Insurer from the Chartered Insurance
Institute, UK. He is currently the Chief Underwriting Ocer and a Member of the
Board of Management of ERGO Group AG (“ERGO”), responsible for ERGO Group’s
Consumer Insurance Portfolios and Commercial Property/Casualty Portfolios, Global
Competence Centres for Life, Health, Property/Casualty Product Management, Claims
and Reinsurance.
Bernhard Steinruecke (DIN: 01122939) was the Director General of Indo-German
Chamber of Commerce from 2003 till 2021. He studied Law and Economics in Vienna,
Bonn, Geneva and Heidelberg and has a Law Degree from the University of Heidelberg
in 1980 (Honours Degree) and passed his Bar exam at the High Court of Hamburg in
1983. He was the former Co-CEO of Deutsche Bank India and Co-Owner and Speaker
of the Board of ABC Privatkunden-Bank, Berlin. He was appointed as an Independent
Director of the Company for a period of five years w.e.f. September 9, 2016 and was
re-appointed as an Independent Director for another term of five consecutive years
w.e.f. September 9, 2021.
Mehernosh B. Kapadia (DIN: 00046612) holds a Master’s degree in Commerce
(Honours) and is a Member of The Institute of Chartered Accountants of India and
The Institute of Company Secretaries of India. Most of his corporate career of 36
years has been with GlaxoSmithKline Pharmaceuticals Limited (GSK) where he has
worked for over 27 years. He retired as the Senior Executive Director and Chief
Financial Ocer of GSK w.e.f. December 1, 2014. Over the years, he has been
responsible for an extensive range of finance and company secretarial matters.
He has also held management responsibility for other functions during his tenure
with GSK, including Investor Relations, Legal and Compliance, Corporate Aairs,
Corporate Communications, Administration and Information Technology, and
held the position of Company Secretary for many years. He was appointed as an
Independent Director of the Company for a period of five years w.e.f. September
9, 2016 and was re-appointed as an Independent Director for another term of five
consecutive years w.e.f. September 9, 2021.
Bernhard Steinruecke
Edward Ler
Mehernosh B. Kapadia
Dr. Oliver Martin Willmes
9
Arvind Mahajan (DIN: 07553144) is an Independent Director of the Company. He is
a graduate (B.Com. Hons) from Shriram College of Commerce, Delhi University and
has a Post Graduate Diploma in Management from IIM, Ahmedabad.
He has more than 36 years of experience in management consulting and industry.
His management consulting experience includes more than 22 years as partner
with AF Ferguson & Co, Price Waterhouse Coopers, IBM Global Business Services
and most recently with KPMG. His industry experience was with Procter and Gamble
in financial management and management reporting.
In his career at KPMG India, he has led business consulting services and later the Energy, Infrastructure, Government and
Healthcare practices of the firm. He also had the privilege of being a member of KPMG’s Global Business Consulting and Global
Infrastructure Sector Leadership teams. His specialisation is in advising CEOs & Boards in the area of business strategy and
helping “make strategy happen” through growth and transformation initiatives. He also has a strong background in corporate
finance, enterprise risk management, people and change. He has advised clients in diversified portfolio sectors including
consumer, financial services, technology, media, telecom, energy, infrastructure & government.
He was appointed as an Independent Director of the Company for a second term for a period of five years w.e.f. November 14,
2016 and was re-appointed as an Independent Director for another term of five consecutive years w.e.f. November 14, 2021.
Dr. Rajgopal Thirumalai (DIN: 02253615) is a qualified health care professional with more
than three decades of experience in preventive medicine, public health, occupational
health, and health & hospital administration and in dealing with health insurance products,
brokers, and providers.
He has around 30 years of experience with the Unilever Group, the last position being
Vice President, Global Medical and Occupational Health of Unilever Plc responsible
for providing strategic inputs and leadership in comprehensive health care, including
public health and global health insurance for over 155,000 employees worldwide. Dr.
Rajgopal represented Unilever as a member of the Leadership Board of the Workplace
Wellness Alliance of the World Economic Forum and under his leadership, Unilever
won the Global Healthy Workplace Award in 2016.
He was also the Independent Director at Apollo Hospitals Enterprise Limited and Apollo Super Specialty Hospitals Ltd from
August 2017 to March 2021. He served as the COO for Breach Candy Hospital, Mumbai from April 2021 to March 2022. He is
currently on the Board of Zywie Ventures Ltd., a subsidiary of Hindustan Unilever Ltd. and heads the advisory board of Fitterfly
(a digital therapeutics company). Dr. Rajgopal is also an Adjunct Faculty with the Public Health Foundation of India.
Dr. Rajgopal was awarded the Dr. B. C. Roy National Award (Medical field), which was bestowed by the President of India in 2016.
Ameet Hariani (DIN: 00087866) has over 35 years of experience advising clients
on corporate and commercial law, mergers and acquisitions, real estate and real
estate finance transactions. He has represented large organisations in international
real estate transactions, arbitrations and prominent litigations. He was a partner at
Ambubhai and Diwanji and Andersen Legal India, as well as the founder and managing
partner of Hariani & Co. He has now transitioned to practising as a senior legal counsel
doing strategic legal advisory work. He also acts as an arbitrator, mediator and as an
independent, non-executive director on the boards of several well reputed companies.
He holds a Law degree from Government Law College, Mumbai and Masters in Law
degree from the University of Mumbai. He is a Solicitor enrolled with the Bombay
Incorporated Law Society and the Law Society of England and Wales. He is also a
member of the Bar Council of Maharashtra and the Bombay Bar Association. He was appointed as an Independent Director
of the Company for a period of five years w.e.f. July 16, 2018 and was re-appointed as an Independent Director for another
term of five consecutive years w.e.f. July 16, 2023.
Arvind Mahajan
Ameet Hariani
Dr. Rajgopal Thirumalai
10
17
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Annual Report
Sanjib Chaudhuri (DIN: 09565962) has over 40 years of experience in the
Indian non-life insurance and reinsurance market. As a Cost & Management
Accountant and trained in Systems Analysis from the UK, he started o in heavy
engineering companies viz., Guest Keen & Williams Ltd. and Garden Reach
Shipbuilders & Engineers Ltd. and then as an Associate of the Insurance Institute
of India switched to insurance in 1979. He served National Insurance Co. Ltd.
(NICL) for 19 years in a diverse set of roles including addressing the challenge
of introducing computerised data processing across the industry. He left NICL
as Assistant General Manager in 1997 and joined Munich Reinsurance Company,
Munich, Germany as the Chief Representative for India. Besides setting up a
permanent oce of Munich Re in India in the restricted PSU regime, he was also
responsible for reinsurance business development in India, Sri Lanka, Bangladesh and Nepal. He set up Munich Re’s
India Representative Oce in 1999 as one of the first foreign reinsurers’ permanent presence in the Indian market and
his superannuation in 2014 coincided with the opening of the Munich Re India Branch. He served the General Insurance
Council of India as a member of the Executive Committee during 2015-18. He was nominated by IRDAI as the Policyholders’
Representative and has also served in various committees of IRDAI including Health Insurance Forum and Committee to
Recommend Amendments to the Regulations regarding Foreign Reinsurers’ Branches.
Sanjib Chaudhuri
Samir H. Shah (DIN: 08114828) is a Fellow member of The Institute of Chartered
Accountants of India (FCA), an Associate member of The Institute of Company
Secretaries of India (ACS) and The Institute of Cost Accountants of India (ACMA).
He joined the Company in 2006 and has about 33 years of work experience, of
which over 17 years is in the general insurance sector. He was re-appointed for
another term of five years as Executive Director & CFO w.e.f. June 1, 2023 and
currently oversees/mentors various functions including finance, accounts, tax,
secretarial, legal, compliance, risk management and internal audit.
Samir H. Shah
Vinay Sanghi (DIN: 00309085) has been the driving force of CarTrade Tech since
its inception in 2009 and he recently took the company public.
With more than three decades of experience, he is a leading figure in the Indian
auto industry. He has a demonstrated track record of excellence in the industry
and has been responsible for conceptualising and executing numerous successful
business ventures.
In his current role, he has been instrumental in CarTrade Tech establishing market
leadership and eecting consolidation in the space by acquiring CarWale, BikeWale,
Adroit Auto, Shriram Automall and OLX India. CarTrade Tech Ltd. is a multi-channel
auto platform with a presence across all vehicle types and value-added services. The platform gets 70 million average
monthly unique visitors, facilitates over 32 million listings annually, engages with approximately 30,000 dealers and has 1.2
million listings for auction. The platform operates under several brands: CarWale, CarTrade, Shriram Automall, BikeWale,
CarTrade Exchange, Adroit Auto and OLX India. These platforms enable new and used automobile customers, vehicle
dealerships, vehicle OEMs, and other businesses to buy and sell vehicles in a simple and ecient manner.
Before starting CarTrade Tech, he was the CEO of Mahindra First Choice Wheels Ltd.
Vinay Sanghi
11
Ritesh Kumar (DIN: 02213019) is the Managing Director and CEO of the Company
since 2008. He has about 32 years of experience in the financial services sector,
of which the first 10 years were in Banking and the last 22 years in Insurance. He
is a commerce graduate from Shriram College of Commerce, Delhi and holds an
MBA degree from Faculty of Management Studies (FMS), Delhi. Considering the
applicable IRDAI requirements, he would be required to superannuate by close of
business hours on June 30, 2024.
Ritesh Kumar
Anuj Tyagi (DIN: 07505313) is a Post Graduate Diploma in Business Management
and a Chemistry (H) graduate. He has worked in banking and insurance services
for over 26 years with leading financial institutions and insurance groups in the
country and has held various leadership positions during his tenure. He has been
associated with the Company since 2008 and was appointed as a Whole-time
Director (designated as Executive Director & CBO) of the Company for a period
of 5 years w.e.f. May 1, 2016. On November 13, 2020, he was re-appointed as
Executive Director and he was later designated as the Deputy Managing Director
w.e.f. April 20, 2021 and as Joint Managing Director w.e.f. April 27, 2023. He is
appointed as the Managing Director & CEO of the Company w.e.f. July 1, 2024.
Anuj Tyagi
12
17
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Annual Report
KEY MANAGEMENT
PERSONNEL
CUSTOMER SERVICE ADDRESS
D-301, 3rd Floor, Eastern Business District
(Magnet Mall), LBS Marg, Bhandup (West),
Mumbai 400078.
Customer Service No.:022-6234 6234/0120-6234 6234
[email protected] | www.hdfcergo.com
REGISTERED & CORPORATE OFFICE
HDFC House, 1st Floor, 165-166, Backbay Reclamation,
H. T. Parekh Marg, Churchgate, Mumbai- 400 020
Website: www.hdfcergo.com
E-mail: [email protected]
Tel. No: +91 22 6638 3600
CIN: U66030MH2007PLC177117
IRDAI Reg. No. 146
DEBENTURE TRUSTEE
IDBI Trusteeship Services Limited
Universal Insurance Building, Ground Floor,
Sir P.M.Road, Fort, Mumbai – 400 001
Tel. No: +91 22 40807008/0
Fax No: +91 22 66311776
AUDITORS
G. M. Kapadia & Co.
Chartered Accountants
B S R & Co. LLP.
Chartered Accountants
BANKERS
HDFC Bank Ltd.
Ankur Bahorey
President –Bancassurance
Chirag Sheth
Chief Risk Ocer
Anshul Mittal
Appointed Actuary
Sudakshina Bhattacharya
Chief Human Resources Ocer
Hiten Kothari
Chief Underwriting Ocer
Sriram Naganathan
Chief Technology Ocer
Parthanil Ghosh
President - Retail Business
Sanjay Kulshrestha
Chief Investment Ocer
Vyoma Manek
Company Secretary & Chief
Compliance Ocer
13
COMPANY
HIGHLIGHTS
Large agency and geographical presence
multi-line agents, including Point
of Sales Personnel (PoSPs)
~
1.1 Lac
branches
266
digital oces
497
Spread across
509
districts of
the country
5.32
million
claims serviced
policies issued,
11.6 million
90% +
policies issued digitally
with
largest private
general insurer
3
rd
Eective turnaround
time. Our score card
in/under a minute:
Customer queries serviced:
22
Queries resolved by digital bots:
17
here app downloads:
11
Customer visits to self-help
customer portal
8
No. of health claims settled:
2
No. of motor claims settled:
1
Net Promoter Score (NPS) of
55
₹ 18,802 crore
With a Gross Written
Premium of
6.4%
market share
basis GDP
of assets in Sovereign and AAA or
equivalent rated assets
86%
High degree of
safety with
1.68 times
Solvency
ratio of
vis-a-vis IRDAI’s required
solvency ratio of 1.50 times
Business Continuity Management
System and Information Security
Management System
ISO certified
processes for: Claims
Services, Operations,
Customer Services,
empanelled hospitals and
diagnostic centres across
590+ districts of the country
13,000 +
CRISIL/AAA, ICRA/AAA,
Credit Rating
Stable outlook for Non-Convertible
Debentures (Subordinated Debt)
14
17
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Annual Report
INSURE MORE, SERVE
MORE, REACH MORE
Leveraging its strengths in building robust digital capabilities, HDFC ERGO has established itself as a ‘Digital Insurer at Scale’
today. In FY 2023-24, the Company continued its path of facilitating seamless customer journeys, introducing diverse product
oerings, and enabling faster claims processing via a host of digital platforms.
In the larger background of the transformation that is occurring within India’s Digital Public Infrastructure (DPI), HDFC ERGO
is well poised to harness technology to insure more, serve more, and reach more. Here is a quick snapshot of how the
Company’s digital platforms are at the forefront of customer interaction and how the Company ensures it ‘reaches the last mile’.
The Company has significantly expanded its digital business by optimising digital marketing and sales, fostering
collaborations with digital partners and aggregators, and leveraging robust integration capabilities.
Insure More
IMPACT
Digital Oces (DO)
–
497 have helped
increase the Company’s
presence in upcountry
locations, contributing
~
6% of the Company’s
retail business
Digital Business
Group has
contributed
~
13%
to the Company’s
retail GWP
15
Serve More
Rolled out HDFC ERGO 3.0, a tech modernisation initiative to enable better
service to stakeholders. At the heart of HDFC ERGO 3.0 lies a profound
understanding of customer needs, driving meticulous issue resolution and
proactive engagement through timely interventions across all phases of the
consumer lifecycle.
AI-led break-in pre-inspection has reduced
time from
2 hours to 5 minutes
90% of health policies and 98% of motor
policies are issued digitally
~
80% of motor and
~
70% of health claims
are now intimated digitally, aiding faster
claim processing
~
75% of service requests are self-serviced
of which 16% are AI-led
IMPACT
Launched India’s unique insurer-led ecosystem — the ‘here’ app. It hosts
updated and verified requirements of customers’ healthcare & mobility needs,
thus being ‘Seriously Helpful’ in times of need.
Over 5 million downloads Over 300,000 policy-related transactions
Innovative Mobile App of the Year at
the ET DigiPlus Awards
Best Customer Experience Initiative and
Best Digital Transformation Initiative at
InsureNext Conference & Awards
IMPACT
Introduced HEIQ, an AI-powered SME insurance platform designed to simplify
SMEs’ complex insurance requirements.
Leveraging AI algorithms, HEIQ generates insurance
quotes by analysing vast amounts of unstructured data
received via emails, PDFs, or document file proposals
Quote generation has reduced
from days to seconds
IMPACT
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Reach More
Introduced “1UP”, an AI-driven application that provides advisors with
AI-powered contextual prompts for sales, retention, and daily planning,
optimising their workflow.
Personalised pitches for each
customer, shareable by advisors in
their preferred language
Seamless customer journeys across
the lifecycle
IMPACT
As the ‘Lead Insurer’ for the states of Tamil Nadu and Puducherry
under IRDAI’s State Insurance Awareness initiative, rolled out
medical camps and rural outreach programmes to enhance
insurance awareness in these regions. Additionally, launched a first-
of-its-kind state-level quiz in vernacular language.
A 360-degree insurance awareness drive spanning across 392 villages and 40 towns in Tamil
Nadu and Puducherry
Launched a first-of-its-kind ‘Kapitu Varaam’ or ‘Insurance Week’ initiative, involving 30 non-life insurers
to promote insurance awareness at the grassroots level
IMPACT
State Level: 211 teams from 124 Government schools of 42 districts of Tamil Nadu and
Puducherry participated
Rolled out the eight edition of the
immensely popular Insurance Awareness
Awards - Junior Quiz.
National Level: The programme reached out to over 550,000 students; 4,410 students in the
8
th
and 9
th
grades from 2,205 schools across 150 cities in India participated
IMPACT
17
DIRECTORS’
REPORT
TO THE MEMBERS
Your Directors are pleased to present the Seventeenth Annual Report of your Company together with the audited financial
statements for the financial year ended March 31, 2024.
Financial Results:
The Company’s financial performance for the financial year ended March 31, 2024 is summarised below:
Performance
The Gross Written Premium (GWP) of the Company
increased to
` 18,801.7 crore (PY: ` 16,873.1 crore). The Net
Earned Premium increased to
` 9,573.6 crore (PY: ` 8,035.0
crore). The Company achieved a Profit before Tax of
` 578.4
crore (PY:
` 868.4 crore). The Profit after Tax for the year is
` 437.7 crore (PY: ` 652.7 crore).
Transfer to reserve
The Board of Directors of the Company have not transferred
any amount to the Reserves for the financial year.
Particulars Year ended
March 31, 2024 March 31, 2023
Gross Written Premium 18,801.7 16,873.1
Net Written Premium 10,438.6 8,880.8
Net Earned Premium 9,573.6 8,035.0
Other Income/Liabilities written back 1.6 5.4
Net Incurred Claims 8,396.4 6,423.0
Net Commission (Income)/ Expenses 915.3 (238.5)
Expenses of Management 1,738.17 2,406.1
Investment Income – Policyholders 1,656.5 1,129.0
General Insurance Result 181.8 578.9
Investment Income – Shareholders 384.9 272.1
Profit before Tax - Before providing for diminution in value of investments &
write-o of Bad and Doubtful Investments
566.7 851.0
Provision towards diminution in value of investments & write-o of Bad and Doubtful
Investments
(11.69) (17.5)
Profit before Tax - After providing for diminution in value of investments &
write-o of Bad and Doubtful Investments
578.4 868.4
Provision for Tax 140.7 215.8
Profit after Tax 437.7 652.7
Interim Dividend 250.2 249.5
Profit carried to Balance Sheet 187.5 403.2
Credit balance in P & L account at the year end 1,637.6 1,450.1
(` in crore)
18
17
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Dividend
During the year, the Board of Directors had approved the
payment of interim dividend @25% and @10%, (previous
year total 35% per equity share); the said dividend was
declared and paid in September, 2023 and December,
2023, respectively, and paid to the concerned shareholders.
The Board of Directors have not recommended any final
dividend for FY24.
Merger of HDFC Limited with and into HDFC Bank
Limited
The Board of Directors of erstwhile Housing Development
Finance Corporation Limited (HDFC Limited) had approved
a composite scheme of amalgamation (Scheme) which inter-
alia approved the amalgamation of HDFC Limited with and
into HDFC Bank Limited (HDFC Bank) under Sections 230
to 232 of the Companies Act, 2013 (the “Act”) and the Rules
made thereunder, subject to receipt of requisite approvals.
Consequently, HDFC Limited / HDFC Bank were required
to increase its shareholding in the Company to more than
50% prior to the eective date of the Scheme, as per the
direction of the Reserve Bank of India.
On June 30, 2023, pursuant to receipt of approval from
the Insurance Regulatory and Development Authority
of India (IRDAI), erstwhile HDFC Limited had acquired
shares totalling 0.5097% of the paid-up share capital of
the Company from ERGO and consequently, the Company
became the subsidiary of erstwhile HDFC Limited as on the
said date.
Consequent to the amalgamation of HDFC Limited with and
into HDFC Bank eective from July 1, 2023, HDFC Bank
became the holding company and the Indian Promoter of
the Company.
Increase in Paid-up Share Capital
During the year, the Company allotted 21,88,229 equity
shares of
` 10 each pursuant to exercise of stock options
under the Employees Stock Option Plan-2009 (ESOP-2009).
The Paid-up equity share capital and Share Premium Account
of the Company stood at ` 714.97 crore and ` 1,463.8 crore,
respectively, as on March 31, 2024. HDFC Bank Limited
(HDFC Bank), Indian Promoter, holds 50.48% of the paid-
up share capital of the Company, ERGO International AG
(ERGO), Foreign Promoter holds 49.08% and balance 0.44%
are holders of shares issued pursuant to the Company’s
Employee Stock Option Plan.
Non-Convertible Debentures
On September 18, 2023, in terms of IRDAI (Other Forms
of Capital) Regulations, 2015 (‘OFC Regulations’), the
Company exercised the call option on 740 Unsecured,
Subordinated, Fully Paid-up, Listed, Redeemable, Non-
Convertible Debentures (‘NCDs’) of the face value of
` 10,00,000 each, aggregating to ` 74 crore bearing interest
of 10.25% per annum, issued on September 18, 2018. All the
NCD holders holding the said NCDs as on the Record Date
were paid the redemption amount along with the interest
accrued thereon.
On September 26, 2023 the Company issued and allotted
32,000 Unsecured, Subordinated, Fully Paid-up, Listed,
Redeemable, Non-Convertible Debentures of the face value
of
` 1,00,000 each, at par, aggregating to ` 320 crore, on a
private placement basis, with a coupon of 8.15% per annum,
in accordance with OFC Regulations and SEBI (Issue and
Listing of Non-Convertible Securities) Regulations, 2021.
The aforementioned NCDs are redeemable at the end of 10
years from the date of allotment, for cash at par, with a call
option at the end of five years from the date of allotment and
annually thereafter. The said NCDs are rated by CRISIL and
ICRA and were assigned the highest ratings of CRISIL AAA/
Stable and ICRA AAA/ Stable, respectively.
Date of
Allotment
No. of
NCDs
Face Value
(` per NCD)
Total value of
NCDs (` in crore)
Coupon
Rate
Date of
Redemption
Credit Ratings
November 9,
2021
3,750 10,00,000 375 7.10% p.a. November 9,
2031
CRISIL AAA/Stable and
ICRA AAA/Stable
September 19,
2022
800 10,00,000 80 7.72% p.a. September 19,
2032
CRISIL AAA/Stable and
ICRA AAA/Stable
February 20,
2023
30,000 1,00,000 300 8.15% p.a. February 20,
2033
CRISIL AAA/Stable and
ICRA AAA/Stable
September 26,
2023
32,000 1,00,000 320 8.15% p.a. September
26, 2033
CRISIL AAA/Stable and
ICRA AAA/Stable
Total 1,075
As at March 31, 2024, the Company’s outstanding Unsecured, Subordinated, Fully Paid-up, Listed, Redeemable NCDs stood
at
` 1,075.00 crore consisting of:
19
All the above NCDs are listed on the Whole Sale Debt Market
Segment of BSE Limited.
The Company has been regular in servicing its interest
obligation towards the aforementioned NCDs.
Debenture Redemption Reserve
As required under Section 71(4) of the Act read with Rule 18(7)
(b)(iv)(B) of the Companies (Share Capital and Debentures)
Rules, 2014, as amended, the Company is required to create
a Debenture Redemption Reserve (DRR) out of the profits
available for payment of dividend. As at March 31, 2024, the
balance in DRR stands at
` 35.6 crore.
Annual Return
The Annual Return in prescribed Form MGT- 7 for FY24 can
be accessed on the website of the Company (at https://www.
hdfcergo.com/docs/default-source/default-document-library/
hdfc-ergo---2023-24--mgt-7.pdf).
Report on Corporate Governance
The Company is committed to maintain the highest standards
of Corporate Governance and adheres to the Corporate
Governance requirements set out by SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (LODR
Regulations) and the Guidelines on Corporate Governance for
the Insurance Sector issued by IRDAI (CG Guidelines), a report
on which forms part of the Annual Report. Further, IRDAI vide
its notification dated March 20, 2024 notified IRDAI (Corporate
Governance for Insurers) Regulations, 2024, eective from
April 1, 2024. Further, IRDAI had on March 20, 2024 notified
IRDAI (Corporate Governance for Insurers) Regulations, 2024,
which are eective from April 1, 2024. Updates about relevant
aspects, as applicable and available, on the date of this report
have been incorporated in the relevant sections of this Report.
Number of meetings of the Board
During the year, the Board met five (5) times on April 27,
2023, July 25, 2023, October 12, 2023, January 13, 2024
and March 1, 2024.
The details of attendance of the Directors at the Board
and Committee meetings are provided in the Report of the
Directors on Corporate Governance, which forms part of this
Annual report.
Policy on Director’s appointment and remuneration
The Company has in place a Board approved Policy on
Appointment of Directors, Key Management Personnel
and Members of Senior Management (Appointment Policy)
and Remuneration Policy for the Directors, Key Managerial
Personnel and Senior Management and other Employees
(Remuneration Policy).
The objective of the Appointment Policy is to inter-alia
provide a framework and set standards for the appointment
of Directors, Key Managerial Personnel (KMP) and Senior
Management (SMP) who should have the capacity and ability
to lead the Company towards achieving its stated goals and
strategic objectives, taking into account the interest of all
stakeholders including shareholders, policyholders, channel
partners and employees. The Policy also aims to achieve
an appropriate balance of skills, experience, knowledge and
expertise among its Directors.
The objective of the Remuneration Policy is inter-alia to
ensure that (i) the level and composition of remuneration
is in line with other companies in the industry, sucient to
attract and retain right talent at all levels and keep them
motivated enough to meet the organisation’s objectives;
(ii) a reasonable balance is maintained in the composition
of remuneration (fixed and variable component); and (iii)
performance measurement parameters are in place to
assess the overall performance of Directors, KMPs, Members
of Senior Management and other employees.
During the year the Board had approved amendment to
the Remuneration Policy of the Company to align the same
to the requirements prescribed in the IRDAI Guidelines on
Remuneration of Directors and Key Managerial Persons
of Insurers and the same is hosted on the website of the
Company at https://www.hdfcergo.com/docs/default-
source/policies/policy-on-remuneration-of-directors.pdf
Comments on Auditor’s Report
Neither the Secretarial Auditor nor the Joint Statutory
Auditors have made any qualification, reservation or
adverse remark or disclaimer in their reports. The reports of
the Secretarial Auditor and the Joint Statutory Auditors are
appended to this Report.
Further, during the year under review, the Joint Statutory
Auditors have not reported any incidents of fraud to the
Audit and Compliance Committee of Directors.
Particulars of Loans, Guarantees or Investments
The Company has not given any loan or guarantee to any
person or body corporate.
The investments of the Company are made in accordance
with the IRDAI (Investment) Regulations 2016, as amended,
and circulars issued by IRDAI, from time to time and
the Investment Policy of the Company. The particulars
of Investment Assets are provided in the Management
Discussion and Analysis Report section, which forms part of
this Annual report.
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Related Party Transactions
Transactions/ arrangements entered into by the Company
with its related parties are in the ordinary course of
business and primarily includes sale of various insurance
policies, selling of insurance policies by related parties
appointed as Corporate Agents, receipt of premium
and payment of claim thereon, banking arrangements,
purchase/sale of securities directly or indirectly through
a related party, payment of premium, reinsurance ceded,
receipt of commission on reinsurance ceded, etc.
The Audit and Compliance Committee of Directors has
granted omnibus approval to enter into related party
transactions which are recurring in nature and in the
ordinary course of business.
The Related Party transactions entered into during the
year were in the ordinary course of business and on an
arm’s length basis. The details of transactions with related
parties were placed before the Audit and Compliance
Committee of Directors at its quarterly meetings. The
Company had not entered into any contract / arrangement
/ transaction with related parties which is required to be
reported in Form No. AOC-2 in terms of Section 134(3)
(h) read with Section 188 of the Act and Rule 8(2) of the
Companies (Accounts) Rules, 2014.
The Policy on related party transactions of the Company
is hosted on the Company’s website at https://www.
hdfcergo.com/docs/default-source/policies/policy-on-
related-party-transaction-policy.pdf
During the year, there were no material, financial or
commercial transactions by the Senior Management
having personal interest and that had a potential conflict
with the interest of the Company at large.
Pursuant to provisions of Regulation 23 of LODR
Regulations, the Company has taken requisite approval
of Members for entering into material related party
transactions with HDFC Bank and Munich Re. during FY24.
As required under Regulation 53(f) read with Para A of
Schedule V of LODR Regulations and Accounting Standard
(AS) 18 on Related Party Disclosures, the details of related
party transactions entered into by the Company during
the year are included in the Notes to Accounts.
Material Changes and Commitments aecting
the Financial Position
There were no material changes or commitments,
aecting the financial position of the Company between
the end of the financial year and the date of this Report.
Particulars regarding Conservation of Energy,
Technology Absorption and Foreign Exchange
Earnings and Outgo
Since the Company does not carry out any manufacturing
activity, the provisions with respect to disclosure of
particulars regarding conservation of energy and
technology absorption are not applicable to the Company.
During the year, the Company incurred an expenditure of
` 254.44 crore in foreign exchange (PY: ` 226.13 crore)
mainly on account of reinsurance premium and claims
payment. Premium paid, claims and commission received
on reinsurance ceded in foreign exchange during the year
was
` 106.51 crore (PY: ` 244.37 crore).
Risk Management Framework
The Company recognises that risk is an integral element
of insurance business and realises the criticality of
institutionalised risk management practices to meet its
objectives. The Company has therefore established an
eective and robust enterprise wide Risk Management
Framework (RMF), which addresses all relevant risks
including strategic risk, operational risks, investment risks,
insurance risks and information & cyber security risks.
The material aspects with regard to Environmental, Social
and Governance (ESG) are mapped into and integrated
with the RMF.
The Risk Management Committee of Directors (RMC) has
laid down the risk management philosophy and policy of
the Company. The RMC oversees the functioning of the
RMF which has been designed in line with the aforesaid
philosophy and policy. The Chief Risk Ocer (CRO) is
responsible for the consistent implementation of the RMF.
The CRO reports to the RMC. The CRO inter-alia presents
the key and top risks to the RMC at its quarterly meetings.
The RMC is further assisted by a Sub-Committee comprising
the Managing Director & CEO, Executive Directors, CRO
and Heads of various business units which ensures the
implementation of the Company’s Risk Management
Philosophy, Strategies, Policies and Procedures.
Under RMF, the Company has entrusted designated Risk
Owners to periodically identify, assess, manage and
mitigate the risks pertaining to their respective areas of
responsibility.
The material risks identified by the Company and the
mitigation measures are as under:
21
Underwriting and Reserving Risks
Underwriting Risk is the risk of change in value due to a
deviation of the actual claims payment from the expected
amount of claims payment. Underwriting Risk encompasses
risk of concentration and insucient diversification.
Reserving Risk is the risk of eventual cost of claims diverging
from the booked reserves due to under-reserving which
can make certain classes of business look profitable than
they really are. Conversely, over-reserving tends to lock in
unnecessary capital and could result in portfolio steering in
the wrong direction.
The following controls and mitigation measures have been
established to eectively mitigate aforesaid risks:
• The Underwriting Guidelines are used as a basis for
underwriting of risks and basis for pricing charged to
the proposer;
• Prudent margins are built in reserves and a regular
monitoring of its adequacy is done;
• Adequate protection is ensured through a well-
designed Reinsurance Programme with financially
sound reinsurers;
• Catastrophe (CAT) protection has also been ensured to
mitigate the risks of large losses arising from probable
catastrophic events;
• Detailed Reserving Guidelines are documented for all
classes of business which define the procedures to be
adhered to; and
• The default reserve values are reviewed on a periodic
basis to identify any significant changes in loss
development patterns/IBNR utilisation trends and
formulas are adjusted if deemed necessary and agreed
by all stakeholders.
• Reserves are also peer reviewed annually by
Independent Actuary.
Credit and Market Risk
Adverse change in financial situation due to fluctuation
in the market price of investment assets, its liquidity and
credit quality are some of the material risks faced by the
General Insurers.
The Company’s Investment Function is overseen by
the Investment Committee, duly assisted by the Chief
Investment Ocer (CIO). The investments of the Company
are made as per the Board approved Investment Policy,
Investment Strategy Document and the Standard
Operating Guidelines and are compliant with the
provisions of IRDAI (Investment) Regulations, 2016 and
circulars issued thereunder.
The Investment Policy and the Standard Operating
Guidelines have been designed to be more conservative
than regulatory provisions relating to investment in debt
and equity instruments.
Market risk is managed by maintaining exposure in equity
within the limits set out in the Investment Policy and
guidelines thereunder. Exposure to debt is managed by
maintaining a modified duration of the debt portfolio within
the limits set by the Investment Policy.
Liquidity risk is managed by maintaining investments in
money market instruments upto the desired level as required.
Credit risk or risk of default of counter parties is managed
by investing a substantial portion of the investible corpus
in securities with prescribed Credit Rating (Sovereign and
AAA rated securities).
The aforementioned risks are reviewed and monitored on
a regular basis by the Management, Investment Committee
and the Risk Management Committee.
Credit risk also arises on the reinsurance protection taken
by the Company. The Company ensures that it enters into
reinsurance agreements with reinsurers who comply with
the prescribed minimum Financial Strength Rating (FSR).
This minimises its credit risk exposures in reinsurance
protection arrangements.
Operational Risks
The Company faces varied operational risks in the
various processes it operates in the course of its day-
to-day business such as Premium, Claims, Commission,
Investments, Reinsurance, HR & Payroll, Customer
Experience, etc. Operational risks majorly arise from
breakdowns in internal processes, people and systems.
Operational risks are mitigated by developing
comprehensive policies and processes and by
implementing both automated and manual controls across
various activities performed by various departments.
Business Continuity risks are managed by implementing
a robust Business Continuity Policy and Processes to
ensure safety of human resources and continuity of
key services and oering from bouquet of products at
minimum acceptable level of business. The Company has
an alternate Disaster Recovery (DR) site and the identified
critical business processes are tested periodically at the
DR site to assess its operational preparedness in case of
any eventuality. The Company has been certified under ISO
22301:2019 standard for its Business Continuity practices.
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Information & Cyber Security
The Company assigns critical importance to information and
cyber security risks. Insurance business is highly information
driven where information is recognised as a critical
business asset. Due to emerging information and cyber
security threats in the Insurance Industry, it is imperative
that business information is protected adequately through
appropriate controls and proactive measures.
To manage the existing and emerging information and cyber
security risks, following controls are in place:
• Board approved Information and Cyber Security Policy;
• Board approved Information and Cyber Security Crisis
Management Plan;
• ISO 27001:2013 Certified Information Security
Management System;
• Awareness programme for employees such as awareness
mailers, simulation and tabletop exercises, etc; and
• Vulnerability Assessment and Penetration Testing
exercise on a periodic basis.
Further, the Company constantly endeavours towards
improvement of the Information & Cyber Security posture given
the dynamic and complex cyber security threat landscape.
Corporate Social Responsibility (CSR)
The CSR Committee comprises seven members – four
Independent Directors, two Non–Executive Directors and
one Executive Director. The Chairman of the Committee is
an Independent Director. The composition of the Committee
is in conformity with the provisions of Section 135 of the Act.
The Company’s CSR Policy is hosted on its website https://
www.hdfcergo.com/docs/default-source/about-us/legal-
and-compliance/csrpolicy.pdf. The Policy inter-alia specifies
the broad areas of CSR activities that could be undertaken
by the Company, the approach and process for undertaking
CSR projects and the monitoring mechanism.
During the year, the Company has completely spent the
mandated amount of ₹ 15.29 crore on various CSR activities.
The Annual Report on CSR activities including summary
of Impact Assessment Report is annexed and marked as
“Annexure I” to this Report.
The Company is committed to serving society and has
aligned its CSR interventions under four major pillars for FY
2023-24 which are as given below:
Vidya - Education
• Through its flagship programme of Government school
reconstruction – ‘GAON MERA’, the Company has
undertaken the revamp of two new Government schools
and completed two schools in FY24, cumulatively
impacting more than 1,200 students.
• The Company has also contributed towards improving
the infrastructure facilities of all educational institutions,
expecting to benefit 800 students.
Niramaya - Healthcare
• In FY24, the Company has commenced reconstruction
and upgradation of one Government hospital in addition
to two completed in FY23, aiming to serve
~
3.7 lakh
people with improved healthcare facilities.
• The Company has funded 2,084 critical surgeries for the
underprivileged in FY24, towards treatment of cataract,
bone marrow and cochlear transplant, facial deformities
and congenital heart diseases.
• Further, interventions towards cancer care were
undertaken in rural areas by setting up cancer diagnostic
labs and upgradation of facilities in cancer hospital,
expected to benefit over 7,000 patients.
• Mobile Medical Vans and Health camps were deployed
in rural and tribal areas to extend medical facilities,
benefitting
~
70,000 people.
Roshini - Women’s Welfare
• Over 1,000 destitute women were supported with
sustainable livelihood solutions and capacity building in
remote areas of West Bengal.
• The Company has also supported 2,000 women in North
East and Tamil Nadu through livelihoods interventions in
entrepreneurship development and climate resilient farm
practices.
• Additionally, 35 women collectives were provided solar
powered equipments for running their enterprises,
impacting 320 women.
• The Company also upgraded skills of 373 ASHA
(Accredited Social Health Activist) workers to enable
them to graduate to nursing assistants.
• Supplementary education through learning centres was
provided to 1,100 girls, with an aim to get them back to
formal education system.
Supath - Road Safety
• The Company has adopted two high-fatality blackspots
on Karnataka Silk Board Highway to transform them
to ‘Zero Fatality Corridors’ through tactical urbanism,
benefiting
~
2.6 lakh commuters.
• The Company has also set up a training centre at Indore
RTO to provide road safety training to new license
applicants through a physical training and two-wheeler
23
simulator learning experience and this has benefitted
over 9,000 prospective motorists.
The Company’s CSR initiatives are expected to reach out to
more than 7 lakh lives.
Employee volunteering
In its endeavour to establish a culture of volunteering
within the organisation and increase its social footprint, the
Company furthered its volunteering programme – ‘SAATHI’.
Under this programme, during the year, the employees
have volunteered for over 40,000 hours through various
activities in areas like environment, inclusiveness, women
welfare, healthcare, elderly care, children’s welfare, animal
welfare and road safety. The Company dedicated the week
of September 21 to 27, 2023, as Volunteering Week, during
which employees across the country came together to
clock over 23,000 volunteering hours.
The other details about the CSR Committee are provided in
the Report of the Directors on Corporate Governance which
forms part of this Annual Report.
Board Evaluation
The evaluation of the Board and the Board Committees
was carried out on the basis of various parameters like
optimum mix, quality and experience of Board members,
regularity and frequency of meetings, cohesion in the
Board/Committee meetings, constitution and terms of
reference of various Board Committees, contribution in
shaping the Company’s strategy, protecting legitimate
interest of various stakeholders, implement best corporate
governance practices, follow up on implementation of
decisions taken at Board/Committee meetings, Board
Committee’s promptness and ecacy to report issues
requiring Board’s attention, quality, quantity and timeliness
of flow of information, etc.
The evaluation of Directors (including Independent
Directors) was carried out based on parameters like
attendance, active participation, exercise of independent
judgement, knowledge and competency, commitment,
initiative, high levels of integrity, understanding and
fulfillment of functions assigned by the Board and the law,
awareness and observance of governance, etc.
The Independent Directors at its separate meeting
evaluated the performance of the Non-Independent
Directors, Whole-time Directors, Chairman, Board as whole
and the Board Committees and the views were shared with
the Chairman of the Board.
The evaluation was shared with the Chairman of the
Board. The overall performance evaluation exercise was
completed to the satisfaction of the Board.
Particulars of Employees and other related
disclosures
The total employee strength of the Company as on March
31, 2024 stood at 11,181.
During the year, 26 employees, including Whole-time
Directors, employed throughout the year were in receipt
of remuneration of
` 1.02 crore or more per annum or
` 8.50 lakh or more per month. In accordance with the
provisions of Rule 5(2) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
the names and other particulars of such employees
including the names of the top ten employees in terms
of remuneration drawn are set out in the annexure to the
Directors’ Report. In terms of the provisions of the Act read
with the said Rule, the Directors’ Report is being sent to
the shareholders excluding the annexure. Any shareholder
interested in obtaining a copy of the said annexure may
write to the Company Secretary of the Company. Further,
the Managing Director of the Company did not receive any
remuneration from the holding company.
Further, the disclosures on managerial remuneration as
required under Rule 5(1) of the said Rules are provided in
“Annexure II” appended to this Report.
Disclosures on remuneration of Managing Director
and Key Managerial Persons as mandated under
IRDAI Guidelines on Remuneration of Directors
and Key Managerial Persons of Insurers dated
June 30, 2023 (IRDAI Remuneration Guidelines)
(i) Qualitative Disclosures:
(a) Information relating to the composition and mandate of
the Nomination and Remuneration Committee (NRC):
The details about the composition and mandate of the
Committee are provided in the Report of the Directors
on Corporate Governance which forms part of the
Annual Report.
(b) Information relating to the design and structure of
remuneration policy and Key Features and Objectives
of the Remuneration Policy:
NRC reviews the principles and practices of the
Company with respect to salary increase, promotions,
performance management and bonus to all employees
of the Company. The Remuneration Policy provides
that the level and composition of remuneration is in line
24
17
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Annual Report
with other companies in the industry, sucient
to attract and retain the right talent at all levels
and keep them motivated enough to meet the
organisational objectives and a reasonable balance
is maintained in the composition of remuneration
(fixed and variable component). The performance
measurement parameters are in place to assess the
overall performance of Directors, KMPs, Members of
Senior Management and other Employees. NRC, whilst
recommending remuneration of the Managing Director
and CEO and other Whole-time Directors to the Board,
considers the above factors, which are subject to the
approval of IRDAI.
(c) Description of the ways in which current and future risks
are taken into account in the remuneration policy which
include the nature and type of the key measures used to
take into account of these risks:
The remuneration fixing process of Whole-time
Directors including that of the Managing Director
and CEO, includes evaluation of performance against
performance objectives defined by NRC which includes
performance criteria covering the enterprise wide Risk
Management Framework.
(d) Description of the ways in which the Company seeks to
link performance, during a performance measurement
period, with levels of remuneration:
The level of remuneration of Whole-time Directors
including Managing Director and CEO for any financial
year is inter-alia linked to the following performance
objectives set by NRC:
a. Top line and bottom line targets of the Company
including portfolio steering;
b. Overall financial position of the Company including
adherence to IRDAI stipulations on Minimum
Solvency Margin and Expenses of Management
Limits;
c. Key strategic and operational deliverables for the
year and progress on the mid-term deliverables;
d. Satisfactory claim settlement and repudiation
performance;
e. Eectiveness of the Grievance Redressal
Mechanism; and
f. Overall compliance to applicable laws including CG
Guidelines and other statutory bodies.
The remuneration payable to the Whole-time Directors
including Managing Director and CEO is subject to approval
from the IRDAI.
(ii) Quantitative Disclosures:
The details of elements of remuneration paid to Managing
Director & Chief Executive Ocer and Whole-time Directors
are disclosed under ‘Managerial Remuneration’ section
of the Notes to Accounts forming part of the financial
statements.
Secretarial Audit
In accordance with the provisions of Section 204 of the Act
and the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Company appointed
Messrs. Bhandari & Associates, Practicing Company
Secretaries for conducting Secretarial Audit for FY 2023-24.
The Secretarial Audit Report is appended to this Report as
“Annexure III” and does not contain any qualifications.
Employees Stock Option Plan (ESOP)
During the year, the Company granted 22,73,970 stock
options at an exercise price of
` 539 per option under
ESOP (Options) to eligible employees. The total number
of options that have been exercised by the grantee was
21,88,229 having exercise price in the range of
` 50 to
` 536 per option. Further, ` 49.42 crore was realised by
way of exercise of options.
The Options granted vest in tranches - 25% on completion
of two years from grant date, 25% at the end of three years
from the grant date and the balance 50% on completion of
four years from the grant date and are exercisable within
a period of five years from the date of respective vesting.
During the year, Options vested aggregated to 11,92,399.
During the year, 2,66,352 Options lapsed and the Options in
force as on March 31, 2024 were 66,17,495.
There has been no variation in the terms of the Options granted.
The diluted Earnings Per Share (EPS) is
` 6.11 against a basic
EPS of
` 6.12.
Two employees, being the key managerial personnel of the
Company, were granted Options aggregating to more than
5% of the total Options granted during the year.
Further, no employee was granted Options in excess of 1% of
25
the issued share capital of the Company at the time of grant.
During the year, the Company has granted 1,90,000,
1,45,000, 95,000, and 8,400 number of Stock Options to
Ritesh Kumar, Anuj Tyagi, Samir H. Shah and Vyoma Manek,
being the key managerial personnel of the Company,
respectively.
Public Deposits
The Company did not accept any deposits from the public
during the year.
Change in the nature of business
During the year under review, there has been no change in
the nature of business of the Company.
Maintenance of Cost Records
Being an Insurance Company, the cost records as specified
by the Central Government under Section 148(1) of the Act,
are not required to be maintained by the Company.
Auditors
At the fifteenth Annual General Meeting (AGM) held on July
21, 2022, the Members had re-appointed Messrs. G. M.
Kapadia & Co., Chartered Accountants (Registration No. of
the firm with ICAI: FRN 104767W) and appointed Messrs.
B S R & Co. LLP, Chartered Accountants (Registration No.
of the firm with ICAI: 101248W/W-100022), as the Joint
Statutory Auditors of the Company to audit the accounts
of the Company upto FY 2026-27 and hold oce as such
upto the conclusion of the twentieth AGM of the Company.
Subsidiary, Joint Ventures and Associate
Companies
The Company has no subsidiary, joint venture or
associate companies.
Directors and Key Managerial Personnel
Superannuation of Ritesh Kumar as Managing Director
and Chief Executive Ocer (CEO)
In terms of the IRDAI Remuneration Guidelines dated June
30, 2023, the position of Whole-time Director can be held
for a continuous period of upto 15 years and if a Director(s)
has already completed a period of 15 years on the date of
issue of the said Guidelines, the Company shall appoint the
new incumbent in place of such Director(s) within a period
of one year from the date of issue of these Guidelines.
Ritesh Kumar (DIN: 02213019) was appointed as the
Managing Director & CEO of the Company w.e.f. June 10,
2008 and his current term is till June 9, 2025.
However, consequent to the aforementioned Guidelines,
since Kumar has already served as a Whole-time Director
of the Company for fifteen years on the date of these
Guidelines, and pursuant to the provisions of these
Guidelines he would superannuate by close of business
hours on June 30, 2024.
The Board acknowledges and places on record its gratitude
and appreciation for the invaluable contributions, vision and
unwavering commitment made by Kumar during his tenure
towards the growth and success of the Company.
Appointment of Anuj Tyagi as Managing Director and
Chief Executive Ocer
In view of the above IRDAI Remuneration Guidelines and
in accordance with the succession plan of the Company,
the Board pursuant to the provisions of the Act and based
on the recommendation of NRC, appointed Anuj Tyagi,
who currently serves as the Joint Managing Director, as
the Managing Director & CEO of the Company, for a period
of five years, with eect from July 1, 2024, subject to the
approval of Members and IRDAI.
Tyagi has been with the Company since 2008 and has
held various positions over his tenure and was elevated
as the Joint Managing Director in April 2023.
Further, the Members at its Extraordinary General
Meeting held on March 15, 2024 approved the aforesaid
appointment of Tyagi, with eect from July 1, 2024.
Appointment / Cessation of Non-Executive Director(s)
Dr. Clemens Matthias Muth (DIN: 07824451) resigned as
a Director of the Company, w.e.f. the closing of business
hours of December 31, 2023, for the reasons of his other
commitments.
The Board pursuant to the recommendation of NRC,
approved the appointment of Edward Ler (DIN: 10426805)
as an Additional Non-Executive Director of the Company,
w.e.f. January 1, 2024 for a term upto the next AGM.
Further, the Members at its Extraordinary General Meeting
26
17
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Annual Report
held on March 15, 2024 approved the appointment of Ler
as a Non-Executive Director of the Company, liable to
retire by rotation, with eect from January 1, 2024.
The Board acknowledges and places on record its
appreciation for the invaluable contribution and
commitment made by Dr. Clemens during his tenure as a
Director of the Company.
Re-appointment of Directors retiring by rotation
In accordance with the provisions of the Act and the
Articles of Association of the Company, Dr. Oliver Willmes
(DIN: 08876420), Non-Executive Director and Samir H.
Shah (DIN: 08114828), Executive Director & CFO, would
retire by rotation at the ensuing AGM and being eligible,
have oered themselves for re-appointment and the
same is included in the Notice of the seventeenth AGM
circulated to the Members for their approval.
Changes in Key Management Persons (KMP) as
per Companies Act, 2013 and IRDAI CG Guidelines
The Board, pursuant to the recommendation of NRC,
approved the appointment of Hiten Kothari as the Chief
Underwriting Ocer and Anshul Mittal as the Appointed
Actuary of the Company, subject to approval of IRDAI. On
receipt of IRDAI’s approval, Kothari and Mittal assumed the
role of Chief Underwriting Ocer and Appointed Actuary,
respectively, eective November 23, 2023. Consequently,
Sanjay Kaw ceases to be the Chief Underwriting Ocer
of the Company with eect from the said date; further, he
superannuated on January 31, 2024.
Directors & Ocers Liability Insurance
The Company has in place Directors & Ocers Liability
Insurance (D&O) for all its Directors (including Independent
Directors) and members of the Senior Management Team in
line with Regulation 25(12) of the LODR Regulations.
Declaration by Directors
The Company has received declarations from all
Independent Directors confirming that they meet the
criteria of independence as provided under sub-section 6
of Section 149 of the Act read with Regulation 16(1)(b) of the
LODR Regulations.
As required under Rule 6(1) and 6(2) of the Companies
(Appointment and Qualification of Directors) Rules, 2014,
the Independent Directors have confirmed that their
names are available in the data bank maintained by the
Indian Institute of Corporate Aairs and they have either
undertaken the online proficiency self-assessment test or
are exempted therefrom.
The Board is of the opinion that the Independent Directors
of the Company are eminent persons with the highest
standard of integrity and have necessary expertise and
experience to continue to discharge their responsibilities
as Directors of the Company.
The Company has also received declarations from all
Directors confirming that they are not disqualified from
being appointed as Directors under the provisions of
Section 164 of the Act and also, they are not debarred from
holding the oce of a Director, by virtue of any SEBI order
or any other such authority.
Further, all the Directors have confirmed that they
comply with the ‘fit and proper’ criteria prescribed under
the CG Guidelines.
Significant and Material Orders passed by the
Regulators or Courts or Tribunals
There are no significant or material orders passed by the
Regulators or Courts or Tribunals impacting the going
concern status and the Company’s operations.
Internal control over Financial Reporting
The internal control over financial reporting is a process
designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance
with applicable accounting principles and includes those
policies and procedures that:
i. Pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and
disposition of the assets of the Company;
ii. Provide reasonable assurance that transactions
are recorded as necessary to permit preparation of
financial statements in accordance with generally
accepted accounting principles, and that receipts and
expenditures of the Company are being made only in
accordance with authorisations of Management and
Directors of the Company; and
iii. Provide reasonable assurance regarding prevention
and timely detection of unauthorised acquisition, use or
disposition of the Company’s assets that could have a
material eect on the financial statements.
The Company has established adequate internal control
27
procedures, commensurate with the nature of its business
and size of its operations and the same are periodically
monitored and reviewed by the Management for its
adequacy and appropriateness. Standard Operating
Procedures are in place largely for all areas of operations
and the same are reviewed periodically. The Management
has assessed the eectiveness of the Company’s internal
control over financial reporting as of March 31, 2024. As a
result of the evaluation, the Management has concluded that
the Company’s internal control over financial reporting was
eective as of March 31, 2024 with no significant deficiency.
Audit and Compliance Committee
The Audit and Compliance Committee comprises six
members – four Independent Directors and two Non–
Executive Directors. The Chairman of the Committee is an
Independent Director and a qualified Chartered Accountant.
The composition of the Committee is in conformity with the
provisions of Section 177 of the Act, LODR Regulations and
the CG Guidelines.
All the Committee members possess adequate qualifications
to fulfill their duties as stipulated under the Act, the CG
Guidelines and LODR Regulations. During the year, all the
recommendations made by the Audit Committee were
accepted by the Board.
The other details about the Committee are provided in the
Report of the Directors on Corporate Governance, which
forms part of this Annual report.
Whistleblower Policy
The Company promotes ethical behaviour in all its
dealings, business or otherwise and has put in place a
Whistleblower Policy (Policy) for reporting of any illegal or
unethical behavior. The Policy is hosted on the website of
the Company at www.hdfcergo.com.
The other details about the policy are provided in the Report
of the Directors on Corporate Governance, which forms part
of this Annual report.
Indian Accounting Standards (Ind AS)
The Ministry of Corporate Aairs (MCA) had notified the
Companies (Indian Accounting Standards) Rules, 2015 (Ind
AS), applicable for Ind AS implementation for all Companies
in India excluding Banks and Insurance Companies.
The International Accounting Standards Board (IASB) has
issued IFRS 17: Insurance Contracts (replacing IFRS 4:
Insurance Contracts), which was globally eective from
annual reporting periods beginning on or after January 1,
2023. The Institute of Chartered Accountants of India (ICAI)
has issued an exposure draft of amendments to Ind AS 117
corresponding to aforesaid amendments in IFRS 17 issued
by IASB.
Further in August 2022, IRDAI has constituted an Expert
Committee involving members from ICAI, Institute of
Actuaries of India (IAI) and Insurance Industry to address
implementation issues of Ind AS in insurance sector.
As advised by IRDAI vide their Circular No. 100/2/Ind AS-
Mission Mode/2022-23/1 dated July 14, 2022, the Company
has set up a Steering Committee under the aegis of the
Executive Director & CFO. The Committee comprises
members from cross-functional areas such as Finance &
Accounts, Actuarial, Information Technology and Project
Management Group. The Company has appointed a
knowledge partner to understand the nuances and carry out
the initial impact analysis for few select Portfolio Segments
and the said activity is in advanced stage of conclusion.
Further, the Audit and Compliance Committee and Board is
updated on a quarterly basis of the progress made on the
implementation activity.
Disclosure under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013
The Company has framed a Policy on Prohibition of Sexual
Harassment at the workplace (POSH Policy) based on the
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 (POSH Act) with an
objective to promote a safe and secure work environment
for all employees and to provide protection against sexual
harassment of employees and prevention thereof and
redressal of complaints.
In accordance with the provisions relating to the constitution
of Internal Complaints Committee under the POSH Act, the
Company has constituted an Internal Complaints Committee
(ICC). Presently, ICC comprises six (6) members, of which four
(4) are women including a member from a non-governmental
organisation, who is an expert on the subject matter. One of
the women members is the presiding ocer of ICC.
The role of ICC is to monitor complaints and redressal
of grievances under the POSH Policy. An online POSH
module was enabled for all employees (including study
material followed by compulsory test). Also, during the year,
mandatory online modules on POSH were conducted to
create awareness about the Policy amongst the employees.
During the year under review, seven cases were reported.
28
17
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Annual Report
Secretarial Standards
The Company has complied with the applicable provisions
of Secretarial Standards issued by the Institute of Company
Secretaries of India (ICSI).
Directors’ Responsibility Statement
In accordance with the provisions of Section 134(5) of
the Act and based on the confirmation provided by the
Management, your Directors state that:
a. In the preparation of the annual accounts, the applicable
accounting standards have been followed and there
were no material departures;
b. Accounting policies selected were applied consistently.
Reasonable and prudent judgements and estimates
were made so as to give a true and fair view of the
state of aairs of the Company as at March 31, 2024
and of the profit of the Company for the year ended
on that date;
c. Proper and sucient care has been taken for the
maintenance of adequate accounting records in
accordance with the provisions of the Act and Rules
made thereunder, Insurance Act, 1938, as amended,
Insurance Rules, 1939 and IRDAI Regulations, Orders,
Circulars and Guidelines for safeguarding the assets of
the Company and for preventing and detecting frauds
and other irregularities;
d. The annual accounts of the Company have been
prepared on a going concern basis;
e. Internal financial controls have been laid down to be
followed by the Company and such internal financial
controls are adequate and operating eectively; and
f. Proper systems are in place to ensure compliance
with the provisions of all applicable laws and that such
systems were adequate and operating eectively.
Acknowledgements
The Board wishes to express its sincere gratitude to the Insurance Regulatory and Development Authority of India, General
Insurance Council, Securities and Exchange Board of India, Competition Commission of India, Reserve Bank of India, Ministry
of Corporate Aairs and other Ministries of the Government of India, Depositories and the Stock Exchanges for their continued
co-operation and support.
The Board appreciates and acknowledges the role of all stakeholders viz. Policyholders, Channel Partners, Health Service
Providers, Surveyors, Intermediaries and reinsurers for their continued support, trust and co-operation.
The Board thanks and appreciates the Promoters – HDFC Bank Limited and ERGO International AG for providing their
guidance and support.
The Board also places on record its appreciation for the hard work, loyalty and commitment, of employees at all levels,
enabling the Company’s continued growth.
Mumbai
April 16, 2024
On behalf of the Board of Directors
KEKI M. MISTRY
Chairman
(DIN: 00008886)
29
ANNEXURE I TO DIRECTORS’ REPORT
ANNUAL REPORT ON CSR ACTIVITIES
ii. Planning
The identification of CSR activities is done using one or more
of the following methods:
(i) In-house planned projects;
(ii) Proposals from District Administration/ Local Govt. body/
Public representatives etc; and
(iii) Proposals/requests from a registered and specialized body
for providing financial assistance for carrying out specific
CSR initiatives subject to the condition that it fulfils the
criteria as prescribed in the statute in this regard.
iii. Implementation Methodology
The CSR activities/ projects are implemented using internal
resources (in- house manpower) or through collaborating with
NGOs/ specialized agencies/ trusts/ institutions/ foundations/
societies/ Government bodies etc. in accordance with the
provisions of the Act and the Companies (Corporate Social
Responsibility Policy) Rules, 2014.
The details of major CSR initiatives undertaken by the
Company during the financial year 2023-24 are given below:-
I. Vidya - Education
The Company has deployed various projects towards
improving quality of education and has benefitted over
2,000 students in FY24.
A. Gaon Mera Government School Reconstruction &
Development Project -
The focal area for the Company’s CSR intervention is a
dedicated “My Village” Programme called ‘GAON MERA’.
The programme is aimed at improving the current status of
Education in selected village(s). The main objective of Gaon
Mera program is to address the need for sustainable educational
infrastructure, support system for rural development and
holistic advancement of education in the communities through
its Government School Reconstruction Programme.
Preliminary evaluation of the applications is done as
per internal guidelines and a detailed study is done by
1. Brief outline on CSR Policy of the
Company
A. CSR Policy
The CSR Policy of the Company, inter-alia, specifies the
key focus areas for CSR activities/projects that could be
undertaken by the Company; approach and process for
undertaking CSR projects and the monitoring mechanism.
The Policy is available on the website of the Company -
https://www.hdfcergo.com/docs/default-source/about-us/
legal-and-compliance/csr-policy.pdf
B. Organisation setup
The CSR projects are implemented under the guidance of
the CSR Committee of Directors, which presently comprises
seven (7) Directors. The Company also has a Sub-Committee
of CSR (SC-CSR) comprising the Senior Management team
including the Executive Directors.
The terms of reference of the CSR Committee, inter-alia,
includes:
i. Formulate and review the CSR Policy and recommend
the same to the Board for its approval;
ii. Formulate and recommend to the Board an Annual
Action Plan on CSR activities;
iii. Recommend the amount of expenditure to be incurred
on the CSR activities;
iv. Review the CSR projects/ programmes from time to time;
v. Ensure overall governance and compliance for CSR; and
vi. Annually report to the Board, the details of the CSR
activities.
C. Scope of activities
The CSR activities of the Company are as per the provisions
of Schedule VII of the Companies Act, 2013 (‘Act’).
i. Geographical Span of CSR Projects
The CSR activities are taken up across the country and
attempt is made to cover maximum geography.
30
17
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Annual Report
the Implementation Partners in the form of rapid need
assessment and development of project proposal.
Government School Construction Project is adopted using
BaLA (Building as Learning Aid), an innovative concept for
qualitative improvement in education, through developing
child-friendly, learning and fun based physical environment.
Vinoba Sewa Ashram, Haritika and Anchalik Jana Seva
Anusthan have worked as Implementation Partners for
above activities of FY24. Through its flagship programme
of Government school reconstruction – ‘GAON MERA’, the
Company has undertaken revamp of two new Government
schools and also completed two schools in FY24,
cumulatively impacting more than 1,200 students.
B. Other Education Initiatives –
Besides the above, the Company has also contributed
towards improving the infrastructure facilities of educational
institutions, expecting to benefit over 800 students.
II. Niramaya - Healthcare
Considering Healthcare as one of the important pillars,
the Company has worked towards providing solutions in
the area, aiming to serve over 4.5 lakh lives through its
interventions during FY24.
A. Government Hospital Upgradation Project -
The Company undertakes the upgradation of select
Government Hospitals/ Health centres in rural areas,
following a detailed study of the identified Health Centres,
done by the Implementation Partners. Basis the requirement
identified, the Company aims to improve the healthcare
facilities through construction of new wards/ buildings,
refurbishment of existing structures, installation of additional
medical equipments, etc.
In FY24, Vinoba Sewa Ashram has started working as an
Implementation Partner for one Government Hospital in Tamil
Nadu. Doctors For You has worked as an Implementation
Partner for two Hospital projects in Maharashtra and
Karnataka, completed and handed over in FY23, cumulatively
aiming to serve
~
3.7 lakh people with improved healthcare
facilities.
B. Other Healthcare Initiatives -
The Company has funded 2,084 critical surgeries for the
underprivileged in FY24, towards treatment of cataract,
bone marrow and cochlear transplant, facial deformities and
congenital heart diseases.
To extend medical facility access in rural and tribal areas,
Mobile Medical Vans were deployed and Health camps were
conducted, benefitting
~
70,000 people.
Further, interventions in the area of cancer care were
undertaken in rural areas by setting up cancer diagnostic labs
and upgradation of facilities in cancer hospital, expected to
benefit over 7,000 patients.
III. Roshini - Women Welfare
Through Women welfare initiatives, the Company has
benefitted over 4,700 women in FY24.
Over 1,000 destitute women were supported with sustainable
livelihood solutions and capacity building in remote areas of
West Bengal.
The Company has also supported 2,000 women in North
East and Tamil Nadu through livelihood enhancement
interventions in entrepreneurship development and climate
resilient farm practices.
Additionally, 35 Women Collectives were provided solar-
powered equipments for running their enterprises, impacting
320 women.
The Company also upgraded skills of 373 Asha Workers to
help them become Nursing Assistants.
Further, 1,100 girls were provided supplementary education
through learning centres, with an aim to get them back to the
formal education system.
IV. Supath - Road Safety
Through Road Safety initiatives, the Company has
benefitted over 2.6 Lakh lives in FY24.
The Company has redesigned two high-fatality blackspots on
Karnataka Silk Board Highway towards transforming them to
‘Zero Fatality Corridors’ through tactical urbanism, benefiting
~
2.6 lakh commuters.
Additionally, the Company has set up a training centre at
Indore- Regional Transport Oce (RTO) to provide road
safety training to new licence applicants through a physical
training and two-wheeler simulator experience, benefitting
over 9,000 prospective motorists.
31
2. Composition of CSR Committee:
Sr.
No.
Name of Director Designation / Nature of
Directorship
Number of meetings
of CSR Committee
held during the year
Number of meetings
of CSR Committee
attended during the year
1. Ameet Hariani Chairman-Independent
Director
4 4
2. Mehernosh B. Kapadia Independent Director 4 4
3. Vinay Sanghi Independent Director 4 4
4. Dr. Rajgopal Thirumalai Independent Director 4 4
5. Renu Sud Karnad Non-Executive Director 4 4
6. Dr. Oliver Martin Willmes Non-Executive Director 4 4
7. Anuj Tyagi Joint Managing Director 4 4
3. Provide the web-link where Composition of CSR
Committee, CSR Policy and CSR projects approved
by the Board are disclosed on the website of the
Company:
https://www.hdfcergo.com/corporate-social-responsibility
4. Provide the executive summary along with web link
of Impact Assessment of CSR projects carried out
in pursuance of sub-rule (3) of Rule 8, if applicable:
In compliance with the robust governance protocols
overseeing decision-making and CSR portfolio
management of the Company in FY24, Deloitte
Touche Tohmatsu India LLP (Deloitte) was tasked with
the responsibility of conducting third party impact
assessment for the following two CSR Projects:
i. Government school reconstruction in Dombramattur,
Haveri, Karnataka
ii. Infrastructure and equipment support to Primary
Health Centre, Hattimattur, Haveri, in rural
Karnataka
Below is the link and a brief summary of mandatory
impact assessment reports:
Niramaya - https://www.hdfcergo.com/docs/default-source/
about-us/legal-and-compliance/csr-activities/impact-
assessment-report_niramaya_-building-and-infrastructure-to-
a-govt-phc-hattimattur-karnataka_fy24.pdf
Vidya - Gaon Mera - https://www.hdfcergo.com/
docs/default-source/about-us/legal-and-compliance/
csr-activities/impact-assessment-report_-gaon-
mera_-building-and-infrastructure-to-a-public-school-
domramattur-karnataka_fy24.pdf
i. Gaon Mera Programme - Government
school reconstruction in Dombramattur,
Haveri, Karnataka
This initiative encompassed the construction
of a new school block, library, sanitation and
drinking water facilities. Moreover, it integrated
innovative qualitative education through BaLA
(Building as a Learning Aid). The project was
eectively implemented by NGO Partner Yuva
Unstoppable. This initiative aligns with the United
Nations Sustainable Development Goal 4 (SDG4)
on quality education. By enhancing educational
infrastructure, providing access to qualitative
education, and addressing basic amenities, the
Gaon Mera program contributes to the broader
global eorts towards ensuring inclusive and
equitable education, as outlined in SDG 4.
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17
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Annual Report
1 https://www.frontiersin.org/articles/10.3389/feduc.2022.871043/full#B32
2 Mehrotra, S. (2012). The cost and financing of the right to education in India: can we fill the financing gap? Int. J. Educ. Develop. 32, 65–71. doi:
10.1016/j.ijedudev.2011.02.001
Key parameters Findings
Relevance/need
for project
• According to the Census of India 2011, people in the age group 0 to 14 years constitutes around 39.5%, while
people in the age group 0-4 constitutes 9.7% of the total population. Providing equitable access to education for
almost 40% of the population is not an easy task for any policy maker since the population belongs to middle-
income and poor families.
1
• The national policy on education, Right to Education (RTE), and Sarva Shiksha Abhiyan (SSA) play pivotal roles
in enhancing the quality of education in government schools. Reason for poor enrolment at the secondary level
is the lack of attention of National Policy on Education, Right to Education, and Sarva Shiksha Abhiyan on the
quality of education at government schools. While addressing concerns about poor secondary-level enrolment,
these initiatives focus on universalizing elementary education, emphasising improvements in infrastructures,
teacher qualifications, and curriculum design.
2
Usage and
uptake
• The newly constructed classrooms with Building as Learning Aid (BaLA) tools, charts and graphs have enhanced
students’ learning outcome and thereby increased attendance from 40 -100%.
• The teachers have reported a 50% increase in the number of female students enrolled in school, rising from 48
to 96 due to the upgradation of the school infrastructure facilities.
• 60% of grade 4th to 7th students have full access to the computer lab, as students from lower primary sections
do not engage in computer-related work. This accounts for the percentage of students with lab complete access
falling below the 90-100% range.
• 100% of the students accessing to clean drinking water.
• 30% of students have access to playing materials and sports equipment. The playground is equipped with items
such as swings, slides, and climbers designed for small children, leading to reduced engagement from students
in higher sections.
• As reported by the teachers the use of BaLA tools have helped students who have been promoted from 6th to
7th grade score higher on math and science tests as compared to their previous grades.
Impact created • As reported by the teachers and other school sta the attendance of students has increased by 100%.
• The teachers have reported that the total strength of the students has increased by 50-55%, rising from an
average strength of 100-110 to 224.
• According to the teachers, the boys’ hostel is now at full capacity with a 100% occupancy, indicating an increase
in number of residential students. Prior construction of new infrastructure, the occupancy was low, as parents
were hesitant to admit their children.
• The dropout rates have been reduced to 0% as reported by the teachers.
• The BRC has emphasized that the number of students clearing the competitive examination for high school
enrolment in reputed schools has increased from 0% to 30%.
• The teachers have emphasized a notable 50% increase in the enrolment of girl students.
Sustainability • The Gaon Mera Program has demonstrated sustainability by engaging all stakeholders to a collective mechanism.
Quality infrastructure and uninterrupted power supply have been crucial components enhancing the well-being
of the students, teachers, and community members. This ensures the long-term sustainability of the project.
Overall Rating • The project has successfully met its expectations by significantly enhancing students’ learning outcomes,
boosting enrolment rates, and improving overall well-being of students through comprehensive upgrades and
infrastructure development in the school.
Summary of findings:
ii. Infrastructure and equipment support to
one Primary Health Centre, Hattimattur,
Haveri, in rural Karnataka
This is an eort towards upgradation of the
above-mentioned Primary Health Centre and is
focused to improve the healthcare services and
access for the people of Haveri. The hospital
building was upgraded through new construction
and wards were created along with provisions of
additional equipment in the Operation Theatre.
Also, uninterrupted power supply was ensured by
installation of Solar Panels.
By enhancing the facilities at the health centre,
thereby providing access to enhanced healthcare
facilities, this project contributes to the broader
global eorts towards ensuring good health and
wellbeing, as outlined in SDG 3. The project was
eectively implemented by NGO, Doctors For You.
33
Key parameters Findings
Relevance/need for
the project
• PHCs often serve as the first point of contact for local communities within the nation’s health. The National
Health Policy, 2017 recommended strengthening the delivery of primary health care, through the establishment
of “Ayushman Bharat-Health and Wellness Centres” as the platform to deliver comprehensive primary health
care to help these centres better serve people’s healthcare needs throughout their lifetime. Upgradation
eorts enhance reproductive, maternal, and neonatal health service readiness.
1
• Ayushman Bharat or “Healthy India” national initiative was launched as recommended by the National Health
Policy 2017, to achieve the vision of Universal Health Coverage (UHC). This initiative has been designed
along the lines of meeting SDG 3- Good health and wellbeing and its underlining commitment, which is
“leave no one behind”.
2
Usage and uptake
• Delivering quality health services to the targeted population of approximately 33,900 people in Hattimattur
village of Savanaur block in Haveri district of Karnataka.
• Extending outreach to 65 villages in the entire Savanaur block covering 1.6 lakh+ population size as compared
to a previous outreach of up to 10 villages.
• The upgraded facility is now providing quality primary healthcare services to 150 daily OPD patients on
average.
Impact created
• PHC building prior to intervention was a ten bedded, older structure which was due for upgrade of structure
for the past 10-12 years. The PHC, in addition to the upgradation of equipment and infrastructure, needed
inputs in terms of deployment of human resources, provision of support equipment in the OT and handholding
for expansion of services at the hospital.
• The building was upgraded, and wards were created for expanded provision of services such as delivery
and family planning surgeries, however, eort towards stang of additional medical ocers at the PHC is still
warranted. This will enable the expansion of services (especially labour room facilities, Sick-new-born care
unit (SNCU) and Family planning services at the facility.
• Currently, the PHC houses a single bedded labour room with attached sanitation services, a recovery room
and a 5-beded ward for women in the premises. The PHC has been taking up 10-12 uncomplicated deliveries
per month owing to the availability of upgraded labour room in the facility.
• The PHC has also reported increased patient footfalls, convenient access to primary health services and
reduction in the need for extensive travel for seeking treatment. The PHC is currently not able to handle
emergency cases due to lack of available medical sta round the clock.
• The state (Karnataka) has been reporting a reduction in maternal and neonatal mortality rates over the
past 3-4 years. The newly constructed maternal and child wing at the PHC premises contributes to this by
providing a safe and ecient environment for childbirth and neonatal care.
• Eorts have been made by the PHC sta towards enhancing awareness among pregnant women and
lactating mothers regarding various central/state government schemes post-delivery. This helps the women
to seek and utilize the support provided, contributing to their well-being and that of their new-borns.
• The installation of eco-friendly sources like solar panels or backup generators, has improved the electricity
availability in the healthcare facility.
Sustainability
• The successful enhancement of healthcare infrastructure through the provision of advanced equipment and
high-quality services, provides a platform to the PHC to improve its service provision.
• Increase in patient footfall, trust from the community in the new PHC structure and the uptick in the in-patient
services has been noted owing to the PHC.
• Thereby, there is potential for reduced dependency on public and private hospitals at district level, which are
an extensive distance from the current facility (>17 km). However, a system-strengthening approach towards
upgradation of the PHC is important to ensure sustained impact on rural health services.
Overall Rating
• The project expectations are met by providing quality healthcare services to the population, especially
women and children, resulting in significant improvement in MCH service delivery including antenatal care,
deliveries, and childcare services in the entire Savanaur block.
1 https://main.mohfw.gov.in/sites/default/files/9147562941489753121.pdf
2 https://ab-hwc.nhp.gov.in/
Summary of findings:
34
17
th
Annual Report
5. (a) Average net profit of the Company as per section 135(5) of the Act: 764,36,50,203
(b) Two percent of average net profit of the Company as per section 135(5) of the Act: 15,29,13,188
(c) Surplus arising out of the CSR projects or programmes or activities for the previous financial years: NIL
(d) Amount required to be set-o for the financial year, if any: NIL
(e) Total CSR obligation for the financial year (5b+5c-5d): 15,29,13,188
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): 14,42,86,709
(b) Amount spent on Administrative Overheads: 76,43,650
(c) Amount spent on Impact Assessment, if applicable: 9,82,829
(d) Total amount spent for the Financial Year (6a+6b+6c): 15,29,13,188
(e) CSR amount spent or unspent for the financial year:
Amount Unspent
Total Amount
Spent for the
Financial Year.
(in )
Total Amount transferred to
Unspent CSR Account as per
Section 135(6) of the Act
Amount transferred to any fund specified under
Schedule VII as per second proviso to Section
135(5) of the Act
Amount Date of transfer Name of the Fund Amount Date of transfer
15,29,13,188 NIL NA NA NIL NA
(f) Excess amount for set-o, if any: NIL
Sr. No. Particular Amount (in )
(i) Two percent of average net profit of the Company as per Section 135(5)
of the Act
15,28,73,004
(ii) Total amount spent for the financial year 15,29,13,188
(iii) Excess amount spent for the financial year [(ii)-(i)] 40,184
(iv) Surplus arising out of the CSR projects or programmes or activities of the
previous financial years, if any
NIL
(v) Amount available for set o in succeeding financial years
[(iii)-(iv)]
NIL
7. Details of Unspent CSR amount for the preceding three financial years:
1 2 3 4 5 6 7 8
Sr.
No.
Preceding
Financial
Year(s)
Amount
transferred to
Unspent CSR
Account under
sub-section (6)
of section 135
(in )
Balance
Amount in
Unspent CSR
Account under
sub-section (6)
of section 135
(in )
Amount
Spent
in the
Financial
Year
(in )
Amount transferred
to a Fund as
specified under
Schedule VII as per
second proviso to
sub-section (5) of
section 135, if any
Amount
remaining
to be
spent in
succeeding
financial
years (in )
Deficiency,
if any
Amount
(in )
Date of
transfer
NIL
(in )
35
8. Whether any capital assets have been created or acquired through Corporate
Social Responsibility amount spent in the Financial Year: Yes
If Yes, enter the number of Capital assets created/ acquired: 2
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent
in the Financial Year:
Sr.
No.
Short particulars of the property or
asset(s) [including complete address
and location of the property]
Pincode
of the
property or
asset(s)
Date of
creation
CSR amount
spent
Details of entity/ Authority/ beneficiary of
the registered owner
1 2 3 4 5 6
CSR
Registration
Number, if
applicable
Name Registered
address
1 Reconstruction of Govt. School
in Kutba, District Muzaarnagar,
Uttar Pradesh under Gaon Mera
Program and handed over to School
Management Committee of the
School in FY24. Project completed
and inaugurated in May 2023. A brief
overview of facilities provided by us in
project is as follows -
• Re-Construction - 4 new rooms
with corridor – total area 2580 sq.
ft. built up area
• Repair and refurbishment of
boundary wall and other existing
structure including demolition
261318 May 22,
2023
Total Outlay -
₹ 62,30,400
Amount spent
in FY23:
₹ 56,07,360
Amount spent
in FY24:
₹ 3,11,520
Amount to be
spent in FY25:
₹ 3,11,520
NA School
Management
Committee,
Kutba, District
Muzaarnagar,
Uttar Pradesh
Primary
School, Kutba,
Block Baghra,
District
Muzaarnagar,
Uttar Pradesh
2 Reconstruction project of Government
School in Kutbi, District Muzaarnagar,
Uttar Pradesh under Gaon Mera
Program and handed over to School
Management Committee of the
School in FY24.
Project completed and inaugurated in
May 2023. A brief overview of facilities
provided by us in project is as follows -
• Re-Construction - Area 757 sq. ft.
built up area
• 1 Toilet Area with 2 partition - 112
Sq Ft
• 1 new room - 645 Sq Ft
• Repair and refurbishment of
boundary wall and other existing
structure including demolition
• Furnishing and smart class setup
251318 May 21,
2023
Total Outlay -
₹ 44,13,200
Amount spent
in FY23:
₹ 39,71,880
Amount spent
in FY24:
₹ 2,20,660
Amount to be
spent in FY25:
₹ 2,20,660
NA School
Management
Committee,
Kutbi, District
Muzaarnagar,
Uttar Pradesh
Composite
School, Kutbi,
Block Baghra,
District
Muzaarnagar,
Uttar Pradesh
9. Specify the reason(s), if the Company has failed to spend two percent of the
average net profit as per Section 135(5) of the Act: NIL
Ritesh Kumar
(DIN: 02213019)
(Managing Director & CEO)
Ameet Hariani
(DIN: 00087866)
(Chairman - CSR Committee)
36
17
th
Annual Report
DISCLOSURES ON MANAGERIAL
REMUNERATION
Details of remuneration as required under Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, is provided below:
Ratio of remuneration of each director to the median
remuneration of the employees of the Company for FY 2023-24:
Name Designation Ratio of remuneration
of each Director to the
median remuneration
of the employees
Keki M. Mistry Chairman (Non-
Executive)
5:1
Renu Sud
Karnad
Non-Executive
Director
4:1
Dr. Oliver
Willmes
Non-Executive
Director
-
Edward Ler Non-Executive
Director
-
Bernhard
Steinruecke
Independent
Director
4:1
Mehernosh B.
Kapadia
Independent
Director
5:1
Arvind Mahajan Independent
Director
5:1
Ameet Hariani Independent
Director
6:1
Sanjib
Chaudhuri
Independent
Director
3:1
Dr. Rajgopal
Thirumalai
Independent
Director
3:1
Vinay Sanghi Independent
Director
3:1
Samir H. Shah Executive Director
and CFO
65:1
Anuj Tyagi Joint Managing
Director
96:1
Ritesh Kumar Managing Director
and CEO
214:1
Percentage increase in remuneration of each Director and
Key Managerial Personnel in FY 2023-24:
Name Designation Increase in
Remuneration
Ritesh Kumar Managing Director and
CEO
12.5%
Anuj Tyagi Joint Managing Director 35.0%
Samir H. Shah Executive Director and
CFO
11.5%
Vyoma Manek Company Secretary
& Chief Compliance
Ocer
21.4%
The Company did not pay any commission to Non-Executive
Directors. It is proposed to pay commission of ` 10 lakh each
to the Independent Directors for FY 2022-23, which is the
same as paid for FY 2021-22. Further details are provided in
Form MGT-7, available on the website of the Company (www.
hdfcergo.com).
Percentage increase in the median remuneration of
employees in FY 2023-24: 6.0%
Number of permanent employees on the rolls of the
Company as on March 31, 2024: 11,181
Average percentile increase already made in the salaries
of employees other than the managerial personnel in the
last financial year and its comparison with the percentile
increase in the managerial remuneration and justification
thereof and point out if there are any exceptional
circumstances for increase in the managerial remuneration:
The average increase in the remuneration of all employees
in FY 2023-24 was 6.8%. The average increase in the
remuneration of managerial personnel (i.e. Whole-time
Directors) stood at 19.7% and of non-managerial personnel
was 6.7%.
The average increase in remuneration of both the managerial
and non-managerial personnel was determined based on the
overall performance of the Company. Further, the criteria for
remuneration of non-managerial personnel is based on an
internal evaluation of key result areas, while the remuneration
of the managerial personnel is based on the remuneration
policy as recommended by the NRC and approved by the
Board of Directors and Guidelines on Remuneration of Non-
Executive Directors, Managing Director/Chief Executive
Ocer/Whole-time Directors of Insurers issued by IRDAI.
The Company confirms that that there were no exceptional
circumstances which warranted an increase in managerial
remuneration which was not justified by the overall
performance of the Company.
The remuneration of Key Managerial Personnel is based on
the overall performance of the Company.
ANNEXURE II TO DIRECTORS’ REPORT
37
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014]
To,
The Members,
HDFC ERGO General Insurance Company Limited
CIN: U66030MH2007PLC177117
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to good
corporate practices by HDFC ERGO General Insurance
Company Limited (hereinafter called ‘the Company’).
Secretarial Audit was conducted in a manner that provided
us a reasonable basis for evaluating the corporate conducts/
statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers,
minute books, forms and returns filed and other records
maintained by the Company and also the information
provided by the Company, its ocers, agents and authorised
representatives during the conduct of secretarial audit,
we hereby report that in our opinion, the Company has,
during the audit period covering the financial year ended
on March 31, 2024 complied with the statutory provisions
listed hereunder and also that the Company has proper
Board-processes and compliance mechanism in place to
the extent, in the manner and subject to the reporting made
hereinafter:
We have examined the books, papers, minute books, forms
and returns filed and other records maintained by the
Company for the financial year ended on March 31, 2024
according to the provisions of:
i. The Companies Act, 2013 (‘the Act’) and the Rules made
thereunder;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the Rules made thereunder;
iii. The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
iv. Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent
of Foreign Direct Investment. The Company does not
have any Overseas Direct Investment and External
Commercial Borrowings during the financial year;
v. The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’):-
a. The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011
#
;
b. The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
c. The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
2018
#
;
d. The Securities and Exchange Board of India (Share
Based Employee Benefits and sweat Equity)
Regulations, 2021
#
;
e. The Securities and Exchange Board of India
(Issue and Listing of Non-Convertible Securities)
Regulations, 2021;
f. The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act,
2013 and dealing with client;
g. The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2021
#
; and
h. The Securities and Exchange Board of India (Buy-
back of Securities) Regulations, 2018
#
;
# The Regulations or Guidelines, as the case may be were not
applicable to the Company for the period under review.
The list of Acts, Laws and Regulations specifically applicable
to the Company are given below:
vi. The Insurance Act, 1938, as amended;
vii. The Insurance Regulatory and Development Authority
Act, 1999, as amended and Regulations framed
thereunder as amended from time to time.
We have also examined compliance with the applicable
clauses of the following:
i. Secretarial Standards issued by The Institute of
Company Secretaries of India;
ii. The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations,
2015.
ANNEXURE III TO DIRECTORS’ REPORT
38
17
th
Annual Report
During the period under review, the Company has complied
with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above, to the extent applicable.
We further report that –
The Board of Directors of the Company is duly constituted
with proper balance of Executive Directors, Non- Executive
Directors and Independent Directors. Further the changes
in the composition of the Board of Directors, that took
place during the period under review, were carried out in
compliance with the provision of the Act.
Adequate notice is given to all directors to schedule the
Board Meetings, agenda and detailed notes on agenda
were sent atleast seven days in advance for meetings, and
a system exists for seeking and obtaining further information
and clarifications on the agenda items before the meeting
and for meaningful participation at the meeting.
During the period under review, decisions were carried
through unanimously and no dissenting views were
observed, while reviewing the minutes.
We further report that there are adequate systems and
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations and
guidelines.
We further report that during the audit period, the Company
has undertaken following events/actions:
i. Pursuant to approval of Board of Directors, 36,42,290
equity shares of Rs. 10/- each held by ERGO International
AG were transferred to Housing Development Finance
Corporation Limited (‘HDFC Limited’) on June 30, 2023
and the Company became subsidiary of HDFC Limited.
Further, consequent to the composite Scheme of
Amalgamation of (i) HDFC Investments Limited and
HDFC Holdings Limited with and into HDFC Limited;
and (ii) HDFC Limited with and into HDFC Bank Limited
(‘HDFC Bank’) approved by Hon’ble National Company
Law Tribunal, Mumbai bench vide its order dated March
17, 2023, the Company became subsidiary of HDFC
Bank w.e.f. July 1, 2023 (eective date of the Scheme).
ii. Members approval was obtained at the Extraordinary
General Meeting held on June 30, 2023 to –
a. amend and replace the existing Articles of
Association (‘AOA’) of the Company with the revised
and restated AOA;
b. amend the relevant clauses of HDFC ERGO
Employee Stock Option Plan - 2009.
iii. On September 18, 2023, the Company has exercised call
option and redeemed 740 Unsecured, Subordinated,
Fully paid up, Listed, Redeemable, Non - Convertible
Debentures (‘NCDs’) of face value of Rs. 10 Lakh each,
aggregating to Rs. 74 Crore having ISIN INE092VO8028,
issued on September 18, 2018.
iv. On September 26, 2023, the Company has issued and
allotted 32,000 Unsecured, Listed, Redeemable, Fully
paid up, Non-Convertible Debentures (‘NCDs’), in the
nature of subordinated debt of the face value of Rs. 1
lakh each, aggregating to Rs. 320 Crore on a private
placement basis having ISIN INE225R08048.
For Bhandari & Associates
Company Secretaries
Unique Identification No.: P1981MH043700
Peer Review Certificate No.: 611/2019
Manisha Maheshwari
Partner
ACS No: 30224; C P No: 11031
Mumbai| April 16, 2024
ICSI UDIN: A030224F000137870
This report is to be read with our letter of even date which
is annexed as Annexure ‘A’ and forms an integral part of this
report.
39
ANNEXURE ‘A’
To,
The Members,
HDFC ERGO General Insurance Company Limited
CIN: U66030MH2007PLC177117
Our Secretarial Audit Report for the financial year ended on March 31, 2024 of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices we follow provide a reasonable basis
for our opinion.
3. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the ecacy or
eectiveness with which the management has conducted the aairs of the Company.
For Bhandari & Associates
Company Secretaries
Unique Identification No.: P1981MH043700
Peer Review Certificate No.: 611/2019
Manisha Maheshwari
Partner
ACS No: 30224; C P No: 11031
Mumbai| April 16, 2024
ICSI UDIN: A030224F000137870
40
17
th
Annual Report
REPORT OF THE DIRECTORS ON
CORPORATE GOVERNANCE
Good Governance is a fundamental aspect of the Company’s
operations. Corporate Governance involves the art of
directing and controlling the organisation while balancing
the needs and interests of various stakeholders. It entails
the application of exemplary management practices and a
commitment to conducting business in a fair, transparent,
and ethical manner, in compliance with applicable laws.
Corporate Governance establishes a framework of rules,
practices, and procedures that dictate how a Company
operates and aligns the interests of all stakeholders. It
fosters a corporate culture of transparency, accountability,
and disclosure, thereby enhancing organisational
performance, enterprise valuation, and risk management
while instilling accountability.
COMPANY’S PHILOSOPHY ON
CORPORATE GOVERNANCE
HDFC ERGO General Insurance Company Limited (the
“Company”), has over the years followed the best practices
of Corporate Governance by adhering to practices of the
Promoters of the Company, i.e. HDFC Bank Limited (HDFC
Bank) and ERGO International AG (ERGO). Corporate
Governance is intrinsic to the Management of the Company
aairs. Good Governance aids eective management and
control of the business. Your Company believes that sound
Corporate Governance plays a crucial role in enhancing
and retaining the trust of the stakeholders. It enables the
Company to maintain high level of business ethics and
optimise the value for all its stakeholders and also to meet
societal expectations.
The Company believes that Corporate Governance is a
continuous journey towards sustainable value creation for
all the stakeholders and is driven by its values of Sensitivity,
Excellence, Ethics and Dynamism (SEED). The Company
endeavours to provide fair, transparent and equitable
treatment to all stakeholders.
The Company also endeavours to abide by its value system
guided by the principles of accountability, transparency and
timely disclosure of matters of interest to the stakeholders
and ensuring compliance with the applicable laws and
conducting business in an ethical manner.
The Company is not only committed to following the
good corporate governance practices embodied in
various regulatory provisions, but also constantly strives
to adopt and adhere to the emerging best practices and
benchmarking itself against such practices.
The Board of Directors have taken cognisance of various
statutory and regulatory requirements in the overall
governance framework and remains committed to imbibe
the spirit of governance in all spheres of the Company’s
business and has complied with various provisions of the
Companies Act, 2013 (the “Act”), SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“LODR
Regulations”) and the Guidelines on Corporate Governance
for the Insurance Sector (“CG Guidelines”) issued by the
Insurance Regulatory and Development Authority of India
(“IRDAI”). Further, IRDAI had on March 20, 2024 notified
IRDAI (Corporate Governance for Insurers) Regulations,
2024, which are eective from April 1, 2024. Updates about
relevant aspects, as applicable and available, on the date of
this report have been incorporated in the relevant sections
of this Report.
BOARD OF DIRECTORS
The Board of Directors of the Company are responsible
for ensuring fairness, transparency and accountability
of the Company’s business operations and they provide
appropriate directions, with regard to leadership, vision,
strategies, policies, monitoring, supervision, accountability
to shareholders and to achieve greater levels of
performance on a sustained basis as well as adherence
to the best practices of Corporate Governance. The
Board plays a pivotal role in creation of stakeholder value
and ensures that the Company adopts sound and ethical
business practices and that the resources of the Company
are optimally used. The Board periodically reviews and
approves the strategy and oversees the decisions of the
Management.
The Company has a multi-tier management structure,
comprising the Board of Directors and its Committees at
the apex, followed by management committees and the
ocials of the Company. Through this, it is ensured that
[Pursuant to the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the
Guidelines on Corporate Governance for the Insurance Sector issued by IRDAI and forming a part of the report of the Board
of Directors]
41
strategic supervision is provided by the Board; control and
implementation of the Company’s strategy are achieved
eectively, operational management remains focused on
implementation; information regarding the Company’s
operations and financial performance is made available
promptly; delegation of decision making with accountability
is achieved; financial and operating control and integrity
are maintained at an optimal level; and risks are suitably
evaluated and dealt with.
COMPOSITION
The Board has an optimum combination of Executive, Non-
Executive and Independent Directors. The Board comprises
competent and qualified Directors to drive the strategies in
a manner that would sustain the growth of the Company and
protect the interest of various stakeholders in general and
policyholders in particular.
The composition of the Board is governed by the provisions
of the Act, LODR Regulations, CG Guidelines and regulations
prescribed by IRDAI. As at March 31, 2024, the Board comprised
fourteen members, of which three are Whole-time Directors
and eleven are Non-Executive Directors. The three Whole-time
Directors include the Managing Director & CEO, Joint Managing
Director and Executive Director & Chief Financial Ocer. Of the
eleven Non–Executive Directors, two are nominated by HDFC
Bank, which includes one Woman Director, two are nominated
by ERGO and seven are Independent Directors.
The roles of the Chairman and the Managing Director & CEO
are distinct and separate.
Details of the Board of Directors in terms of their directorships/
memberships in committees of public companies as on
March 31, 2024 are set out in the table below:
Sr.
No.
Directors Category No. of
Directorships
as on March
31, 2024
#
Of which Number of
Committees
##
Directorships in other listed
entities
(category of directorship)
Member Chairperson
1. Keki M. Mistry Non-Executive
Director, Chairman
8 7 3 1. HDFC Life Insurance Company
Ltd (Non-Executive Director)
2. Tata Consultancy Services Ltd
(Non-Executive - Independent
Director)
3. HDFC Bank Limited (Additional
Non-Executive Director)
4. The Great Eastern Shipping
Company Ltd. (Additional and
Independent Director)
5. Torrent Power Limited
(Independent Director)
2. Renu Sud
Karnad
Non-Executive
Director
8 7 2 1. Glaxosmithkline
Pharmaceuticals Ltd (Non-
Executive - Non-Independent
Director)
2. HDFC Bank Ltd (Additional
Non-Executive - Non-
Independent Director)
3. HDFC Asset Management
Company Limited (Non-
Executive Director)
4. EIH Limited (Additional
Director-Independent Director)
3. Dr. Oliver
Martin Willmes
Non-Executive
Director
1 1 0 Nil
4. Edward Ler* Non-Executive
Director
1 1 0 Nil
5. Bernhard
Steinruecke
Independent
Director
3 1 0 1. Zodiac Clothing Company
Limited (Independent Director)
42
17
th
Annual Report
Sr.
No.
Directors Category No. of
Directorships
as on March
31, 2024
#
Of which Number of
Committees
##
Directorships in other listed
entities
(category of directorship)
Member Chairperson
6. Mehernosh B.
Kapadia
Independent
Director
3 5 2 1. Tata Capital Housing Finance
Ltd (Independent Director)
7. Arvind
Mahajan
Independent
Director
4 3 0 1. Force Motors Limited
(Independent Director)
8. Ameet Hariani Independent
Director
11 9 3 1. Mahindra Lifespace
Developers Limited
(Independent Non-Executive
Director)
2. Mahindra Logistics Limited
(Independent Non-Executive
Director)
3. Batliboi Ltd. (Independent Non-
Executive Director)
4. Ras Resorts & Apart Hotels Ltd
(Independent Non-Executive
Director)
5. Strides Pharma Science
Limited (Independent Non-
Executive Director)
6. Aptech Limited (Independent
Non-Executive Director)
9. Sanjib
Chaudhuri
Independent
Director
1 0 0 Nil
10. Vinay Sanghi Independent
Director
4 2 0 1. Cartrade Tech Ltd (Chairman &
Managing Director)
11. Dr. Rajgopal
Thirumalai
Independent
Director
2 0 0 Nil
12. Samir H. Shah Executive Director
& CFO
1 0 0 Nil
13. Anuj Tyagi Joint Managing
Director
1 0 0 Nil
14. Ritesh Kumar Managing Director
& CEO
1 1 0 Nil
*Appointed as a Non-Executive Director w.e.f. January 1, 2024.
# excluding Directorship(s) in foreign companies and Section 8 companies under the Companies Act, 2013.
## For the purpose of considering the limit of the committee memberships and chairpersonship, the Audit Committee and Stakeholders Relationship
Committee of all public limited companies (including the Company), whether listed or not, are included and all other companies including private
limited companies, foreign companies and companies registered under Section 8 of the Companies Act, 2013 are excluded.
The number of directorships held by all Directors, as well
as their membership/chairmanship in committees is within
the limits prescribed under the Act and LODR Regulations,
as per disclosure(s) received from them. None of the
Directors are related to each other.
BOARD EXPERTISE AND ATTRIBUTES
The Board of Directors have a wide range of skills, expertise
and experience in the areas which enhances the overall
Board’s eectiveness. The Directors have expertise in
insurance, banking, finance, healthcare, accountancy,
economics, law and human resources.
43
The details of the Directors of the Company, as at March 31, 2024, with their qualifications, field of specialisation/core skills/
expertise are as set out in the table below:
Name
of the
Director
Qualification Field of specialisation/core skills/ expertise
Governance Corporate
Strategy
and
Planning
Insurance &
Risk
Management
Business
Management
and
Marketing
Accountancy
and Finance
Health
Care
Keki M.
Mistry
Fellow Member of The
Institute of Chartered
Accountants of India
-
Renu
Sud Karnad
Law Graduate from The
University of Mumbai
and Master’s degree in
Economics from Delhi
University and Parvin
Fellow – Woodrow Wilson
School of International
Aairs, Princeton University,
USA
- -
Dr. Oliver
Martin
Willmes
Business Administration
from The University of
Cologne and MBA from
The Eastern IIIinois
University, USA
-
Edward Ler Bachelor of Arts in Risk
Management from the
Glasgow Caledonian
University in UK and
holds the Chartered
Insurer designation from
The Chartered Insurance
Institute, UK.
-
Bernhard
Steinruecke
Law and Economics in
Vienna, Bonn, Geneva
and Heidelberg and
Law Degree from The
University of Heidelberg
& passed the Bar exam
at the High Court of
Hamburg
- - -
Mehernosh
B. Kapadia
Master’s degree in
Commerce (Honours)
and Member of The
Institute of Chartered
Accountants of India and
The Institute of Company
Secretaries of India
-
Arvind
Mahajan
Graduate (B.Com. Hons)
from Shriram College
of Commerce, Delhi
University and Post
Graduate Diploma in
Management from IIM,
Ahmedabad.
- - -
44
17
th
Annual Report
Name
of the
Director
Qualification Field of specialisation/core skills/ expertise
Governance Corporate
Strategy
and
Planning
Insurance &
Risk
Management
Business
Management
and
Marketing
Accountancy
and Finance
Health
Care
Ameet
Hariani
Law degree from
Government Law
College, Mumbai and
Masters in Law degree
from the University of
Mumbai
- - - -
Sanjib
Chaudhuri
B.SC, CMA, AIII - - - -
Vinay
Sanghi
B.Com - - - -
Dr. Rajgopal
Thirumalai
Post Graduate in
Preventive Medicine
(MD), Public Health
(DPH), Occupational
Health (DIH) and Health &
Hospital Administration
(DNB).
-
Samir
H. Shah
Fellow Member of The
Institute of Chartered
Accountants of India and
an Associate Member of
The Institute of Company
Secretaries of India and
The Institute of Cost
Accountants of India
- -
Anuj
Tyagi
Chemistry (H) graduate
and Post Graduate
Diploma in Business
Management
- -
Ritesh
Kumar
Commerce Graduate
from Shriram College
of Commerce, Delhi
and MBA degree from
Faculty of Management
Studies, Delhi
-
RESPONSIBILITIES
The Board of Directors consider the interest of the
Company’s shareholders in optimising long-term value
by providing the Management guidance and strategic
direction. The Board’s mandate is to oversee the
Company’s strategic direction, review financial, operational
and investment performance, review risks pertaining to the
business, to approve the annual business plan/budget,
to ensure compliance and safeguard the interests of all
stakeholders. The Board plays a pivotal role in ensuring
good governance and creating value for all stakeholders.
The Directors acknowledge their duties as prescribed
under the Act, the rules framed thereunder, LODR
Regulations and the CG Guidelines.
INDEPENDENT DIRECTORS
The Independent Directors bring an independent judgment
to the Board’s deliberation and objectivity in the Board’s
decision-making process. The Independent Directors also
participate constructively and actively in the Committees
of the Board. They represent and safeguard the interest of
the stakeholders.
45
All Independent Directors of the Company have furnished
declarations to the Company confirming that they:
I. meet the criteria of independence as prescribed under
the Act and LODR Regulations; and
II. have registered their names in the Independent
Directors’ Databank.
The Board of Directors are of the opinion that Independent
Directors are independent of the management of the
Company and possess the requisite qualification,
experience and expertise and uphold the highest
standards of integrity.
None of the Independent Directors of the Company have
resigned before the expiry of their respective tenure(s)
during the FY 2023-24.
FIT & PROPER CRITERIA
All the Directors of the Company have confirmed that they
satisfy the “Fit and Proper” criteria as prescribed under the
CG Guidelines.
FAMILIARISATION PROGRAMME
The Company familiarises new and all its existing Directors.
The Directors are briefed through presentations on the
economy and industry overview, business overview,
key regulatory developments, governance, strategy,
investment, human resources and operating performance
which are made to the Directors from time to time. The
familiarisation programme enables the Non-Executive
Directors to make better-informed decisions in the interest
of the Company and its stakeholders.
A familiarisation programme is arranged to familiarise
the newly inducted Directors with their roles, rights and
responsibilities in the Company, as well as with the nature
of the industry and the business model of the Company.
An overview of the familiarisation programme during the
year has been hosted on the Company’s website at https://
www.hdfcergo.com/docs/default-source/policies/hdfc-
ergo---board-familiarisation-programme.pdf
BOARD MEETINGS AND PROCEDURES
All Directors participate in discussing the strategies, business
performance, financials, investment performance and key
risks pertaining to the business of the Company. The Board
follows a set of appropriate standard procedures in the
conduct of Board meetings which are summarised below.
The meetings of the Board of Directors are generally
held at the Company’s registered oce in Mumbai. The
schedule of meetings to be held in a calendar year is
planned and communicated to the Directors. The notice
of each Board and Committee meeting is given to each
Director, Appointed Actuary and Statutory and Internal
Auditors, wherever required. The Company also facilitates
participation of Directors in the meeting through Video-
Conferencing (VC), if for any reason they are unable to
participate in the meeting in person or the meeting could
not be held in physical form.
The Company Secretary in consultation with the Executive
Directors prepares a detailed agenda for the meetings.
All departments communicate with the secretarial team
regarding matters requiring approval of the Board to enable
inclusion of the same in the agenda for the respective
meetings. With the objective of transparent flow of
information from the Management, detailed agenda notes
are shared digitally. In case of matters requiring urgent
consideration by the Board and arising post circulation
of the agenda, the same is taken up for discussion by the
Board as part of any other business.
The Members of the Board have access to all relevant
information of the Company. The Appointed Actuary is
a permanent invitee at the Meetings of the Board, Audit
and Compliance Committee, Policyholder Protection and
Grievance Redressal Committee and Risk Management
Committee. Urgent matters are also considered and
approved by passing resolution through circulation, which
are noted at the subsequent meeting. At the Board Meetings,
the Whole-time Directors and Senior Management deliver
presentations covering market developments, updates on
industry performance, key regulatory changes, Company’s
performance covering the financial results, operations, risk
management, liquidity, asset liability management, customer
grievance redressal mechanisms and any other matters
which the Board needs to be apprised of. The Company
Secretary generally attends all the Committee meetings. The
Company Secretary records the minutes of the proceedings
of each Board and Committee meetings. The draft minutes
of each Board and Committee meetings are circulated to the
members of the Board / Committee within 15 days from the
date of the meeting and the comments, if any on the draft
minutes are received within seven days of its circulation. The
minutes are finalised within 30 days and thereafter recorded
in the Minutes Book.
During FY 2023-24, the Board met five (5) times on April 27,
2023, July 25, 2023, October 12, 2023, January 13, 2024,
and March 1, 2024. The time gap between any two meetings
did not exceed 120 days.
46
17
th
Annual Report
Name of Director Nature of
Directorship
Meeting dated Whether
attended
last AGM
held on
July 25,
2023
April 27,
2023
July 25,
2023
October
12, 2023
January
13, 2024
March
1, 2024
Keki M. Mistry Non-Executive Chairman
Ye s
Renu Sud Karnad Non-Executive Director
x
Ye s
Dr. Oliver Martin Willmes Non-Executive Director
No
Dr. Clemens Matthias
Muth*
Non-Executive Director
- -
Ye s
Edward Ler
#
Non-Executive Director
- - -
No
Bernhard Steinruecke Independent Director
Ye s
Mehernosh B. Kapadia Independent Director
x
Ye s
Arvind Mahajan Independent Director
Ye s
Ameet Hariani Independent Director
Ye s
Vinay Sanghi Independent Director
Ye s
Dr. Rajgopal Thirumalai Independent Director
Ye s
Sanjib Chaudhuri Independent Director
Ye s
Samir H. Shah Executive Director & CFO
Ye s
Anuj Tyagi Joint Managing Director
Ye s
Ritesh Kumar Managing Director & CEO
Ye s
The attendance of the Directors at the said meetings is listed below:
* Demitted oce as a Director with eect from the close of business hours of December 31, 2023.
# Appointed as a Non-Executive Director with eect from January 1, 2024.
‘
’ indicates meeting attended & ‘x’ indicates meeting not attended.
The Board also met on April 16, 2024 inter-alia for
consideration and approval of audited financial statements
for the year ended March 31, 2024.
COMMITTEES
To enable better and more focused attention on the
aairs of the Company and as required under regulatory
provisions, the Board has constituted various Committees.
These Committees lay down the groundwork for decision-
making and the Minutes of these Committees are placed
at the subsequent Board meeting. The terms of reference
of the Committees are approved by the Board, which inter-
alia includes all the statutory and regulatory stipulations.
Details about the meetings of all Committees are detailed
in this report.
Minutes of the Committee meetings/ report on the activities
of the Committee are submitted to the Board at its quarterly
meetings. Matters requiring the Board’s attention / approval
are generally placed in the form of notes / report to the
Board from the respective Committee.
The Board has constituted the following Committees with
specific terms of reference:
1. Audit and Compliance Committee (ACC)
2. Investment Committee (IC)
3. Risk Management Committee (RMC)
4. Policyholder Protection, Grievance Redressal and
Claims Monitoring Committee (PPGR&CM)
5. Nomination and Remuneration Committee (NRC)
6. Corporate Social Responsibility Committee (CSR)
7. Stakeholders Relationship cum Allotment Committee
(SR&AC)
During the year under review, the Board of Directors of the
Company have accepted all the recommendations made
by these Committee(s), from time to time.
The Company Secretary is the secretary to all the
Committees constituted by the Board.
47
The organisation structure is illustrated below:
HDFC ERGO
General insurance Company Limited
Board of Directors
• Audit & Compliance
• Investment
• Nomination &
Remuneration
• Risk Management
• Policyholder Protection
Grievance Redressal
& Claims Monitoring
Committee
• Corporate Social
Responsibility
• Stakeholder
Relationship cum
Allotment Committee
Mandatory
Committees
• Strategy
• Investments
• Appointed Actuary
Joint Managing
Director
Executive Director
& CFO
• Finance & Accounts
• Secretarial, Legal &
Compliance
• Risk Management &
Internal Audit
• Procurement
• Business Groups (Retail,
Corporate and Rural &
Agri-Business)
• Reinsurance
• Human Resources
• Underwriting
• Claims
• Information Technology
• Operations & Marketing
• Customer Experience
Management
• Administration & CSR
• Fraud Control &
Investigation
MD & CEO
• Internal
Auditors
• External
Auditors
Sub
Committee
Sub
Committee
48
17
th
Annual Report
The role, composition and brief terms of reference of
various Committees, including the number of meetings
held during the year and the related attendance of the
Committee Members at the said meetings are given below:
Audit and Compliance Committee (ACC)
The Audit and Compliance Committee comprises six (6)
members – four Independent Directors and one Non-
Executive Director each nominated by HDFC Bank and
ERGO. The Chairman of the Committee is an Independent
Director and a qualified Chartered Accountant. The
composition of the Committee is in conformity with the
provisions of Section 177 of the Act, Regulation 18 of the
LODR Regulations and the CG Guidelines.
All the Committee Members possess adequate
qualifications to fulfill their duties as stipulated under the
Act, LODR Regulations and the CG Guidelines.
Brief Description of Terms of Reference:
The brief terms of reference of the Committee inter-alia
includes the following:
The Committee oversees the quarterly and annual financial
statements before submission to the Board and financial
reporting process. The Committee also reviews matters to
be included in Directors Responsibility Statement, changes
in accounting policies, if any, compliance with listing and
other legal requirements, related party transaction and the
audit report.
The Committee reviews the internal audit function,
compliance function and the performance of the Statutory
Auditors and eectiveness of audit process. It also reviews
the reports of the Internal Auditors and Statutory Auditors
along with the comments and action taken reports of the
Management. It approves transactions with related parties,
and notes the statement of related party transactions
which were carried out pursuant to omnibus/specific
approval provided by the Committee, oversees age-
wise analysis of the unclaimed amount of policyholders,
progress on the settlement of unclaimed amount and
steps taken by the Company to reduce the unclaimed
amount, reviews the process and mechanism in place
to comply with the provisions of applicable laws. The
Committee recommends to the Board the appointment or
re-appointment of the Statutory Auditors, Internal Auditors,
Secretarial Auditors, Concurrent Auditors, Investment
Risk Management Auditors and their remuneration. The
Committee and Statutory Auditors discuss the nature
and scope of the audit prior to the commencement of the
audit and areas of concern, if any, arising post audit. The
Committee approves the payment to Statutory Auditors
for other services rendered by them. The Committee
also oversees the internal financial control and risk
management systems of the Company and ensures that
adequate procedures and processes have been setup to
address all concerns relating to the adequacy of checks
and control mechanisms. All the Independent Directors
who are Members of the Committee separately meet the
Statutory Auditors prior to the approval of financial results
on a periodic basis.
Composition, Meetings and Attendance during the year:
During FY 2023-24, the ACC met seven (7) times on April
27, 2023, June 30, 2023, July 25, 2023, October 12, 2023,
December 12, 2023, January 13, 2024 and March 20, 2024.
During the year, the credit rating agencies which rate
the Company’s debt instruments, met the Committee on
March 20, 2024.
The Committee also met on April 16, 2024 wherein it
recommended the audited Financial Statements for the
year ended March 31, 2024 to the Board for approval.
The composition of the ACC and attendance of the
Committee Members at the meetings held during FY 2023-
24 are listed below:
Name of Director Nature of
Directorship
Designation
in Committee
Meeting dated
April 27,
2023
June 30,
2023
July 25,
2023
October
12, 2023
December
12, 2023
January
13, 2024
March 20,
2024
Mehernosh B.
Kapadia
Independent
Director
Chairman
Bernhard
Steinruecke
Independent
Director
Member
Arvind Mahajan Independent
Director
Member
Ameet Hariani Independent
Director
Member
Keki M. Mistry Non-Executive
Director
Member
Dr. Oliver Martin
Willmes
Non-Executive
Director
Member
x
‘ ’ indicates meeting attended & ‘x’ indicates meeting not attended.
49
Investment Committee (IC)
The Investment Committee comprises eight (8) members
– one Non-Executive Director each nominated by HDFC
Bank and ERGO, one Independent Director, the Managing
Director & CEO, the Executive Director & Chief Financial
Ocer, the Appointed Actuary, the Chief Investment Ocer
and the Chief Risk Ocer. The composition of the Committee
is in conformity with the provisions of IRDAI (Investment)
Regulations, 2016, as amended from time to time.
Brief Description of Terms of Reference:
The brief terms of reference of the Committee inter-alia
includes the following:
The Committee reviews the Investment Policy of the
Company, its implementation and the operational
framework for investment operations, ensuring liquidity for
smooth operations, compliance with prudential regulatory
norms on investments and risk management / mitigation
strategies to ensure adequate return on investment of
Policyholder and Shareholder funds. The Committee also
reviews the ALM and the investment strategies adopted
from time to time and gives suitable directions as needed.
The Committee at its quarterly meetings inter-alia
reviews the report of the concurrent auditors on the
audit of investment transactions and related systems, the
investments made by the Company during the quarter,
ALM position and provides advice and suggestions.
All the Committee Members are fully conversant
with various responsibilities casted on them by IRDAI
(Investment) Regulations, 2016, as amended from time
to time. A report on the performance and analysis of the
Company’s investment portfolio and strategy is placed
before the Board every quarter.
Composition, Meetings and Attendance during the year:
During FY 2023-24, the IC met four (4) times on April 27,
2023, July 25, 2023, October 12, 2023 and January 13,
2024. The IC also met on April 16, 2024.
The composition of the IC and attendance of the Committee
Members at the meetings held during FY 2023-24 are
listed below:
Name of
Director
Nature of
Directorship/
Position
Designation
in
Committee
Meeting dated
April 27, 2023 July 25, 2023 October 12,
2023
January 13, 2024
Keki M. Mistry Non-Executive
Director
Chairman
Dr. Clemens
Matthias Muth*
Non-Executive
Director
Member
-
Edward Ler** Non-Executive
Director
Member
- - -
Arvind Mahajan Independent
Director
Member
Ritesh Kumar Managing
Director & CEO
Member
Samir H. Shah Executive
Director & CFO
Member
Hiten B.
Kothari
#
Appointed
Actuary
Member
-
Anshul Mittal
#
Appointed
Actuary
Member
- - -
Sanjay
Kulshrestha
Chief
Investment
Ocer
Member
Chirag Sheth Chief Risk
Ocer
Member
* Demitted oce as a Director with eect from the close of business hours of December 31, 2023.
**Appointed as a Non-Executive Director w.e.f. January 1, 2024.
# Anshul Mittal inducted as Member of the Committee, in place of Hiten B. Kothari.
‘
’ indicates meeting attended.
50
17
th
Annual Report
Risk Management Committee (RMC)
The Risk Management Committee comprises ten (10)
members – five Independent Directors, two Non-Executive
Directors nominated by HDFC Bank, one Non-Executive
Director nominated by ERGO, the Managing Director & CEO
and the Executive Director & Chief Financial Ocer. The
Chairman of the Committee is an Independent Director.
The Chief Risk Ocer is a permanent invitee to the
meetings of the Committee and has attended all the
meetings of the Committee.
The Company has a Sub-Committee of the RMC (SC-RMC)
comprising senior executives including the Managing
Director & CEO and Executive Directors. The SC-RMC inter-
alia discusses the Company’s Risk Management Framework
(“RMF”) and its eectiveness, monitors key areas of existing
and emerging risks and assists the RMC in fulfilling its
objectives of managing various risks associated with the
business of the Company.
Brief Description of Terms of Reference:
The brief terms of reference of the Committee inter-alia
includes the following:
The Committee overseeing the Company’s risk
management policy and practices, reviewing various
key risks and frauds associated with the business of the
Company, evaluation of risk exposure and laying down risk
tolerance limits and thereby assisting the Board in eective
monitoring of the Risk Management Framework (RMF). The
RMC advises the Board with regard to risk management in
relation to strategic and operational matters. The RMC also
reviews the ALM and the solvency position on a regular
basis. The Committee would also review appointment,
removal and terms of remuneration of the Chief Risk
Ocer (CRO).
In accordance with the framework, the RMC provides an
assurance that risk exposures are adequately controlled
and identified gaps are eectively taken care of by
implementing appropriate risk minimisation measures.
Composition, Meetings and Attendance during the year:
During FY 2023-24, the RMC met four (4) times on April
27, 2023, July 25, 2023, October 12, 2023 and January 13,
2024. The RMC also met on April 16, 2024.
The composition of the RMC and attendance of the
Committee Members at the meetings held during FY 2023-
24 are listed below:
Name of
Director
Nature of
Directorship
Designation
in Committee
Meeting dated
April 27, 2023 July 25, 2023 October 12, 2023 January 13, 2024
Bernhard
Steinruecke
Independent Director Chairman
Mehernosh B.
Kapadia
Independent Director Member
Ameet Hariani Independent Director Member
Sanjib
Chaudhuri
Independent Director Member
Dr. Rajgopal
Thirumalai
Independent Director Member
Keki M. Mistry Non-Executive
Director
Member
Renu Sud
Karnad
Non-Executive
Director
Member
Dr. Oliver
Martin Willmes
Non-Executive
Director
Member
Samir H. Shah Executive Director &
CFO
Member
Ritesh Kumar Managing Director &
CEO
Member
‘ ’ indicates meeting attended.
51
Policyholder Protection, Grievance Redressal and
Claims Monitoring Committee (PPGR&CM)
The Policyholder Protection, Grievance Redressal and
Claims Monitoring Committee comprises nine (9) members
– four Independent Directors, two Non-Executive Directors
nominated by HDFC Bank, one Non-Executive Director
nominated by ERGO and two Executive Directors. The
Chairman of the Committee is an Independent Director.
The Policy on Protection of Interests of Policyholders (PPHI
Policy) is available on the website of the Company viz.
https://www.hdfcergo.com/docs/default-source/policies/
pphi-policy.pdf. The key objective of the PPHI Policy is
to provide a mechanism to redress the grievance and
complaints of the Policyholders in a time-bound manner and
to their satisfaction in accordance with the applicable laws.
Brief Description of Terms of Reference:
The brief terms of reference of the Committee inter-alia
includes the following:
The Committee reviews the processes followed in
redressal of Policyholder grievances and the grievance
redressal mechanism of the Company and suggests
mechanism for the speedy redressal of complaints/
grievances from Policyholders. The Committee also
reviews the steps taken by the Company to reduce
unclaimed amount due to the Policyholders.
The Committee also reviews (i) the awards given by
Insurance Ombudsman/Consumer Forums and the root
cause of customer complaints; (ii) the claims report including
the status of outstanding claims with ageing and repudiated
claims with an analysis of the reasons thereof.
The Committee regularly submits its report to the Board
inter-alia with regard to complaints/ grievances received and
resolved, mechanism in place/ process being followed for
resolution of the complaints/ grievances and its observations
on the ecacy of the existing mechanism. The report also
contains the status of outstanding claims with ageing and
repudiated claims with an analysis of the reasons thereof.
Composition, Meetings and Attendance during the year:
During FY 2023-24, the PPGR&CM met four (4) times on
April 27, 2023, July 25, 2023, October 12, 2023 and January
13, 2024. The PPGR&CM also met on April 16, 2024.
The composition of the PPGR&CM and the attendance of
the Committee Members at the meetings held during FY
2023-24 are listed below:
Name of Director Nature of Directorship Designation
in
Committee
Meeting dated
April 27,
2023
July 25,
2023
October 12,
2023
January 13,
2024
Arvind Mahajan Independent Director Chairman
Keki M. Mistry Non-Executive Director Member
Renu Sud Karnad Non-Executive Director Member
Dr. Clemens Matthias
Muth*
Non-Executive Director Member
-
Edward Ler** Non-Executive Director Member
- - -
Ameet Hariani Independent Director Member
Sanjib Chaudhuri Independent Director Member
Vinay Sanghi Independent Director Member
Anuj Tyagi Joint Managing Director Member
Samir H. Shah Executive Director & CFO Member
* Demitted oce as a Director with eect from the close of business hours of December 31, 2023.
**Appointed as a Non-Executive Director w.e.f. January 1, 2024.
‘’ indicates meeting attended.
In terms of the CG Guidelines, Ravi Vaidee attends regular meetings of PPGR&CM as an invitee, in the capacity of
customer representative / expert and provides valuable advice to the Company in protection of interest of Policyholders.
52
17
th
Annual Report
Nomination and Remuneration Committee (NRC)
The Nomination and Remuneration Committee comprises
six (6) members – four Independent Directors, one Non-
Executive Director each nominated by HDFC Bank and ERGO.
The Chairman of the Committee is an Independent Director.
Brief Description of Terms of Reference:
The brief terms of reference of the Committee inter-alia
includes the following:
The Committee formulates the criteria for determining
qualifications, positive attributes and independence of
a director and recommend to the Board a policy relating
to the appointment and remuneration of the Directors,
Key Managerial Personnel, Senior Management and
other employees of the Company as well as a policy on
board diversity. The Committee determines the criteria
for evaluation of performance of the Board and its
Committees and of individual directors. The Committee’s
function includes identifying persons who are qualified to
become directors of the Company, recommending their
appointment or re-appointment of the existing directors to
the Board, ensuring that such persons meet the relevant
criteria as prescribed under the applicable laws including
qualification, area of expertise and experience, track
record and integrity.
The terms of reference of the Committee also includes
consideration and determination of the salary and other
terms of the compensation package for the Whole-
time Directors, recommend to the Board the annual
compensation of the Whole-time Directors, subject
to approval of IRDAI, recommends to the Board the
remuneration payable to the Key Managerial Personnel,
Senior Management Personnel and approve overall salary
increase across the organisation, administration of the
Employee Stock Option Plan (ESOP), recommend grant
of stock options to eligible employees, fixing of criteria
inter-alia for evaluation of the performance of individual
directors, the Board as a whole and the Board Committees.
Composition, Meetings and Attendance during the year:
During FY 2023-24, the NRC met three (3) times on April
27, 2023, July 25, 2023 and January 13, 2024. The NRC
also met on April 16, 2024.
The composition of the NRC and the attendance of the
Committee Members at the meetings held during FY 2023-
24 are listed below:
Name of
Director
Nature of
Directorship
Designation in
Committee
Meeting dated
April 27, 2023 July 25, 2023 January 13, 2024
Mehernosh B.
Kapadia
Independent Director Chairman
Bernhard
Steinruecke
Independent Director Member
Arvind Mahajan Independent Director Member
Ameet Hariani Independent Director Member
Renu Sud
Karnad
Non-Executive
Director
Member
Dr. Clemens
Matthias Muth*
Non-Executive
Director
Member
-
Edward Ler** Non-Executive
Director
Member
- -
* Demitted oce as a Director with eect from the close of business hours of December 31, 2023.
**Appointed as a Non-Executive Director w.e.f. January 1, 2024.
‘
’ indicates meeting attended.
53
Performance evaluation criteria for independent directors
The performance evaluation criteria for Independent
Directors was carried out based on parameters like
attendance, active participation, exercise of independent
judgement, bringing in objectivity in decision making process,
knowledge and competency, commitment, high levels of
integrity, leadership, bringing one’s own experience to bear
on the items for discussion, awareness and observance of
governance, value addition to the business and strategic
aspects of the Company.
Corporate Social Responsibility Committee (CSR)
The CSR Committee comprises seven (7) members –
four Independent Directors, one Non-Executive Director
each nominated by HDFC Bank and ERGO and one
Executive Director. The Chairman of the Committee is an
Independent Director.
The CSR Policy of the Company inter-alia specifies the
key focus areas for CSR activities/ projects that could be
undertaken by the Company, formulation of the Annual Action
Plan, approach and process for undertaking CSR projects and
the monitoring mechanism. The CSR Policy is available on
the website of the Company https://www.hdfcergo.com/docs/
default-source/about-us/legal-and-compliance/csr-policy.pdf.
The Annual Report on CSR activities, as prescribed under
Section 135 of the Act read with Rule 9 of the Companies
(Accounts) Rules, 2014, and Rule 8 of the Companies
(Corporate Social Responsibility Policy) Rules, 2019, as
amended is appended to the Board’s Report.
The Company has a sub-committee of the CSR Committee
(SC-CSR) comprising the Senior Management team
including Executive Directors.
The SC-CSR evaluates and identifies CSR projects and
includes the same in the Annual Action Plan and assists
the CSR Committee / Board of Directors in fulfilling the
Company’s CSR obligations and ensures timely execution
and implementation of CSR projects and monitoring thereof.
Brief Description of Terms of Reference:
The brief terms of reference of the Committee inter-alia
includes the following:
The Committee formulates and implements the Corporate
Social Responsibility Policy indicating the activities to be
undertaken by the Company, recommend the amount of
expenditure to be incurred on the activities, monitoring
mechanism for the activities/ projects/ programmes
undertaken/ proposed to be undertaken.
Composition, Meetings and Attendance during the year:
During FY 2023-24, the Committee met four (4) times
on April 27, 2023, July 25, 2023, October 12, 2023 and
January 13, 2024. The CSR Committee also met on April
16, 2024.
The composition of the CSR Committee and the attendance
of the Committee Members at the meetings held during FY
2023-24 are listed below:
‘’ indicates meeting attended.
Name of
Director
Nature of
Directorship
Designation
in
Committee
Meeting dated
April 27, 2023 July 25, 2023 October 12,
2023
January 13, 2024
Ameet Hariani Independent
Director
Chairman
Mehernosh B.
Kapadia
Independent
Director
Member
Vinay Sanghi Independent
Director
Member
Dr. Rajgopal
Thirumalai
Independent
Director
Member
Renu Sud
Karnad
Non-Executive
Director
Member
Dr. Oliver
Martin Willmes
Non-Executive
Director
Member
Anuj Tyagi Joint Managing
Director
Member
54
17
th
Annual Report
Stakeholders Relationship cum Allotment Committee
of Directors (SR&AC)
The Stakeholders Relationship cum Allotment Committee
comprises four (4) members – one Independent Director, one
Non-Executive Director each nominated by HDFC Bank and
ERGO and the Managing Director & CEO. The Chairman of the
Committee is an Independent Director.
Brief Description of Terms of Reference:
The brief terms of reference of the Committee inter-alia includes
the following:
The Committee resolves grievances of the shareholders and
debenture holders, if any, adhere to the service standards
adopted in respect of various services being rendered by the
Registrar & Share Transfer Agent, review various measures and
initiatives taken for reducing the quantum of unclaimed dividends,
as and when arises and ensure timely receipt of dividend
warrants/ annual reports/ statutory notices by the shareholders/
debenture holders, as the case may be, of the Company and
approval of allotment of shares and other securities.
Composition, Meetings and Attendance during the year:
During FY 2023-24, the Committee met once on January 13, 2024.
The composition of the CSR Committee and the attendance
of the Committee Members at the meeting held during FY
2023-24 are listed below:
Name of Director Nature of Directorship Designation in Committee Meeting dated January 13, 2024
Mehernosh B. Kapadia Independent Director Chairman
Renu Sud Karnad Non-Executive Director Member
Edward Ler* Non-Executive Director Member
Ritesh Kumar Managing Director & CEO Member
‘’ indicates meeting attended.
*Appointed as a Non-Executive Director w.e.f. January 1, 2024.
Investor Grievance Redressal
During the FY 2023-24, the Company has not received any complaints from the investors of the Company.
Meeting of Independent Directors
In terms of Section 149(8) of the Act read with Schedule IV and Regulation 25(3) of LODR Regulations, the Independent
Directors met on March 28, 2024 to evaluate the performance of the Whole-time Directors, Non-Independent Directors,
Chairman, Board Committees and the Board as a whole and to assess the quality, quantity and timeliness of the flow of
information between the Company’s Management and the Board.
General Body Meetings
Following are the information on General Body meetings and details of special resolution(s) passed thereat:
a. Annual General Meetings
Details of the last three Annual General Meetings (“AGM”) and Special Resolutions passed thereat:
FY Details
of AGM
Date and
Time
Venue Special resolutions passed
2023-24 16
th
AGM July 25,
2023 at
5.00 PM
Board Room, HDFC House, 1
st
Floor, 165-
166, Backbay Reclamation, H.T. Parekh
Marg, Churchgate, Mumbai - 400020
*
2021-22 15
th
AGM July 21,
2022 at
5.00 PM
Board Room, HDFC House, 1
st
Floor, 165-
166, Backbay Reclamation, H.T. Parekh
Marg, Churchgate, Mumbai - 400020
• To approve payment of commission to Non-Executive
Directors
2020-21 14
th
AGM July 21,
2021 at
5.30 PM
Board Room, HDFC House, 1
st
Floor, 165-
166, Backbay Reclamation, H.T. Parekh
Marg, Churchgate, Mumbai - 400020
• To approve the re-appointment of Bernhard Steinruecke
(DIN: 01122939), as an Independent Director
• To approve the re-appointment of Mehernosh B. Kapadia
(DIN: 00046612), as an Independent Director
• To approve the re-appointment of Arvind Mahajan (DIN:
07553144) as an Independent Director
55
b. Details of the last three Extraordinary General Meeting and Special Resolutions passed thereat:
FY Date and Time Venue Special resolutions passed
2023-24 March 15, 2024 at
11.00 AM
Board Room, HDFC House, 1
st
Floor, 165-
166, Backbay Reclamation, H.T. Parekh Marg,
Churchgate, Mumbai - 400020
*
2023-24 June 30, 2023 at 5.30
PM
Board Room, HDFC House, 1
st
Floor, 165-
166, Backbay Reclamation, H.T. Parekh Marg,
Churchgate, Mumbai - 400020
• To approve revised and restated
Articles of Association of the
Company
2022-23 March 23, 2023 at
5.00 PM
HDFC House, 1
st
Floor, 165-166, Backbay
Reclamation, H.T. Parekh Marg, Churchgate,
Mumbai - 400020
• To approve amendments to
HDFC ERGO Employees Stock
Option Plan – 2009
2021-22 September 2, 2022 at
5.00 PM
HDFC House, 1
st
Floor, 165-166, Backbay
Reclamation, H.T. Parekh Marg, Churchgate,
Mumbai - 400020
*
2021-22 March 29, 2022 at
5.00 PM
HDFC House, 1
st
Floor, 165-166, Backbay
Reclamation, H.T. Parekh Marg, Churchgate,
Mumbai - 400020
*
* No special resolution passed thereat.
c. Postal Ballot
During the FY 2023-24, the Company did not seek any approval of shareholders through postal ballot.
PARTICULARS OF SENIOR MANAGEMENT
The list of Senior Management and Key Management Persons (SMP/KMP) as per Companies Act, 2013 and SEBI LODR, along
with the KMP as per IRDAI CG Guidelines, and changes therein since the close of the previous financial year are as below:
*Appointed Actuary until November 22, 2023.
Sl.
No.
Name of the SMP/KMP Designation Date of becoming SMP/
KMP during FY24
Date of Cessation
during FY24
1 Parthanil Ghosh President - Retail Business - -
2 Ankur Bahorey President - Bancassurance - -
3 Sriram Naganathan President & Chief Technology Ocer - -
4 Sudakshina Bhattacharya President & Chief Human Resources Ocer - -
5 Sanjay Kaw President - Superannuated on
January 31, 2024
6 R Narasimhan President - Superannuated on
April 30, 2023
7 Ashok Kumar Tyagi Joint President & Deputy CFO April 1, 2023 -
8 Atul Gujrathi Joint President – Claims April 1, 2023 -
9 Vishal Sikand Joint President - Commercial Lines April 1, 2023 -
10 Sanjay Mishra Joint President - Internal Audit, FCU &
Sustainability
April 1, 2023 -
11 Arun Kumar Sharma Joint President - CEM & Operations April 1, 2023 -
12 Vishal Sharma Joint President - Bancassurance April 1, 2023 -
13 Amit Sureka Joint President - Motor Business April 1, 2023 -
14 Hiten Bhadresh Kothari* Chief Underwriting Ocer - -
15 Sanjay Kulshrestha Chief Investment Ocer - -
16 Chirag Sheth Chief Risk Ocer - -
17 Vyoma Manek Company Secretary and Chief Compliance
Ocer
- -
18 Anshul Mittal Appointed Actuary November 23, 2023 -
56
17
th
Annual Report
REMUNERATION OF DIRECTORS
Details of Remuneration / Sitting Fees paid
to Non-Executive Directors
Criteria for sitting fees / commission / remuneration paid
to Non-Executive Directors
The remuneration of Non-Executive Directors (other than
Independent Directors) consists of sitting fees and the
Independent Directors are paid sitting fees and also profit related
commission. The commission payable to Independent Directors
is within the overall limits as approved by the shareholders. None
of the Non-Executive Directors hold any shares or convertible
instruments in the Company nor granted any stock options.
The Non-Executive Directors are covered under Company’s
Group Medical Insurance Policy, the premium for such Non-
Executive Directors, other than Independent Directors, is borne
by the Company.
The Independent Directors and the Non-Executive
Directors nominated by HDFC Bank are paid sitting fees
of
` 1,00,000 each for attending Board and Committee
Meetings. Independent Directors were also paid commission
of
` 10,00,000 each for the FY 2022-23, which has been
increased to
` 20,00,000 each for the FY 2023-24 and
onwards, as permitted by the relevant IRDAI Guidelines.
The details of sitting fees paid to Non-Executive Directors
and sitting fees and commission paid to Independent
Directors during FY 2023-24 is as under:
Name of
Director
Sitting
Fees
Commission Total
Keki M. Mistry 24,00,000 - 24,00,000
Renu Sud
Karnad
20,00,000 - 20,00,000
Bernhard
Steinruecke
20,00,000 10,00,000 30,00,000
Mehernosh B.
Kapadia
24,00,000 10,00,000 34,00,000
Arvind Mahajan 24,00,000 10,00,000 34,00,000
Ameet Hariani 28,00,000 10,00,000 38,00,000
Sanjib
Chaudhuri
14,00,000 10,00,000 24,00,000
Vinay Sanghi 14,00,000 10,00,000 24,00,000
Dr. Rajgopal
Thirumalai
14,00,000 10,00,000 24,00,000
(Amount in `)
Particulars Amount (in `)
Salary including Perquisites, Provident fund &
Cash Variable Pay (Refer Notes 1 & 2)
17,25,19,462
Non-Cash Variable Pay – No. of Stock
options (Refer Note 3)
2,32,500
Total 17,27,51,962
1. Excludes the value of perquisites, in respect of Company owned
car, gratuity, club membership, and benefit of medical, life and
personal accident insurance and perquisites arising out of exercise
of employee stock options, if any.
2. Cash component of the variable pay is actual payment made
pertaining to FY’23
3. Non-cash variable component has been granted in the form of Stock
Options (ESOPs) exercisable at the prevailing fair market value.
Except to the extent of transactions in the ordinary course
of business, the sitting fees and commission paid as
mentioned hereinabove, the Non-Executive Directors
(including Independent Directors) do not have any pecuniary
relationships or transactions with the Company.
Executive Directors
The remuneration details of Whole-Time Directors as mandated
under IRDAI Guidelines on Remuneration of Directors and Key
Managerial Persons of Insurers dated June 30, 2023 and SEBI
LODR Regulations is disclosed in the Directors report.
The details of elements of remuneration paid to Managing
Director & Chief Executive Ocer and other Directors and
Key Management Persons are disclosed under ‘Managerial
Remuneration’ section of the Notes to Accounts forming part
of the financial statements. Additionally, other transactions, if
any, with the Executive Directors are disclosed in the Notes to
Accounts forming part of the financial statements.
Performance evaluation criteria for Executive Directors
The level of remuneration of Whole-time Directors including
Managing Director and CEO for any financial year is inter-
alia linked to the following performance objectives set by
NRC/Board, and in accordance with the norms prescribed
by IRDAI Guidelines.
Service contracts, notice period and severance fees
The service contracts, tenure and the compensation, which
includes severance fees, if any, is in accordance with the IRDAI
Remuneration Guidelines.
Further, the consolidated fixed remuneration of all the KMPs,
for FY2023-24, defined under the CG Guidelines, except the
Whole-time Directors, is as under:
57
Sr.
No.
Particulars Fees to
Statutory
Auditors
Fees to Network
Firms of Statutory
Auditors
1 Audit Services 12,700 -
2 Review of quarterly
financial Information
3,200 -
3 Special purpose financial
information related work
1,600 -
4 Certifications 410 -
5 Out of Pocket Expenses 201 -
Total 18,111 -
( ` in Thousands)
Further the Company has aligned the remuneration for all
KMPs in accordance with IRDAI CG Regulations.
RELATED PARTY TRANSACTIONS
During FY 2023-24, the Company has not entered into any
materially significant transactions with its related parties,
which could lead to a potential conflict of interest of the
Company at large. Further, all the contracts / arrangements
/ transactions entered by the Company during the financial
year with its related parties were in its ordinary course of
business and on an arm’s length basis.
The Company has put in place a policy on related party
transactions and the same has been uploaded on the
Company’s website at https://www.hdfcergo.com/docs/default-
source/policies/policy-on-related-party-transaction-policy.pdf
Details of related party transactions entered into by the
Company during the FY 2023-24 are covered in Notes
forming part of the financial statements.
STRICTURES AND PENALTIES FOR
CAPITAL MARKET TRANSACTIONS
There has been no instance of non-compliance by the
Company on any matter related to capital markets during last
three years, and hence, no penalties or strictures have been
imposed on the Company by Stock Exchange or SEBI or any
other statutory authority.
WHISTLEBLOWER POLICY
The Company promotes ethical behaviour in all its dealings,
business or otherwise and has put in place a Whistleblower
Policy (Policy) for reporting of any illegal or unethical
behaviour. The Policy is hosted on the website of the
Company at https://www.hdfcergo.com/docs/default-source/
policies/whistleblower-policy.pdf. In terms of the Policy, any
person including employees, customers and vendors may
report malpractice, actual or suspected fraud, violations of the
Company’s Code of Conduct, abuse of power or authority by
any ocial of the Company or any other Act with an intention
of unethical personal gain or cause damage to the Company
or its employees to the Whistleblower Complaints Committee
(WBCC) constituted for the purpose. The Policy provides for
maintaining the confidentiality of such reporting and ensures
that the Whistleblowers are protected and not subjected to
any discriminatory practices.
In terms of the Policy, whistleblowing complaint can be
sent directly to the Chairman of the Audit and Compliance
Committee of Directors (ACC). During the year, no person was
denied access to the Committee for expressing concerns or
reporting grievances under the Policy.
During the year, 13 intimations were received at the
whistleblower email ID; the Company has the framework
to assess all the intimations and update the ACC about the
same periodically.
SUBSIDIARY COMPANY
The Company does not have any subsidiary company, hence
formulation of policy for determining Material Subsidiaries
as per Regulation 16 of the SEBI Listing Regulations is not
applicable for the Company.
CERTIFICATE FROM PRACTICING
COMPANY SECRETARY REGARDING
NONDEBARMENT AND NON
DISQUALIFICATION OF DIRECTORS
The Company has obtained a certificate from Messrs.
Bhandari & Associates, Practicing Company Secretaries
(Firms Registration No. P1981MH043700), confirming that
none of the Directors on the Board of the Company are
debarred or disqualified from being appointed or continuing
as director of the Company by SEBI/ Ministry of Corporate
Aairs or such other statutory authority. The said certificate is
enclosed as ‘Annexure – I’.
CERTIFICATE ON COMPLIANCE WITH
THE CONDITIONS OF CORPORATE
GOVERNANCE
Certificate from Messrs. Bhandari & Associates, Practicing
Company Secretaries (Firms Registration No. P1981MH043700),
confirming compliance with conditions of Corporate
Governance, as stipulated under Schedule V of the Listing
Regulations, is enclosed to this Report as ‘Annexure – II’.
Further, the Certificate from the Company Secretary & Chief
Compliance Ocer of the Company, as required under IRDAI
CG Guidelines, is enclosed to this Report as ‘Annexure – III’.
FEES PAID TO STATUTORY AUDITORS
Total fees paid by the Company during FY 2023-24 to the
Statutory Auditors and their respective network firms on
aggregate basis are as follows:
58
17
th
Annual Report
DISCLOSURE IN RELATION TO SEXUAL
HARASSMENT OF WOMEN AT WORK-
PLACE PREVENTION, PROHIBITION AND
REDRESSAL ACT, 2013
Details of the number of complaints received, disposed, and
pending during the year 2023-24 pertaining to the Sexual
Harassment of Women at Workplace are as under:
DETAILS OF LOANS AND ADVANCES IN THE
NATURE OF LOANS TO FIRMS/COMPANIES
IN WHICH DIRECTORS ARE INTERESTED
The Company has not given any loans or advances to any
firm / company in which its Directors are interested.
CEO/CFO CERTIFICATION
The Managing Director & Chief Executive Ocer and Chief
Financial Ocer have certified to the Board with regard to
the financial statements and internal controls relating to
financial reporting for the year ended March 31, 2024 as
required under the LODR Regulations. The said Certificate
is enclosed as ‘Annexure – IV’ and forms part of this Report.
CODE OF CONDUCT
The Company’s Code of Conduct is applicable to all
employees and Directors. All the members of the Board, Key
Managerial Personnel and Senior Management Personnel
have confirmed adherence to the provisions of the said
Code of Conduct. A declaration to this eect signed by the
Managing Director and CEO forms part of Annual Report as
‘Annexure – V’.
SECURITIES DEALING CODE
As required under the provisions of Regulation 13(B)(2) of
IRDAI (Investment) Regulations, 2016 and the Securities
and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 2015, as amended, the Company has framed
HDFC ERGO Securities Dealing Code (the “Code”).
The Directors, Key Management Persons, Designated
Employees, other identified employees and their immediate
relatives are required to comply with various provisions of
the Code, to the extent applicable.
Number of complaints received during the year 2023-24
Number of complaints disposed during the year 2023-24
Number of cases pending as on March 31, 2024
- 7
- 5
- 2
COMPLIANCE OF MANDATORY AND
DISCRETIONARY REQUIREMENTS:
The Company has complied with all mandatory requirements
specified in Regulations 17 to 27 and Regulation 62 of LODR
Regulations.
The Company has also adopted the following discretionary
requirements of the LODR Regulations:
a. Modified opinion(s) in audit report
The Company is in the regime of unqualified financial
statements.
b. Separate posts of Chairperson and Managing
Director or the Chief Executive Ocer
Keki M. Mistry is the Non-Executive Chairman and Ritesh
Kumar is the Managing Director & Chief Executive
Ocer of the Company and are not related to each
other as per the definition of the term “relative” defined
under the Companies Act, 2013.
c. Reporting of internal auditor
The internal auditor reports directly to the Audit Committee.
DETAILS OF CLAIMS
The details of all claims incurred, paid, outstanding at
the end of the year have been disclosed in the Notes to
Accounts and Annexure to the Management Report forming
part of the financial statements.
MEANS OF COMMUNICATION
A separate dedicated section on ‘Investors’ is maintained on
the website of the Company for ease of the shareholders.
The information/documents required to be disseminated by
the Company pursuant to the Act and LODR Regulations are
uploaded on the website of the Company.
The quarterly, half-yearly and annual financial results are
published in one leading national business newspaper
(Business Standard and Free Press Journal) and in one
vernacular newspaper (Navshakti). The results are also
submitted and published on BSE Limited and displayed on
the Company’s website at https://www.hdfcergo.com/about-
us/investors.
Further, the Company, being a debt-listed entity, does not
make extensive presentation to institutional investors / analyst.
59
The Company publishes news on insurance businesses on its website at https://www.hdfcergo.com/news
Financial Year April 1, 2023 to March 31, 2024
Day, Date, Time and Venue of AGM Monday, August 05, 2024 at 11:00 AM (IST)
Venue of AGM: Board Room, HDFC House, 1st Floor, 165-166, Backbay
Reclamation, H.T. Parekh Marg, Churchgate, Mumbai - 400020
Dividend Payment date(s) During the year, the Board of Directors had approved the payment of interim
dividend @25%, and @10%, (previous year @35% per equity share); the said
dividend was declared and paid in September, 2023 and December, 2023,
respectively and encashed by all the shareholders.
Listing on Stock Exchanges The non-convertible debentures of the Company are listed on the debt market
segment of BSE Limited.
BSE Limited:
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
Payment of listing fees Annual listing fee for FY 2023-24 has been paid by the Company to BSE Limited.
Stock Code, Market Price Data and
performance in comparison to broad-based
indices such as BSE Sensex, CRISIL Index etc.
Not Applicable*
Suspension of securities from trading During FY 2023-24, the non-convertible debentures of the Company were not
suspended from trading.
Registrar and Share Transfer Agent and Share
Transfer System
KFin Technologies Limited
Add: Selenium Tower B, Plot 31-32, Gachibowli, Financial District,
Nanakramguda, Hyderabad – 500 032
Email id: einward.ris@kfintech.com
Website: www.kfintech.com
Tel No.: +91 – 40 6716 2222
Toll Free No.: 1800-309-4001
Securities Transfer System The Company has received a certificate from a Company Secretary in Practice,
certifying that during the year, all debentures were held in dematerialised form
and hence there were no cases of physical transfer of debentures, its sub-
division, consolidation, renewal, exchange of certificates or endorsement of
calls/allotment monies etc. during the financial year ended March 31, 2024. The
certificate was duly filed with the stock exchange.
Distribution of Shareholding Not Applicable*
Dematerialisation of Shares and Liquidity As on March 31, 2024, the total equity capital of the Company was held in
dematerialised form with National Securities Depository Limited and Central
Depository Services (India) Limited. As the equity shares of the Company are
not listed on the Stock Exchange, the shares were not traded on the Stock
Exchange.
Outstanding Global Depository Receipts
(“GDRs”) /American Depository Receipts
(“ADRs”)/ Warrants or any Convertible
Instruments, Conversion Date and Likely
Impact on Equity
The Company has not issued GDRs / ADRs/ Warrants / Convertible Bonds,
which is convertible into equity shares of the Company.
Commodity Price Risk or Foreign Exchange
Risk and Hedging Activities
The Company does not deal in any commodity and hence is not directly
exposed to any commodity price risk.
Plant Locations/Branches Being in the insurance business, the Company does not have any plants.
However, the Company has 266 branches across India as on March 31, 2024.
GENERAL SHAREHOLDER INFORMATION
60
17
th
Annual Report
Address for Correspondence For debentures held in Demat form:
KFin Technologies Ltd.
Address: Selenium Tower B, Plot No. 31-32,
Nanakramguda, Gachibowli,
Hyderabad – 500 032, Telangana
Email id: einward.ris@kfintech.com
Tel No.: +91-40-67162222
Website: www.kfintech.com
Company’s Correspondence Details:
HDFC ERGO General Insurance Company Limited
Vyoma Manek,
Company Secretary & Chief Compliance Ocer
Address: HDFC House, 1st Floor, 165-166, Backbay Reclamation, H. T. Parekh
Marg, Churchgate, Mumbai - 400 020
Email id: [email protected]
Tel No.: +91 22 6638 3600
Credit Ratings The details of credit rating for all debt instruments are disclosed in the Directors’
Report forming part of this Annual Report.
Details of utilisation of funds raised through
preferential allotment or qualified institutions
placement as specified under Regulation
32(7A)
Not Applicable*
*The equity shares of the Company are not listed on the stock exchange and hence certain details are not applicable to the Company.
Mumbai
April 16, 2024
On behalf of the Board of Directors
KEKI M. MISTRY
Chairman
(DIN: 00008886)
61
Certificate of Non-Disqualification of Directors
Pursuant to BSE Circular dated January 07, 2022 and clause 10(i) of Para C of Schedule V of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members,
HDFC ERGO General Insurance Company Limited
“HDFC House”, 1st Floor,
165-166, Backbay Reclamation,
H. T. Parekh Marg, Churchgate, Mumbai – 400020
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of HDFC ERGO
General Insurance Company Limited, having CIN U66030MH2007PLC177117 and having its registered oce at “HDFC
House”, 1st Floor, 165-166, Backbay Reclamation, H. T. Parekh Marg, Churchgate, Mumbai – 400020 (hereinafter referred to
as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with clause
10(i) of Para C of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 read with BSE Circular dated January 07, 2022.
In our opinion and to the best of our information and according to the verifications [including Director Identification Number
(DIN) status at the portal www.mca.gov.in] as considered necessary and explanations furnished to us by the Company & its
ocers, we hereby certify that none of the Directors on the Board of the Company as stated below for the financial year
ended on March 31, 2024 have been debarred or disqualified from being appointed or continuing as Directors of companies
by the Securities and Exchange Board of India, Ministry of Corporate Aairs, or any such other Statutory Authority.
ANNEXURE I TO CORPORATE GOVERNANCE REPORT
Sr. No. Name of Director DIN Date of appointment
1. Mr. Keki M. Mistry 00008886 16/08/2017
2. Ms. Renu Sud Karnad 00008064 16/08/2017
3. Dr. Oliver Martin Willmes 08876420 12/10/2020
4. Mr. Edward Ler 10426805 01/01/2024
5. Mr. Bernhard Steinruecke 01122939 09/09/2016
6. Mr. Mehernosh B. Kapadia 00046612 09/09/2016
7. Mr. Arvind Mahajan 07553144 16/08/2017
8. Mr. Ameet Hariani 00087866 16/07/2018
9. Mr. Sanjib Chaudhuri 09565962 12/04/2022
10. Mr. Vinay Sanghi 00309085 12/04/2022
11. Dr. Rajgopal Thirumalai 02253615 12/04/2022
12. Mr. Samir H. Shah 08114828 01/06/2018
13. Mr. Anuj Tyagi 07505313 16/08/2017
14. Mr. Ritesh Kumar 02213019 09/09/2016
Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion based on our verification. This certificate is neither an assurance
as to the future viability of the Company nor of the eciency or eectiveness with which the management has conducted
the aairs of the Company.
For Bhandari & Associates
Company Secretaries
Unique Identification No.: P1981MH043700
Peer Review Certificate No.: 611/2019
Manisha Maheshwari
Partner
ACS No.: 30224; C P No.: 11031
Mumbai | April 16, 2024
ICSI UDIN: A030224F000137936
62
17
th
Annual Report
Certificate on Corporate Governance
Pursuant to BSE Circular dated January 07, 2022 and Para E of Schedule V of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members,
HDFC ERGO General Insurance Company Limited
CIN: U66030MH2007PLC177117
We have examined the compliance of conditions of Corporate Governance by HDFC ERGO General Insurance Company
Limited (‘the Company’) for the financial year ended March 31, 2024 as stipulated in Regulations 15 to 27 and paras C,
D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 [‘Listing Regulations’], to the extent applicable to the Company being a ‘high value debt listed entity’.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was
limited to procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions
of Corporate Governance. It is neither an audit nor an expression of opinion on the Financial Statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we hereby certify that the
Company has complied with the conditions of Corporate Governance as specified in the Listing Regulations.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the eciency or
eectiveness with which the Management has conducted the aairs of the Company.
For Bhandari & Associates
Company Secretaries
Unique Identification No.: P1981MH043700
Peer Review Certificate No.: 611/2019
Manisha Maheshwari
Partner
ACS No.: 30224; C P No.: 11031
Mumbai | April 16, 2024
ICSI UDIN: A030224F000137991
ANNEXURE II TO CORPORATE GOVERNANCE REPORT
Compliance Certificate
In accordance with the provisions of Corporate Governance Guidelines issued by the Insurance Regulatory and Development
Authority of India, I, Vyoma Manek, Company Secretary and Chief Compliance Ocer of the Company, hereby certify that the
Company has complied with the provisions of Corporate Governance Guidelines for Insurance companies issued by IRDAI,
as amended from time to time and to the extent applicable and nothing has been concealed or suppressed.
ANNEXURE III TO CORPORATE GOVERNANCE REPORT
Mumbai
April 16, 2024
Vyoma Manek
Company Secretary and
Chief Compliance Ocer
ACS: 20384
63
CEO / CFO CERTIFICATE under Regulation 17(8) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
The Board of Directors
HDFC ERGO General Insurance Company Limited
Mumbai
Re.: Audited Balance Sheet, Revenue Accounts and Profit & Loss Account, Receipts and Payments Account (Financial
Statements) for the year ended March 31, 2024.
With reference to the above, we, Ritesh Kumar, Managing Director and Chief Executive Ocer and Samir H. Shah, Executive
Director and CFO, wish to state that we have reviewed the attached Financial Statements for the year ended March 31, 2024
and certify, to the best of our knowledge and belief that:
A. These statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading.
B. These statements together present a true and fair view of the Company’s aairs and are in compliance with existing
accounting standards, applicable laws and regulations.
C. There are no transactions entered into by the Company during the period under review which are fraudulent, illegal or
violative of the Company’s code of conduct.
D. The Company has established and maintains internal financial controls and has evaluated the eectiveness of internal
control systems of the Company and same were found to be eective.
E. There are no:
a) Significant changes in internal control over financial reporting during the period;
b) Significant changes in accounting policies during the period and that the same has been disclosed in the notes to
the financial statements; and
c) Instances of significant fraud of which the Company has become aware.
ANNEXURE IV TO CORPORATE GOVERNANCE REPORT
Ritesh Kumar
Managing Director & CEO
Samir H. Shah
Executive Director & CFO
Mumbai
April 16, 2024
COMPLIANCE WITH THE CODE OF CONDUCT
I confirm that all Directors, Key Managerial Personnel and members of the senior management have confirmed adherence to
the provisions of the Code of Conduct for the year ended March 31, 2024.
ANNEXURE V TO CORPORATE GOVERNANCE REPORT
Mumbai
April 16, 2024
Ritesh Kumar
Managing Director & CEO
64
17
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MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
THE MACRO-ECONOMIC ENVIRONMENT
The current global macroeconomic scenario is characterised
by a delicate balance between ongoing recovery eorts and
emerging challenges, requiring policymakers and businesses
to adapt to evolving conditions. Economic policies, particularly
those implemented by central banks, are crucial in shaping
the economic trajectory and financial markets.
Despite a slower global economic growth rate, the overall
outlook appears more favourable than initially projected by
various agencies. However, new challenges have arisen,
including ongoing conflicts such as the Russia-Ukraine
dispute, crises in the Middle East, and enduring tensions
between major economies. As we progress into 2024, major
central banks seem inclined to adopt more accommodative
monetary policies, expressing confidence in containing
inflationary pressures.
According to forecasts by The World Bank’s Global Economic
Prospects report, most economies, whether advanced or
developing, are expected to experience slower growth in
2024 and 2025 compared to pre-COVID-19 levels. Global
growth is projected to decelerate for the third consecutive
year, reaching 2.4%. This deceleration reflects the prolonged
eects of tight monetary policies, restricted credit conditions,
and subdued global trade and investment.
Potential downside risks to this outlook include further
escalation of conflicts in the Middle East leading to disruptions
in commodity markets, financial strains due to high debt
levels and borrowing costs, persistent inflationary pressures,
below-par economic performance in China, increasing trade
fragmentation, and the impact of climate-related disasters.
The Indian economy is projected to expand by 8.2 % in the
fiscal year 2023-24, surpassing the first revised estimate of 7%
growth rate recorded in the previous financial year, according
to the provisional estimates of annual GDP released by the
National Statistical Oce (NSO). This growth rate positions
India as one of the fastest-growing major economies again,
following the 7% GDP growth achieved in FY 2022-23. Most
economic sectors have experienced robust growth rates of
real GVA, which exceed 6%, except the Agriculture and Allied
sectors, which is estimated to have grown by 1.4%. Notably,
both the Construction & Manufacturing sectors are expected
to grow by 9.9% each.
The Union Budget for the current year reflects a strategic
vision aimed at fostering economic growth and social
development. The government’s commitment to fiscal
discipline and targeted investments lays the groundwork
for a dynamic and sustainable economic trajectory. The
government’s overarching goal is to reduce the budget
deficit to 5.1% in the fiscal year 2024-25 (FY-25), down from
5.8% in 2023-24 (FY-24). The budget includes a noteworthy
11% increase in capital expenditure (capex) to bolster the
country’s overall economic development.
65
THE GENERAL INSURANCE INDUSTRY
A. Regulatory developments
In FY 2023-24, the Insurance Regulatory and Development
Authority of India (IRDAI) announced various reforms in line
with its multi-decadal vision of “Insurance for All by 2047”,
i.e., by the 100th year of Indian independence, every citizen
and every enterprise should have appropriate insurance
coverage. These reforms encompass various domains
such as safeguarding policyholders’ interests, improving
insurance penetration through various obligations, corporate
governance, insurance products, reinsurance, etc.
One of the key regulatory changes involved consolidating
34 regulations into eight regulations basis extensive
deliberations with industry stakeholders – which is expected
to simplify processes and provide clarity on the regulatory
framework. The prominent changes included the creation
of an insurance electronic marketplace (Bima Sugam) which
would serve as a one-stop solution for all stakeholders
(insurers, customers, and distribution partners), allowing
insurers freedom in pricing and policy wordings in all
product segments. This in turn would enable the industry
to oer customised insurance solutions, guidelines on
distribution channel for rural areas (Bima Vahak), guidelines
for aordable product comprising life, health and property
insurance cover (Bima Vistaar), etc.
Under the guidance of IRDAI, the industry continues to take
steps towards adopting the Indian Accounting Standards
(Ind AS) framework and transitioning to Risk-Based Capital.
In addition, the healthcare sector continues to take steps
towards digital adoption as a part of the Ayushman
Bharat Digital Mission – through the adoption of ABHA ID,
National Health Claims Exchange, etc – which would further
streamline the health insurance processes and increase
customer convenience.
Lastly, the Parliamentary Standing Committee on Finance
has recommended further reforms, including allowing
insurers to conduct value-added services that are ancillary
to insurance. These reforms will further shape industry
dynamics in the coming years.
These reforms are also expected to strengthen governance,
improve transparency, foster innovation and augment
sustainable industry growth in the medium to long term.
B. Industry performance
The General Insurance industry grew by 12.8% in FY 2023-24,
led by the Accident and Health (A&H) business. The
momentum in the A&H business continued in FY 2023-24,
leading to
~
20% growth. The motor segment registered a
growth of 13%. Excluding the crop segment, the industry
witnessed 15% growth on a year-on-year (Y-o-Y) basis.
Industry - Product wise - Premium
(₹ in crore)
18%
38%
37%
32%
FY22
220,700
32%
38%
18%
12%
FY23
256,912
32%
40%
17%
11%
FY24
289,737
Motor
Commercial
A&H
Crop
+16%
+13%
13%
20%
10%
-4%
Growth
Industry - Insurer Type Wise - Premium
(₹ in crore)
9%
50%
41%
FY22
220,700
38%
51%
10%
FY23
256,912
35%
54%
11%
FY24
289,737
Public
Private
SAHI
+16%
+13%
3%
18%
26%
Growth
66
17
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During FY 2023-24, private sector insurers grew by 17.5%,
while standalone health insurers grew by 26.2% and public
sector insurers (including specialised insurers) grew by
2.8%. Private-sector insurers grew faster than public-sector
insurers across all segments.
In the A&H segment, private and standalone sector
insurers grew faster in retail health, personal accident &
group health while public sector insurers grew faster in
government schemes.
Private-sector general insurance companies continue to
have a 53.5% market share of the industry due to the muted
growth rate of public-sector companies.
During 2022-23, the general and health insurance
companies covered 55 crore lives under 2.26 crore health
insurance policies (excl. policies issued under PA & Travel
Insurance). The number of lives covered increased by 6%
(PY: 1% growth).
The industry pay-out ratio (claims paid/claims O/s + Claims
intimated) for 2022-23 is 76%. (PY: 84%)
C. Company performance
1. Digital Insurer of Scale
In today’s digital age, customers expect insurance providers
to oer seamless digital experiences comparable to industry
leaders. This shift in expectations has propelled our
transformation to a digital insurer. By embracing
digitalisation, the Company expects to meet the
evolving demands of modern consumers while driving
sustainable growth.
Another catalyst for digital transformation lies within the
advancements in India’s digital public infrastructure (DPI).
The DPI encompasses two pivotal components that will
guide the Company’s journey towards digitalisation. Firstly,
the National Health Stack is poised to establish a digital
health technology ecosystem to construct an integrated
health information system catering to the requirements of
all stakeholders. Secondly, the Bima Trinity of Bima Sugam,
Bima Vistar, and Bima Vaahak represent an innovative
three-pronged initiative to reshape the nation’s insurance
sector landscape. This initiative addresses prevalent
challenges concerning insurance availability, aordability,
and accessibility.
Consequently, the Company has made notable strides in its
digital evolution journey by introducing HDFC ERGO 3.0, an
initiative that prioritises enhancing customer experiences,
scalability, resilience, and data protection. Over the past
six years, HDFC ERGO has diligently cultivated robust
digital capabilities, laying a solid foundation for its
current endeavours. At the heart of HDFC ERGO 3.0 lies
a profound understanding of customer needs, driving
meticulous issue resolution and proactive engagement
through timely interventions.
Web-portal
Changing ourselves across products to cater to customers’ evolving digital needs
The Company has developed a suite of user-friendly and
productive micro apps and solutions. Additionally, there is a
concerted eort to create platforms for stakeholders that facilitate
the delivery of superior experiences through these micro apps.
CORE
PROSPECTING CLAIMS RENEWALS SERVICINGPOLICY ISSUANCE
PLATFORMS
MICOR-APPS
& SOLUTIONS
67
The Company is undergoing comprehensive changes throughout the customer interaction cycle to address
evolving digital demands.
Digital initiatives throughout the customer interaction cycle to address evolving digital demands
Building predictability for customers across their lifecycle interactions with the insurer
68
17
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1.2 Prospecting
The Company continues to assist customers in identifying
the most suitable products for their needs. We facilitate
interaction with our chatbots via WhatsApp and utilise
artificial intelligence to guide customers through their
purchasing journeys. We have enabled a seamless
onboarding experience for the agent on account of
100% digital onboarding. Additionally, as an industry-first
initiative, select agents are discoverable on the Google
platform through Google Business listings. This innovative
approach enables our agents to capture a larger share of
impressions on search platforms through local listings,
thereby enhancing lead-generation opportunities.
1.3 Policy Issuance
1.3.1 Strengthening issuance process
The Company has been actively enhancing its systems to
facilitate seamless policy issuance. Leveraging multiple rule
engines and AI/ML-enabled technologies, the Company
meets the growing customer demand for swift policy
issuance. Notably, 90% of health policies and 98% of motor
policies are issued digitally.
1.3.2 Introduction of HEIQ: AI-Powered SME
insurance platform
In a pioneering move, the Company introduced HEIQ,
an AI-powered SME insurance platform designed to
simplify SMEs’ complex insurance requirements. HEIQ
utilises AI algorithms to generate insurance quotes
by analysing email, PDF, or document file proposals.
This innovative workflow streamlines processes,
particularly in corporate settings where vast amounts
of unstructured data are received via emails and PDFs.
As a result, the time taken for quote generation has
reduced from days to mere seconds.
1.3.3 Eciency gains through AI in motor pre-
inspection
AI-driven initiatives have also yielded remarkable
eciency gains in motor pre-inspection processes. The
Company has reduced the time required for motor pre-
inspections by harnessing AI technologies from 2 hours
to just 5 minutes. Last year, the Company successfully
processed over 80,000+ AI-enabled pre-inspections,
with an impressive
~
97% of decisions made through
AI-powered digital pre-inspections resulting in straight-
through processing (STP).
1.4 Claims
Digital adoption is helping the Company improve
its claims experience.
~
80% of motor and
~
70% of
health claims are now intimated digitally, aiding faster
claim processing. For motor, 80% of the surveys are
done digitally, and 90% of the claims are settled in
cashless mode, while for health, 65% of claims are
settled in cashless mode. Furthermore, AI/ML-based
models aid claims decisions for improved customer
experience.
1.5 Servicing
The Company has implemented an Interactive Voice
Response (IVR) system within its Advisor Experience
Management (AEM) contact centre. The IVR system
aims to streamline service requests, reduce wait
times, and improve customer satisfaction. Through the
IVR, advisors can eciently access policy information,
receive policy copies via email, check claim status,
and view commission statements using simple voice
commands. This transition to an automated, self-
service model accelerates the flow of information and
reduces dependence on human-operated channels.
s
olicies
s
98%
Motor Policies
90%
Health Policies
69
~
75% of services are catered digitally which highlight
the ongoing shift towards automation, showcasing the
Company’s unwavering focus on incorporating cutting-
edge technologies to enhance customer experience and
streamline operations.
The Company’s digital platforms have been at the forefront
of customer interaction, as seen by the significant increment
in portal interaction - 36% of the digital interactions are
via the Company’s self-help section. This indicates a shift
towards digital-first customer service. The claim tracker
function on the Company’s app has witnessed a noteworthy
surge in engagement.
The Company continues to enhance customer satisfaction
through its committed grievance redressal function. As
per Bima Bharosa, the Company’s grievance resolution,
TAT is lower than its peers’ average TAT by
~
2.6 days,
emphasising the eciency of its customer service
operations. The Company maintains a structured grievance
escalation process.
1.6 Digital Capabilities & Platforms
While diligently exploring various digital transformation
initiatives, the Company is concurrently investing in
developing robust digital capabilities to ensure long-term
success in the digital landscape.
1.6.1 Capabilities
Core System Upgrade: Our transition of the policy
administration system - from Genesys Configurator to Duck
Creek marks a significant stride towards future readiness
and unlocking growth. The new core system facilitates
dynamic product configuration, expediting product
launches and enabling swift deployment of niche oerings
and embedded insurance journeys.
Unified CRM Solution: Investment in Sprinklr aims to
deliver an omnichannel customer service experience
across all touchpoints, leveraging AI to tailor interactions
based on individual preferences.
1.6.2 Platforms
here: The Company successfully introduced the “here.”
The app is a one-of-a-kind motor and health ecosystem
platform through which the Company aims to align better
with customer priorities and gain mindshare. The platform
is built around three design principles: reduce anxiety
and confusion, provide convenience, and savings. Within
its initial year, the app garnered 5 Million+ downloads,
with users showing a higher insurance renewal rate in
health and motor insurance categories. Beyond providing
health, auto, and pet insurance services, the app facilitates
insurance policy management, leading to over 3 lakh
policy-related transactions.
1UP: The Company introduced “1UP”, an AI-driven
application tailored for advisors to streamline their
business operations. 1UP provides advisors with AI-
powered contextual prompts for sales, retention, and daily
planning, optimising their workflow. Additionally, the app
boasts Gen AI capability, generating personalised pitches
for each customer, which advisors can share directly in
their preferred language
This platform approach, with Duck Creek at its core, will
enable us to provide seamless journeys to customers
across their lifecycles.
As we continue to invest in cutting-edge technologies and
platforms, our overarching goal remains to deliver superior
HDFC
ERGO
50%
lower than
industry
average
TAT
COMPETITORS
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2. Technical Excellence
2.1 Investments
The investment function complements the core business
of the Company. The Company’s investments are made
in accordance with the Investment Policy as approved
by the Board of Directors. The Investment Committee
oversees the implementation of the Investment Policy. The
Company’s investment strategy reflects the coordination
between assets and liabilities, given the nature of the
business of the Company while keeping the regulatory
framework in perspective. The Investment Policy mandate
includes maintaining a high degree of liquidity and safety
of assets, optimising returns and consistency of returns
commensurate with the risks undertaken.
As on March 31, 2024, the investment assets of the Company
stood at ₹ 25,762 crore (PY: ₹ 22,242 crore). The IRDAI
(Investment) Regulations, 2016 require non-life companies
to invest 30% of their investment assets in government and
approved securities and 15% in the infrastructure sector and
housing sector. The Company held ₹ 11,901 crore (46.2%)
in government securities, ₹ 7,311 crore (28.4%) in securities
of the infrastructure and housing sector, and the remaining
₹ 6,551 crore (25.4%) in approved and other investments.
The Company held 86% of its assets in sovereign and
AAA or equivalent rated assets, reflecting a high degree
of safety. Further, the Company held ₹ 2,414 crore in assets
maturing within one year. The total investment income
customer experiences, drive sustainable growth, and shape
the future of insurance through digital excellence.
2.2 Reinsurance
The Company’s reinsurance programme is designed to
ensure protection against exposure to large losses aecting
single risks as well as catastrophic (CAT) loss events
aecting multiple risks across portfolios. As per regulatory
requirements, the Company has ceded 4% of its business as
an obligatory cession to the General Insurance Corporation
of India (GIC).
The Company has had a successful reinsurance renewal
for FY 2023-24. The Company experienced a few large
losses mostly in commercial lines of business. The Company
experienced multiple CAT losses and the underwriting
results were partly impacted by the same.
The Company has a strong reinsurance panel comprising
the National Reinsurer – GIC, foreign reinsurers who have
set up their branches in India and cross border reinsurers
with a financial strength rating of A- and above. The
participation of foreign reinsurance branches has gradually
increased over the years.
Portfolio Mix - Investments
28.4%
25.4%
46.2%
Govt./ approved securities
Infrastructure and Housing Sector
Other approved investments
generated for the year ended March 31, 2024, was ₹ 2,041
crore (PY: ₹ 1,401 crore).
1UP apphere app
71
2.3 Claims reserving
The outstanding claims liability is measured as the central
estimate of the expected future ultimate payments relating
to claims incurred at the reporting date. The Company
establishes outstanding claims liability basis statistical
methods for all retail lines of business (Motor, Health, etc.)
and case-by-case estimates for other lines of business in-line
with the Insurance Regulatory and Development Authority
of India (Assets, Liabilities and Solvency Margin of General
Insurance Business) Regulations, 2016. The ultimate claims
liability is measured based on the advice of/ valuations
performed by the Appointed Actuary. The expected future
payments include those in relation to claims reported but
not yet paid or not yet paid in full, claims incurred but not
enough reported (IBNER), claims incurred but not reported
(IBNR) and the anticipated direct claims handling costs.
Thus, the total of outstanding and IBNR/IBNER reserves
represents the overall claim liabilities of the Company. While
estimating the future ultimate claims liability, no allowance is
made for the discounting of reserves or negative provisions
for any particular year of occurrence in compliance with
IRDAI regulations. The ultimate liability is estimated using
established actuarial methods depending on the class
of business and the nature of claims. The ultimate claims
reserves are estimates involving actuarial projections at
a given point of time, of what the Company expects the
ultimate settlement of claims will cost.
The claims reserve for the motor third party liability portfolio
comprises a significant proportion of the Company’s
total liability. The claims for motor third party liability are
characterised by a relatively long-time delay for reporting
and settlement of claims. Thus, the ultimate claim liabilities
are estimated basis available information at the valuation
date and assumptions around future trends in claims severity
and frequency, judicial rulings, and other factors. Historically,
the number of road accidents per registered vehicles
and frequency of death / injury due to road accidents has
decreased steadily. However, post the COVID-19 pandemic
this long-term trend seems to have plausibly changed for
both death / injury frequency and the same is corroborated
basis the latest report published by the Ministry of Road
Transport and Highways (MORTH). Thus, the Company has
reviewed the actuarial frequency trend assumptions used
for determining the ultimate claims liability for accident
years post the COVID-19 pandemic and have prudently
strengthened the motor third party provisions to allow for
the changes in underlying trends.
The Motor Vehicle (Fifth Amendment) Act, 2022 prescribes
a six-month limitation period for filing third party claims from
the occurrence of the accident. Basis the historical trends,
this can possibly reduce the Company’s ultimate claims
liability significantly. However, the Appointed Actuary has
exercised principles of prudence and no benefit has been
allowed for while estimating the claims reserves for third
party claims. Further, the assumptions are influenced by the
Company’s claims handling procedures, inflation, minimum
wages, court decisions, legislative changes, customer
behaviour, claims reporting delays, etc. The ultimate
reserves also consider the emerging claims experience.
The table below provides an overview of the development of the Company’s estimates of gross ultimate claim amounts
and gross paid losses (including loss adjustment expenses) in relation to a given accident year over time.
As at March 31,
2024
AY 2012
& Prior
AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 AY 24
End of First year 1,948 1,065 2,178 2,636 2,923 5,007 5,560 7,049 8,236 9,099 10,681 11,759 14.603
One year later 2,047 1,103 2,323 2,547 2,980 4,552 5,276 6,951 7,661 8,147 10,138 11,137
Two years later 2,040 1,050 2,293 2,535 2,998 4,660 5,225 6,981 7,588 8,075 10,050
Three years later 1,993 1,116 2,289 2,579 3,017 4,648 5,231 6,966 7,401 7,935
Four years later 2,030 1,080 2,316 2,578 3,014 4,656 5,237 6,883 7,331
Five years later 2,039 1,093 2,323 2,562 3,028 4,656 5,124 6,875
Six years later 2,040 1,098 2,327 2,566 3,007 4,669 5,172
Seven years later 2,049 1,094 2,334 2,567 3,005 4,666
Eight years later 2,055 1,106 2,335 2,575 3,007
Nine years later 2,061 1,108 2,339 2,587
Ten years later 2,059 1,108 2,335
Eleven years later 2,060 1,113
Twelve years later 2,061
(` in crore)
Gross Incurred Losses and Allocated Expenses (Ultimate Movement)
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Note:
1. Pool claims and large losses wherein the Company’s net retention are low have been excluded from table above.
2. Table includes claims development pertaining to acquired entity i.e. HDFC ERGO Health Insurance (formerly Apollo Munich Health Insurance
Limited) is included from AY 2013-14. The claims development pertaining to HDFC General Insurance Limited (formerly L&T General Insurance
Company Limited) has been excluded to avoid any distortion in pattern.
3. For Crop and Weather line of business, the Accident Year corresponds to the year in which Premium is written.
As at March 31,
2024
AY 2012
& Prior
AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 AY 24
End of First year
515 516 915 1,246 1,115 2,936 2,855 3,167 4,426 5,487 5,383 6,270
8,102
One year later
344 264 522 527 593 835 1,090 1,641 2,100 2,455 2,670 3,350
Two years later
242 146 366 349 425 524 861 1,078 1,731 1,938 1,881
Three years later
157 168 289 314 335 437 762 897 1,272 1,509
Four years later
155 107 272 251 265 385 686 667 990
Five years later
142 100 241 193 259 335 433 502
Six years later
123 93 217 180 207 292 414
Seven years later
114 52 209 154 168 228
Eight years later
103 59 195 130 137
Nine years later
103 53 176 109
Ten years later
95 48 177
Eleven years later
90 47
Twelve years later 85
(` in crore)
Gross Unpaid Losses and Loss Adjustments Expenses
2.4 Solvency
An insurance company needs to maintain financial
assets or cash flow to meet its claims obligations as
they fall due. The solvency ratio is a key metric used
to measure an insurance company’s financial health,
i.e., the ability to meet its claims obligations, and
indicates whether a company’s cash flow is sucient.
An insurance company is considered to be solvent if
its assets are adequate and liquid to pay o claims or
liabilities as and when they arise. Thus, an insurance
company’s solvency ratio indicates its claim-paying
ability – the higher the solvency ratio, the better the
ability to pay claims.
As on March 31, 2024, the Company had a solvency
ratio of 1.68 times, as against the minimum regulatory
requirement of 1.5 times.
Solvency Ratio
Actual Solvency Ratio
FY21
1.9
FY22
1.64
FY23
1.81
FY24
1.68
1.5 Solvency
Ratio
Requirement
73
3. Governance
3.1. Risk management
The Company has a robust and integrated enterprise-wide
Risk Management Framework (RMF) that identifies, assesses,
manages, and mitigates all relevant risks in the Company’s
operating environment. The RMF works at all levels across
the Company and is a proactive institution-wide programme.
It has been aligned and integrated with business processes.
It covers all relevant risks, including strategic risks – duly
considering environmental, social and governance (ESG)
aspects, operational risks, investment risks, insurance risks,
and information and cyber security risks. The Company’s
risk strategy is embedded in its business planning process.
Under the RMF, periodic risk exposure assessments are
conducted based on the impact and likelihood of a risk’s
occurrence.
The Risk Management Committee of Directors oversees
the Company’s risk management. The board-approved risk
management policy and manual provide the framework and
guidelines for managing and mitigating all risks associated
with the Company’s business. The Risk Management
Committee comprehensively reviews risk performance at its
quarterly meetings.
The Company’s investment function is overseen by the
Investment Committee, which is constituted by the Board
of Directors. The Board-approved investment policy and
the standard operating guidelines provide the framework
for managing and mitigating the risks associated with
investments. The Investment Committee and the Board of
Directors comprehensively review the investment portfolio
and its performance at quarterly meetings.
The Company also assigns critical importance to information
and cyber security risks. Accordingly, it has an Information
Security and Business Continuity framework within the RMF
that ensures all information assets are adequately protected
by instituting required controls. These controls are assessed
periodically to determine their adequacy and eectiveness.
The Company is certified in ISO27001:2013 (Information
Security Management Standard) and ISO22301:2019
(Business Continuity Management Standard).
Further, the Company constantly endeavours to improve its
information and cyber security posture given the dynamic
and complex cyber security threat landscape.
The Internal Audit function is an independent function
of the Company. Risk-based audits of processes and
branches are conducted as per the annual audit plan
approved by the Audit and Compliance Committee (ACC)
of Directors. The planning and conduct of internal audits are
focused on assessing the existence and design of controls
and providing reasonable assurance on the operating
eectiveness of internal controls. Key observations arising
out of internal audits are presented to the ACC periodically.
All audit findings are tracked and monitored to confirm the
implementation of remediation plans.
3.2. Risk and loss mitigation
The Company has a Board-approved Anti-Fraud Policy,
which embeds a Fraud Management Framework to
minimise fraud and other irregularities through proactive
fraud detection mechanisms.
The Company has an independent risk and loss mitigation
department that implements this framework. The department
is responsible for taking all possible steps to prevent, detect
and mitigate risks emanating from various types of fraud
attempted to be perpetrated against the Company.
It employs various automated tools, such as predictive
modelling, analytical engines, and AI-based solutions, to
flag claims suspected to be fraudulent. The department
also investigates whistle-blowers’ complaints and ensures
appropriate action is taken. The department deploys cyber
and forensic expertise to investigate important cases. It also
initiates recoveries of stolen assets and takes legal action
against fraudsters.
The Fraud Monitoring Committee at the executive
management level and the Risk Management Committee
of the Board of Directors periodically deliberate on material
fraud events and undertake necessary remedial actions or
advise on preventive actions.
3.3. Environmental, Social, and Governance (ESG)
The Company considers sustainability a critical part of
the overall governance framework. The Company has
developed an ESG policy and framework to embed ESG in
overall operations and has established adequate processes
to monitor the implementation of the ESG framework in
the Company. The Company’s Governance structure and
processes strive to promote accountability, transparency,
and ethical behaviour.
The Company believes that it is crucial to build awareness
about ESG amongst employees. Hence, it continuously
engages with employees through relevant training on ESG
aspects on a periodic basis. These trainings assist the
Company in managing complexity and remaining focused
on long-term value creation with sustainable future growth.
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Environment
The Company believes in the importance of environmental
sustainability for long-term development. It is a constant
endeavour to be proactive about environmental
sustainability in its business practices and products.
During FY 2023-24, several initiatives have been
undertaken to help deliver on environmental ambitions, to
name a few:
• The Company has installed solar panels in eight schools
and two hospitals across various locations through its
CSR initiatives since inception.
• To minimise energy consumption across oces and
branches, employees are encouraged to adhere to
being in oce only during business hours. In addition
to eliminating excess energy consumption via central
cooling and lighting systems, this practice also has
a positive impact on enabling employees to manage
work-life balance.
• The Company also incentivises opting for Electric Vehicles
(EVs) under the Company Owned Vehicle Policy for eligible
employees based on respective grades.
The objective is to decrease paper consumption by
implementing e-forms, transitioning to online documentation,
and leveraging an assortment of digital innovations across
product oerings and customer service. In FY 2023-24, over
90% of retail policies were issued digitally.
Social
One of the key contributors to the Company’s success over
the last two decades has been its commitment to social
capital for improving the lives of people around us through
products, business practices, and social initiatives. The
Company has fair, inclusive, and empowering workplace
policies that encourage all employees to unleash their
potential. The Company is keen to inculcate a culture of
Diversity and Inclusive behaviour in the organisation.
Several projects have been launched, such as Project
Purple for hiring dierently-abled people, Nari Shakti to
encourage women to take up surveyor roles which were
traditionally done by men, and Project Shakti for promoting
overall gender diversity across the organisation.
The Company firmly believes in creating an environment
where individuals from all walks of life can thrive, contribute
their unique perspectives, and realise their fullest potential.
The Company wants to create a diverse and inclusive
organisation where everyone’s unique experiences
are valued, and all work together for success. For
FY 2023-24, the percentage of women in the overall
workforce of the Company was 25% vis-à-vis 23% in
FY 2022-23. The Company also hired over 40 dierently
abled employees in FY2023-24.
Corporate Social Responsibility (CSR) is an integral part of
HDFC ERGO’s operations. It reflects the Company’s sense
of responsibility towards the community and environment
in which the Company operates. It entails a continuous
commitment to contributing to the economic development
of the society and promoting sustainable livelihoods. The
Company’s CSR initiatives of FY 2023-24 are expected to
reach more than 7 lakh lives.
Governance
The Company’s corporate governance has always been
about promoting the stability of long-term outcomes,
where risks and financial outcomes are focused on and
disclosed on a periodic basis.
The Company’s governance structures and processes
strive to promote accountability, transparency, and ethical
behaviour. The Board of Directors bring a combination of
executive experience and skills aligned with business and
strategy. The Board oversees the Company through seven
sub-committees of the Board of Directors, mostly chaired
by Independent Directors.
%
25
23
FY22-23
FY23-24
FY23-24
40+
75
Employee volunteering
• Through its flagship programme of government school
reconstruction, ‘GAON MERA’, the Company has
revamped two new government schools and completed
two more in FY24, cumulatively impacting more than
1,200 students.
• The Company has also contributed towards improving
the infrastructure facilities of educational institutions,
estimated to benefit 800 students.
Education
Road Safety
Healthcare (Niramaya)
• In FY24, the Company commenced reconstruction
and upgradation of one government hospital and
completed two, aiming to serve
~
3.7 lakh people with
improved facilities.
• The Company has funded 2084 critical surgeries for the
underprivileged in FY24.
• Interventions towards cancer care were undertaken in
rural areas by setting up cancer diagnostic labs and
upgradation of facilities in cancer hospitals, expected to
benefit over 7,000 patients.
• Mobile Medical Vans and health camps were deployed
in rural and tribal areas to extend medical facilities,
benefitting
~
70,000 people.
Women’s Welfare (Roshini)
• Over 1,000 destitute women were supported with
sustainable livelihood solutions and capacity building in
remote areas of West Bengal.
• The Company has made forays in supporting
~
2,000 women in the North East and Tamil Nadu
through livelihood enhancement interventions vide
entrepreneurship development and climate resilient
farm practices programmes.
• The Company also supported 35 Women Collectives
through solar-powered enterprises, thereby enabling
320 women to earn better livelihoods.
• The Company also upgraded the skills of 350+ Asha
Workers to enable them to graduate to nursing assistants.
• Supplementary education through learning centres was
provided to 1,100 girls, with an aim to get them back to
the formal education system.
• The Company has adopted two high-fatality blackspots
on the Karnataka Silk Board Highway and transformed
them into ‘Zero Fatality Corridors’ through tactical
urbanism, benefiting
~
2.6 lakh commuters.
• The Company has also set up a training centre at Indore
RTO to provide road safety training to new licence
applicants through physical training and a two-wheeler
simulator learning experience, which has benefitted
over 9,000 prospective motorists.
• In its endeavour to establish a culture of volunteering
within the organisation and increase its social footprint, the
Company furthered its volunteering programme – ‘SAATHI’.
Under this programme, the employees have volunteered for
over 40,000 hours through various activities in areas, like
environment, inclusiveness, women’s welfare, healthcare,
elderly care, children’s welfare, animal welfare, and road
safety. The employees participated both physically and
virtually. The Company dedicated the week of 21
st
to 27
th
September 2023, as Volunteering Week, during which
employees across the country came together to clock over
23,000 volunteering hours.
4. Nurturing talent
The Company’s eorts were channelled towards enhancing
employees’ capabilities by creating a workplace that
works for all. The Company introduced additional facets
to the skill development programmes while implementing
initiatives that nurture collaboration, equity, and well-being.
With the mission to ‘get future-ready,’ the Company set in
motion ‘The Impact Leadership Development Programme
(ILDP),’ a custom-designed executive education Programme
in partnership with the Indian School of Business (ISB) for
senior talent. The one-year journey enables senior talent
in the Company to evolve from a ‘Business Leader’ to an
‘Impact Leader’ and equips them with a holistic worldview
of emerging societal and business scenarios. The
Company’s eorts received widespread accolades, and it
was recognised as a Future Ready Organisation at the ET
Future Forward Conference.
Last year, the Company had partnered with Great Manager
CSR
The Company is committed to serving society and has aligned
its CSR interventions under four major pillars. FY 2023-24
initiatives under these pillars are as given below:
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Institute® to build the Pivot+ programme to equip
people managers with the right skills as they undergo a
high-growth development journey and certification. This
flagship Manager Capability development programme
had another successful year, with the second batch
recording commendable results. In acknowledgement
of the multiple leadership initiatives, the Company was
recognised as a Leadership Factory of India by the
Great Manager Institute.
WINspiration added another dimension to its already
enriched oerings. In addition to having the WeLead
alums as mentors for high-performing women
colleagues in middle management, the Company further
enhanced and polished WINspiration by bringing in
external specialists to train and mentor high-potential
women colleagues. ET Femina awarded the Company
for being one of the Best Organisations for Women for
its continuous focus on diversity-led initiatives.
The Company introduced the Purple Hour—Diversity
Sensitisation Programme, an extension of Project
Purple. This initiative promotes the rights and well-
being of the specially-abled at every developmental
level. The Company envisages inculcating a culture of
responsibility, building awareness, and driving impactful
actions through Purple Hour. Drawing external attention
for the Company’s eorts towards holistic employee
wellbeing, the Company was recognised with two
awards - HR Excellence in Culture Evolution and
Excellence in Employee Wellbeing at CHRO Vision and
Innovation Summit and Awards. Besides, the Company
was also recognised among Progressive Places to Work
by ET Now.
The Company also launched Love All, an open-source
initiative to promote inclusivity in organisations and society.
It created a unique set of assets that includes a film for the
visually impaired, a playbook, braille-enabled posters, and
game cards as conversation starters. These are free for
any organisation to use.
The Company identified well-being as a core dierentiator
and designed experiences that significantly impacted
the employee well-being and happiness quotient. The
Company formulated and opened wellbeing-first oces
that host first-of-its-kind well-being corners, counselling
rooms, gaming areas, libraries, gyms, multi-style
workstations, and much more.
Taking the well-being mandate truly global, the Company
opened the ‘Habit of Life’ well-being index for the public
to take the survey. This well-being index helps individuals
assess their well-being across six pillars: physical,
intellectual, emotional, social, workplace, and subjective
vitality, thereby helping to measure the individual
and collective well-being quotient. For the collective
employee-first eorts towards multiple touchpoints, the
Company was conferred with five awards, including Best
Flexible Working Programme, Best Workspace Design,
Best Diversity & Inclusion Programme, Best Women-
in-Leadership Programme, and HR Team of the Year at
Employee Happiness Awards 2023 and Best Induction
TISS LeapVault CLO Award at CLO Chief Learning Ocers
Summit India.
5. Brand HDFC ERGO
Aligned with IRDAI’s vision of ‘Insurance for All by 2047,’ the
Company’s marketing and communication activities during
FY 2023-24 were primarily focused on fostering insurance
awareness and inclusion. The Company launched various
Lifelong Learning Culture, and Courses for All. Reiterating
the Company’s commitment to internal and external
stakeholders, the academy oers learning opportunities for
employees, partners, and the community.
To democratise learning for all, the Company unveiled
VidyaaVriksh Learning Academy. VidyaaVriksh is
designed on Focused Learning, Accessible Education, a
77
campaigns to acquire customers’ mindshare and position
itself as a digital-first insurer.
5.1. Insurance awareness
State Insurance Awareness Campaign:
As the ‘Lead Insurer’ for Tamil Nadu and Puducherry under
IRDAI’s State Insurance Awareness initiative, the Company
launched various engagement initiatives, like medical
camps, rural outreach programmes, etc., to enhance
insurance awareness in these regions. Additionally, the
Company launched a first-of-its-kind ‘Kapitu Varaam’ or
‘Insurance Week’ initiative, involving 30 non-life insurers,
to promote insurance awareness at the grassroots level.
#KaroSabkoInsure:
The Company launched the #KaroSabkoInsure campaign,
around the festival of Raksha Bandhan to nudge individuals
to help insure the health of their domestic sta, like
gardeners, cooks, maids, etc., who enrich their lives every
day. This film was recognised as the best Rakhi campaign
by leading media publications like ET Brand Equity, Afaqs,
Adgully, etc.
Insurance Awareness Awards – Junior Quiz:
The Company hosted the 8th edition of its Insurance
Awareness Awards - Junior Quiz in September 2023.
This year, the quiz reached out to over 5,50,000 students
nationwide, and 4,410 students from the 8th and 9th
standards of 2,205 schools across 150 cities of India
participated. Along with prize money, this year, the finalists
of the quiz were also rewarded with a surprise visit to the
ISRO National Remote Sensing Centre (NRSC) Outreach
Facility at Jeedimetla, Hyderabad, to give them a glimpse
into India’s recent advancements in the space programme.
Encouraged by the success of this quiz at the national
level, the Company launched its first state-level quiz in
vernacular language in Tamil Nadu and Puducherry in
March 2024. 211 teams from 124 Government schools in
42 districts of Tamil Nadu and Puducherry participated in
this quiz.
5.2. Acquiring customers’ mindshare
Launch of here app:
The Company launched India’s first insurer-led ecosystem,
the here app, a unique proposition that goes beyond
traditional insurance, focusing on health, wellness, and
mobility to address real customer issues. This app garnered
huge appreciation from the media and social media
communities and has won several industry accolades,
including Innovative Mobile App of the Year at the ET
DigiPlus Awards, Best Customer Experience Initiative,
and Best Digital Transformation Initiative at InsureNext
Conference & Awards.
Revolutionising the health insurance sector:
The Company launched its marketing campaign “Behtar
bana aur behtar’, announcing six new products and two
service upgrades to reiterate its commitment to making
health insurance accessible, aordable, and convenient.
Brand promotion through influencer marketing:
The Company launched heart-warming films featuring
celebrity couples to promote motor insurance and health
insurance, which garnered 9 million+ social media views.
5.3. Diversity & Inclusion and employee well-being
LoveAll:
The Company kicked o the ‘Love All’ movement with a core
message of building a workplace that invites and creates
space for all to thrive. The campaign was launched through
a TV panel discussion, followed by promotions through PR,
print media, digital media, and social media.
Habit of Life:
The Company hosted a wellness confluence involving
reputed organisations to promote holistic well-being.
The key findings of a well-being survey from 50,000+
respondents were launched at the event, based on the
philosophy of ‘Making India a Healthy Place to Work’.
Positive Brand Visibility:
The Company built a positive media image and Share of
Voice* (SOV) during FY 2023-24 and ranked 2^ in SOV*,
compared to 4 during FY 2022-23. With over 800 positive
media hits and 500+ coverage in CAT A coverages, the
Company has gained 87%^ positive news during the year.
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The brand’s social media followers continue to grow, with
the average engagement rate of the brand being 8% on
Facebook, 4.25% on Twitter, 3.50% on Instagram, and
8.50% on LinkedIn.
*Share of Voice (SOV) is the volume of articles that appear
in print and online media.
*Advertising Value Equivalency (AVE) is the estimated cost
for a similar ad volume.
^From April to Feb 2024
6. Performance highlights
6.1. Competitive strengths
Large agency force
The Company has a large agency channel with
~
1,09,279 multi-
line agents, including the Point of Sales Personnel (POSPs).
Increased presence in districts
The Company follows a multi-geography, multi-product, and
multi-channel distribution strategy. As of March 31, 2024, the
Company has a strong network of 266 branches and 497
digital oces. The Company has a presence in 509 districts.
The Company’s geographical and channel expansion
strategy is focused on increasing insurance penetration in
tier-3 cities and beyond. The Digital Oce (DO) has helped
increase the Company’s presence in upcountry locations
and now contributes
~
6% of the Company’s retail business.
Large-scale digital business expansion
The Company has significantly expanded its digital business
by optimising digital marketing and sales, fostering
collaborations with digital partners and aggregators, and
leveraging robust integration capabilities. This approach,
facilitated by seamless customer journeys, diverse
product oerings, and personalised propositions, has led
to a substantial contribution of approximately
~
13% to the
Company’s retail Gross Written Premium (GWP).
Retail health insurance focus
In FY 2023-24, the Company was one of the leading retail
health insurers in the industry. The Company’s retail health
premium was ₹ 3,964 crore with a market share of 9.4%. The
Company has an extensive network of more than 13,000
empanelled hospitals and diagnostic centres spread across
590+ districts of India. The Company’s flagship products –
Optima Secure and Optima Restore – continue to drive the
retail health portfolio.
6.2. Business overview
The Company issued 116 lakh policies (NOP) resulting in a
Gross Written Premium (GWP) of ₹ 18,802 crore in FY2023-
24, with a market share of 6.4% based on GDP. This resulted
in a YoY growth of 11.4% (PY: 23.3%)
FY22
13,707
86
FY23
16,873
122
FY24
18,802
116
Company premium and policies issued
GWP (₹ in crore)
No. of policies
in lakhs
Branches
266
Districts
509
Digital
Oces
497
79
6.3. Premium
The share of motor business contribution is 28% and A&H
contribution has increased to 35% as compared to 34% in
the previous year.
The Company continues to focus on agency channel with
1,09,279 general insurance agents. Likewise, the Company
also leverages its 149 bank and corporate agent partners
for distributing its products.
In FY 2023-24, the Company’s retail business grew across
geographies through the agency and online channels.
Growth in motor business was driven by an uptick in
primary sales.
6.4. Claim settlement
In FY2023-24, 53 lakhs (PY: 51 lakh) claims were reported
to the Company with a rise of 5%. During FY2023-24, the
net claims incurred amounted to ₹ 8,396 crore (PY: ₹ 6,423
crore), an increase of 31% over last year.
The Company’s pay-out ratio (claims paid/claims opening
O/s + Claims intimated) for 2023-24 is 95%. (PY: 94%)
The Company has a fair and robust claims management
practice. Following its core values, the Company has
been able to provide a prompt response and quick claim
settlement to all the policyholders. During FY 2023- 24, the
Company has paid
~
5.5 lakh motor claims. The Company
has helped the insured manage their Motor Own Damage
claims by providing claims servicing across
~
700 districts
of the country. The faster settlement turn-around-times
(TAT) and higher settlement rate resulted in a Net Promoter
Score (NPS) of 25 in FY24 for motor OD claims.
The Company maintained its focus on serving its A&H
customers. The Company endeavours to provide
customers with the best claims experience in the industry.
In line with this philosophy, the Company has embarked on
several initiatives to streamline processes further. During
FY 2023-24, the Company has processed
~
8.4 lakhs in
A&H claims. The faster settlement turnaround times (TAT)
and higher settlement rates resulted in a Net Promoter
Score (NPS) of
~
55 in FY24.
Product wise GWP
(₹ in crore)
18%
20%
36%
26%
FY22
13,707
28%
34%
19%
20%
FY23
16,872
28%
35%
19%
18%
FY24
18,802
Motor
Commercial
A&H
Crop
+23%
+11%
14%
14%
14%
1%
Gr%
Channel wise GWP
(₹ in crore)
Gr%
5%
7%
32%
11%
12%
9%
FY22 FY23 FY24
4%
30%
5%
29%
28%
9%
11%
4%
5%
5%
10%
5%
20%
33%
33%
19%
30%
19%
Others
Direct
Bancassurance
Corp. Agents
Brokers
Agents
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FUTURE
OUTLOOK
According to the International Monetary Fund (IMF), the
global economy is anticipated to grow by 3.2% in 2025.
These figures fall short of the average growth rate of 3.8%
observed from 2000 to 2019. This slowdown is attributed
to heightened central bank policy rates aimed at curbing
inflation, a reduction in fiscal support amidst high debt
levels impacting economic activity, and underlying sluggish
productivity growth.
The deceleration in global economic growth, coupled with
increased geopolitical uncertainty, casts a shadow over
the prospects of the global insurance industry. The Swiss
RE Sigma 6/2023 report states that the expected average
annual growth rate in total global real premiums for the next
two years is only 2.2%, below the trend observed before
the pandemic. The ongoing conflict in the Middle East and
its potential impacts on inflation and market volatility may
further exacerbate insurers’ challenges in maintaining their
capital positions.
Domestically, India is poised for robust growth in the
fiscal year 2024-25 despite facing global challenges. The
Finance Ministry, in its February 2024 monthly economic
review, highlighted factors such as favourable winter crop
yields, ongoing strength in manufacturing, and resilience in
the service sector as pillars supporting economic activity in
the upcoming fiscal year. The Monetary Policy Committee
(MPC), in its June 2024 meeting, projected a real gross
domestic product (GDP) growth of 7.2% for FY 2024-25.
These growth estimates position India among the fastest-
growing major economies globally.
The overall macroeconomic outlook for India remains
cautiously optimistic, buoyed by enhancements in
macroeconomic policy frameworks, significant investments
in infrastructure, and robust balance sheets maintained by
banks and corporations.
Economic expansion, a burgeoning middle class
, technological
innovation, and regulatory backing are key drivers
propelling India’s insurance market’s growth. The
industry’s adaptability in embracing digitalisation across
its operations and distribution, coupled with robust risk
management practices, underpin the resilience of the
Indian insurance sector.
Swiss RE has predicted a significant growth trajectory
for India’s insurance market in the next five years (2024-
2028). The total insurance premiums are expected to
increase by 7.1% in real terms, which is much higher than
the global (2.4%), emerging (5.1%), and advanced (1.7%)
market averages. This growth rate positions India as the
leader in the expansion of the insurance sector among
G20 countries. Non-life premiums are estimated to
increase at an average annual rate of 8.3% from 2024 to
2028, driven by economic expansion, distribution channel
enhancements, government support, and favourable
regulatory conditions.
The Indian government and insurance regulator have
initiated various measures to bolster industry growth.
Important among these is the mission “Insurance for all
by 2047”. The Insurance Regulatory and Development
Authority of India (IRDAI) spearheads eorts to streamline
the nation’s insurance sector. One notable endeavour
is introducing the ‘Bima Trinity’ product, designed to
address three primary objectives: addressing the low
levels of insurance penetration, oering aordable and
comprehensive insurance solutions tailored to diverse
needs, and simplifying and enhancing the eciency of the
claim settlement process. This comprehensive strategy is
anticipated to yield significant advancements in the Indian
insurance landscape. The industry is poised to sustain its
growth momentum, benefiting from digital infrastructure,
innovative practices, positive consumer sentiment, and
supportive regulatory conditions.
The Company holds an optimistic view regarding the future
economic growth prospects domestically. It anticipates
expansion and penetration of the general insurance sector
due to regulatory reforms in the foreseeable future. To
maintain a competitive edge, the Company will persist
in its commitment to innovation and the adoption of
technological advancements. Furthermore, the Company
aims to enhance its oerings for policyholders and
stakeholders in the upcoming period.
81
INDEPENDENT
AUDITOR’S REPORT
To the Members of HDFC ERGO General
Insurance Company Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of HDFC ERGO
General Insurance Company Limited (the “Company”)
which comprise the Balance sheet as at 31 March 2024,
the Revenue Account, the Profit and Loss account and
the Receipts and Payments Account for the year then
ended, and notes to the financial statements, including
a summary of significant accounting policies and other
explanatory information (hereinafter referred to as the
“financial statements”).
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
financial statements give the information required in
accordance with the provisions of the Insurance Act,
1938 (the “Insurance Act”), the Insurance Regulatory and
Development Authority Act, 1999 (the “IRDA Act”), Insurance
Regulatory and Development Authority (Preparation of
Financial Statements and Auditors’ Report of Insurance
Companies) Regulations, 2002 (the “IRDA Financial
Statements Regulations”) and orders/directions/circulars
issued by the Insurance Regulatory and Development
Authority of India (“IRDAI”/ the “Authority”) and the
Companies Act, 2013, as amended (the “Act”), to the extent
applicable, in the manner so required and give a true and fair
view in conformity with the accounting principles generally
accepted in India, as applicable to insurance companies:
a. in the case of the Balance Sheet, of the state of aairs
of the Company as at 31 March 2024;
b. in the case of Revenue Account, of the operating profit
in so far as it relates to Fire Insurance and Miscellaneous
Insurance Revenue Account; and operating loss in so
far as it relates to Marine Insurance Revenue Account
for the year ended on that date;
c. in the case of Profit and Loss Account, of the profit for
the year ended on that date; and
d. in the case of the Receipts and Payments Account, of
the receipts and payments for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those SAs are further described
in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of
the Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India
(the “ICAI”) together with the ethical requirements that are
relevant to our audit of the financial statements under the
Insurance Act, the IRDA Act, the IRDA Financial Statements
Regulations, the Act and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sucient
and appropriate to provide a basis for our opinion on the
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement were of most significance in our audit of the
financial statements of the current year. These matters
were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Information Technology (IT) systems
Key audit matter How the matter was addressed in our audit
The Company is highly dependent on data from various
information technology systems including automated controls
to process and record large volume of transactions, such that
there exists a risk that gaps in the IT control environment could
result in the financial accounting and reporting records being
materially misstated.
Our audit procedures included the following:
• We involved our IT specialists for assessment of the IT
systems and controls over financial reporting;
• Understood General IT Controls (GITC) over key financial
accounting and reporting systems (referred to as “in-scope
systems”) which covered access controls,
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Due to the pervasive nature, complexity and importance of
the impact of the IT systems and related control environment
on the Company’s financial statements, we have identified
testing of such IT systems and related control environment
as a key audit matter for the current year audit.
program/ system changes, program development and
computer operations;
• Understood the IT infrastructure i.e. operating systems and
databases and related data security controls;
• Tested controls over IT infrastructure covering user access
including privilege users and system changes;
• Evaluated design and operating effectiveness for in-
scope systems and application controls which covered
segregation of duties, system interfaces, completeness
and accuracy of data feeds and system reconciliation
controls; and
• Evaluated policies and strategies adopted by the Company
in relation to operational security of key information
infrastructure, data and client information management
and monitoring and crisis management.
Independent Auditors’ Report (Continued)
Valuation and impairment determination of Investments (31 March 2024: ` 257,618,761 31 March 2023:
` 222,416,086)
(
` in ‘000)
Refer Schedule 8 and 8A of the standalone financial statements and refer note 2(p) and 10 of Schedule 16 on accounting
policy
Key audit matter How the matter was addressed in our audit
The Company’s investment portfolio has been bifurcated into
Policyholders investments and Shareholders investments in
terms of IRDAI guidelines. Total investments represent 88.78
percent of the Company’s total assets as at 31 March 2024.
Investments are valued in accordance with the provisions of
the Insurance Act, the IRDA Financial Statements Regulations,
orders/ directions/ circulars issued by IRDAI and / or policies
as approved by the Board of Directors of the Company
(collectively the “Valuation Policy”).
Investments amounting to
` 257,618,761 (‘000) are valued as
per their accounting policy, based on which:
• the unrealized gains/ losses arising due to changes in fair
value of listed equity shares, additional Tier I bonds and
mutual fund units are recorded in the “Fair Value Change
Account” in the Balance Sheet; and
• debt securities and unlisted equity shares are valued at
historical cost.
Investments in listed equity shares, additional Tier I bonds
and mutual funds does not represent higher risk of material
misstatement, however, is considered to be a key audit matter
due to its materiality to the financial statements.
Further, investments in debt securities and unlisted equity
shares are assessed for impairment as per the Company’s
investment policy which involves significant management
judgement. There is increased economic stress on account
of external factors, which may impact the determination of
impairment of these investments.
Our audit procedures included the following:
• Understood the Company’s process and tested the
controls on the valuation of investments;
• Evaluated design, implementation and operating
eectiveness of key controls over the valuation process
including impairment, including management’s review
and approval of the estimates and assumptions used for
the valuation including key authorization and data input
controls;
• Evaluated appropriateness of valuation methodologies
with reference to the Valuation Policy;
• Performed independent price-verification for samples using
external quoted prices and by agreeing the management’s
observable inputs used in valuation techniques to external
data for listed and unlisted investments on test check basis;
• Examined movement and appropriateness of accounting
in Fair Value Change Account for specific investments;
• For selected samples of investments measured at
historical cost, we have tested the Company’s assessment
of impairment and evaluated whether the same was in
accordance with the Company’s impairment policy; and
• Evaluated appropriateness and reasonableness of
methodology, assumptions and judgements used by
management with reference to the Company’s investment
83
Accordingly, valuation of investments (including impairment
assessment) was considered to be one of the areas which
required significant auditor attention and was one of the
matters of most significance in the financial statements.
valuation and impairment assessment as per policy.
Independent Auditors’ Report (Continued)
Information Other than the Financial Statements and
Auditor’s Report Thereon
The Company’s Management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Company’s
annual report, but does not include the financial statements
and auditor’s report thereon.
Our opinion on the financial statements does not cover
the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact. We have
nothing to report in this regard.
Management’s and Board of Directors’ Responsibilities for
the Financial Statements
The Company’s Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the Act
with respect to the preparation of these financial statements
that give a true and fair view of the state of aairs, net
surplus/deficit, profit/loss and receipts and payments of
the Company in accordance with the accounting principles
generally accepted in India, including the provisions of the
Insurance Act as amended by Insurance Laws (Amendment)
Act 2015 read with the IRDA Act, the IRDA Financial
Statements Regulations, orders/directions/circulars issued
by IRDAI in this regard and Accounting Standards specified
under Section 133 of the Act to the extent applicable. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
eectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Management
and Board of Directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using
the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing
the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sucient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
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• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3)
(i) of the Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal
financial controls with reference to financial statements
in place and the operating eectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the Management and Board
of Directors.
• Conclude on the appropriateness of the Management
and Board of Directors use of the going concern basis
of accounting in preparation of financial statements
and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matter
The actuarial valuation of liabilities for non-life policies is
the responsibility of the Company’s Appointed Actuary
(the “Appointed Actuary”). The actuarial valuation of the
outstanding claims reserves that are estimated using
statistical methods, Premium Deficiency Reserve (“PDR”),
Incurred but Not Reported (“IBNR”) including Incurred but Not
Enough Reported (“IBNER”) as at 31 March 2024 has been
duly certified by the Appointed Actuary and in his opinion,
the assumptions for such valuation are in accordance with
the guidelines and norms issued by IRDAI and the Institute
of Actuaries of India in concurrence with the Authority. We
have relied upon the Appointed Actuary’s certificate in this
regard for forming our opinion on the valuation of liabilities
for outstanding claims reserves that are estimated using
statistical methods, PDR, IBNR (including IBNER) reserves,
as contained in the financial statements of the Company.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by IRDA Financial Statements Regulations,
we have issued a separate certificate dated 16 April
2024 certifying the matters specified in paragraphs 3
and 4 of Schedule C to the IRDA Financial Statements
Regulations.
2A. As required by paragraph 2 of Schedule C to the IRDA
Financial Statements Regulations read with Section
143(3) of the Act, we report that:
a. We have sought and obtained all the information and
explanations which to the best of our knowledge
and belief were necessary for the purposes of our
audit.
b. In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books.
c. As the Company’s accounts are centralized at
Registered Oce, no returns for the purpose of
our audit are prepared at the branches and other
oces of the Company
d. The Balance Sheet, the Revenue Account, the Profit
and Loss account and the Receipts and Payment
account dealt with by this Report are in agreement
with the books of account.
e. In our opinion, the aforesaid financial statements
comply with the Accounting Standards specified
Independent Auditors’ Report (Continued)
85
under Section 133 of the Act, to the extent they
are not inconsistent with the accounting principles
prescribed in the IRDA Financial Statements
Regulations and orders/ directions/ circulars issued
by IRDAI in this regard.
f. In our opinion, investments have been valued in
accordance with the provisions of the Insurance
Act, the IRDA Financial Statements Regulations,
the IRDA Act and/or orders/directions issued by the
IRDAI in this regard
g. In our opinion, the accounting policies selected by
the Company are appropriate and are in compliance
with the applicable Accounting Standards specified
under Section 133 of the Act to the extent they are
not inconsistent with the accounting principles
as prescribed in the IRDA Financial Statements
Regulations and orders/directions issued by the
IRDAI in this regard.
h. On the basis of the written representations received
from the directors as on 31 March 2024 taken on
record by the Board of Directors, none of the
directors is disqualified as on 31 March 2024 from
being appointed as a director in terms of Section
164(2) of the Act.
i. With respect to the adequacy of the internal financial
controls with reference to financial statements
of the Company and the operating eectiveness
of such controls, refer to our separate Report in
“Annexure A”.
B. With respect to the other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, in our opinion and to the
best of our information and according to the explanations
given to us:
a. The Company has disclosed the impact of pending
litigations as at 31 March 2024 on its financial
position in its financial statements - Refer Note 38
to the financial statements.
b. The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-
term contracts including derivative contracts. The
Company did not have any outstanding long-term
derivative contracts – Refer Note 35 to the financial
statements.
c. There were no amounts which were required to be
transferred to the Investor Education and Protection
Fund by the Company – Refer Note 39 to the
financial statements.
d.(i) The management has represented that, to the best
of its knowledge and belief, as disclosed in the
Note 37 to the financial statements, no funds have
been advanced or loaned or invested (either from
borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in
any other person(s) or entity(ies), including foreign
entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the
Intermediary shall:
• directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries”) or
• provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(ii) The management has represented that, to the best
of its knowledge and belief, as disclosed in the
Note 37 to the financial statements, no funds have
been received by the Company from any person(s)
or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded
in writing or otherwise, that the Company shall:
• directly or indirectly, lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Funding
Parties (“Ultimate Beneficiaries”) or
• provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures performed that have
been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that
has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as provided
under (i) and (ii) above, contain any material
misstatement.
e. The interim dividend declared and paid by the
Company during the year is in accordance with
Section 123 of the Act.
f. Based on our examination which included test
checks, the company has used accounting softwares
for maintaining its books of account which, along
with access management tools, as applicable, have
a feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all
relevant transactions recorded in the respective
softwares. Further, during the course of our audit
we did not come across any instance of audit trail
feature being tampered with.
Independent Auditors’ Report (Continued)
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Independent Auditors’ Report (Continued)
C. With respect to the matter to be included in the
Auditor’s Report under Section 197(16) of the Act, in
our opinion and according to the information and
explanations given to us, the remuneration paid by
the Company to its directors during the current year
is in accordance with the provisions of Section 197 of
the Act read with Section 34A of the Insurance Act,
1938. The remuneration paid to any director is not in
excess of the limit laid down under Section 197 of the
Act read with Section 34A of the Insurance Act, 1938.
The Ministry of Corporate Aairs has not prescribed
other details under Section 197(16) of the Act which
are required to be commented upon by us.
For G. M. Kapadia & Co.
Chartered Accountants
Firm’s Registration Number:
104767W
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration Number:
101248W/W-100022
Rajen Ashar
Partner
Membership No. 048243
ICAI UDIN: 24048243BKFFRY6647
Ritesh Goyal
Partner
Membership No. 115007
ICAI UDIN: 24115007BKFJOW1418
Place: Mumbai
Dated: 16 April 2024
Place: Mumbai
Dated: 16 April 2024
87
Annexure A to the Independent Auditor’s Report on the
financial statements of HDFC ERGO General Insurance
Company Limited for the year ended 31 March 2024
Report on the internal financial controls with reference to
the aforesaid financial statements under Clause (i) of Sub-
section 3 of Section 143 of the Act
(Referred to in paragraph 2(A)(i) under ‘Report on Other
Legal and Regulatory Requirements’ section of our report
of even date)
Opinion
We have audited the internal financial controls with
reference to financial statements of HDFC ERGO General
Insurance Company Limited (“the Company”) as of 31
March 2024 in conjunction with our audit of the financial
statements of the Company for the ended on that date.
In our opinion, the Company has, in all material respects,
adequate internal financial controls with reference to financial
statements and such internal financial controls were operating
effectively as at 31 March 2024, based on the internal
financial controls with reference to financial statements
criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting
issued by the ICAI (the “Guidance Note”).
Management’s and Board of Directors’ Responsibilities for
Internal Financial Controls
The Company’s Management and the Board of Directors are
responsible for establishing and maintaining internal financial
controls based on the internal financial controls with reference
to financial statements criteria established by the Company
considering the essential components of internal control
stated in the Guidance Note. These responsibilities include
the design, implementation and maintenance of adequate
internal financial controls that were operating eectively for
ensuring the orderly and ecient conduct of its business,
including adherence to company’s policies, the safeguarding
of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as
required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s
internal financial controls with reference to financial
statements based on our audit. We conducted our audit in
accordance with the Guidance Note and the Standards on
Auditing, prescribed under Section 143(10) of the Act, to the
extent applicable to an audit of internal financial controls
with reference to financial statements. Those Standards
and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal
financial controls with reference to financial statements were
established and maintained and if such controls operated
eectively in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
with reference to financial statements and their operating
eectiveness. Our audit of internal financial controls with
reference to financial statements included obtaining an
understanding of internal financial controls with reference to
financial statements, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating
eectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is
sucient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls with
reference to financial statements.
Meaning of Internal Financial Controls with Reference to
Financial Statements
A company’s internal financial controls with reference
to financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for
external purposes in accordance with generally accepted
accounting principles. A company’s internal financial controls
with reference to financial statements include those policies
and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being
made only in accordance with authorisations of management
and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s
assets that could have a material eect on the financial
statements.
Inherent Limitations of Internal Financial Controls with
Reference to Financial Statements
Because of the inherent limitations of internal financial
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Annual Report
controls with reference to financial statements, including the
possibility of collusion or improper management override
of controls, material misstatements due to error or fraud
may occur and not be detected. Also, projections of any
evaluation of the internal financial controls with reference to
financial statements to future periods are subject to the risk
that the internal financial controls with reference to financial
statements may become inadequate because of changes
in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Other Matter
The actuarial valuation of liabilities for non-life policies is
the responsibility of the Company’s Appointed Actuary
(the “Appointed Actuary”). The actuarial valuation of the
outstanding claims reserves that are estimated using
statistical methods, Premium Deficiency Reserve (the “PDR”),
Incurred but Not Reported (“IBNR”) including Incurred but Not
Enough Reported (“IBNER”) as at 31 March 2024 has been
duly certified by the Appointed Actuary and in his opinion,
the assumptions for such valuation are in accordance with
the guidelines and norms issued by IRDAI and the Institute
of Actuaries of India in concurrence with the Authority. We
have relied upon the Appointed Actuary’s certificate in this
regard for forming our opinion on the valuation of liabilities
for outstanding claims reserves that are estimated using
statistical methods, PDR, IBNR (including IBNER) reserves,
as contained in the financial statements of the Company.
Our opinion is not modified in respect of this matter.
For G. M. Kapadia & Co.
Chartered Accountants
Firm’s Registration Number:
104767W
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration Number:
101248W/W-100022
Rajen Ashar
Partner
Membership No. 048243
ICAI UDIN: 24048243BKFFRY6647
Ritesh Goyal
Partner
Membership No. 115007
ICAI UDIN: 24115007BKFJOW1418
Place: Mumbai
Dated: 16 April 2024
Place: Mumbai
Dated: 16 April 2024
89
To the Members of HDFC ERGO General
Insurance Company Limited
(Referred to in paragraph 1 of our Report on Other Legal and
Regulatory Requirements forming part of the Independent
Auditors’ Report dated 16 April 2024)
1. This certificate is issued to comply with the provisions
of paragraph 3 and 4 of Schedule C of the Insurance
Regulatory and Development Authority (Preparation of
Financial Statements and Auditor’s Report of Insurance
Companies) Regulations 2002, (the “IRDA Financial
Statements Regulations”) read with Regulation 3 of the
IRDA Financial Statements Regulations
Management and Board of Directors’ Responsibility
2. The Company’s Management and Board of Directors
are responsible for complying with the provisions of
the Insurance Act, 1938 as amended by the Insurance
Laws (Amendment) Act, 2015 (the “Insurance Act”), the
Insurance Regulatory and Development Authority Act,
1999 (the “IRDA Act”), the IRDA Financial Statements
Regulations and orders/circulars/directions issued by
the Insurance Regulatory and Development Authority
of India (“IRDAI” / the “Authority”) which includes (i)
preparation of management report consistent with
the financial statements; (ii) compliance with the
terms and conditions of the registration stipulated
by the Authority; (iii) maintenance and custody of
cash balances and maintenance of investments with
custody and depository; and (iv) ensuring that no
part of the assets of the policyholders’ funds has
been directly or indirectly applied in contravention
of the provisions of the Insurance Act, relating to the
application and investments of the Policyholders’
Funds. This responsibility includes collecting, collating
and validating data and designing, implementing and
monitoring of internal controls suitable for ensuring
the aforesaid and applying an appropriate basis of
preparation; and making estimates and judgments that
are reasonable in the circumstances.
Independent Auditor’s Responsibility
3. Pursuant to the requirement of the IRDA Financial
Statements Regulations, our responsibility for the purpose
of this certificate, is to provide reasonable assurance
on the matters contained in paragraphs 3 and 4 of
Schedule C of the IRDA Financial Statements Regulation
read with Regulation 3 of the IRDA Financial Statements
Regulations for the year ended 31 March 2024.
4. We conducted our examination in accordance with the
Guidance Note on Reports or Certificates for Special
Purposes (Revised 2016) and Standards on Auditing
issued by the Institute of Chartered Accountants of
India (ICAI) in so far as applicable for the purpose of this
Certificate, which include the concepts of test checks
and materiality. This Guidance Note requires that we
comply with the ethical requirements of the Code of
Ethics issued by the ICAI.
5. We have complied with the relevant applicable
requirements of the Standard on Quality Control (SQC)
1, “Quality Control for Firms that Perform Audits and
Reviews of Historical Financial Information, and Other
Assurance and Related Services Engagements”.
Opinion
6. In accordance with the information and explanations
and representations given to us and to the best of our
knowledge and belief and based on our examination,
of the books of account and other records maintained
by the Company for the year ended 31 March 2024, we
certify that:
a. We have reviewed the Management Report attached
to the financial statements for the year ended 31
March 2024, and on the basis of our review, there
is no apparent mistake or material inconsistencies
with the financial statements;
b. Based on information and explanations received
during the normal course of our audit, management
representations and compliance certificates
submitted to the Board of Directors by the ocers
of the Company charged with compliance and the
same being noted by the Board, we certify that
the Company has complied with the terms and
conditions of registration stipulated by the IRDAI;
c. We have verified the cash balances to the extent
considered necessary, and securities relating to
the Company’s investments as at 31 March 2024,
by actual inspection or on the basis of certificates/
confirmations received from the concerned
branches and /HO personnel of the company,
INDEPENDENT AUDITOR’S CERTIFICATE
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of the company, Custodian and / or Depository
Participants appointed by the Company, as the
case may be. Further, we have also relied upon the
management’s certificate for cash/cheque balances
as at 31 March 2024;
d. We have been given to understand by the
management that the Company is not a trustee of
any trust; and
e. No part of the assets of the Policyholders’ Funds has
been directly or indirectly applied in contravention to the
provisions of the Insurance Act, relating to the application
and investments of the Policyholders’ Funds.
Restriction on Use
This certificate is issued at the request of the Company solely
for use of the Company for inclusion in the annual accounts
in order to comply with the provisions of paragraph 3 and 4
of Schedule C of the IRDA Financial Statements Regulations
read with Regulation 3 of the IRDA Financial Statements
Regulations and is not intended to be and should not be
used for any other purpose without our prior consent.
Accordingly, we do not accept or assume any liability or any
duty of care for any other purpose or to any other person to
whom this Certificate is shown or into whose hands it may
come without our prior consent in writing.
For G. M. Kapadia & Co.
Chartered Accountants
Firm’s Registration Number:
104767W
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration Number:
101248W/W-100022
Rajen Ashar
Partner
Membership No. 048243
ICAI UDIN: 24048243BKFFRY6647
Ritesh Goyal
Partner
Membership No. 115007
ICAI UDIN: 24115007BKFJOW1418
Place: Mumbai
Dated: 16 April 2024
Place: Mumbai
Dated: 16 April 2024
91
Balance Sheet as at March 31, 2024
FORM B - BS
IRDAI Registration No: 146
Date of Registration with the IRDAI: July 09, 2010
Particulars Schedule As at
March 31, 2024
(Audited)
(` ‘000)
As at
March 31, 2023
(Audited)
(` ‘000)
SOURCES OF FUNDS
SHARE CAPITAL 5 7,149,683 7,127,800
SHARE APPLICATION --- 8,769
RESERVES AND SURPLUS 6 34,373,503 32,026,002
FAIR VALUE CHANGE ACCOUNT - SHAREHOLDERS 561,014 56,360
FAIR VALUE CHANGE ACCOUNT - POLICYHOLDERS 2,396,174 242,013
BORROWINGS 7 10,750,000 8,290,000
DEFERRED TAX LIABILITY
(Refer note 15 of Schedule 16) --- —
TOTAL
55,230,374 47,750,944
APPLICATION OF FUNDS
INVESTMENTS - SHAREHOLDERS 8 48,873,236 42,011,314
INVESTMENTS - POLICYHOLDERS 8A 208,745,525 180,404,772
LOANS 9 --- —
FIXED ASSETS 10 4,515,330 3,640,987
DEFERRED TAX ASSET
(Refer note 15 of Schedule 16)
409,808 523,078
CURRENT ASSETS
Cash and Bank Balances 11 2,885,953 3,152,831
Advances and Other Assets 12
24,731,068 20,920,783
Sub-Total (A) 27,617,021 24,073,614
CURRENT LIABILITIES 13 172,107,710 148,692,843
PROVISIONS 14
62,822,836 54,209,978
Sub-Total (B) 234,930,546 202,902,821
NET CURRENT ASSETS/(LIABILITIES) (C) = (A-B) (207,313,525) (178,829,207)
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted)
15 — —
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT — —
TOTAL
55,230,374 47,750,944
Schedules referred to above and the notes to accounts form an integral part of the nancial statements.
Signatures to the Balance Sheet and Schedules 1 to 16
In terms of our report attached of even date For and on behalf of the Board of Directors
G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.: 104767W
B S R & Co. LLP
Chartered Accountants
Firm’s Registration No.: 101248W/W-100022
Keki M Mistry
Chairman
(DIN: 00008886)
Renu S. Karnad
Non-Executive Director
(DIN: 00008064)
Oliver Martin Willmes
Non-Executive Director
(DIN: 08876420)
Edward Ler
Non-Executive Director
(DIN: 10426805)
Rajen Ashar
Partner
Membership No.: 048243
Ritesh Goyal
Partner
(Membership No. 115007)
Bernhard Steinruecke
Independent Director
(DIN: 01122939)
Mehernosh B. Kapadia
Independent Director
(DIN: 00046612)
Arvind Mahajan
Independent Director
(DIN: 07553144)
Ameet Hariani
Independent Director
(DIN: 00087866)
Sanjib Chaudhuri
Independent Director
(DIN: 09565962)
Vinay Sanghi
Independent Director
(DIN: 00309085)
Rajgopal Thirumalai
Independent Director
(DIN: 02253615)
Ritesh Kumar
Managing Director & CEO
(DIN: 02213019)
Mumbai
Dated: April 16, 2024
Anuj Tyagi
Joint Managing Director
(DIN: 07505313)
Samir H. Shah
Executive Director & CFO
(DIN: 08114828 )
Vyoma Manek
Company Secretary & Chief Compliance Ofcer
(Membership No.: ACS 20384)
92
17
th
Annual Report
Prot and Loss Account for the year ended March 31, 2024
FORM B - PL
IRDAI Registration No: 146
Date of Registration with the IRDAI: July 09, 2010
Particulars Schedule For the year ended
March 31, 2024
(
`
‘000)
For the year ended
March 31, 2023
(` ‘000)
OPERATING PROFIT/(LOSS)
Fire Insurance 1,007,910 1,229,641
Marine Insurance (1,286) (976,202)
Miscellaneous Insurance
1,839,671 6,473,545
2,846,295 6,726,984
INCOME FROM INVESTMENTS
Interest, Dividend and Rent – Gross (Refer note 2 (c) of Schedule 16) 2,938,398 2,533,855
Prot on sale of investments 918,027 195,684
Less: Loss on sale of investments
(7,585) (8,765)
3,848,840 2,720,774
OTHER INCOME — —
TOTAL (A)
6,695,135 9,447,758
PROVISIONS (OTHER THAN TAXATION)
For diminution in the value of investments (Refer note 10 of Schedule 16) (116,855) (174,669)
For doubtful debts
21,317 222,536
(95,538) 47,867
OTHER EXPENSES
Expenses other than those related to insurance business
Employees’ related remuneration and welfare benets (Refer note 11 of Schedule 16) 82,923 120,325
Corporate Social Responsibility Expenses (Refer note 29 of Schedule 16) 152,913 126,636
Bad debts written off 8,445 18,661
Remuneration to directors and others 14,115 7,015
Interest on Debentures 743,735 433,202
Debenture issuance expenses
5,022 9,598
TOTAL (B)
911,615 763,304
PROFIT/(LOSS) BEFORE TAX 5,783,520 8,684,454
Provision for Taxation
-
Current Tax 1,293,539 2,094,328
-
Deferred Tax (Refer note 15 of Schedule 16) 113,270 63,531
PROFIT/(LOSS) AFTER TAX
4,376,711 6,526,595
APPROPRIATIONS
Interim Dividends paid during the year (Refer note 34 of Schedule 16) 2,501,501 2,494,730
Proposed nal Dividend — —
Dividend Distribution tax — —
Transfer to any Reserves or Other Accounts — —
Transfer to Debenture Redemption Reserve (Refer Note 33 of Schedule 16) — —
Transfer to Contingency Reserve for Unexpired Risks — —
Balance of Prot/(Loss) brought forward from previous year
14,500,579 10,468,714
BALANCE CARRIED FORWARD TO BALANCE SHEET
16,375,789 14,500,579
EARNINGS PER SHARE (Basic) (in `)
6.12 9.16
EARNINGS PER SHARE (Diluted) (in `)
6.11 9.13
(Face Value ` 10 per share) (Refer Note 25 of Schedule 16)
NOTES TO ACCOUNTS 16
Schedules referred to above and the notes to accounts form an integral part of the Prot and Loss Account.
Signatures to the Prot and Loss Account and Schedules 1 to 16
In terms of our report attached of even date For and on behalf of the Board of Directors
G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.: 104767W
B S R & Co. LLP
Chartered Accountants
Firm’s Registration No.: 101248W/W-100022
Keki M Mistry
Chairman
(DIN: 00008886)
Renu S. Karnad
Non-Executive Director
(DIN: 00008064)
Oliver Martin Willmes
Non-Executive Director
(DIN: 08876420)
Edward Ler
Non-Executive Director
(DIN: 10426805)
Rajen Ashar
Partner
Membership No.: 048243
Ritesh Goyal
Partner
(Membership No. 115007)
Bernhard Steinruecke
Independent Director
(DIN: 01122939)
Mehernosh B. Kapadia
Independent Director
(DIN: 00046612)
Arvind Mahajan
Independent Director
(DIN: 07553144)
Ameet Hariani
Independent Director
(DIN: 00087866)
Sanjib Chaudhuri
Independent Director
(DIN: 09565962)
Vinay Sanghi
Independent Director
(DIN: 00309085)
Rajgopal Thirumalai
Independent Director
(DIN: 02253615)
Ritesh Kumar
Managing Director & CEO
(DIN: 02213019)
Mumbai
Dated: April 16, 2024
Anuj Tyagi
Joint Managing Director
(DIN: 07505313)
Samir H. Shah
Executive Director & CFO
(DIN: 08114828 )
Vyoma Manek
Company Secretary & Chief Compliance Ofcer
(Membership No.: ACS 20384)
93
IRDAI Registration No: 146
Date of Registration with the IRDAI: July 09, 2010
Receipts and Payments Account for the year ended March 31, 2024
Particulars Schedule For the year ended
March 31, 2024
( ` ‘000)
For the year ended
March 31, 2023
( ` ‘000)
Cash ows from operating activities
Premium received from policyholders, including advance receipts 214,609,557 196,628,477
Payments to re-insurers, net of commission and claims (36,401,704) (23,376,300)
Payments to co-insurers, net of claims recovery (642,937) 337,644
Payments of claims (106,776,348) (91,144,196)
Payments of commission and brokerage (27,085,952) (15,793,812)
Payments of other operating expenses (17,577,694) (26,208,371)
Corporate Social Responsibility (CSR) expenses (152,913) (126,636)
Deposits, advances and staff loans (256,431) (322,455)
Income taxes paid (Net) (2,074,403) (1,869,785)
Goods and Services Tax paid
(9,077,655)
(9,797,054)
Net cash generated from/(used in) operating activities (A)
14,563,520 28,327,512
Cash ows from investing activities
Purchase of xed assets (1,749,275) (1,344,298)
Proceeds from sale of xed assets 22,384 22,902
Purchase of investments (139,545,317) (1,035,962,940)
Sale of investments 114,965,471 986,748,329
Rent/Interest/Dividend received 15,007,176 14,573,865
Investments in money market instruments and in liquid mutual funds (Net)
(3,300,404) 9,394,778
Net cash ow from/(used in) investing activities (B)
(14,599,965) (26,567,364)
Cash ows from nancing activities
Proceeds from issuance of share capital and share premium 494,174 —
Receipt of Share application money pending allotment (8,769) 8,769
Repayments of borrowing (740,000) (800,000)
Proceeds from issuance of borrowing 3,200,000 3,800,000
Interest Paid (677,661) (435,589)
Dividend paid (Including dividend distribution tax)
(2,501,501) (2,494,730)
Net cash ow from/(used in) nancing activities (C)
(233,757) 78,450
Effect of foreign exchange rates on cash and cash equivalents (Net) (D) (1,057) (1,571)
Net increase/(decrease) in cash and cash equivalents (A + B + C + D)
(271,259) 1,837,027
Cash and cash equivalents at the beginning of the year 3,142,481 1,305,453
Cash and cash equivalents at the end of the year
2,871,222 3,142,480
Net increase/(decrease) in cash and cash equivalents
(271,259) 1,837,027
Reconciliation of Cash and cash equivalents with the Balance Sheet:
Cash and Bank balances 2,885,953 3,152,831
Less: Deposit Accounts not considered as Cash and cash equivalents as dened in AS-3
“Cash Flow Statements”
(14,731) (10,351)
Cash and cash equivalents at the end of the period
2,871,222 3,142,480
NOTES TO ACCOUNTS 16
Refer Schedule 11 for components of cash and bank balances
Signatures to the Receipts and Payments Account
In terms of our report attached of even date For and on behalf of the Board of Directors
G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.: 104767W
B S R & Co. LLP
Chartered Accountants
Firm’s Registration No.: 101248W/W-100022
Keki M Mistry
Chairman
(DIN: 00008886)
Renu S. Karnad
Non-Executive Director
(DIN: 00008064)
Oliver Martin Willmes
Non-Executive Director
(DIN: 08876420)
Edward Ler
Non-Executive Director
(DIN: 10426805)
Rajen Ashar
Partner
Membership No.: 048243
Ritesh Goyal
Partner
(Membership No. 115007)
Bernhard Steinruecke
Independent Director
(DIN: 01122939)
Mehernosh B. Kapadia
Independent Director
(DIN: 00046612)
Arvind Mahajan
Independent Director
(DIN: 07553144)
Ameet Hariani
Independent Director
(DIN: 00087866)
Sanjib Chaudhuri
Independent Director
(DIN: 09565962)
Vinay Sanghi
Independent Director
(DIN: 00309085)
Rajgopal Thirumalai
Independent Director
(DIN: 02253615)
Ritesh Kumar
Managing Director & CEO
(DIN: 02213019)
Mumbai
Dated: April 16, 2024
Anuj Tyagi
Joint Managing Director
(DIN: 07505313)
Samir H. Shah
Executive Director & CFO
(DIN: 08114828 )
Vyoma Manek
Company Secretary & Chief Compliance Ofcer
(Membership No.: ACS 20384)
94
17
th
Annual Report
FORM B — RA
IRDAI Registration No: 146
Date of Registration with the IRDAI: July 09, 2010
Revenue Accounts for the year ended March 31, 2024
( ` ‘000)
Particulars Schedule
FIRE INSURANCE MARINE INSURANCE MISCELLANEOUS
INSURANCE
TOTAL
For the year
ended March
31, 2024
For the year
ended March
31, 2023
For the year
ended March
31, 2024
For the year
ended March
31, 2023
For the year
ended March
31, 2024
For the year
ended March
31, 2023
For the year
ended March
31, 2024
For the year
ended March
31, 2023
1 Premiums Earned (Net) 1 3,107,315 2,721,523 1,541,704 1,593,410 91,086,785 76,034,659 95,735,804 80,349,592
2 Prot/Loss on Sale/Redemption
of Investments (Net)
231,987 45,319 55,737 10,288 3,610,609 716,387 3,898,333 771,993
3 Others:
Investment Income from
Terrorism Pool
85,170 53,023 — — — — 85,170 53,023
Miscellaneous Income 499 1,788 258 1,079 15,257 51,475 16,014 54,342
4 Interest, Dividend and Rent
– Gross (Refer note 2 (c) of
Schedule 16)
748,726 614,351 179,888 139,455 11,653,041 9,711,299 12,581,655 10,465,105
TOTAL (A) 4,173,697 3,436,004 1,777,587 1,744,232 106,365,692 86,513,820 112,316,976 91,694,055
1 Claims Incurred (Net) 2 2,714,886 1,590,464 1,389,878 2,173,943 79,859,623 60,465,127 83,964,387 64,229,533
2 Commission (Net) 3 (935,947) (1,954,068) 202,794 237,042 9,886,213 (668,156) 9,153,060 (2,385,182)
3 Operating Expenses Related to
Insurance Business
4 1,386,848 2,569,967 186,201 309,449 14,780,185 20,243,304 16,353,234 23,122,720
4 Premium Deciency
(Refer Note 27 of Schedule 16)
— — — — — — — —
TOTAL (B) 3,165,787 2,206,363 1,778,873 2,720,434 104,526,021 80,040,275 109,470,681 84,967,071
Operating Prot/(Loss) (A-B) 1,007,910 1,229,641 (1,286) (976,202) 1,839,671 6,473,545 2,846,295 6,726,984
APPROPRIATIONS
Transfer to Shareholders’
Account
1,007,910 1,229,641 (1,286) (976,202) 1,839,671 6,473,545 2,846,295 6,726,984
Transfer to Catastrophe Reserve — — — — — — — —
Transfer to Other Reserves — — — — — — — —
TOTAL (C) 1,007,910 1,229,641 (1,286) (976,202) 1,839,671 6,473,545 2,846,295 6,726,984
NOTES TO ACCOUNTS
Schedules referred to above and the notes to accounts form an integral part of the Revenue Accounts.
Signatures to the Revenue Account and Schedules 1 to 16
In terms of our report attached of even date For and on behalf of the Board of Directors
G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.: 104767W
B S R & Co. LLP
Chartered Accountants
Firm’s Registration No.: 101248W/W-100022
Keki M Mistry
Chairman
(DIN: 00008886)
Renu S. Karnad
Non-Executive Director
(DIN: 00008064)
Oliver Martin Willmes
Non-Executive Director
(DIN: 08876420)
Edward Ler
Non-Executive Director
(DIN: 10426805)
Rajen Ashar
Partner
Membership No.: 048243
Ritesh Goyal
Partner
(Membership No. 115007)
Bernhard Steinruecke
Independent Director
(DIN: 01122939)
Mehernosh B. Kapadia
Independent Director
(DIN: 00046612)
Arvind Mahajan
Independent Director
(DIN: 07553144)
Ameet Hariani
Independent Director
(DIN: 00087866)
Sanjib Chaudhuri
Independent Director
(DIN: 09565962)
Vinay Sanghi
Independent Director
(DIN: 00309085)
Rajgopal Thirumalai
Independent Director
(DIN: 02253615)
Ritesh Kumar
Managing Director & CEO
(DIN: 02213019)
Mumbai
Dated: April 16, 2024
Anuj Tyagi
Joint Managing Director
(DIN: 07505313)
Samir H. Shah
Executive Director & CFO
(DIN: 08114828 )
Vyoma Manek
Company Secretary & Chief Compliance Ofcer
(Membership No.: ACS 20384)
95
Schedules
Annexed to and forming part of the Revenue Accounts
SCHEDULE - 1
PREMIUM EARNED (NET)
( ` ‘000)
Particulars
For the year ended March 31, 2024 For the year ended March 31, 2023
Fire Marine * Miscellaneous Total Fire Marine ** Miscellaneous Total
Marine Cargo Marine Hull Marine Total Marine Cargo Marine Hull Marine Total
Premium from direct business written-net of GST 17,959,630 1,701,054 162,556 1,863,610 165,852,337 185,675,577 17,100,149 2,001,113 197,393 2,198,506 147,059,485 166,358,140
Add: Premium on Re-insurance accepted 1,939,903 36,181 -- 36,181 365,328 2,341,412 1,892,347 73,376 -- 73,376 407,511 2,373,234
Less: Premium on Re-insurance ceded (16,150,743) (262,839) (161,153) (423,992) (67,056,230) (83,630,965) (15,620,164) (401,941) (195,593) (597,534) (63,705,293) (79,922,991)
Net Premium 3,748,790 1,474,396 1,403 1,475,799 99,161,435 104,386,024 3,372,332 1,672,548 1,800 1,674,348 83,761,703 88,808,383
Add/(Less): Adjustment for changes in reserve for
unexpired risks
(641,475) 65,507 398 65,905 (8,074,650) (8,650,220) (650,809) (80,044) (894) (80,938) (7,727,044) (8,458,791)
Total Premium Earned (Net) 3,107,315 1,539,903 1,801 1,541,704 91,086,785 95,735,804 2,721,523 1,592,504 906 1,593,410 76,034,659 80,349,592
* Miscellaneous Premium Breakup for the year ended March 31, 2024
( ` ‘000)
Particulars
Miscellaneous
Motor Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty Weather/Crop Others Total
Miscellaneous
Premium from direct business written-net
of GST
26,299,293 26,454,215 52,753,508 271,106 42,208 2,475 2,566,955 196,209 5,633,022 59,748,543 1,185,691 759,094 4,823,575 34,037,457 3,832,494 165,852,337
Add: Premium on Re-insurance accepted -- -- -- -- 359 -- 104,559 -- -- -- 78,193 -- 181,744 -- 473 365,328
Less: Premium on Re-insurance ceded (1,174,847) (13,729,650) (14,904,497) (46,484) (34,257) (1,481) (2,216,418) (196,155) (2,192,140) (22,462,083) (779,920) (142,029) (3,745,381) (18,888,728) (1,446,657) (67,056,230)
Net Premium 25,124,446 12,724,565 37,849,011 224,622 8,310 994 455,096 54 3,440,881 37,286,460 483,964 617,065 1,259,938 15,148,729 2,386,310 99,161,435
Add/(Less): Adjustment for changes in
reserve for unexpired risks
(3,770,741) 27,086 (3,743,655) (24,585) 731 94 (111,221) 10 545,465 (2,893,848) (80,559) (381,066) (40,578) (23,795) (1,321,643) (8,074,650)
Total Premium Earned (Net) 21,353,705 12,751,651 34,105,356 200,037 9,041 1,088 343,875 64 3,986,347 34,392,612 403,405 235,999 1,219,360 15,124,934 1,064,667 91,086,785
** Miscellaneous Premium Breakup for the year ended March 31, 2023
( ` ‘000)
Particulars
Miscellaneous
Motor Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty Weather/Crop Others Total
Miscellaneous
Premium from direct business written-net
of GST
20,896,173 25,547,675 46,443,848 212,851 34,257 1,942 2,001,641 184,539 5,961,879 51,202,409 956,038 495,067 4,156,231 33,554,267 1,854,516 147,059,485
Add: Premium on Re-insurance accepted -- -- -- -- 1,152 -- 57,259 -- -- -- 18,460 -- 3,29,144 -- 1,496 407,511
Less: Premium on Re-insurance ceded (888,103) (12,729,332) (13,617,435) (39,011) (27,269) (1,203) (1,735,140) (184,446) (2,445,614) (16,378,004) (844,940) (78,152) (3,352,637) (23,870,329) (1,131,113) (63,705,293)
Net Premium 20,008,070 12,818,343 32,826,413 173,840 8,140 739 323,760 93 3,516,265 34,824,405 129,558 416,915 1,132,738 9,683,938 724,899 83,761,703
Add/(Less): Adjustment for changes in
reserve for unexpired risks
(2,847,215) (773,620) (3,620,835) (15,276) (604) (152) (952) 24 491,887 (4,286,360) 11,901 (225,331) (111,287) (160,708) 190,649 (7,727,044)
Total Premium Earned (Net) 17,160,855 12,044,723 29,205,578 158,564 7,536 587 322,808 117 4,008,152 30,538,045 141,459 191,584 1,021,451 9,523,230 915,548 76,034,659
96
17
th
Annual Report
Schedules
Annexed to and forming part of the Revenue Accounts
SCHEDULE - 2
CLAIMS INCURRED (NET)
( ` ‘000)
Particulars
For the year ended March 31, 2024 For the year ended March 31, 2023
Fire Marine * Miscellaneous Total Fire Marine ** Miscellaneous Total
Marine Cargo Marine Hull Marine Total Marine Cargo Marine Hull Marine Total
Claims paid direct 5,459,102 1,815,711 263,347 2,079,058 96,288,471 103,826,631 5,003,900 2,154,248 8,306 2,162,554 81,157,570 88,324,024
Add: Claims on Re-insurance accepted 352,738 25,877 - 25,877 44,256 422,871 442,627 29,032 - 29,032 25,290 496,949
Less: Claims on Re-insurance ceded (4,524,596) (463,769) (263,284) (727,053) (36,300,269) (41,551,918) (4,311,743) (940,904) (7,942) (948,846) (30,927,094) (36,187,683)
Net Claims paid 1,287,244 1,377,819 63 1,377,882 60,032,458 62,697,584 1,134,784 1,242,376 364 1,242,740 50,255,766 52,633,290
Add: Claims Outstanding at the end of the year 4,637,168 1,730,684 7,338 1,738,022 96,315,295 102,690,485 3,209,526 1,717,104 8,922 1,726,026 76,488,130 81,423,682
Less: Claims Outstanding at the beginning of the year (3,209,526) (1,717,104) (8,922) (1,726,026) (76,488,130) (81,423,682) (2,753,846) (786,263) (8,560) (794,823) (66,278,769) (69,827,438)
Total Claims Incurred (Net) 2,714,886 1,391,399 (1,521) 1,389,878 79,859,623 83,964,387 1,590,464 2,173,217 726 2,173,943 60,465,127 64,229,534
* Miscellaneous Claims Incurred (Net) Breakup for the year ended March 31, 2024
( ` ‘000
Particulars
Miscellaneous
Motor Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others
Total
MiscellaneousMotor-OD Motor-TP Motor Total Other Liability Home Specialty Weather/Crop Others
Claims paid direct 17,791,910 10,658,871 28,450,781 126,052 323 16,421 1,398,298 3,489 2,409,594 40,127,337 953,157 42,152 751,441 20,399,922 1,609,504 96,288,471
Add: Claims on
Re-insurance accepted
- - - - - - 25,801 478 65 - - - 16,097 - 1,815 44,256
Less: Claims on
Re-insurance ceded
(890,112) (7,430,285) (8,320,397) (5,277) (261) (7,909) (1,132,253) (3,477) (605,687) (11,474,843) (828,743) (3,032) (500,493) (12,732,280) (685,617) (36,300,269)
Net Claims paid 16,901,798 3,228,586 20,130,384 120,775 62 8,512 291,846 490 1,803,972 28,652,494 124,414 39,120 267,045 7,667,642 925,702 60,032,458
Add: Claims Outstanding at
the end of the year
3,972,752 68,944,729 72,917,481 280,784 15,834 14,174 653,322 50,832 2,242,603 5,215,719 632,820 126,071 1,270,182 11,725,992 1,169,481 96,315,295
Less: Claims Outstanding
at the beginning of the year
(3,138,341) (55,596,886) (58,735,227) (238,636) (13,592) (12,355) (531,924) (51,270) (2,220,481) (4,616,666) (510,034) (107,964) (697,761) (7,791,146) (961,074) (76,488,130)
Total Claims Incurred (Net) 17,736,209 16,576,429 34,312,638 162,923 2,304 10,331 413,244 52 1,826,094 29,251,547 247,200 57,227 839,466 11,602,488 1,134,109 79,859,623
** Miscellaneous Claims Incurred (Net) Breakup for the year ended March 31, 2023
( ` ‘000)
Particulars
Miscellaneous
Motor Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others
Total
MiscellaneousMotor-OD Motor-TP Motor Total Other Liability Home Specialty Weather/Crop Others
Claims paid direct 14,025,197 7,689,289 21,714,486 93,824 10 - 886,685 4,218 2,060,621 36,202,174 152,892 31,677 905,870 18,060,008 1,045,105 81,157,570
Add: Claims on
Re-insurance accepted
- - - - - - 22,392 1,669 1,060 - - - - - 169 25,290
Less: Claims on
Re-insurance ceded
(643,000) (5,846,202) (6,489,202) (4,556) (5) - (609,483) (1,459) (528,113) (9,728,020) (76,501) (1,519) (672,270) (12,564,391) (251,575) (30,927,094)
Net Claims paid 13,382,197 1,843,087 15,225,284 89,268 5 - 299,594 4,428 1,533,568 26,474,154 76,391 30,158 233,600 5,495,617 793,699 50,255,766
Add: Claims Outstanding at
the end of the year
3,138,341 55,596,886 58,735,227 238,636 13,592 12,355 531,924 51,270 2,220,481 4,616,666 510,034 107,964 697,761 7,791,146 961,074 76,488,130
Less: Claims Outstanding
at the beginning of the year
(3,162,589) (47,990,177) (51,152,766) (218,805) (12,317) (12,226) (455,380) (70,789) (2,449,020) (5,090,343) (315,267) (58,274) (449,517) (5,151,939) (842,127) (66,278,769)
Total Claims Incurred (Net) 13,357,949 9,449,796 22,807,745 109,099 1,280 129 376,138 (15,091) 1,305,029 26,000,477 271,158 79,848 481,844 8,134,824 912,646 60,465,127
97
SCHEDULE - 3
COMMISSION (NET)
( ` ‘000)
Particulars
For the year ended March 31, 2024 For the year ended March 31, 2023
Fire Marine
* Miscellaneous Total Fire
Marine
** Miscellaneous Total
Marine
Cargo
Marine Hull Marine Total Marine
Cargo
Marine Hull Marine Total
Commission paid direct 2,074,211 229,431 668 230,099 24,100,596 26,404,906 1,730,505 260,509 2,266 262,775 12,929,812 14,923,092
Add: Commission paid on Re-insurance accepted 201,374 4,911 - 4,911 53,998 260,283 189,212 8,377 - 8,377 57,271 254,860
Less: Commission received on Re-insurance ceded (3,211,532) (27,560) (4,656) (32,216) (14,268,381) (17,512,129) (3,873,785) (26,846) (7,264) (34,110) (13,655,239) (17,563,134)
Net commission paid/(received) (935,947) 206,782 (3,988) 202,794 9,886,213 9,153,060 (1,954,068) 242,040 (4,998) 237,042 (668,156) (2,385,182)
* Miscellaneous Commission Breakup for the year ended March 31, 2024
( ` ‘000)
Particulars
Miscellaneous
Motor
Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation
Personal
Accident
Health
Insurance
Others
Total
Miscellaneous
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty
Weather/
Crop
Others
Commission paid direct 7,815,274 4,391,812 12,207,086 49,696 4,077 410 331,592 10,268 1,007,208 9,067,185 177,528 145,938 605,912 65,704 427,992 24,100,596
Add: Commission paid on
Re-insurance accepted
- - - - 81 - 12,554 - - - 14,656 - 26,643 - 64 53,998
Less: Commission received on
Re-insurance ceded
(199,991) (3,286,324) (3,486,315) (7,400) (3,887) (454) (504,614) (15,426) (999,353) (6,726,793) (169,547) (7,145) (761,713) (1,373,293) (212,441) (14,268,381)
Net commission paid/(received) 7,615,283 1,105,488 8,720,771 42,296 271 (44) (160,468) (5,158) 7,855 2,340,392 22,637 138,793 (129,158) (1,307,589) 215,615 9,886,213
** Miscellaneous Commission Breakup for the year ended March 31, 2023
( ` ‘000)
Particulars
Miscellaneous
Motor
Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation
Personal
Accident
Health
Insurance
Others
Total
Miscellaneous
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty
Weather/
Crop
Others
Commission paid direct 3,663,420 482,720 4,146,140 28,846 2,610 262 204,533 6,895 809,302 6,884,340 131,152 73,639 519,485 43,402 79,206 12,929,812
Add: Commission paid on
Re-insurance accepted
- - - - 239 - 9,717 - - - 2,744 - 44,556 - 15 57,271
Less: Commission received on
Re-insurance ceded
(125,412) (2,060,197) (2,185,609) (5,491) (3,517) (270) (377,764) (12,563) (1,340,304) (6,130,526) (131,404) (3,676) (755,598) (2,543,037) (165,480) (13,655,239)
Net commission paid/(received) 3,538,008 (1,577,477) 1,960,531 23,355 (668) (8) (163,514) (5,668) (531,002) 753,814 2,492 69,963 (191,557) (2,499,635) (86,259) (668,156)
SCHEDULE - 3 A
COMMISSION PAID DIRECT
( ` ‘000)
Particulars
For the year ended March 31, 2024 For the year ended March 31, 2023
Fire Marine Miscellaneous Total Fire Marine Miscellaneous Total
Agents 174,809 31,666 6,149,970 6,356,445 70,757 38,441 5,017,983 5,127,181
Brokers 1,317,754 195,406 10,605,633 12,118,793 1,342,064 221,637 4,599,970 6,163,671
Corporate Agency 581,339 2,994 5,106,870 5,691,203 317,494 2,623 2,767,953 3,088,070
Referral - - - - — — — —
Others: Web aggregator, CSC, IMF, MISP and POSP 309 33 2,238,123 2,238,465 190 74 543,906 544,170
Total 2,074,211 230,099 24,100,596 26,404,906 1,730,505 262,775 12,929,812 14,923,092
Schedules
Annexed to and forming part of the Revenue Accounts
98
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Schedules
Annexed to and forming part of the Revenue Accounts
SCHEDULE - 4
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
( ` ‘000)
Particulars
For the year ended March 31, 2024 For the year ended March 31, 2023
Fire
Marine
* Miscellaneous Total Fire
Marine
** Miscellaneous Total
Marine Cargo Marine Hull Marine Total Marine Cargo Marine Hull Marine Total
Employees’ remuneration and welfare benets (Refer note
11 of Schedule 16)
827,983 124,475 7,747 132,222 8,713,316 9,673,521 974,678 107,156 10,203 117,359 7,622,276 8,714,313
Travel, conveyance and vehicle running expenses 32,197 4,144 316 4,460 342,293 378,950 54,598 6,002 572 6,574 426,971 488,143
Training expenses 6,172 501 42 543 84,062 90,777 25,097 2,759 263 3,022 196,266 224,385
Rents, rates and taxes 46,419 6,226 344 6,570 493,184 546,173 66,150 7,273 693 7,966 517,312 591,428
Repairs 19,494 2,271 120 2,391 227,365 249,250 27,564 3,030 289 3,319 215,563 246,446
Printing and stationery 19,787 1,050 23 1,073 155,190 176,050 27,226 2,994 286 3,280 212,917 243,423
Communication 5,731 428 16 444 99,907 106,082 10,737 1,180 112 1,292 83,969 95,998
Legal and professional charges 88,894 8,451 989 9,440 499,616 597,950 385,920 42,428 4,040 46,468 3,018,012 3,450,400
Auditors’ fees, expenses etc
(a) as auditors 1,344 117 11 128 11,225 12,697 839 92 9 101 6,560 7,500
(b) as advisor or in any other capacity, in respect of:
(i) Taxation matters — — — — — — — — — — — —
(ii) Insurance matters — — — — — — — — — — — —
(iii) Management services — — — — — — — — — — — —
(c) in any other capacity (Refer Note 31 of Schedule 16) 573 50 5 55 4,784 5,412 411 45 4 49 3,216 3,676
Advertisement and publicity 63,994 3,284 95 3,379 1,488,430 1,555,803 735,463 80,857 7,700 88,557 5,751,544 6,575,564
Interest and bank charges 19,898 1,342 90 1,432 545,553 566,883 30,725 3,378 322 3,700 385,661 420,086
Others:
Electricity expenses 11,914 1,167 85 1,252 109,163 122,329 11,456 1,259 120 1,379 89,592 102,427
Ofce expenses 2,297 140 3 143 28,238 30,678 2,097 231 22 253 16,401 18,751
Miscellaneous expenses 8,770 756 67 823 108,191 117,784 30,542 3,358 320 3,678 238,844 273,064
Information Technology expenses 125,079 10,940 1,026 11,966 1,037,505 1,174,550 99,607 10,951 1,043 11,994 778,955 890,556
Postage and courier 15,660 743 4 747 86,514 102,921 10,383 1,141 109 1,250 81,195 92,828
Loss/(Prot) on sale of assets (net) (166) (14) (1) (15) (1,496) (1,677) 666 73 7 80 5,209 5,955
Depreciation 90,808 8,408 740 9,148 747,145 847,101 75,808 8,334 794 9,128 592,841 677,777
Total Operating Expenses 1,386,848 174,479 11,722 186,201 14,780,185 16,353,234 2,569,967 282,541 26,908 309,449 20,243,304 23,122,720
99
Schedules
Annexed to and forming part of the Revenue Accounts
SCHEDULE - 4 (Continued)
* Miscellaneous Operating expenses related to Insurance business Breakup for the year ended March 31, 2024
( ` ‘000)
Particulars
Miscellaneous
Motor Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others Total
Miscellaneous
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty Weather/
Crop
Others
Employees’ remuneration and welfare
benets (Refer note 11 of Schedule 16)
1,840,429 1,776,724 3,617,153 13,410 2,706 202 106,408 8,136 347,476 3,606,347 34,432 43,566 248,439 532,305 152,736 8,713,316
Travel, conveyance and vehicle running
expenses
75,153 72,839 147,992 488 71 7 4,036 346 10,698 122,601 1,529 1,825 10,288 35,900 6,512 342,293
Training expenses 22,600 12,599 35,199 98 14 1 760 50 2,906 32,741 347 361 1,538 8,687 1,360 84,062
Rents, rates and taxes 94,165 92,770 186,935 680 151 9 6,262 394 18,237 186,805 2,304 2,419 11,530 68,074 9,384 493,184
Repairs 47,137 47,132 94,269 314 86 5 2,307 134 9,467 94,215 825 1,222 4,685 15,805 4,031 227,365
Printing and stationery 23,135 27,128 50,263 329 301 7 1,388 28 12,871 52,446 591 563 1,625 32,815 1,963 155,190
Communication 23,298 21,072 44,370 123 30 2 489 18 4,195 44,788 173 577 1,228 2,449 1,465 99,907
Legal and professional charges 60,199 47,454 107,653 1,130 194 6 12,534 1,172 23,611 216,256 6,312 1,255 22,842 93,030 13,621 499,616
Auditors’ fees, expenses etc
(a) as auditors 1,777 1,787 3,564 18 3 — 180 13 380 4,036 85 51 338 2,299 258 11,225
(b) as advisor or in any other capacity,
in respect of:
(i) Taxation matters — — — — — — — — — — — — — — — —
(ii) Insurance matters — — — — — — — — — — — — — — — —
(iii) Management services — — — — — — — — — — — — — — — —
(c) in any other capacity
(Refer Note 31 of Schedule 16)
757 761 1,518 8 1 — 77 6 162 1,720 36 22 144 980 110 4,784
Advertisement and publicity 289,437 291,203 580,640 1,509 161 23 5,116 114 47,680 596,183 1,903 8,455 15,209 210,972 20,465 1,488,430
Interest and bank charges 60,770 61,144 121,914 378 47 5 2,084 109 10,537 126,985 900 1,771 4,863 270,758 5,202 545,553
Others:
Electricity expenses 19,663 19,624 39,287 174 46 5 1,490 101 4,442 42,016 643 536 2,816 15,349 2,258 109,163
Ofce expenses 3,451 9,068 12,519 40 35 1 165 4 1,105 8,764 68 63 192 5,059 223 28,238
Miscellaneous expenses 18,523 21,027 39,550 113 19 1 1,115 68 3,184 34,267 441 378 2,127 25,365 1,563 108,191
Information Technology expenses 163,215 164,180 327,395 1,698 267 16 16,824 1,238 35,112 371,599 7,963 4,716 31,887 214,772 24,018 1,037,505
Postage and courier 13,739 22,956 36,695 258 275 6 968 7 10,656 32,771 414 309 807 2,206 1,142 86,514
Loss/(Prot) on sale of assets (net) (240) (241) (481) (2) — — (22) (2) (50) (536) (10) (7) (42) (311) (33) (1,496)
Depreciation 118,896 119,378 238,274 1,212 195 12
12,348 879 25,674 270,681 5,641 3,391 23,440 148,201 17,197 747,145
Total Operating Expenses 2,876,104 2,808,605 5,684,709 21,978 4,602 308 174,529 12,815 568,343 5,844,685 64,597 71,473 383,956 1,684,715 263,476 14,780,185
100
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Schedules
Annexed to and forming part of the Revenue Accounts
SCHEDULE - 4 (Continued)
** Miscellaneous Operating expenses related to Insurance business Breakup for the year ended March 31, 2023
( ` ‘000)
Particulars
Miscellaneous
Motor Workmen’s
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others Total
Miscellaneous
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty Weather/
Crop
Others
Employees’ remuneration and welfare
benets (Refer note 11 of Schedule 16)
1,080,128 1,320,566 2,400,694 11,002 1,830 100 106,097 9,537 308,171 2,646,665 50,372 25,589 231,850 1,734,429 95,938 7,622,276
Travel, conveyance and vehicle running
expenses
60,505 73,973 134,478 616 103 6 5,943 534 17,263 148,256 2,822 1,433 12,987 97,156 5,374 426,971
Training expenses 27,812 34,003 61,815 284 47 3 2,732 246 7,935 68,148 1,297 659 5,970 44,660 2,470 196,266
Rents, rates and taxes 73,307 89,625 162,932 747 124 7 7,200 647 20,915 179,625 3,419 1,737 15,735 117,713 6,511 517,312
Repairs 30,547 37,346 67,893 311 52 3 3,000 270 8,715 74,849 1,425 724 6,557 49,051 2,713 215,563
Printing and stationery 30,172 36,888 67,060 307 51 3 2,964 266 8,608 73,931 1,407 715 6,476 48,449 2,680 212,917
Communication 11,899 14,548 26,447 121 20 1 1,169 105 3,395 29,156 555 282 2,554 19,107 1,057 83,969
Legal and professional charges 427,673 522,872 950,545 4,356 725 40 42,009 3,777 122,019 1,047,937 19,945 10,132 91,800 686,741 37,986 3,018,012
Auditors’ fees, expenses etc
(a) as auditors 930 1,137 2,067 9 2 — 91 8 265 2,278 43 22 200 1,493 82 6,560
(b) as advisor or in any other capacity,
in respect of:
(i) Taxation matters — — — — — — — — — — — — — — — —
(ii) Insurance matters — — — — — — — — — — — — — — — —
(iii) Management services — — — — — — — — — — — — — — — —
(c) in any other capacity (Refer Note 31
of Schedule 16)
456 557 1,012 5 1 — 45 4 130 1,116 21 11 98 732 40 3,216
Advertisement and publicity 815,032 996,459 1,811,491 8,302 1,381 76 80,058 7,198 232,537 1,997,095 38,009 19,310 174,947 1,308,748 72,392 5,751,544
Interest and bank charges 34,049 41,628 75,677 347 58 3 3,345 301 9,714 83,431 1,588 807 7,309 200,057 3,024 385,661
Others:
Electricity expenses 12,696 15,522 28,218 129 22 1 1,247 112 3,622 31,109 592 301 2,725 20,386 1,128 89,592
Ofce expenses 2,324 2,842 5,166 24 4 — 228 21 663 5,695 108 55 499 3,732 206 16,401
Miscellaneous expenses 33,846 41,380 75,226 345 57 3 3,325 299 9,657 82,933 1,578 802 7,265 54,348 3,006 238,844
Information Technology expenses 110,383 134,955 245,338 1,124 187 10 10,843 975 31,493 270,475 5,148 2,615 23,694 177,249 9,804 778,955
Postage and courier 11,506 14,067 25,573 117 19 1 1,130 102 3,283 28,193 537 273 2,470 18,475 1,022 81,195
Loss/(Prot) on sale of assets (net) 738 903 1,641 8 1 — 73 7 211 1,809 34 17 158 1,184 66 5,209
Depreciation 84,010 102,710 186,720 856 142 8 8,252
742 23,968 205,851 3,918 1,990 18,033 134,899 7,462 592,841
Total Operating Expenses 2,848,013 3,481,981 6,329,994 29,010 4,826 265 279,751 25,151 812,564 6,978,552 132,818 67,474 611,327 4,718,609 252,963 20,243,304
101
Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE – 5
SHARE CAPITAL
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
Authorised Capital
2000,000,000 Equity Shares of ` 10/- each
20,000,000 20,000,000
(Previous year: 2000,000,000 Equity Shares of ` 10/- each)
Issued Capital
714,968,264 Equity Shares of ` 10/- each
7,149,683 7,127,800
(Previous year: 712,780,035 Equity Shares of ` 10/- each)
Subscribed Capital
714,968,264 Equity Shares of ` 10/- each
7,149,683 7,127,800
(Previous year: 712,780,035 Equity Shares of ` 10/- each)
Called-up Capital
714,968,264 Equity Shares of ` 10/- each
7,149,683 7,127,800
(Previous year: 712,780,035 Equity Shares of ` 10/- each)
Less: Calls unpaid — —
Add: Equity Shares forfeited (Amount originally paid up) — —
Less: Preliminary Expenses — —
Expenses including commission or brokerage on underwriting or
subscription of shares
— —
Total
7,149,683 7,127,800
SCHEDULE – 5A
SHARE CAPITAL
PATTERN OF SHAREHOLDING
[As certied by the Management]
As at March 31, 2024 As at March 31, 2023
(Number of Shares) (% of Holding) (Number of Shares) (% of Holding)
Promoters:
Indian: HDFC Bank Limited
Indian: Housing Development Finance
Corporation Limited
360,912,647
-
50.48%
-
-
356,306,882
-
49.99%
Foreign: ERGO International AG 350,941,790 49.08% 349,204,344 48.99%
Others: Employees
3,113,827 0.44% 7,268,809 1.02%
Total
714,968,264 100.00% 712,780,035 100.00%
102
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Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE – 6
RESERVES AND SURPLUS
Particulars As at March 31, 2024
( ` ‘000)
As at March 31, 2023
( ` ‘000)
Capital Reserves — —
Capital Redemption Reserve — —
Reserve on Amalgamation 3,003,014 3,003,014
Share Premium
Balance Brought forward from Previous Year 14,165,941 14,165,941
Add: Addition during the period
472,291 14,638,232 — 14,165,941
General Reserves
Balance Brought forward from Previous Year — —
Less: Debit balance in Prot and Loss Account — —
Add: Transfer from Debenture Redemption Reserve
— — — —
Contingency Reserve for Unexpired Risk — —
Catastrophe Reserve — —
Other Reserves
Debenture Redemption Reserve (Refer Note 33 of
Schedule 16)
Balance Brought forward from Previous Year 356,468 356,468
Less: Transfer to General Reserves
— 356,468 — 356,468
Balance of Prot/(Loss) in Prot and Loss Account
Balance Brought forward from Previous Year 14,500,579 10,468,714
Add: Prot/(Loss) during the period 1,875,210 4,031,865
Less: Transfer to Debenture Redemption Reserve
— 16,375,789 — 14,500,579
Total
34,373,503 32,026,002
SCHEDULE – 7
BORROWINGS
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
Debentures/Bonds 10,750,000 8,290,000
(Refer note 33 of Schedule 16)
Banks — —
Financial Institutions — —
Others
— —
Total
10,750,000 8,290,000
103
Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE – 8
INVESTMENTS - SHAREHOLDERS (Refer note 2 (p) and 10 of schedule 16)
Particulars As at March 31, 2024
( ` ‘000)
As at March 31, 2023
( ` ‘000)
LONG TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 12,503,546 9,653,429
Other Approved Securities 19,312,345 15,806,977
Other Investments:
Shares
- Equity 98,165 369,009
- Preference — —
Mutual Funds — —
Derivative Instruments — —
Debentures/Bonds 32,526 346,943
Less : Provision for Diminution in value of Investments*
(32,526) — (346,943) —
Other Securities (Alternative Investment Fund) 16,837 10,401
Investments in Infrastructure and Housing
12,363,848 10,840,983
Sub-total (A)
44,294,741 36,680,799
SHORT TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 123,481 41,438
Other Approved Securities 2,992,181 3,491,544
Other Investments:
Shares
- Equity — —
- Preference — —
Mutual Funds — —
Derivative Instruments — —
Debentures/Bonds 2,064,940 1,914,599
Less : Provision for Diminution in value of Investments *
(2,064,940) — (1,867,378) 47,221
Other Securities (Alternative Investment Fund) 8,231 16,288
Subsidiaries — —
Investment Properties-Real Estate — —
Investments in Infrastructure and Housing
1,454,602 1,734,024
Sub-total (B)
4,578,495 5,330,515
Total (A+B)
48,873,236 42,011,314
Note:
a) Aggregate value of the investments other than Equity Shares and Mutual Fund
As at March 31, 2024
( ` ‘000)
As at March 31, 2023
( ` ‘000)
Long term investments - Book Value 39,399,396 32,611,466
Market Value 39,236,190 32,075,488
Short term investments - Book Value 4,560,592 5,128,566
Market Value 4,544,397 5,106,162
b) Investments made outside India - -
c) Investments in subsidiary/holding Company 1,951,662 1,681,110
d) Investments in Catastrophe reserve - -
* Refer note 10 of Schedule 16
104
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Annual Report
Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE – 8A
INVESTMENTS - POLICYHOLDERS (Refer note 2 (p) and 10 of schedule 16)
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
LONG TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 53,404,676 41,453,706
Other Approved Securities 82,486,161 67,878,239
Other Investments:
Shares
- Equity 419,279 1,584,597
- Preference — —
Mutual Funds — —
Derivative Instruments — —
Debentures/Bonds — —
Other Securities (Alternative Investment Fund) 71,913 44,662
Subsidiaries — —
Investment Properties-Real Estate — —
Investments in Infrastructure and Housing
52,808,003 46,553,295
Sub-total (A)
189,190,032 157,514,499
SHORT TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 527,408 177,941
Other Approved Securities 12,780,090 14,993,374
Other Investments:
Shares
- Equity — —
- Preference — —
Mutual Funds — —
Derivative Instruments — —
Debentures/Bonds — 202,778
Other Securities (Alternative Investment Fund) 35,155 69,943
Subsidiaries — —
Investment Properties-Real Estate — —
Investments in Infrastructure and Housing
6,212,840 7,446,237
Sub-total (B)
19,555,493 22,890,273
Total (A+B)
208,745,525 180,404,772
Note:
a) Aggregate value of the investments other than Equity Shares and Mutual Fund
As at March 31, 2024
( ` ‘000)
As at March 31, 2023
( ` ‘000)
Long term investments - Book Value 168,281,216 140,039,991
Market Value 167,584,139 137,738,397
Short term investments - Book Value 19,479,029 22,023,062
Market Value 19,409,858 21,926,855
b) Investments made outside India - -
c) Investments in subsidiary/holding Company 8,335,867 7,219,016
d) Investments in Catastrophe reserve - -
105
Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE - 9
LOANS
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
SECURITY-WISE CLASSIFICATION
Secured
(a) On mortgage of property
(aa) In India — —
(bb) Outside India — —
(b) On Shares, Bonds, Government Securities — —
(c) Others — —
Unsecured
— —
Total
— —
BORROWER-WISE CLASSIFICATION
(a) Central and State Governments — —
(b) Banks and Financial Institutions — —
(c) Subsidiaries — —
(d) Industrial Undertakings — —
(e) Others
— —
Total
— —
PERFORMANCE-WISE CLASSIFICATION
(a) Loans classied as standard
(aa) In India — —
(bb) Outside India — —
(b) Non-performing loans less provisions
(aa) In India — —
(bb) Outside India
— —
Total
— —
MATURITY-WISE CLASSIFICATION
(a) Short-Term — —
(b) Long-Term
— —
Total
— —
Total
— —
106
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Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE – 10
FIXED ASSETS
( ` ‘000)
Particulars
Cost/Gross Block Depreciation/Amortisation Net Block
Opening Additions Deductions Closing Upto last year For the period On Sales/
Adjustments
To Date As at March 31,
2024
Goodwill — — — — — — — — —
— — — — — — — — —
Intangibles - Computer Software 3,180,820 862,837 11,820 4,031,837 2,447,522 398,738 11,821 2,834,439 1,197,398
(2,867,205) (317,655) (4,040) (3,180,820) (2,151,364) (299,209) (3,051) (2,447,522) (733,298)
Land-Freehold — — — — — — — — —
— — — — — — — — —
Leasehold Property 202,426 72,162 20,311 254,277 156,001 11,219 20,159 147,061 107,216
(157,681) (49,434) (4,689) (202,426) (154,168) (6,522) (4,689) (156,001) (46,425)
Building 1,516,086 — — 1,516,086 209,946 25,192 — 235,138 1,280,948
(1,516,086) — — (1,516,086) (184,754) (25,192) — (209,946) (1,306,140)
Furniture and Fittings 388,632 130,308 17,536 501,404 234,746 42,229 14,689 262,286 239,118
(434,601) (34,729) (80,698) (388,632) (265,516) (37,133) (67,903) (234,746) (153,886)
Information Technology Equipment 1,592,978 270,797 78,469 1,785,306 1,021,829 254,354 77,293 1,198,890 586,416
(1,460,994) (386,759) (254,775) (1,592,978) (1,045,400) (227,911) (2,51,482) (1,021,829) (571,149)
Vehicles 311,693 163,849 65,142 410,400 106,570 73,195 49,657 130,108 280,292
(256,040) (145,113) (89,460) (311,693) (137,375) (48,667) (79,472) (106,570) (205,123)
Ofce Equipment 350,373 91,550 24,421 417,502 265,091 42,179 23,371 283,899 133,603
(370,971) (39,750) (60,348) (350,373) (290,501) (33,143) (58,553) (265,091) (85,282)
Total 7,543,008 1,591,503 217,699 8,916,812 4,441,705 847,106 196,990 5,091,821 3,824,991
(7,063,578) (973,440) (494,011) (7,543,008) (4,229,078) (677,777) (465,150) (4,441,705) (3,101,303)
Capital Work-in-progress 539,684 1,277,529 1,126,874 690,339 — — — — 690,339
(158,462) (690,833) (309,611) (539,684) — — — — (539,684)
Grand Total 8,082,692 2,869,032 1,344,573 9,607,151 4,441,705 847,106 196,990 5,091,821 4,515,330
(7,222,040) (1,664,273) (803,621) (8,082,692) (4,229,078) (677,777) (465,150) (4,441,705) (3,640,987)
(Figures in bracket pertains to Previous year)
107
Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE - 11
CASH AND BANK BALANCES
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
Cash (including cheques, drafts and stamps) 238,523 450,274
Bank Balances
(a) Deposit Accounts — —
(aa) Short-term (due within 12 months) 25,445 86,274
(bb) Others 14,076 2,500
(b) Current Accounts 2,607,909 2,613,783
(c) Others — —
Money at Call and Short Notice
(a) With Banks — —
(b) With Other Institutions — —
Others
— —
Total
2,885,953 3,152,831
SCHEDULE - 12
ADVANCES AND OTHER ASSETS
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
ADVANCES
Reserve deposits with ceding companies — —
Application money for investments — —
Prepayments 585,862 410,803
Advance to Directors/Ofcers — —
Advance tax paid and taxes deducted at source
(Net of provision for taxation)
1,021,961 295,569
Others:
Advances to employees 3,171 25,091
Advances to suppliers 1,175,049 850,663
Less : Provisions for doubtful debts
(229,110) 945,939 (229,110) 621,553
Goods and Service tax Unutilised Credit
--- 23,877
Sub-total (A)
2,556,933 1,376,893
108
17
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Annual Report
Schedules
Annexed to and forming part of the Balance Sheet
SCHEDULE - 12
ADVANCES AND OTHER ASSETS (Continued)
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
OTHER ASSETS
Income accrued on investments 5,494,050 4,719,153
Outstanding Premiums 14,711,711 13,223,805
Less : Provisions for doubtful debts
(21,633) 14,690,078 (315) 13,223,490
Agents’ Balances 42,039 4,744
Due from other entities carrying on insurance
business (including reinsurers)
1,619,588 1,220,616
Due from subsidiaries/holding Company — —
Foreign Agencies’ balances — —
Others:
Deposits for premises 147,856 137,904
Stock of Salvaged Cars 279 329
Unclaimed amount of Policyholders Investment 130,122 189,071
Interest Income on Unclaimed amount of
Policyholders Investment
50,123 48,583
Sub-total (B)
22,174,135 19,543,890
Total (A+B)
24,731,068 20,920,783
SCHEDULE - 13
CURRENT LIABILITIES
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
Agents’ Balances 1,962,448 732,829
Balances due to other insurance companies 41,428,002 42,563,217
Deposits held on re-insurance ceded — —
Premiums received in advance 9,574,660 9,662,841
Unallocated Premium 8,466,473 6,870,286
Unclaimed amount of Policyholders (Refer note 28 of Schedule 16) 200,474 285,513
Interest on Unclaimed amount of Policyholders (Refer note 28 of Schedule 16) 50,123 48,583
Sundry creditors 6,557,044 6,030,965
109
Schedules
Annexed to and forming part of the Balance Sheet
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
Due to subsidiaries/holding company 52,333 —
Claims Outstanding 102,690,482 81,423,682
Due to Ofcers/Directors 12,600 6,219
Others:
Goods and Service tax Unutilised Credit 108,370 -
Tax deducted at source 646,685 778,415
Other statutory dues 63,378 56,835
Interest payable on debentures
294,638 233,458
Total
172,107,710 148,692,843
SCHEDULE - 14
PROVISIONS
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
Reserve for Unexpired Risk 62,644,978 53,994,757
For taxation (less advance tax paid and taxes deducted at source) 79,092 1,33,538
For proposed dividends _ —
Others:
Provision for Employee benets
98,766 81,683
Total
62,822,836 54,209,978
SCHEDULE - 15
MISCELLANEOUS EXPENDITURE
(To the extent not written off or adjusted)
Particulars As at
March 31, 2024
( ` ‘000)
As at
March 31, 2023
( ` ‘000)
Discount Allowed in issue of shares/debentures — —
Others
— —
Total
— —
SCHEDULE - 13
CURRENT LIABILITIES (Continued)
110
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Annual Report
SCHEDULE16
1. Background
HDFC ERGO General Insurance Company Limited (“the
Company”) was incorporated on December 27, 2007 as
a Company under the Companies Act, 1956.
The Company is registered with the Insurance
Regulatory and Development Authority of India (“IRDAI”)
and continues to be in the business of underwriting
general insurance policies and has launched general
insurance products which include Motor, Home,
Accident & Health, Commercial, Specialty and Weather/
Crop business lines.
The Company’s Unsecured, Subordinated, Fully Paid-
up, Listed, Redeemable Non-Convertible Debentures
(NCDs) are listed on the Bombay Stock Exchange (BSE).
The Company’s certificate of renewal of registration
dated February 25, 2014 was valid till March 31, 2015.
Pursuant to Section 3 read with Section 3A of the
Insurance Act, 1938 as amended by the Insurance
Laws (Amendment) Act, 2015, the said certificate shall
consequentially continue to be in force from April 1,
2015 onwards.
2. Significant accounting policies
(a) Basis of preparation
These financial statements have been prepared
under the historical cost convention, on an accrual
basis and in accordance with the applicable
provisions of the Insurance Regulatory and
Development Authority (Preparation of Financial
Statements and Auditor’s Report of Insurance
Companies) Regulations, 2002, the Insurance
Act, 1938, as amended by Insurance Laws
(Amendment) Act, 2015, the Insurance Regulatory
and Development Authority Act, 1999, circulars/
notifications and guidelines issued by IRDAI from
time to time, the Accounting Standards (AS) specified
under Section 133 of the Companies Act, 2013,
read together with Rule 7 of Companies (Accounts)
Rule 2014 dated March 31, 2014 and Companies
(Accounting Standards) Amendment Rules 2016
dated March 30, 2016 to the extent applicable
and the relevant provisions of the Companies Act,
2013 and current practices prevailing within the
insurance industry in India. The financial statements
are presented in Indian rupees rounded o to the
nearest thousand.
Accounting policies applied have been consistent
with previous year except where dierent treatment
is required as per new pronouncements made
by the regulatory authorities. The management
evaluates, all recently issued or revised accounting
pronouncements, on an ongoing basis.
(b) Use of estimates
The preparation of the financial statements in
conformity with accounting principles generally
accepted in India requires the management to make
judgements, estimates and assumptions that aect
the reported amount of assets and liabilities as of the
Balance Sheet date, reported amount of revenues and
expenses for the year and disclosures of contingent
liabilities as of the Balance Sheet date. The estimates
and assumptions used in the accompanying
financial statements are based upon management’s
evaluation of the relevant facts and circumstances as
of the date of the financial statements. Actual results
could dier from these estimates. Any revision to
accounting estimates is recognized prospectively in
current and future periods.
(c) Revenue Recognition
Premium Income
Premium including Reinsurance accepted (net of
Goods & Service Tax) is recognized as income over
the contract period or period of risk, as appropriate,
after adjusting for unearned premium (unexpired
risk). Any subsequent revisions to or cancellations
of premiums are accounted for in the period in
which they occur. Instalment cases are recorded
on instalment due dates. Premium received in
advance represents premium received prior to
commencement of the risk. In case of Long Term
Motor Insurance Policies, premium is recognized
on a yearly basis as mandated by IRDAI circular
number IRDAI/NL/CIR/MOT/137/08/2018 dated
August 28, 2018.
Notes to accounts
111
Schedule-16 (Continued)
Notes To Accounts
Income earned on investments
Interest income on investments is recognised
on an accrual basis. Accretion of discount and
amortisation of premium relating to debt securities
is recognised over the holding/maturity period on a
constant yield to maturity basis.
Dividend income is recognised when the right to
receive dividend is established.
The net realised gains or losses on the debt
securities are the dierence between the net sale
consideration and the amortised cost, which is
computed on a weighted average basis, as on the
date of sale. In case of listed equity shares/mutual
fund units, the profit or loss on sale of investment
includes the accumulated changes in the fair value
previously recognised under “Fair Value Change
Account”. The dierence between the acquisition
price and the maturity value of treasury bills is
recognised as income in the revenue accounts or
the profit and loss account, as the case may be,
over the remaining term of these instruments on a
yield to maturity basis.
Sale consideration for the purpose of realised
gain/loss is net of brokerage and taxes, if any, and
excludes interest received on sale.
(d) Reinsurance ceded
Reinsurance premium ceded is accounted in
the year in which the risk commences and over
the period of risk in accordance with the treaty
arrangements with the reinsurers. Reinsurance
premium ceded on unearned premium is carried
forward to the period of risk and is set o against
related unearned premium. Any subsequent
revisions to or cancellations of premiums are
accounted for in the year in which they occur.
Premium on excess of loss reinsurance cover is accounted
as per the terms of the reinsurance arrangements.
(e) Commission received
Commission on reinsurance ceded is recognised as
income on ceding of reinsurance premium.
Profit commission under reinsurance treaties,
wherever applicable, is recognised in the year of
final determination of the profits and as intimated
by the Reinsurer.
(f) Reserve for Unexpired Risk
Reserve for unexpired risk represents that part of
the net premium written which is attributable to
and allocated to the succeeding accounting period.
In terms of IRDAI Circular No. IRDA/F&A/CIR/
CPM/056/03/2016 dated April 4, 2016, as amended,
Reserve for unexpired risk is calculated on the basis
of 1/365th method in all segments subject to a
minimum of 100% in case of Marine Hull business.
(g) Premium deficiency
Premium deficiency is recognised for the Company
as a whole on an annual basis. Premium deficiency
is recognised if the sum of the expected claim costs,
related expenses and maintenance cost (related to
claims handling) exceeds related reserve for unexpired
risk. The expected claim costs are calculated and duly
certified by the Appointed Actuary.
(h) Claims incurred
Claims incurred comprises of claims paid (net of
salvage and other recoveries), change in estimated
liability for outstanding claims made following a loss
occurrence reported, change in estimated liability
for claims incurred but not reported (IBNR) and
claims incurred but not enough reported (IBNER)
and specific settlement costs comprising survey,
legal and other directly attributable expenses.
Provision is made for estimated value of outstanding
claims at the Balance Sheet date net of reinsurance,
salvage and other recoveries. Such provision is
made on the basis of the ultimate amounts that
are likely to be paid on each claim, established by
the management in light of past experience and
progressively modified for changes as appropriate,
on availability of further information and include
claim settlement costs likely to be incurred to settle
outstanding claims.
Claims (net of amounts receivable from reinsurers/
coinsurers) are recognised on the date of intimation
based on estimates from surveyors/insured in the
respective revenue accounts.
The estimated liability for claims incurred but not
112
17
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Annual Report
Schedule-16 (Continued)
Notes To Accounts
reported (IBNR) and claims incurred but not enough
reported (IBNER) has been estimated by the
Appointed Actuary in compliance with guidelines
issued by IRDAI vide circular No. 11/IRDA/ACTL/
IBNR/2005-06 dated June 8, 2005 and applicable
provisions of Guidance Note 21 issued by the
Institute of Actuaries of India. The Appointed Actuary
has used generally accepted actuarial methods for
each product category as considered appropriate
depending upon the availability of past data as well
as appropriateness of the dierent methods to the
dierent lines of businesses. The above elements
of estimates of liability for claims are periodically
reviewed by the Appointed Actuary and adjusted
based on recent experience and emerging trends.
(i) Salvage Recoveries
Salvaged vehicles are recognised at net realizable
value and are deducted from the claim settlement
made against the same. Salvaged vehicles on hand
are treated as stock-in-trade and are recognised
at estimated net realizable value based on
independent valuer’s report.
(j) Acquisition Costs
Acquisition costs are defined as costs that vary with,
and are primarily related to the acquisition of new
and renewal insurance contracts viz. commission.
These costs are expensed in the period in which they
are incurred. In accordance with the requirements
of the Circular no. IRDA/INT/CIR/Comm/139/08/2018
dated August 29, 2018, Commission, remuneration,
reward and distribution fees for new Long Term
Private Car and Two-wheeler motor policies at the
prescribed rates is accounted in the year in which
the corresponding premium is recognised.
(k) Borrowing Costs
Borrowing costs are charged to the Profit and Loss
account in the period in which they are incurred.
(l) Fixed Assets and Depreciation
Fixed assets (property, plant and equipment) are
stated at cost of acquisition (including incidental
expenses relating to acquisition and installation
of assets), net of trade discounts and rebates,
import duties and other taxes (other than those
subsequently recoverable from the tax authorities)
and expenses directly attributable to bringing the
asset to its working condition for its intended use,
less accumulated depreciation and impairment of
assets, if any. Subsequent expenditure incurred
on tangible assets is expensed out except where
such expenditure results in an increase in future
benefits from the existing assets beyond the
previously assessed standard of performance.
Salvaged vehicles, transferred and registered in
the name of the Company are stated at fair market
value determined based on the independent
valuer’s report as on the date of capitalization less
accumulated depreciation.
The gain or loss arising from the derecognition
of fixed assets is determined to be the dierence
between the net disposal proceeds (if any) and the
carrying amount of the asset.
Capital work-in-progress includes assets not
ready for the intended use and are carried at
cost, comprising direct cost and related incidental
expenses.
Depreciable amount for assets is the cost of an
asset or other amount substituted for cost, less its
estimated residual value.
Depreciation on tangible fixed assets has been
provided on the straight-line method as per
the useful life prescribed in Schedule II to the
Companies Act, 2013, except in respect of the
following categories of assets, in whose case the
life of the assets has been assessed as under, based
on technical advice, taking into account the nature
of the asset, the estimated usage of the asset, the
operating conditions of the asset, past history of
replacement, etc.
• Information Technology Equipment - 4 years
• Vehicles - 5 years
• Salvaged Vehicles Capitalised - 5 years
The Company provides pro rata depreciation from/
to the day on which the asset is acquired or put to
use/disposed o as appropriate.
Leasehold Property is depreciated over the duration
of lease.
Intangible assets are amortised over their estimated
useful life on straight line method as follows:
• Computer Softwares - 4 years
113
The estimated useful life of the intangible assets
and the amortisation period are reviewed at the end
of each financial year and the amortisation period is
revised to reflect the changed pattern, if any.
Impairment of assets
The carrying values of assets forming part of any
cash generating units at Balance Sheet date are
reviewed for impairment at each balance sheet
date. If any indication for such impairment exists, the
recoverable amounts of those assets are estimated
and impairment loss is recognised, if the carrying
amount of those assets exceeds their recoverable
amount. The recoverable amount is the greater of
the net selling price and their value in use. Value
in use is arrived at by discounting the estimated
future cash flows to their present value based
on appropriate discount factor. If at the Balance
Sheet date there is any indication that a previously
assessed impairment loss no longer exists, then
such loss is reversed and the asset is restated to
that extent.
(m) Finance Leases
Finance leases, which eectively transfer
substantially all the risks and benefits incidental to
ownership of the leased item to the Company, are
capitalised at the lower of the fair value of the asset
and present value of the minimum lease payments
at the inception of the lease term and are disclosed
as leased assets. Lease payments are apportioned
between the finance charges and the corresponding
liability so as to achieve a constant rate of interest on
the remaining balance of the liability. Finance charges
are charged to the Revenue Accounts. Leased assets
capitalised under finance lease are depreciated on a
straight line basis over the lease term.
(n) Operating Leases
Leases where the lessor eectively retains
substantially all the risks and benefits of ownership
of the leased asset are classified as operating
leases. Operating lease payments are recognised
as an expense on straight line basis in the revenue
accounts, as per the lease terms.
(o) Foreign Currency Transactions
Transactions denominated in foreign currencies are
recorded at the exchange rates prevailing on the
date of the transaction.
At the Balance Sheet date, monetary items
denominated in foreign currencies are converted
into rupee equivalents at the exchange rates
prevailing at that date.
All exchange dierences arising on settlement/
conversion of foreign currency transactions are
included in the Revenue Accounts.
(p) Investments
Investments are made, accounted and classified
in accordance with the Insurance Act, 1938, as
amended by Insurance Laws (Amendment) Act,
2015, the Insurance Regulatory and Development
Authority (Investment) Regulations, 2000, Insurance
Regulatory and Development Authority of India
(Investment) Regulations, 2016 as amended and
various other circulars/notifications issued by the
IRDAI in this context from time to time.
Investments are recorded at cost on trade date,
which include brokerage, taxes, if any, stamp duty
and excludes broken period interest.
Investments maturing within twelve months from the
Balance Sheet date and investments made with the
specific intention to be disposed o within twelve
months from the balance sheet date are classified as
short-term investments.
Investments other than short-term investments are
classified as long-term investments.
Pursuant to the provisions of IRDAI Circular No.
IRDA/F&A/CIR/CPM/056/03/2016 dated April 4, 2016
and IRDA/F&A/CIR/CPM/010/01/2017 dated January
12, 2017, the Investment made by the Company,
investment income and fair value change account
are bifurcated into Policyholders and Shareholders
funds on notional basis.
Policyholders fund shall be the sum of a) Outstanding
Claims including IBNR (Incurred but not reported)
& IBNER (Incurred but not enough reported),
b) Unexpired Risk Reserve (URR), c) Premium
deficiency, if any, d) Catastrophe Reserve, if any,
and e) Other liabilities net o Other assets. Other
liabilities comprise of Premium received in advance,
unallocated premium, Balance due to other
Insurance Companies, Due to others members of
Schedule-16 (Continued)
Notes To Accounts
114
17
th
Annual Report
Schedule-16 (Continued)
Notes To Accounts
the Motor third party pool and Due to Policyholders.
Other assets comprises of outstanding premium, Due
from other entities carrying on Insurance business
(including reinsurers), Balance with Terrorism Pool and
Balance with Motor third party pool, if any.
Shareholders’ funds comprises of share capital,
including reserves and surplus, less accumulated
losses, if any, preliminary expenses and miscellaneous
expenditure to the extent not written o or adjusted.
Schedule 8 denotes Investment made out of the
Shareholders fund and Schedule 8A denotes
Investments made out of the policyholders’ fund.
All debt securities excluding Additional Tier I Bonds and
non-convertible preference shares are considered as
‘held to maturity’ and accordingly stated at historical
cost subject to amortisation of premium or accretion
of discount on constant yield to maturity basis to the
extent of policyholders funds in the Revenue Accounts
and to the extent of shareholders’ funds in the Profit
and Loss Account over the period of maturity/holding.
All mutual fund investments are valued at net asset
value as at Balance Sheet date.
Equity shares actively traded and convertible
preference shares as at the Balance Sheet date are
stated at fair value, being the last quoted closing
price on the National Stock Exchange (NSE) being
selected as Primary exchange as required by IRDAI
Circular No. IRDA/F&I/INV/CIR/213/10/2013 dated
October 30, 2013. However, in case of any stock not
being listed on NSE, the same is valued based on the
last quoted closing price on Bombay Stock Exchange
(BSE). Investment in unlisted shares are stated at
historical cost.
Additional Tier I Bond Investments are fair valued
at market yield rates published by rating agency
registered with the Securities and Exchange Board of
India (SEBI).
In accordance with the Regulations, any unrealized
gains/losses arising due to change in fair value of
mutual fund investments, listed equity shares and
Additional Tier I Bonds are accounted in “Fair Value
Change Account” and carried forward in the Balance
Sheet and is not available for distribution.
The Company assesses, whether any impairment has
occurred on its investments at each Balance Sheet
date. If any such indication exists, then carrying value
of such investment is reduced to its recoverable
amount/market value on the Balance Sheet date and
the impairment loss is recognised in the Profit and
Loss Account. If at the Balance Sheet date there is
any indication that a previously assessed impairment
loss no longer exists then impairment loss, earlier
recognised in Profit and loss Account, is reversed in
Profit and loss account and the investment is restated
to that extent.
(q) Employee Benefits
(i) Short-term employee benefits
All employee benefits payable within twelve months
of rendering the service are classified as short term
employee benefits. Benefits such as salaries, bonuses,
short term compensated absences and other non-
monetary benefits are recognised in the period in
which the employee renders the related service.
All short term employee benefits are accounted on
undiscounted basis.
(ii) Long-term employee benefits
The Company has both defined contribution and
defined benefit plans, of which some have assets
in special funds or similar securities. The plans are
financed by the Company and in case of some
defined contribution plans, by the Company along
with its employees.
Defined contribution plans
These are plans in which the Company pays
predefined amounts to separate funds and does
not have any legal or informal obligation to pay
additional sums. These comprise of contributions to
the employees’ provident fund, family pension fund,
national pension scheme and superannuation fund.
The Company’s payments to the defined contribution
plans are reported as expenses during the period in
which the employees perform the services that the
payment covers.
Defined benefit plans
Expenses for defined benefit gratuity and
supplemental payment plans are calculated as at
the Balance Sheet date by independent actuaries
using projected unit credit method in a manner that
115
Schedule-16 (Continued)
Notes To Accounts
distributes expenses over the employee’s working
life. These commitments are valued at the present
value of expected future payments arrived at after
considering the funded status, with consideration
for calculated future salary increases, utilising a
discount rate corresponding to the interest rate
estimated by the actuary, having regard to the
interest rate on government bonds with a remaining
term that is almost equivalent to the average
balance working period of employees.
The Company recognises the net obligation of the
scheme in Balance Sheet as an asset or liability
in accordance with AS- 15 “Employee Benefits”.
The discount rate used for estimation of liability
is based on Government securities yield. Gain or
loss arising from change in actuarial assumptions/
experience adjustments is recognised in the
Revenue Accounts for the period in which they
emerge. Expected long term rate of return on
assets has been determined based on historical
experience and available market information.
(iii) Other long term employee benefits
Provision for other long term benefits includes
accumulated compensated absences that are
entitled to be carried forward for future encashment
or availment, at the option of the employer subject
to the rules framed by the Company which are
expected to be availed or encashed beyond
twelve months from the Balance Sheet date. The
Company’s liability towards these other long term
benefits are accrued and provided for on the basis
of an actuarial valuation using projected unit credit
method made at the end of the financial year.
(r) Taxation
Direct Tax
Income tax expense comprises current tax (i.e.
amount of tax payable on the taxable income for
the period determined in accordance with the
Income-tax Act, 1961), and deferred tax charge or
credit (reflecting the tax eects of timing dierences
between the accounting income and taxable income
for the period). Current tax is the amount expected
to be paid to the tax authorities after taking credit
for allowances and exemptions in accordance with
the Income-tax Act, 1961. The deferred tax charge or
credit and the corresponding deferred tax liabilities
or assets are recognised using the tax rates that
have been enacted or substantively enacted by the
Balance Sheet date.
Deferred tax assets are recognised only to the
extent there is reasonable certainty that the assets
can be realised in future. However, where there
is unabsorbed depreciation or carried forward
loss under taxation laws, deferred tax assets
are recognised only to the extent there is virtual
certainty backed by convincing evidence that
sucient future taxable income will be available
against which deferred tax assets can be realised.
Deferred tax assets are reviewed as at each Balance
Sheet date and written down or written up to reflect
the amount that is reasonably or virtually certain to
be realised.
Indirect Tax
The Goods and Service Tax (“GST”) is collected as per
the GST Laws in force and the same is considered as
a liability. The Input Tax Credit (ITC) eligible as per the
GST Laws is considered as an asset. The ineligible
ITC is examined and expensed out as per the GST
laws. The eligible unutilised ITC, if any, is carried
forward for utilisation in subsequent periods.
(s) (i) Terrorism Pool
In accordance with the requirements of IRDAI, the
Company, together with other insurance companies,
participates in the Terrorism Pool. This pool is
managed by the General Insurance Corporation
of India (“GIC”). Amounts collected as terrorism
premium in accordance with the requirements of
the Tari Advisory Committee (“TAC”) are ceded
at 100% of the terrorism premium collected to the
Terrorism Pool.
In accordance with the terms of the agreement, GIC
retrocedes, to the Company, terrorism premium
to the extent of the Company’s share in the risk,
which is recorded as reinsurance accepted.
Such reinsurance accepted is recorded based on
quarterly statements received from the GIC. The
reinsurance accepted on account of terrorism pool
has been recorded in accordance with the last
statement received from GIC.
The Company has ensured that it has created liability,
to the extent of premium retroceded to the Company,
through reserve for unexpired risks.
116
17
th
Annual Report
Schedule-16 (Continued)
Notes To Accounts
(ii) Marine Cargo Pool for Excluded Territories –
Russia, Ukraine, Belarus
The Company, together with other insurance
companies, has participated in the Marine Cargo
Pool for Excluded Territories – Russia, Ukraine,
Belarus (“MCPET”) for transactions accounted
on or after June 1, 2022. This pool is managed
by the General Insurance Corporation of India
(“GIC”). Amounts collected as MCPET premium in
accordance with the requirements of the MCPET
Agreement, are ceded at 96% to the MCPET Pool,
after utilising the obligatory cession.
In accordance with the terms of the Agreement, GIC
retrocedes, to the Company, retrocession premium to
the extent of the Company’s share in the risk, which is
recorded as reinsurance accepted. Such reinsurance
accepted is recorded based on quarterly statements
received from the GIC. The reinsurance accepted
on account of MCPET pool has been recorded in
accordance with the last statement received from GIC.
The Company has ensured that it has created liability,
to the extent of premium retroceded to the Company,
through reserve for unexpired risks
(t) Contributions to Solatium Fund
In accordance with the requirements of IRDAI Circular
dated March 18, 2003 and based on the decision
made by the General Insurance Council in its meeting
held on May 6, 2005, the Company provides for
contribution to Solatium Fund established by the
Central Government as a percentage of gross written
premium for all motor policies written during that year,
till the year ended March 31, 2010. Further, General
Insurance Council in its meeting held on April 1, 2010
recommended that the contribution should be a
percentage of gross written third party premiums.
(u) Transfer of amounts to Senior Citizen Welfare
Fund
In accordance with the requirement of the Notification
no. G.S.R 380(E), issued by the Ministry of Finance,
dated April 11, 2017 read with IRDAI Circular No.
IRDA/F&A/CIR/MISC/173/07/2017 dated July 25,
2017, as amended, the Company transfers amounts
outstanding for a period of more than 10 years in
Unclaimed Amount of Policyholders to the Senior
Citizen Welfare Fund (SCWF) on or before March 1st
of each financial year.
(v) Contribution to Environment Relief Fund.
In accordance with the notification no. G.S.R
768(E), issued by Ministry of Environment and
Forests, dated November 4, 2008, the Company
provides for contribution to the Environment Relief
Fund established by the Central Government, an
amount equal to the premium received in relation
to Public Liability policies issued by the Company,
as per the rules specified by Public Liability
Insurance Rules 1992.
(w) Segment Reporting
In case of General insurance business, based on
the primary segments identified under Insurance
Regulatory and Development Authority (Preparation
of Financial Statements and Auditor’s Report of
Insurance Companies) Regulations, 2002 read with
AS 17 on “Segment Reporting” specified under
Section 133 of the Companies Act, 2013, the Company
has classified and disclosed segment information for
Fire, Marine and Miscellaneous lines of business.
There are no reportable geographical segments,
since all business is written in India.
The allocation of revenue and expenses to specific
segments is done in the following manner, which is
applied on a consistent basis.
Allocation of Investment Income
Investment income earned on the policyholders’
funds has been allocated on the basis of the average
of reserves for unexpired risks, IBNR, IBNER and
outstanding claims of the respective segments.
Operating Expenses relating to Insurance Business
Expenses which are directly attributable and
identifiable to the business segments shall be
allocated to the respective business segment.
Expenses, which are not directly attributable and
identifiable to the business segments, shall be
apportioned on the basis of Gross written premium
of the respective business segment.
The accounting policies used in segment reporting
are same as those used in the preparation of
financial statements.
117
Schedule-16 (Continued)
Notes To Accounts
(x) Earnings Per Share (EPS)
The earnings considered in ascertaining the
Company’s EPS comprises the net profit after tax.
The number of shares used in computing basic EPS is
the weighted average number of shares outstanding
during the year. The number of shares used in
computing diluted EPS comprises of weighted
average number of shares considered for deriving
basic EPS and also the weighted average number of
equity shares which could have been issued on the
conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive
only if their conversion to equity shares would
decrease the net profit per share from continuing
ordinary operations.
(y) Provisions and Contingencies
A provision is recognised when the Company has
a present legal obligation as a result of past event
and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which
reliable estimate can be made. Provisions (excluding
retirement benefits) are not discounted to its present
value and are determined based on best estimate
required to settle the obligation at the Balance Sheet
date. These are reviewed at each Balance Sheet
date and adjusted to reflect current best estimates.
Contingent losses arising from claims other than
insurance claims, litigations, assessments, fines,
penalties etc. are recorded when it is probable that
a liability has been incurred and the amount can be
reasonably estimated.
A disclosure for a contingent liability other than those
under policies is made when there is a possible
obligation or a present obligation that may, but
probably will not require an outflow of resources.
When there is a possible obligation or a present
obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is
made. A Contingent asset is neither recognised nor
disclosed in the financial statements.
(z) Employee Stock Option Plan (ESOP)
The Company follows the intrinsic method for
computing the compensation cost, for options
granted under the Plan. The dierence if any,
between the fair value of the share and the grant
price, being the compensation cost is amortised over
the vesting period of the options.
(aa) Receipts and Payments Account
(i) Receipts and Payments Account is prepared and
reported using the Direct Method, in conformity with
Para 2.2 of the Master Circular on Preparation of
Financial Statements - General Insurance Business
dated October 5, 2012, issued by the IRDAI.
(ii) Cash and cash equivalents
Cash comprises cash on hand and demand
deposits with banks. Cash equivalents are short-
term balances (with an original maturity of three
months or less from the date of acquisition), highly
liquid investments that are readily convertible into
known amounts of cash and which are subject to
insignificant risk of changes in value.
118
17
th
Annual Report
Schedule-16 (Continued)
Notes To Accounts
3. Amalgamation of Housing Development Finance Corporation Limited (HDFC Limited) with and into
HDFC Bank Limited (HDFC Bank)
The Board of Directors of HDFC Limited (HDFC), on April 4, 2022, had approved a Scheme of Amalgamation (Scheme) for
the amalgamation of HDFC with and into HDFC Bank Limited (HDFC Bank). Necessary approvals were sought to permit
increase in shareholding in the Company in excess of 50% and accordingly, Reserve Bank of India (RBI), Competition
Commission of India (CCI) and Insurance Regulatory and Development Authority of India (IRDAI) granted approvals for
HDFC Limited to increase its shareholding in the Company to more than 50% prior to eective date of Scheme and transfer
the entire shareholding to HDFC Bank in the view of proposed amalgamation.
The Board of Directors of the Company, vide resolution dated June 30, 2023, approved the transfer of 3,642,290 equity
shares of ₹ 10 each, representing 0.51% of the paid-up shares of the Company, from ERGO International AG to HDFC
Limited and accordingly HDFC Limited became the Holding Company of the Company on the said date.
Subsequently, on July 1, 2023 (being the Eective Date of the Scheme), in terms of Scheme of Amalgamation of HDFC
Limited with HDFC Bank Limited and vide the National Company Law Tribunal’s (NCLT) Order dated April 20, 2023, HDFC
Bank Limited became the Holding and Promoter Company of the Company.
4. CONTINGENT LIABILITIES
Sr.
No.
Particulars
As at
March 31, 2024
As at
March 31, 2023
1. Partly paid up investments
Nil Nil
2. Underwriting commitments outstanding (in respect of shares and securities) Nil Nil
3. Claims, other than those under policies, not acknowledged as debts by the Company Nil Nil
4. Guarantees given by or on behalf of the Company Nil Nil
5. Statutory demands/liabilities in dispute, not provided for (Refer Note 1 & 2 below) 5,582,418 3,517,180
6. Reinsurance obligations to the extent not provided for in accounts Nil Nil
7. Others Nil Nil
Note:
1. The Company has disputed the demand raised by Service Tax and Goods & Service Tax Authorities for various years
amounting to ₹ 3,938,639 thousand (March 31, 2023 ₹ 3,517,180 thousand) towards base service tax and goods and
service tax. Appeals against these demand orders/notice is filed / yet to be filed before the appropriate Authorities.
2. The Company has disputed the demand raised by Income Tax Authorities for various years amounting to ₹ 1,643,779
thousand (March 31, 2023 ₹ Nil) towards base income tax. Appeals against these demand orders are filed / yet to
be filed before the appropriate Authorities.
5. ENCUMBRANCES ON ASSETS
The assets of the Company are free from encumbrances except for fixed deposits placed of ₹ 14,731 thousand (Previous
year ₹ 10,351 thousand) against bank guarantees and corporate credit cards.
6. COMMITMENTS
There are commitments made and outstanding of ₹ 411,250 thousand (Previous year ₹ 27,888 thousand) for investments.
Estimated amount of contracts remaining to be executed on capital account towards fixed assets and not provided
for, [net of payments ₹ 719,859 thousand (Previous year ₹ 307,795 thousand)] is ₹ 836,288 thousand (Previous year
₹ 465,884 thousand).
There are no commitments made and outstanding for loans (Previous year ₹ Nil).
(` ‘000)
119
Schedule-16 (Continued)
Notes To Accounts
7. CLAIMS
All claims, net of reinsurance are incurred and paid in India except for Marine Insurance (where consignments are
exported from India), Liability Insurance and Overseas Travel Insurance.
Particulars For the year ended
March 31, 2024
For the year ended
March 31, 2023
Outside India
180,357 570,337
(` ‘000)
There are no claims that have been settled and remaining unpaid for a period of more than six months as at the end of
the year (Previous year ₹ Nil).
The Ageing of gross claims outstanding (unsettled) is as under:
Particulars As at March 31, 2024 As at March 31, 2023
More than six months
46,423,302 33,493,162
Others
15,954,914 14,435,288
(` ‘000)
8. PREMIUM
(a) All premiums net of reinsurance are written and received in India.
(b) Premium income recognised on “Varying Risk Pattern” is ₹ Nil (Previous year ₹ Nil).
9. EXTENT OF RISKS RETAINED AND REINSURED
Extent of risk retained and reinsured with respect to gross written premium is set out below:
For the year ended on March 31, 2024
Particulars Basis Gross
Premium
Retention Cession Retention Cession
( ‘000) ( ‘000) ( ‘000) % %
Fire Total sum insured
19,899,532 4,648,504 15,251,029 23 77
Marine Cargo Value at Risk 1,737,236 1,557,937 179,299 90 10
Marine Hull Total sum insured 162,556 1,403 161,153 1 99
Miscellaneous
- Motor Total sum insured 52,753,507 38,058,564 14,694,943 72 28
- Workmen’s Compensation Value at Risk
271,106 225,149 45,958 83 17
- Public/Product Liability Value at Risk 45,042 9,304 35,738 21 79
- Engineering Total sum insured 2,671,514 585,656 2,085,857 22 78
- Aviation Value at Risk 196,209 54 196,155 0 100
- Personal Accident Value at Risk 5,633,022 3,510,475 2,122,547 62 38
- Health Insurance Value at Risk 59,748,544 37,290,214 22,458,329 62 38
- Other Liability / Specialty Value at Risk 6,269,203 1,743,901 4,525,301 28 72
- Others Value at Risk 38,629,519 18,285,434 20,344,085 47 53
The above excludes Excess of Loss cover reinsurance premium of ₹ 1,530,572 thousand for the year ended on March
31, 2024.
120
17
th
Annual Report
Schedule-16 (Continued)
Notes To Accounts
For the year ended on March 31, 2023
Particulars Basis Gross
Premium
Retention Cession Retention Cession
( ‘000) ( ‘000) ( ‘000) % %
Fire Total sum insured
18,992,495 4,036,376 14,956,120 21 79
Marine Cargo Value at Risk 2,074,489 1,819,194 255,296 88 12
Marine Hull Total sum insured 197,394 1,801 195,593 1 99
Miscellaneous
- Motor Total sum insured 46,443,848 32,921,199 13,522,649 71 29
- Workmen’s Compensation Value at Risk
212,852 174,312 38,539 82 18
- Public/Product Liability Value at Risk 37,351 8,880 28,471 24 76
- Engineering Total sum insured 2,058,900 396,948 1,661,952 19 81
- Aviation Value at Risk 184,539 93 184,446 0 100
- Personal Accident Value at Risk 5,961,879 3,572,386 2,389,493 60 40
- Health Insurance Value at Risk 51,202,409 34,827,811 16,374,598 68 32
- Other Liability / Specialty Value at Risk 5,459,874 1,262,297 4,197,577 23 77
- Others Value at Risk 35,905,346 10,902,942 25,002,403 30 70
The above excludes Excess of Loss cover reinsurance premium of ₹ 1,115,852 thousand for the year ended on March 31, 2023.
10. INVESTMENTS
The Company has not executed any contract for purchase / sale of securities where deliveries are pending at the end of
the year and credit/debit in Company’s Demat Account has been done subsequent to the year end.
Investments made are in accordance with the Insurance Act, 1938, as amended by Insurance Laws (Amendment) Act,
2015, the Insurance Regulatory and Development Authority (Investment) Regulations, 2000, Insurance Regulatory and
Development Authority of India (Investment) Regulations, 2016 as amended and various other circulars / notifications
issued by the IRDAI in this context from time to time.
Investments in Dewan Housing Finance Corporation Limited (DHFL), Reliance Capital Limited (RCL) and Infrastructure
Leasing & Financial Services Limited group (IL&FS group) securities amounting ₹ 250,000 thousand, ₹ 199,979 thousand
and ₹ 2,131,969 thousand respectively had been classified as non performing investments in earlier years in terms of
the IRDAI guidelines, since these Companies had defaulted in the payment of interest and redemption proceeds and
accordingly had been fully provided for.
No interest income has been accrued thereon, in terms of the provisions of point 13 of Para 3.7 of the Master Circular on
IRDAI (Investment) Regulations, 2016.
121
Historical cost of investments which have been valued on a market value basis:
Mutual Funds – ₹ 188,207 thousand (Previous year ₹ 276,098 thousand)
Equity Shares – ₹ 13,854,633 thousand (Previous year ₹ 16,788,825 thousand)
Additional Tier 1 Bond – ₹ 8,898,502 Thousand (Previous year ₹ 5,249,708 thousand)
Particulars As at March 31, 2024 As at March 31, 2023
Aggregate market value of the Investments other than
Mutual Fund and Equity Shares
230,774,584 196,846,903
Aggregate amortised cost / cost of the Investments other
than Mutual Fund and Equity Shares
231,720,233 199,803,085
(` ‘000)
Repo/Reverse Repo Transactions
In terms of Para 5.1 of Master Circular dated October 27, 2022, on IRDAI (Investment) Regulations, 2016 the position of
transactions under Repurchasing Option (repo) / reverse repo are provided below:
Particulars For the year ended March 31, 2024
Minimum outstanding
during the year
Maximum outstanding
during the year
Daily average outstanding
during the year
Outstanding as on
March 31, 2024
Securities sold under repo
1. Government
Securities
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
2. Corporate Debt
Securities
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Securities purchased under reverse repo
1. Government
Securities
1,573,842
(59,940)
9,748,321
(9,748,321)
4,419,329
(2,664,165)
Nil
(9,748,321)
2. Corporate Debt
Securities
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
(` ‘000)
(Previous year’s figures are in brackets)
Pursuant to the Order passed by the Honourable National Company Law Tribunal (NCLT) for DHFL and Honourable
National Company Law Appellate Tribunal (NCLAT) for IL&FS group, the company has recovered partial claims. In view
of further expected claims, the balance provision is carried forward in books of accounts as given below:
Security Value of
Investment
Amount
Recovered
Balance
Written o
Balance as at
March 31, 2024
Deewan Housing Finance Limited 250,000
108,200 133,400 8,400
Infrastructure Leasing & Financial
Services Limited
802,655
52,951 - 749,704
IL&FS Financial Services Limited 860,258 157,706 - 702,552
IL&FS Transportation Networks Limited 469,057 32,225 - 436,832
Reliance Capital Limited 199,979 - - 199,979
Total 2,581,949
351,082 133,400 2,097,467
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
122
17
th
Annual Report
Particulars For the year ended March 31, 2024
Minimum outstanding
during the year
Maximum outstanding
during the year
Daily average outstanding
during the year
Outstanding as on
March 31, 2024
Securities debited towards funds under TREPS (at Cost)
1. Government
Securities
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
2. Corporate Debt
Securities
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Securities credited towards funds under TREPS (at Cost)
1. Government
Securities
500
(1,000)
6,928,315
(5,217,666)
448,410
(928,035)
4,014,940
(33,987)
2. Corporate Debt
Securities
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
(` ‘000)
(Previous year’s figures are in brackets)
11. MANAGERIAL REMUNERATION
I. In terms of the disclosure requirements of Para 9 of IRDAI Corporate Governance Guidelines for Insurers in India,
2016, the elements of remuneration paid to Managing Director and Chief Executive Ocer (MD & CEO), the Executive
Directors, all other directors and Key Management Persons are as follows:
(a) The Managing Director and Chief Executive Ocer (MD & CEO) and the Executive Directors are remunerated in
terms of the approval granted by IRDAI.
TREPS Lending/Borrowing Transactions
Details of their remuneration included in employee remuneration and welfare benefits are as follows:
Particulars For the year ended March 31, 2024 For the year ended March 31, 2023
Salary, perquisites and bonus 191,537
160,141
Contribution to Provident Fund 6,087 5,184
Total 197,623
165,325
The managerial remuneration is in accordance with recommendation of Nomination and Remuneration Committee and
approval accorded by a resolution of the Board of Directors, Shareholders and IRDAI, in compliance with Section 34A of the
Insurance Act, 1938.
Out of the above, ₹ 114,700 thousand (Previous year ₹ 45,000 thousand) remuneration has been charged to Revenue Accounts
and balance ₹ 82,924 thousand (Previous year ₹ 120,325 thousand) has been transferred to Profit and Loss Account.
(b) Details of the elements of remuneration paid to Key Management Persons (KMPs) excluding Wholetime Directors,
as defined under IRDAI Corporate Governance Guidelines for Insurers in India, 2016, are as follows:
Particulars For the year ended March 31,
2024
For the year ended March 31,
2023
Salary, perquisites and bonus 183,548 176,750
Contribution to Provident Fund 4,371 4,219
Total 187,919 180,969
(` ‘000)
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
123
In addition to the above, Whole time Directors and KMPs are entitled to ESOPs under the Company’s ESOP Scheme.
Expenses towards gratuity funding and leave encashment provision are determined actuarially on an overall Company
basis annually and accordingly have not been considered in the above information.
II. IRDAI vide circular no IRDAI/F&A/GDL/MISC/141/6/2023 dated June 30, 2023 issued IRDAI (Remuneration on Non-
Executive Directors of Insurers) Guidelines, 2023 and IRDAI (Remuneration of Key Managerial Persons of Insurers)
Guidelines, 2023. Accordingly, the Company approved the revised Remuneration Policy for Directors, Key Managerial
Personnel, Senior Management and Other Employees
a. In terms of the disclosure requirements of Para 6 of IRDAI (Remuneration on Non-Executive Directors of Insurers)
Guidelines, 2023, the elements of remuneration paid to Non-Executive/Independent Director are as follows:
During the year, the Company has paid an amount of ₹ 14,000 thousand (Previous year ₹ 6,910 thousand) as
Commission to Independent Directors. An amount of ₹ 18,200 thousand (Previous year ₹ 18,100 thousand) has been
paid as fees to Non-Executive Directors for attending Board/Committee meetings and ₹ 115 thousand (Previous year
₹ 105 thousand) has been paid for a Group Mediclaim insurance cover policy for the Non-Executive Directors.
Details of remuneration paid to each Non-Executive Director / Independent Director during the year ended March
31, 2024 are as follows
Name Sitting Fees Commission Group Mediclaim Insurance Total
A. Non-Executive Directors
Keki M Mistry 2,400
(2,800)
-
(-)
57
(52)
2,457
(2,852)
Renu Karnad 2,000
(2,000)
-
(-)
57
(52)
2,057
(2,052)
B. Independent Director
Ameet Hariani 2,800
(2,600)
2,000
(1,000)
-
(-)
4,800
(3,600)
Arvind Mahajan 2,400
(2,400)
2,000
(1,000)
-
(-)
4,400
(3,400)
Bernhard
Steinruecke
2,000
(2,000)
2,000
(1,000)
-
(-)
4,000
(3,000)
Mehernosh B.
Kapadia
2,400
(2,400)
2,000
(1,000)
-
(-)
4,400
(3,400)
Rajgopal Thirumalai 1,400
(1,300)
2,000
(970)
-
(-)
3,400
(2,270)
Sanjib Chaudhuri 1,400
(1,300)
2,000
(970)
-
(-)
3,400
(2,270)
Vinay Vinod Sanghi 1,400
(1,300)
2,000
(970)
-
(-)
3,400
(2,270)
Total 18,200
(18,100)
14,000
(6,910)
115
(105)
32,315
(25,115)
(` ‘000)
(Previous year’s figures are in brackets)
b. Qualitative disclosures such as NRC Composition, remuneration policy features, linking of performance with
remuneration etc, mandated under Para 10 (i) of IRDAI (Remuneration of Key Managerial Persons of Insurers)
Guidelines, 2023, are provided in “Particulars of Employees and Other Related Disclosure” section of Director’s
Report.
Schedule-16 (Continued)
Notes To Accounts
124
17
th
Annual Report
Particulars Year ended March 31, 2024 Total
Name of MD/ CEO/ WTD Ritesh Kumar Anuj Tyagi Samir H. Shah
Designation Managing
Director and CEO
Joint Managing
Director
Executive
Director & CFO
Fixed
Pay
Pay and Allowances (a) 70,422 32,173 21,175 123,769
Perquisites etc. (b) 2,635 2,561 2,083 7,280
Total (c) = (a)+(b) 73,057 34,734 23,258 131,049
Variable
Pay
Cash
Components (d)
Paid / Accrued 37,804 17,329 11,442 66,575
Deferred - - - -
Non Cash
Component (e)
Settled - - - -
Deferred 37,804 17,329 11,442 66,575
Total (f) = (d)+(e) Paid/Settled 37,804 17,329 11,442 66,575
Deferred 37,804 17,329 11,442 66,575
Total of Fixed and Variable Pay (c)+(f) 148,665 69,392 46,141 264,198
Amount Debited to Revenue Account 40,000 40,000 34,700 114,700
Amount Debited to Profit and Loss Account 70,861 12,063 - 82,924
Value of Joining / Sign on Bonus - - - -
Retirement benefits like gratuity, pension, etc
paid during the year
- - - -
Amount of deferred remuneration of earlier
years paid/settled during the year
- - - -
(` ‘000)
I. Remuneration and other payments made during Financial Year 2023 - 24
c. In terms of the disclosure requirements of Para 10(ii) of IRDAI (Remuneration of Key Managerial Persons of Insurers)
Guidelines, 2023, the elements of remuneration paid to Managing Director and Chief Executive Ocer (MD &
CEO) and all Whole Time Directors are as follows:
Notes:
a. The Cash component and Non-Cash Components of Variable Pay are as per the IRDAI approval. The final amount on
account of variable pay (both cash and non cash component) is subject to NRC approval of performance appraisals
for the year ending on March 31, 2024.
b. Non-Cash Component represents Employee Stock Options under Company’s Employee Stock Option Plan
2009 (as amended).
II. Details of Outstanding Deferred Remuneration
Sr.
No.
Name of MD/
CEO/WTD
Designation Remuneration
pertains to
Financial Year
Nature of
remuneration
outstanding
Amount
Outstanding
1. Ritesh Kumar Managing Director and CEO
- - Nil
2. Anuj Tyagi Joint Managing Director - - Nil
3. Samir H. Shah Executive Director & CFO
- - Nil
Total
Nil
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
125
Schedule-16 (Continued)
Notes To Accounts
12. SECTOR WISE BUSINESS BASED ON GROSS DIRECT PREMIUM INCOME (GDPI)
Business Sector For the year ended March 31, 2024 For the year ended March 31, 2023
GDPI ( ‘000) % of GDPI GDPI ( ‘000) % of GDPI
Rural 49,687,811 27
46,276,855 28
Urban 135,987,767 73 120,081,285 72
Total 185,675,578 100
166,358,140 100
Social Sector For the year ended March 31, 2024 For the year ended March 31, 2023
Number of lives 13,412,639
9,882,355
GDPI (₹000) 36,347,573 29,690,773
13. REINSURANCE REGULATIONS
As per Para 6 of Insurance Regulatory and Development Authority of India (Re-insurance) as Regulations, 2018, prior
approval from IRDAI is required in case of re-insurance placements with Cross Border Reinsurers (CBRs) by the cedants
transacting other than life insurance business, which shall be subject to the following overall cession limits on the overall
reinsurance premium ceded outside India during a financial year.
Rating of the CBR as per
Standard & Poor or equivalent
Maximum overall cession
limits allowed per CBR
BBB & BBB+ of Standard & Poor
10%
Greater than BBB+ and up to & including A+ of Standard & Poor 15%
Greater than A+ of Standard & Poor 20%
14. ASSETS TAKEN ON LEASE
Operating lease commitments – Premises
The Company takes commercial premises on lease. The minimum lease payments to be made in future towards non-
cancellable lease agreements are as follows:
Particulars As at
March 31, 2024
As at
March 31, 2023
Not later than one year 355,049 320,161
Later than one year but not later than five years 568,407 493,384
Later than five years - -
(` ‘000)
The aggregate operating lease rental, charged to the Revenue Accounts in the current year is ₹ 370,750 thousand (Previous
year ₹ 343,575 thousand).
The lease terms do not contain any exceptional/restrictive covenants nor are there any options given to the Company to
renew the lease or purchase the asset.
In terms of above Reinsurance Regulations, the Company has submitted details of its reinsurance programmes to the
IRDAI, covering reinsurer wise placement for such treaties.
126
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Annual Report
Schedule-16 (Continued)
Notes To Accounts
Particulars As at
March 31, 2024
As at
March 31, 2023
Deferred Tax Assets:
Provision for Leave Encashment 25,337 20,360
Provision for Variable Pay/ Incentive/ Bonus 2,402 2,402
Rule 6 E of the Income-tax rules, 1962
(Reserve for unexpired risk)
- -
Amalgamation Expenses - 49,448
Provision for diminution in value of Investment 528,802 558,212
Provision for bad and doubtful Debts 58,730 53,365
Total 615,271 683,787
Deferred Tax Liabilities:
Depreciation 205,463 160,709
Total 205,463 160,709
Deferred Tax Asset (Net) 409,808 523,078
(` ‘000)
15. TAXATION
Accounting Standard (AS) 22 – ‘Accounting for Taxes on Income’, requires the Company to accrue taxes on income in
the same period as the revenue and expenses to which they relate. As the taxable income is dierent from the reported
income due to timing dierences, there arises a potential Deferred Tax Asset or Deferred Tax Liability, as the case may be.
The components of the Company’s Deferred Tax Assets and Liabilities are tabulated below.
16. EMPLOYEE STOCK OPTION PLAN (ESOP)
The Company had introduced an Employee Stock Option Plan 2009 (as amended) (“ESOP 2009”) in financial year 2009-10. ESOP
2009 provides that eligible employees are granted options to acquire equity shares of the Company that vest in graded manner.
The options will vest over a period of two to four or five years as per the terms of the respective Tranches from the date of grant and
are exercisable over a period of five years from the respective dates of vesting.
During the year, the Company issued Tranche XX having 2,273,970 options granted at ₹ 539.00 per option (Previous year Tranche
XVIII having 1,605,160 options granted at ₹ 536.00 per option and Tranche XIX having 40,000 options granted at ₹ 536.00 per
option). Details of options vested during the year are as follows:
Particulars Number of Options Vested
For the year ended March 31, 2024 For the year ended March 31, 2023
HI Tranche III
- 5,845
HI Tranche IV - 25,974
HI Tranche V 7,794 9,093
HI Tranche VI 55,197 60,070
HI Tranche VII 31,250 31,250
Tranche X - 395,000
Tranche XI - 50,000
127
Schedule-16 (Continued)
Notes To Accounts
Particulars Outstanding
at the
beginning
of the year
Granted
during
the year
Exercised
during
the year
Lapsed
during
the year
Outstanding
at the end
of the year
Unvested
at the end
of the
year
Vested
at the
end of
the year
Weighted
average
price per
option
Tranche XX As at March
31, 2024
- 2,273,970 - 66,450 2,207,520 2,207,520 - 539.00
As at March
31, 2023
- - - - - - - -
Tranche XIX As at March
31, 2024
40,000 - - - 40,000 40,000 - 536.00
As at March
31, 2023
- 40,000 - - 40,000 40,000 - 536.00
Tranche XVIII As at March
31, 2024
1,501,280 - - 64,130 1,437,150 1,437,150 - 536.00
As at March
31, 2023
- 1,605,160 - 103,880 1,501,280 1,501,280 - 536.00
Tranche XVII As at March
31, 2024
3,009,700 - 103,616 87,875 2,818,209 2,177,994 640,215 536.00
As at March
31, 2023
3,280,475 - - 270,775 3,009,700 3,009,700 - 536.00
Tranche XVI As at March
31, 2024
- - - - - - - 364.40
As at March
31, 2023
100,000 - - 100,000 - - - 364.40
Tranche XV As at March
31, 2024
10,000 - 5,000 - 5,000 5,000 - 383.80
As at March
31, 2023
10,000 - - - 10,000 7,500 2,500 363.80
Tranche XIV As at March
31, 2024
1,405,500 - 365,875 24,000 1,015,625 671,750 343,875 363.80
As at March
31, 2023
1,447,500 - - 42,000 1,405,500 1,043,625 361,875 363.80
Tranche XIII As at March
31, 2024
- - - - - - - 364.40
As at March
31, 2023
- - - - - - - 364.40
Tranche XII As at March
31, 2024
25000 - 25,000 - - - - 364.40
As at March
31, 2023
100,000 - - 75,000 25,000 - 25,000 364.40
Movement in the options:
(No. of Options)
Tranche XIV 347,875 361,875
Tranche XV 2,500 2,500
Tranche XVII 747,031 -
Total 1,191,647 941,607
128
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Schedule-16 (Continued)
Notes To Accounts
Particulars Outstanding
at the
beginning
of the year
Granted
during
the year
Exercised
during
the year
Lapsed
during
the year
Outstanding
at the end
of the year
Unvested
at the end
of the
year
Vested
at the
end of
the year
Weighted
average
price per
option
Tranche XI As at March
31, 2024
75,000 - 75,000 - - - - 257.00
As at March
31, 2023
75,000 - - - 75,000 - 75,000 257.00
Tranche X As at March
31, 2024
518,481 - 322,395 10,000 186,086 - 186,086 257.00
As at March
31, 2023
518,481 - - - 518,481 - 518,481 257.00
Tranche IX As at March
31, 2024
1,199,500 - 1,008,000 - 191,500 - 191,500 151.00
As at March
31, 2023
1,199,500 - - - 1,199,500 - 1,199,500 151.00
Tranche VIII As at March
31, 2024
- - - - - - - 91.00
As at March
31, 2023
- - - - - - - 91.00
HI Tranche VII As at March
31, 2024
125,000 - 31,250 - 93,750 62,500 31,250 359.21
As at March
31, 2023
125,000 - - - 125,000 93,750 31,250 359.21
Tranche VII As at March
31, 2024
181,000 - 181,000 - - - - 80.00
As at March
31, 2023
181,000 - - - 181,000 - 181,000 80.00
HI Tranche VI As at March
31, 2024
110,397 - 16,235 - 94,162 - 94,162 364.60
As at March
31, 2023
116,890 - - 6,493 110,397 55,197 55,200 364.60
Tranche VI As at March
31, 2024
- - - - - - - 80.00
As at March
31, 2023
- - - - - - - 80.00
HI Tranche V As at March
31, 2024
45,457 - 22,078 3,897 19,482 15,580 3,902 281.05
As at March
31, 2023
62,342 - - 16,885 45,457 27,271 18,186 281.05
Tranche V As at March
31, 2024
- - - - - - - 62.50
As at March
31, 2023
- - - - - - - 62.50
HI Tranche IV As at March
31, 2024
24,935 - 24,935 - - - - 75.81
As at March
31, 2023
24,935 - - - 24,935 - 24,935 75.81
129
Schedule-16 (Continued)
Notes To Accounts
Particulars Outstanding
at the
beginning
of the year
Granted
during
the year
Exercised
during
the year
Lapsed
during
the year
Outstanding
at the end
of the year
Unvested
at the end
of the
year
Vested
at the
end of
the year
Weighted
average
price per
option
Tranche IV As at March
31, 2024
2,000 - 2,000 - - - - 50.00
As at March
31, 2023
2,000 - - - 2000 - 2,000 50.00
HI Tranche III As at March
31, 2024
5,845 - 5,845 - - - - 75.81
As at March
31, 2023
5,845 - - - 5,845 - 5,845 75.81
Tranche III As at March
31, 2024
- - - - - - - 50.00
As at March
31, 2023
- - - - - - - 50.00
Tranche II As at March
31, 2024
- - - - - - - 10.00
As at March
31, 2023
- - - - - - - 10.00
Tranche I As at March
31, 2024
- - - - - - - 10.00
As at March
31, 2023
- - - - - - - 10.00
Method used for accounting
The Company has adopted intrinsic value method for computing the compensation cost for the Options granted. Since
the exercise price is not less than the intrinsic value of shares on the date of grant, value of options is ₹ Nil (Previous year
₹ Nil) and accordingly, no compensation cost is recognised in the books.
Had the Company followed the fair value method for valuing its options for the year, the charge to the Revenue Accounts
and Profit and Loss Account would have been higher by ₹ 339,081 thousand (Previous year ₹ 216,280 thousand) and
profit after tax would have been lower by ₹ 256,601 thousand (Previous year ₹ 162,540 thousand). Consequently, the
Company’s basic and diluted earnings per share would have been ₹ 5.76 and ₹ 5.75 respectively.
Fair Value Methodology
The fair value of options on date of grant has been estimated using Black-Scholes model. The key assumptions used in
Black-Scholes model for calculating fair value under ESOP 2009 as on grant date are as follows:
Particulars Date of Grant Risk Free
Interest Rate
Expected Life Expected
Volatility*
Expected
Dividend Yield
Tranche XX April 27, 2023 6.97%-7.05% 4-6 years 14% Nil
Tranche XIX June 13, 2022 7.29%-7.47% 4-6 years 17% Nil
Tranche XVIII April 25, 2022 6.41%-6.91% 4-6 years 16% Nil
Tranche XVII July 21, 2021 5.44%-6.13% 4-6 years 17% Nil
130
17
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Annual Report
*Volatility of BSE Sensex for one year has been considered.
Schedule-16 (Continued)
Notes To Accounts
Tranche XVI May 5, 2021 5.18%-6.03% 4-6 years 19% Nil
Tranche XV July 14, 2020 4.81%-5.46% 4-6 years 32% Nil
Tranche XIV June 12, 2020 4.95%-5.66% 4-6 years 32% Nil
HI Tranche VII June 12, 2020 4.95%-5.66% 4-6 years 32% Nil
Tranche XIII February 20, 2020 5.98%-6.27% 4-6 years 14% Nil
HI Tranche VI February 10, 2020 5.95%-6.28% 4-6 years 14% Nil
Tranche XII February 6, 2020 6.07%-6.34% 4-6 years 14% Nil
HI Tranche V August 7, 2019 6.10%-6.48% 4-7 years 13% Nil
Tranche XI August 20, 2018 7.83%-7.96% 4-6 years 10% Nil
Tranche X April 16, 2018 7.33%-7.58% 4-6 years 10% Nil
HI Tranche IV February 9, 2018 7.22%-7.59% 4-7 years 9% Nil
HI Tranche III October 1, 2017 6.58%-6.75% 4-6 years 10% Nil
Tranche IX April 28, 2017 6.90%-6.95% 4-6 years 12% Nil
Tranche VIII April 21, 2016 7.41%-7.62% 4-6 years 18% Nil
Tranche VII March 16, 2015 7.82%-7.86% 4-6 years 13% Nil
Tranche VI April 24, 2014 8.75%-8.93% 4-6 years 17% Nil
Tranche V April 30, 2013 7.64%-7.60% 4-6 years 13% Nil
Tranche IV April 24, 2012 8.22%-8.49% 4-6 years 20% Nil
Tranche III July 25, 2011 8.22%-8.31% 4-6 years 17% Nil
Tranche II May 25, 2010 6.92%-7.42% 4-6 years 22% Nil
Tranche I February 10, 2010 7.29%-7.72% 4-6 years 32% Nil
Particulars Fair Value Method
For the year ended
March 31, 2024
For the year ended
March 31, 2023
A
Net Profit after Tax (₹ ‘000) 4,120,108 6,364,055
B
Less: Preference dividend - -
C
Weighted Average number of Equity Shares of `10/- each (Basic) (in ‘000) 714,761 712,780
D
Weighted Average number of Equity Shares of `10/- each (Diluted) (in ‘000) 716,704 714,729
E
Basic Earnings Per Share (₹) 5.76 8.93
F
Diluted Earnings Per Share (₹) 5.75 8.90
Information in respect of Options outstanding
Particulars Exercise Price () No. of Options Weighted Average
remaining life
Tranche XX As at March 31, 2024 539 2,207,520 88 Months
As at March 31, 2023 539 - -
Tranche XIX As at March 31, 2024 536 40,000 77 Months
As at March 31, 2023 536 40,000 89 Months
131
Schedule-16 (Continued)
Notes To Accounts
Particulars Exercise Price () No. of Options Weighted Average
remaining life
Tranche XVIII As at March 31, 2024 536 1,437,150 76 Months
As at March 31, 2023 536 1,501,280 88 Months
Tranche XVII As at March 31, 2024 536 2,818,209 67 Months
As at March 31, 2023 536 3,009,700 79 Months
Tranche XVI As at March 31, 2024 - - -
As at March 31, 2023 - - -
Tranche XV As at March 31, 2024 363.80 5,000 54 months
As at March 31, 2023 363.80 10,000 66 months
Tranche XIV As at March 31, 2024 363.80 1,015,625 53 months
As at March 31, 2023 363.80 1,405,500 65 months
Tranche XIII As at March 31, 2024 - - -
As at March 31, 2023 - - -
Tranche XII As at March 31, 2024 - - -
As at March 31, 2023 364.40 25,000 61 months
Tranche XI As at March 31, 2024 - - -
As at March 31, 2023 257 75,000 44 Months
Tranche X As at March 31, 2024 257 186,086 28 months
As at March 31, 2023 257 518,481 40 months
Tranche IX As at March 31, 2024 151 191,500 16 months
As at March 31, 2023 151 1,199,500 28 months
Tranche VIII As at March 31, 2024 - - -
As at March 31, 2023 - - -
HI Tranche VII As at March 31, 2024 359.21 93,750 53 months
As at March 31, 2023 359.21 125,000 65 months
Tranche VII As at March 31, 2024 - - -
As at March 31, 2023 80 181,000 6 months
HI Tranche VI As at March 31, 2024 364.60 94,162 49 months
As at March 31, 2023 364.60 110,397 61 months
Tranche VI As at March 31, 2024 - - -
As at March 31, 2023 - - -
HI Tranche V As at March 31, 2024 281.05 19,482 50 months
As at March 31, 2023 281.05 45,457 62 months
Tranche V As at March 31, 2024 - - -
As at March 31, 2023 - - -
HI Tranche IV As at March 31, 2024 - - -
As at March 31, 2023 75.81 24,935 56 months
Tranche IV As at March 31, 2024 - - -
As at March 31, 2023 50 2,000* -
HI Tranche III As at March 31, 2024 - - -
As at March 31, 2023 75.81 5,845 33 months
132
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Annual Report
*The last date for exercise of Tranche IV options vested on April 24, 2016, was April 24, 2021. The options pending for exercise pertain to one
employee who has given a request letter in May 2021, indicating his intention to exercise the options and the same has been considered by
the management in the next exercise window in April 2023.
17. SEGMENT REPORTING
The statement on segment reporting is included in Annexure 1.
18. ACCOUNTING RATIOS
The statement on accounting ratios is provided in Annexure 2.
19. EMPLOYEE BENEFITS
(a) Defined Contribution Plan:
Expenses on defined contribution plan (included in
Schedule 4: Operating Expenses)
For the year ended
March 31, 2024
For the year ended
March 31, 2023
Contribution to Sta Provident fund 340,159 295,969
Contribution to Superannuation fund Nil Nil
Contribution to National Pension Scheme 23,046 19,510
Total 363,205 315,479
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
Particulars Exercise Price () No. of Options Weighted Average
remaining life
Tranche III As at March 31, 2024 - .- -
As at March 31, 2023 - - -
Tranche II As at March 31, 2024 - - -
As at March 31, 2023 - - -
Tranche I As at March 31, 2024 - - -
As at March 31, 2023 - - -
(b) Defined Benefit Plan – Gratuity:
Disclosures as per AS-15 (Revised) “Employee Benefits” for the year ended on March 31, 2024:
Sl.
No.
Particular March 31, 2024 March 31, 2023
I Assumptions
Discount Rate 7.20% 7.31%
Rate of increase in compensation levels 7.00% 7.00%
Rate of Return on Plan Assets p.a. 7.20% 7.31%
Retirement Age 60 60
Rate of Employee Turnover 15%-26% 15%-26%
Mortality Rate During Employment Indian Assured Lives
Mortality 2012-14 (Urban)
Indian Assured Lives
Mortality 2012-14 (Urban)
(` ‘000)
133
Schedule-16 (Continued)
Notes To Accounts
Sl.
No.
Particular March 31, 2024 March 31, 2023
II Table Showing Change in Benefit Obligation
Net liability as per books (A) 587,542 540,598
Fair value of Assets at the beginning of the year (B) Nil Nil
Shortfall/(Excess) in opening liability determined as
per actuarial valuation (C)
Nil Nil
Opening net Liability as per actuarial valuation
(A)+(B)+(C)
587,542 540,598
Interest Cost for the year 42,949 32,922
Service Cost for the year 78,910 75,969
Past Service cost Nil Nil
Benefits paid during the year (62,980) (53,575)
Actuarial (Gain)/Loss on obligations 75,467 (8,372)
Plan Benefit Obligation at the end of the year 721,889 587,542
III Tables of Fair value of Plan Assets
Fair Value of Plan Assets at the beginning of the year 586,754 542,055
Expected Return on Plan Assets for the year 42,892 33,011
Contributions during the year 142,514 81,265
Benefits Paid during the year (62,980) (53,575)
Actuarial Gain/(Loss) on Plan Assets 14,615 (16,002)
Fair Value of Plan Assets at the end of the year 723,795 586,754
IV The Amounts to be recognised in the Balance Sheet
Present Value of Obligation (721,889) (587,542)
Fair Value of Plan Assets 723,795 586,754
Asset/(Liability) recognised in Balance Sheet 1,906 (788)
V Amounts to be recognised in the Revenue Accounts
(Net Periodic Cost)
Current Service Cost 78,910 75,969
Past Service cost Nil Nil
Interest Cost 58 (89)
Expected Return on Plan Assets Nil Nil
Net actuarial (Gain) / Loss recognised in the year 60,852 7,628
Actuarial determined charge for the year (A) 139,820 83,508
Shortfall/(Excess) (B) Nil Nil
134
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Sl.
No.
Particular March 31, 2024 March 31, 2023
Total Charge as per books (A+B) 139,820 83,508
(expense is disclosed in the line item – Employees’
remuneration and welfare benefit)
VI Movements in the liability recognised in the Balance
Sheet:
Net Liability as per books (A) 788 (1,456)
Shortfall/(Excess) in opening liability determined as
per actuarial valuation (B)
Nil Nil
Opening net liability(A+B) 788 (1,456)
Expense as above 139,820 83,508
Net Liability / (Asset) Transfer In Nil Nil
Net (Liability) / Asset Transfer Out Nil Nil
Contribution paid (142,514) (81,264)
Closing Net (Asset)/Liability (1,906) 788
VII Actual Return on Plan Assets
Expected return on Plan Assets 42,892 33,011
Actuarial Gain/(Loss) on Plan Assets 14,615 (16,001)
Actual return on Plan assets 57,507 17,010
Particulars March 31, 2024 March 31, 2023 March 31, 2022 March 31, 2021 March 31, 2020
Defined Benefit Obligation 721,889 587,542 540,599 481,316 452,296
Plan Assets 723,795 586,754 542,055 489,530 433,566
Surplus/(Deficit) 1,906 (788) 1,456 8,214 (18,730)
Experience Adjustment on
Plan Liabilities
71,884 25,930 48,743 (67,395) 4,214
Experience Adjustment on
Plan Assets
14,615 (16,002) (6,512) 6,365 8,608
(` ‘000)
Experience adjustments
Schedule-16 (Continued)
Notes To Accounts
The Company’s gratuity funds are managed by HDFC Life Insurance Company Limited. Secure Managed Fund
constitutes 72.50% (Previous year 92.88%), Defensive Managed Funds constitutes 27.50% (Previous year 7.12%) of
the total fund balance.
135
Investment Pattern of Company’s Gratuity Funds in HDFC Life Insurance Company Limited:
Particulars Invested as on March 31, 2024 Invested as on March 31, 2023
Secured
Managed Fund
Defensive
Managed Fund
Secured
Managed Fund
Defensive
Managed Fund
Government Securities 62.29% 57.03% 48.14% 43.56%
Debentures/Bonds 34.53% 18.07% 48.40% 28.58%
Deposits, Money Market Securi-
ties and Net Current Assets
3.18% 2.10% 3.46% 7.22%
Equity - 22.80% - 20.64%
Total 100% 100% 100% 100%
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors such as supply and demand in the employment market.
The contribution expected to be made by the Company during the financial year 2024-25, amounts to ₹ 91,827 thousand
(Previous year ₹ 79,698 thousand).
20. RELATED PARTY DISCLOSURE
As per the Accounting Standard (AS) 18 on ‘Related Party Disclosures’, the related parties of the Company are as follows:
(a) Names of the related parties and description of relationship:
Holding Company (Refer Note 3)
Housing Development Finance Corporation Limited (HDFC Limited) (as on June 30, 2023)
HDFC Bank Limited (from July 01, 2023)
Fellow Subsidiaries (with whom Company has transactions) (Refer Note 3)
HDFC Asset Management Company Limited (From June 30, 2023)
HDFC Sales Private Limited (From June 30, 2023)
HDFC Credila Financial Services Limited (From June 30, 2023 to March 19, 2024)
HDFC Education and Development Services Private Limited (From June 30, 2023)
HDFC Capital Advisors Limited (From June 30, 2023)
HDFC Life Insurance Company Limited (From June 30, 2023)
HDFC Pension Management Company Limited (From July 01, 2023)
HDB Financial Services Limited (From July 01, 2023)
HDFC Securities Limited (From July 01, 2023)
Investing Party and its Group Company
Housing Development Finance Corporation Limited (HDFC Limited) (upto June 29, 2023*) (Refer Note 3)
ERGO International AG
Munich Re (Group Company of Investing Party)
Schedule-16 (Continued)
Notes To Accounts
136
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Annual Report
Key Management Personnel and Relatives of Key Management Personnel (with whom Company has transactions)
Ritesh Kumar, Managing Director and CEO (MD & CEO)
Saloni Agarwal, Daughter of Ritesh Kumar (MD & CEO)
Amish Kumar Agarwal, Brother of Ritesh Kumar (MD & CEO)
Anuj Tyagi, Joint Managing Director (Joint MD)
Ramesh Tyagi, Father of Anuj Tyagi (Joint MD)
Anya Tyagi, Daughter of Anuj Tyagi (Joint MD)
Samir H. Shah, Executive Director & CFO (ED & CFO)
Rashmi Shah, Spouse of Samir H. Shah (ED & CFO)
Sukruti Shah, Daughter of Samir H. Shah (ED & CFO)
Rachit Shah, Son of Samir H. Shah (ED & CFO)
Meena H. Shah, Sister of Samir H. Shah (ED & CFO)
Sanjay H. Shah, Brother of Samir H. Shah (ED & CFO)
*HDFC Limited inter alia purchased 3,642,290 equity shares of the Company increasing its eective holding to
50.5% on June 30, 2023. Accordingly, HDFC Limited became the Company’s Holding Company as on the said date.
(b) Details of Transactions:
Particulars Holding Company Fellow Subsidiaries Investing Party and its
Group Company
Key Managerial Personnel
(including relatives)
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2024
Year ended
March
31, 2023
Year ended
March 31,
2024
Year ended
March 31,
2023
INCOME
Interest,
Dividend and
Rent-Gross
556,474 - 30,986 - 173,355 589,484 - -
Premium from
direct business
written - net of
GST
1,658,202 - 121,084 - 51,920 202,658 382 388
Commission
received on
Reinsurance
ceded
- - - - 5,894,466 5,283,867 - -
Claims on
Re-insurance
ceded
- - - - 12,458,268 8,350,902 - -
Other Income - - - - - 135 - -
Total 2,214,676 - 152,069 - 18,578,009 14,427,046 382 388
EXPENSES
Rent, rates and
taxes
48,361 - - - 16,120 65,349 - -
Name Usage
Fees
151,466 - - - 317,382 723,997 - -
Electricity
expenses
417 - - - 382 1,488 - -
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
137
Particulars Holding Company Fellow Subsidiaries Investing Party and its
Group Company
Key Managerial Personnel
(including relatives)
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2024
Year ended
March
31, 2023
Year ended
March 31,
2024
Year ended
March 31,
2023
Claims paid
direct
1,573,308 - 6,180 - - 34 90 13
Commission
paid
3,137,366 - 1,068,582 - - - - -
Employees’
remuneration
and welfare
benefits
- - - - - - 197,623 165,276
Premium on
Reinsurance
ceded
- - - - 26,703,765 23,674,723 - -
Premium for
Group Term
Insurance
- - 31,812 - - - - -
Interest on
Debentures
- - 13,373 - 40,299 15,741 - -
Dividend 1,263,194 - - - 1,219,783 2,469,102 - -
Charges for
Banking
Services.
119,217 - - - - - - -
Repairs (Oce
Maintenance)
2,093 - - - 1,456 6,710 - -
Others - - - - - 1,507 - -
Total 6,295,422 - 1,119,947 - 28,299,187 26,958,651 197,714 165,289
ASSETS
Transactions
during the year
Investment
purchased
during the year
7,058,109 - - - 64,738 - - -
Investment sold
during the year
300,000 - - - - 500,000 - -
Account
Balances: -
Investments 10,287,530 - - - - 8,900,126 - -
Income accrued
on investments
366,211 - - - - 317,652 - -
Prepaid
Insurance
Premium
- - 35,825 - - - - -
Deposits Placed 219,765 - - - - - - -
Bank Balances 2,527,748 - - - - - - -
Other
Receivable
- - 1,031 - - - - -
Schedule-16 (Continued)
Notes To Accounts
138
17
th
Annual Report
Particulars Holding Company Fellow Subsidiaries Investing Party and its
Group Company
Key Managerial Personnel
(including relatives)
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2024
Year ended
March 31,
2023
Year ended
March 31,
2024
Year ended
March
31, 2023
Year ended
March 31,
2024
Year ended
March 31,
2023
LIABILITIES
Account
Balances:-
Share Capital 3,609,126 - - - 3,509,418 7,055,112 - -
Securities
Premium
5,055,121 - - - 8,778,393 13,719,287 - -
Debentures - - 250,000 - 960,000 - - -
Balance due to
other insurance
companies
- - - - 22,205,466 18,770,390 - -
Interest Payable
on Debentures
- - 7,003 - 40,299 - - -
Unallocated
premium
17,573 - 39,478 - - 36,681 - -
Agents’
Balances
641,973 - 155,157 - - - - -
Name Usage
Fees Payable
52,333 - - - 43,611 155,701 - -
Other Payables - - - - - - - -
Transactions included in (b) above which are in excess of 10% of the total related transactions of the same type are given
below for the Financial Year 2023-24:
Particulars Holding Company Fellow Subsidiary Investing Party and its Group Company
HDFC
Limited
(as on
June 30
2023)
HDFC
Bank
Limited
(From July
01, 2023)
HDFC Life
(From
June 30,
2023)
HDFC AMC
Limited
(From June
30, 2023)
HDFC Sales
Private
Limited
(From June
30, 2023)
HDFC
Limited (Up
to June 29,
2023)
ERGO
International
AG
Munich Re
INCOME
Premium from
direct business
written - net of
GST.
32,130 1,626,072 14,394 63 95,750 51,920 - -
Commission
received on
Reinsurance
ceded.
- - - - - - - 5,894,466
Claims on
Re-insurance
ceded.
- - - - - - - 12,458,268
Interest
Dividend and
Rent – Gross
- 556,474 - - - 173,355 - -
Total 32,130 2,182,546 14,394 63 95,750 225,275 - 18,352,733
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
139
Particulars Holding Company Fellow Subsidiary Investing Party and its Group Company
HDFC
Limited
(as on
June 30
2023)
HDFC
Bank
Limited
(From July
01, 2023)
HDFC Life
(From
June 30,
2023)
HDFC AMC
Limited
(From June
30, 2023)
HDFC Sales
Private
Limited
(From June
30, 2023)
HDFC
Limited (Up
to June 29,
2023)
ERGO
International
AG
Munich Re
EXPENSES
Name Usage
Fees
- 151,466 - - - 140,000 177,382 -
Claims paid
direct
- 1,573,308 2,959 - 1,006 - - -
Premium on
Reinsurance
ceded
- - - - - - - 26,703,765
Interest on
Debentures
- - 13,373 - - - 40,299 -
Dividend - 1,263,194 - - - - 1,219,783 -
Commission
Paid
- 3,137,366 - - 946,831 - - -
Rent, Rates and
Taxes
- 48,361 - - - 16,120 - -
Electricity
Expenses
- 417 - - - 382 - -
Repairs (Oce
Maintenance)
- 2,093 - - - 1,456 - -
Charges for
Banking
services
- 119,217 - - - - - -
Premium paid
for Group Term
Insurance
- - 31,812 - - - - -
Total
- 6,295,423 48,144 - 947,837 157,958 1,437,464 26,703,765
ASSETS:
Transactions
during the
year
Investment
purchased
during the year
- 7,058,109 - - - 64,738 - -
Investment
sold during the
year
- 300,000 - - - - - -
Account
Balances
Investments
- 10,287,530 - - - - - -
Schedule-16 (Continued)
Notes To Accounts
140
17
th
Annual Report
Particulars Holding Company Fellow Subsidiary Investing Party and its Group Company
HDFC
Limited
(as on
June 30
2023)
HDFC
Bank
Limited
(From July
01, 2023)
HDFC Life
(From
June 30,
2023)
HDFC AMC
Limited
(From June
30, 2023)
HDFC Sales
Private
Limited
(From June
30, 2023)
HDFC
Limited (Up
to June 29,
2023)
ERGO
International
AG
Munich Re
Other
Receivable
- - 1,031 - - - - -
Interest
accrued on
investments
- 366,211 - - - - - -
Prepaid
Expenses
- - 35,825 - - - - -
Deposits
Placed
- 219,765 - - - - - -
Balances with
Bank
- 2,527,748 - - - - - -
LIABILITIES:
Account
Balances
Share Capital
- 3,609,126 - - - - 3,509,418 -
Securities
Premium
- 5,055,121 - - - - 8,778,393 -
Debentures
- - 250,000 - - - 960,000 -
Balance due to
other insurance
companies
- - - - - - - 22,205,466
Interest
Payable on
Debentures
- - 7,003 - - - 40,299 -
Unallocated
Premium
- 17,573 750 34,810 3,878 - - -
Agent
Balances
- 641,973 - - 153,411 - - -
Name Usage
Fees Payable
- 52,333 - - - - 43,611 -
Other Payables
- - - - - - - -
Transactions included in (b) above which are in excess of 10% of the total related transactions of the same type are given
below for the Financial Year 2023-24:
Particulars Ritesh Kumar
(Incl. Relatives)
Anuj Tyagi
(Incl. Relatives)
Samir H. Shah
(Incl. Relatives)
INCOME
Premium from direct business written - net of GST
171 186 25
Total
171 186 25
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
141
Particulars Ritesh Kumar
(Incl. Relatives)
Anuj Tyagi
(Incl. Relatives)
Samir H. Shah
(Incl. Relatives)
EXPENSES
Claim paid direct
90 - -
Employees remuneration and welfare benefits
110,861 52,063 34,700
Total
110,951 52,063 34,700
Transactions included in (b) above which are in excess of 10% of the total related transactions of the same type are given
below for the Financial Year 2022-23:
Particulars Investing Party and its Group Company
HDFC Limited ERGO International
AG
Munich Re
INCOME
Premium from direct business written - net of GST.
202,658 - -
Commission received on Reinsurance ceded.
- - 5,283,867
Claims on Re-insurance ceded.
- - 8,350,902
Interest Dividend and Rent – Gross
589,484 - -
Other Income.
135 - -
Total
792,277 - 13,634,769
EXPENSES
Name Usage Fees
600,000 123,997 -
Claims paid direct
34 - -
Premium on Reinsurance ceded
- - 23,674,723
Interest on Debentures
- - 15,741
Dividend
1,246,887 1,222,215 -
Commission Paid
- - -
Rent, Rates and Taxes
65,349 - -
Electricity Expenses
1,488 - -
Repairs (Oce Maintenance)
6,710 - -
Others
1,507 - -
Total
1,921,975 1,346,212 23,690,464
ASSETS:
Transactions during the year
Investment purchased during the year
- - -
Investment sold during the year
500,000 - -
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
142
17
th
Annual Report
Particulars Investing Party and its Group Company
HDFC Limited ERGO International
AG
Munich Re
Account Balances
Investments
8,900,126 - -
Other Receivable
- - -
Interest accrued on investments
317,652 - -
LIABILITIES:
Account Balances
Share Capital
3,563,069 3,492,043 -
Securities Premium
4,940,894 8,778,393 -
Debentures
- - -
Balance due to other insurance companies
- - 18,770,390
Interest Payable on Debentures
- - -
Unallocated Premium
36,681 - -
Agent Balances
- - -
Name Usage Fees Payable
124,284 31,417 -
Other Payables
- - -
Transactions included in (b) above which are in excess of 10% of the total related transactions of the same type are given
below for the Financial Year 2022-23:
Particulars Ritesh Kumar
(Incl. Relatives)
Anuj Tyagi
(Incl. Relatives)
Samir H. Shah
(Incl. Relatives)
INCOME
Premium from direct business written - net of GST
209 155 24
Total
209 155 24
EXPENSES
Claim paid direct
- - 13
Employees remuneration and welfare benefits
97,278 37,716 30,282
Total
97,278 37,716 30,295
(` ‘000)
21. LOAN RESTRUCTURING
The Company has not given any loans in the financial year 2023-24 (Previous year ₹ Nil).
22. SUMMARY OF FINANCIAL STATEMENTS
The summary of financial statements is provided in Annexure 3.
Schedule-16 (Continued)
Notes To Accounts
143
23. FOREIGN EXCHANGE GAIN/(LOSS) (NET)
(a) During the year Foreign Exchange Gain (net) earned by the Company is ₹ 9,904 thousand (Previous year Gain (net)
incurred of ₹ 28,850 thousand) (included in Schedule 4 - Operating Expenses, under the head “Miscellaneous
Expenses”).
(b) The year-end foreign currency exposure is ₹ Nil (Previous year ₹ Nil).
24. (a) CONTRIBUTION TO TERRORISM POOL
The Company is a participant in and has received the Terrorism Pool retrocession of premium in the current financial
year. The maximum limit of risk cession to terrorism pool is ₹ 20,000,000 thousand.
(b) SOLATIUM FUND
The IRDAI had asked the General Insurance Council (“the Council”) to recommend the percentage of contribution to be
made to a Solatium Fund and matters relating to the administration of the Fund. The Council has decided that The New
India Assurance Company Limited would administer the fund. The Council in its meeting held on May 6, 2005 approved
the contribution of 0.10% of the motor gross written premium with eect from the date of commencement of business,
for private insurance companies.
The Council, vide letter dated July 26, 2010, recommended the companies to contribute 0.10% of all the third party
premium written as Solatium Fund to the administrator on demand, with eect from April 1, 2010. During the year the
Company has charged ₹ 26,454 thousand (Previous year ₹ 25,548 thousand) to the Revenue Accounts on an accrual
basis (see accounting policy in paragraph 2(t) above) and disclosed under Current Liabilities.
(c) CONTRIBUTION TO ENVIRONMENT RELIEF FUND
During the year, an amount of ₹ 2,469 thousand (Previous year ₹ 2,631 thousand) was collected towards Environment
Relief Fund for public liability policies and an amount of ₹ 2,481 thousand (Previous year ₹ 2,638 thousand) has been
transferred to “United India Insurance Company Limited, Environment Fund Account” as per Notification of Environment
Relief Fund (ERF) scheme under the Public Liability Insurance Act, 1991 as amended. The balance amount of ₹ 105
thousand (Previous year ₹ 118 thousand) is included under balance due to other Insurance Companies in Schedule 13.
(d) CONTRIBUTION TO MARINE CARGO POOL FOR EXCLUDED TERRITORIES – RUSSIA, UKRAINE, BELARUS
(MCPET)
The Company has participated in the MCPET for all transactions accounted on or after June 1, 2022 and accordingly has
recorded its share of the retrocession premium based on latest statement/information received.
Sr.
No.
Particulars For the year ended
March 31, 2024
For the year ended
March 31, 2023
1 Net Profit After Tax for the year (₹ ‘000)
4,376,710 6,526,595
2 Number of Shares outstanding at the beginning of the year
712,780,035 712,780,035
3 Shares issued during the year
2,188,229 -
4 Number of Shares outstanding at the end of the year
714,968,264 712,780,035
5 Weighted Average No. of Equity Shares for Basic (‘000)
714,761 712,780
25. EARNINGS PER SHARE (EPS)
Schedule-16 (Continued)
Notes To Accounts
144
17
th
Annual Report
Sr.
No.
Particulars For the year ended
March 31, 2024
For the year ended
March 31, 2023
6 Add: Number of potentially dilutive equity shares (‘000)
1,943 1,949
7 Weighted Average No. of Equity Shares for Diluted (‘000)
716,704 714,729
8 Basic Earnings per Share (₹)
6.12 9.16
9 Diluted Earnings per Share (₹)
6.11 9.13
10 Nominal Value per Share (₹)
10.00 10.00
26. As per the provisions of the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) the Micro and Small
Enterprises have been identified by the Company from the available information. Based on the information available
with the Company, the balance due to micro and small enterprises as defined under the MSMED Act, 2006 is as follows:
27. PREMIUM DEFICIENCY
There is no premium deficiency for the Company on an overall basis in accordance with Para 2(2) of Schedule II of
Insurance Regulatory and Development Authority of India (Assets, Liabilities and Solvency Margin of General Insurance
Business) Regulations, 2016 (Previous year ` Nil) as certified by the Appointed Actuary.
28. STATEMENT SHOWING THE AGE-WISE ANALYSIS OF THE UNCLAIMED AMOUNT OF
POLICYHOLDERS
The statement of age-wise analysis of the unclaimed amount of policyholders is provided in Annexure 4.
29. CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Ministry of Corporate Aairs has notified Section 135 of the Companies Act, 2013 on Corporate Social Responsibility
Sr.
No.
Particulars For the year ended
March 31, 2024
For the year ended
March 31, 2023
1 The principal amount remaining unpaid to any supplier as at
the end of the year
28,340 22,596
2 Interest due on the above amount
- -
3 The amount of interest paid by in terms of Section 16 of the
Micro, Small and Medium Enterprises Development Act, 2006
- -
4 Amounts of the payment made to the supplier beyond the
appointed day during the year
672,769 294,600
5 Amount of interest due and payable for the period of delay
in making payment (which have been paid but beyond the
appointed day during the year) but without adding the interest
specified under Micro, Small and Medium Enterprise Develop-
ment Act, 2006
- -
6 Amount of interest accrued and remaining unpaid at the end
of the year
- -
7 Amount of further interest remaining due and payable even in
succeeding years, until such date when the interest dues as
above are actually paid to the small enterprise
- -
(` ‘000)
Schedule-16 (Continued)
Notes To Accounts
145
with eect from April 1, 2014. As per the provisions of the said Section read with Companies (Corporate Social
Responsibility Policy) Amendment Rules, 2021, the Company has undertaken CSR initiatives during the financial year
2023-24.
The Company has defined all CSR projects/programmes, under the core themes of Education (Vidya), Road Safety
(Supath), Healthcare (Niramaya) and Women Welfare (Roshini).
Under the Vidya-Education Initiative, the Company has undertaken reconstruction of Government schools and supported
creation of infrastructure facilities at universities.
Under the Niramaya-Healthcare Programme, the Company has undertaken reconstruction of Government Hospital,
upgradation of ICU facilities for cancer patients, organised health camps in rural and tribal areas, sponsored eye
surgeries for children in addition to supporting surgeries, cochlear implants etc.
Under the Supath-Road Safety Initiative, the Company supports a project which aims at creating Zero Fatality Corridor
to reduce accidents in addition to simulator-based training centre for safe two-wheeler riding.
Additionally, under programme Roshini-Women Welfare, the Company supports learning centres for girl child education,
sustainable livelihoods for women through Nursing Assistant training Course, Solar powered business units to women
collectives and women entrepreneurs.
Sr.
No.
Particulars For the year ended
March 31, 2024
For the year ended
March 31, 2023
1 Gross amount required to be spent by the Company during the
year
152,873 126,636
2 Amount approved by the Board to be spent during the year
152,873 126,636
3 Amount spent during the year on:
(i) Construction / acquisition of any asset
Nil Nil
(ii) On purposes other than (i) above
152,913 126,662
4 Amount paid to related Parties
Nil Nil
5 Unspent amount as per Section 135 (5)
Nil Nil
6 Excess amount Spent as per Section 135 (5)
Nil Nil
(` ‘000)
7 Details of ongoing projects For the year ended March 31, 2024
Amount required to be spent during the year
74,243
Amount spent during the year
74,243
30. PROVISION FOR FREE LOOK PERIOD
The provision for Free Look period is ₹ Nil (Previous year ₹ Nil), as certified by the Appointed Actuary.
Schedule-16 (Continued)
Notes To Accounts
146
17
th
Annual Report
Name of the auditor Services rendered For the year ended
March 31, 2024
For the year ended
March 31, 2023
G. M. Kapadia & Co
Review of quarterly financial
Information
1,280 1,000
Special purpose financial information
related work
900 1,600
Certifications
410 390
Out of Pocket Expenses
75 126
B S R & Co. LLP
Review of quarterly financial
Information
1920 500
Special purpose financial information
related work
700 -
Out of Pocket Expenses
126 60
(` ‘000)
32. PENALTIES LEVIED BY VARIOUS GOVERNMENT AUTHORITIES
Sr. No. Authority Non-
Compliance/
Violation
Penalty
Awarded
Penalty
Paid
Penalty
Waived/
Reduced
1 Insurance Regulatory and
Development Authority of India
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
2
Goods & Service Tax Authorities
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
3
Income Tax Authorities
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
4
Any other Tax Authorities
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
5 Enforcement Directorate/ Adjudicating Authority/
Tribunal or any Authority under FEMA
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
6 Registrar of Companies/ NCLT/CLB/Department of
Corporate Aairs or any Authority under Companies
Act, 2013/1956
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
7
Penalty awarded by any Court/ Tribunal for any
matter including claim settlement but excluding
compensation
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
8 Securities and Exchange Board of India N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
9 Competition Commission of India N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
10
Any other Central/State/Local Government/Statutory
Authority
N.A.
(N.A.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
(` ‘000)
(Previous year’s figures are in brackets)
31. DISCLOSURE ON OTHER WORK GIVEN TO AUDITORS
Pursuant to clause 7.1 of Corporate Governance Guidelines issued by IRDAI on May 18, 2016 the services of the statutory
auditors are disclosed below:
Schedule-16 (Continued)
Notes To Accounts
147
The Company, on September 18, 2023, exercised its call option and redeemed ₹ 740,000 thousand of its 10 years,
740 nos. of 10.25% Unsecured, Subordinated, Fully paid up, Listed, Redeemable Non - Convertible Debentures (NCDs)
having face value of ₹ 1,000 thousand each.
The Board of Directors of the Company, at its meeting held on July 25, 2023, approved raising of capital by issuance
of Unsecured, Redeemable, Non-Convertible Debentures (NCDs), in the nature of subordinated debt upto ₹ 3,200,000
thousand on a private placement basis, in accordance with the provisions of the IRDAI (Other Forms of Capital)
Regulations, 2022, the Companies Act, 2013 and the SEBI (Issue and Listing of Non-Convertible Securities) Regulations,
2021. Accordingly, the Company has allotted 32,000 Unsecured, Subordinated, Fully Paid-up, Listed, Redeemable,
Non-Convertible Debentures of the face value of ₹ 100 thousand each, for cash, at par, aggregating to ₹ 3,200,000
thousand. These NCDs have coupon of 8.15% per annum, payable annually and having maturity of 10 years with Call
Option to the Company at the end of 5 years from the Date of Allotment and every year thereafter.
Based on the above, the Company has total borrowings by way of Non-Convertible Debentures (NCDs) amounting
₹ 10,750,000 thousand, details of which are as under:
33.
34.
35.
Series 2023-24/1 2022-23/2 2022-23/1 2021-22/1
Type, Nature and
Seniority of Instrument
Unsecured, Subordinated, Fully paid up, Listed, Redeemable Non-Convertible
Debentures
Face Value (per security) (
`)
100 thousand 100 thousand 1,000 thousand 1,000 thousand
Issue Size (
`) 3,200,000 thousand
3,000,000
thousand
800,000
thousand
3,750,000
thousand
Issue Date September 26, 2023
February 20,
2023
September 19,
2022
November 09,
2021
Redemption Date September 26, 2033
February 20,
2033
September 19,
2032
November 09,
2031
Call Option September 26, 2028
February 20,
2028
September 19,
2027
November 09,
2026
Coupon Rate 8.15% 8.15% 7.72% 7.10%
The debentures of the Company are listed on the BSE Limited. In terms of the amendment to the Companies
(Specification of definition details) Rules, 2014, w.e.f. April 1, 2021, the Company would no longer be a listed company
as defined under the Companies Act, 2013. Accordingly, in terms of Rule 18(7)(b)(iv)(B) of the Companies (Share Capital
and Debentures) Rules, 2014, as amended, the Company would be required to create Debenture Redemption Reserve
out of the profits available for payment of dividend as per the said rules. The balance of Debenture Redemption
Reserve as at March 31, 2024 is ₹ 356,468 thousand. Thus, the Company is not required to create any additional
reserves during the year.
The Board of Directors, through a resolution dated September 18, 2023 and December 23, 2023 approved the payment
of an interim dividend of ₹ 2.50 and ₹ 1 per equity share of ₹ 10 each (Previous Year ₹ 3.50 per equity share of ₹ 10 each)
and accordingly an amount of ₹ 1,786,533 thousand and ₹ 714,968 thousand respectively (Previous Year ₹ 2,494,730
thousand) was paid to the shareholders.
(i) The Company periodically reviews all its long-term contracts to assess for any material foreseeable loses. Based
on such review, the Company has made adequate provisions for these long-term contracts in the books of account as
required under applicable law/accounting standard.
(ii) As at March 31, 2024, the company did not have any outstanding long-term derivative contracts (Previous year ₹ Nil).
Schedule-16 (Continued)
Notes To Accounts
148
17
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Annual Report
36.
37.
38.
39.
40.
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020 and has been published in the Gazette of India. The Ministry
of Labour and Employment has released draft rules (‘Rules’) for the Code on November 13, 2020, The final Rules and
the Eective Date of the Code is awaited. The Company will assess the impact of the Code once the Rules are notified
and will record any related impact in the period when the Code becomes eective.
In terms of the information available with the Company, no funds have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) to or any other person or entities,
including foreign entities (‘Intermediaries’) with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in parties identified by or on behalf of the Company (‘Ultimate beneficiaries). The
Company has also not received any fund from any parties (Funding Party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding
Party (‘Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
PENDING LITIGATION
The Company’s pending litigations comprise of claims against the Company and proceedings pending with Tax
Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions,
wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements (Refer Note
4 Contingent Liabilities). The Company does not expect the outcome of these proceedings to have a material impact
on its financial position.
INVESTOR EDUCATION AND PROTECTION FUND
During the year, no amount was required to be transferred to Investor Education and Protection Fund by the Company.
IND AS IMPLEMENTATION
Pursuant to notification of Indian Accounting Standards (Ind AS) by the Ministry of Corporate Aairs (for other than
Banks and Insurance Companies) and further to International Accounting Standards Board (IASB) issuing IFRS 17 :
Insurance Contracts, which replaced IFRS 4 with eect from January 1, 2023, IRDAI, vide letter no. 100/2/Ind AS-Mission
Mode/2022-23/1 dated July 14, 2022 advised all insurers to set up Ind AS Steering Committee and working group for
eective implementation of Ind AS in the Insurance Sector in India.
Accordingly, a Steering Committee and a working group comprising members from cross-functional areas including
Finance & Accounts, Actuarial, Information Technology and Project Management was established to study the new
standard and its implication on internal processes, systems and business decision making.
The Company appointed a knowledge partner to assist in carrying out initial impact analysis of Ind AS. The said activity
is in advanced stage of conclusion.
Additionally, as required by the above Circular, the Company has been appraising its Audit Committee on a quarterly
basis of the progress made towards Ind AS implementation and diagnostic analysis.
Schedule-16 (Continued)
Notes To Accounts
149
Signatures to the Notes to Accounts
For and on behalf of the Board of Directors
Keki M Mistry
Chairman
(DIN: 00008886)
Renu S. Karnad
Non-Executive Director
(DIN: 00008064)
Dr. Oliver Martin Willmes
Non-Executive Director
(DIN: 08876420)
Edward Ler
Non-Executive Director
(DIN: 10426805)
Bernhard Steinruecke
Independent Director
(DIN: 01122939)
Mehernosh B. Kapadia
Independent Director
(DIN: 00046612)
Arvind Mahajan
Independent Director
(DIN: 07553144)
Ameet Hariani
Independent Director
(DIN: 00087866)
Sanjib Chaudhuri
Independent Director
(DIN: 09565962)
Vinay Sanghi
Independent Director
(DIN: 00309085)
Rajgopal Thirumalai
Independent Director
(DIN: 02253615)
Ritesh Kumar
Managing Director & CEO
(DIN: 02213019)
Anuj Tyagi
Joint Managing Director
(DIN: 07505313)
Samir H. Shah
Executive Director & CFO
(DIN: 08114828 )
Vyoma Manek
Company Secretary & Chief Compliance Ocer
(Membership No.: ACS 20384)
Mumbai
Dated: April 16, 2024
Schedule-16 (Continued)
Notes To Accounts
150
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Annual Report
ANNEXURE 1
Segmental Breakup of the Balance Sheet as at March 31, 2024
Segment revenue and segment results have been incorporated in the financial statements. However given the nature of
business, segment assets and liabilities, have been allocated amongst various segments to the extent possible.
Particulars Fire Marine Miscellaneous Unallocated Total
Claims Outstanding (Refer
note 2(h))
4,637,168 1,738,021 96,315,294 - 102,690,482
(3,209,525) (1,726,026) (76,488,129) - (81,423,680)
Reserve for Unexpired Risk
5,346,226 385,061 56,913,690 - 62,644,978
(4,704,752) (450,966) (48,839,039) - (53,994,757)
Premium Received in Ad-
vance
5,350 16,786 9,552,524 - 9,574,660
(4,999) (18,164) (9,639,678) - (9,662,841)
Outstanding Premium
- - 14,711,711 - 14,711,711
(152,427) (125) (13,070,938) - (13,223,490)
(` ‘000)
(Previous year’s figures are in brackets)
Schedule-16 (Continued)
Notes To Accounts
151
SEGMENT REPORTING FOR THE YEAR ENDED MARCH 31, 2024
Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty * Weather/
Crop
Others Total
Premium Earned (Net) (Schedule - A) 3,107,315 1,539,904 1,801 34,105,356 21,353,705 12,751,651 200,036 9,040 1,089 403,405 343,874 64 3,986,347 34,392,613 235,999 1,219,359 15,124,934 1,064,667 95,735,803
Prot on Sale of Investments 231,987 55,485 252 2,215,080 420,074 1,795,006 9,223 489 354 18,598 21,702 1,324 179,385 765,692 33,262 37,854 266,286 61,360 3,898,334
Interest, Rent and Dividend (Net of Amortisation) 748,726 179,074 814 7,149,048 1,355,766 5,793,282 29,767 1,577 1,141 60,024 70,043 4,274 578,954 2,471,229 107,352 122,172 859,424 198,036 12,581,655
Investment Income from Pool 85,170
— — — — — — — — — — — — — — — — —
85,170
Other Income 499 258 --- 5,713 3,577 2,136 34 2 --- 68 57 — 668 5,761 40 204 2,534 178 16,014
Total Segmental Revenue 4,173,697 1,774,720 2,868 43,475,197 23,133,122 20,342,075 239,060 11,108 2,584 482,094 435,676 5,662 4,745,354 37,635,296 376,654 1,379,589 16,253,178 1,324,241 112,316,976
Claims Incurred (Net) (Schedule - B) 2,714,885 1,391,397 (1,522) 34,312,639 17,736,209 16,576,430 162,923 2,304 10,331 247,201 413,244 51 1,826,093 29,251,546 57,226 839,467 11,602,489 1,134,109 83,964,385
Commission (Net) (Schedule - C) (935,947) 206,781 (3,989) 8,720,770 7,615,282 1,105,488 42,296 270 (44) 22,638 (160,468) (5,159) 7,855 2,340,392 138,793 (129,158) (1,307,589) 215,616 9,153,059
Operating Expenses Related to Insurance Business
(Schedule - D)
1,386,849 174,479 11,720 5,684,707 2,876,103 2,808,605 21,975 4,603 307 64,597 174,532 12,817 568,346 5,844,685 71,474 383,955 1,684,714 263,477 16,353,236
Premium Deciency --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Total Segmental Expenditure 3,165,787 1,772,657 6,209 48,718,116 28,227,593 20,490,523 227,194 7,177 10,594 334,436 427,307 7,710 2,402,294 37,436,623 267,493 1,094,264 11,979,615 1,613,202 109,470,681
Segmental Prot/(Loss) 1,007,910 2,063 (3,341) (5,242,918) (5,094,471) (148,448) 11,865 3,931 (8,010) 147,658 8,368 (2,048) 2,343,059 198,673 109,161 285,326 4,273,564 (288,961) 2,846,295
* Includes - 1. Directors’ and ofcers’ liability
2. Mutual fund assets protection
Schedule - A to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
PREMIUM EARNED [NET]
Premium from direct business written-net of GST 17,959,630 1,701,054 162,556 52,753,507 26,299,293 26,454,214 271,106 42,208 2,475 1,185,691 2,566,955 196,209 5,633,022 59,748,544 759,095 4,823,575 34,037,457 3,832,494 185,675,578
Add: Premium on Re-insurance accepted 1,939,903 36,182
— — — — —
359
—
78,193 104,559
— — — —
181,744
—
473 2,341,412
Less: Premium on Re-insurance ceded (16,150,743) (262,839) (161,153) (14,904,496) (1,174,846) (13,729,650) (46,484) (34,257) (1,481) (779,920) (2,216,418) (196,155) (2,192,141) (22,462,083) (142,029) (3,745,381) (18,888,728) (1,446,657) (83,630,966)
Net Premium 3,748,790 1,474,397 1,403 37,849,011 25,124,446 12,724,565 224,622 8,310 994 483,963 455,096 54 3,440,881 37,286,461 617,065 1,259,938 15,148,729 2,386,310 104,386,024
Add/(Less): Adjustment for changes in reserve for
unexpired risks
(641,475) 65,507 398 (3,743,655) (3,770,741) 27,086 (24,585) 731 94 (80,559) (111,221) 10 545,465 (2,893,848) (381,066) (40,578) (23,795) (1,321,643) (8,650,221)
Total Premium Earned 3,107,315 1,539,904 1,801 34,105,356 21,353,705 12,751,651 200,036 9,040 1,089 403,405 343,874 64 3,986,347 34,392,613 235,999 1,219,359 15,124,934 1,064,667 95,735,803
Schedule - 16 (Continued)
Notes to Accounts
152
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Annual Report
SEGMENT REPORTING FOR THE YEAR ENDED MARCH 31, 2024 (Continued)
Schedule - B to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
CLAIMS INCURRED [NET]
Claims paid direct 5,459,102 1,815,710 263,347 28,450,782 17,791,911 10,658,871 126,052 323 16,421 953,157 1,398,298 3,489 2,409,594 40,127,337 42,152 751,441 20,399,923 1,609,503 103,826,631
Add: Claims on Re-insurance accepted 352,738 25,877
— — — — — — — —
25,801 478 65
— —
16,098
—
1,815 422,871
Less: Re-insurance ceded (4,524,596) (463,769) (263,285) (8,320,396) (890,112) (7,430,285) (5,277) (261) (7,909) (828,742) (1,132,253) (3,477) (605,687) (11,474,843) (3,032) (500,493) (12,732,280) (685,617) (41,551,918)
Net Claims paid 1,287,243 1,377,818 62 20,130,386 16,901,799 3,228,587 120,775 63 8,512 124,415 291,845 490 1,803,972 28,652,494 39,120 267,046 7,667,643 925,702 62,697,584
Add: Claims Outstanding at the end of the year 4,637,168 1,730,684 7,338 72,917,480 3,972,751 68,944,729 280,784 15,834 14,174 632,820 653,322 50,831 2,242,602 5,215,719 126,071 1,270,182 11,725,992 1,169,481 102,690,481
Less: Claims Outstanding at the beginning of the year (3,209,525) (1,717,105) (8,922) (58,735,227) (3,138,341) (55,596,886) (238,636) (13,593) (12,355) (510,034) (531,924) (51,270) (2,220,480) (4,616,666) (107,964) (697,761) (7,791,146) (961,073) (81,423,681)
Total Claims Incurred 2,714,885 1,391,397 (1,522) 34,312,639 17,736,209 16,576,430 162,923 2,304 10,331 247,201 413,244 51 1,826,093 29,251,546 57,226 839,467 11,602,489 1,134,109 83,964,385
Schedule - C to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
COMMISSION PAID [NET]
Commission paid direct 2,074,211 229,431 668 12,207,086 7,815,274 4,391,813 49,696 4,077 410 177,528 331,592 10,268 1,007,208 9,067,185 145,938 605,912 65,704 427,992 26,404,905
Add: Commission paid on Re-insurance accepted 201,374 4,911
— — — — —
81
—
14,656 12,554
— — — —
26,643
—
64 260,283
Less: Commission received on Re-insurance ceded (3,211,532) (27,561) (4,656) (3,486,315) (199,991) (3,286,324) (7,400) (3,887) (454) (169,546) (504,614) (15,426) (999,353) (6,726,793) (7,145) (761,713) (1,373,293) (212,441) (17,512,128)
Net commision paid/(received) (935,947) 206,781 (3,989) 8,720,770 7,615,282 1,105,488 42,296 270 (44) 22,638 (160,468) (5,159) 7,855 2,340,392 138,793 (129,158) (1,307,589) 215,616 9,153,059
Schedule - 16 (Continued)
Notes to Accounts
153
SEGMENT REPORTING FOR THE YEAR ENDED MARCH 31, 2024 (Continued)
Schedule - D to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
Employees’ remuneration and welfare benets (Refer note
11 of Schedule 16)
827,983 124,475 7,747 3,617,153 1,840,429 1,776,724 13,410 2,706 202 34,432 106,408 8,136 347,476 3,606,347 43,567 248,439 532,305 152,736 9,673,521
Travel, conveyance and vehicle running expenses 32,197 4,144 316 147,992 75,153 72,839 488 71 7 1,529 4,036 347 10,698 122,601 1,825 10,288 35,900 6,512 378,949
Training expenses 6,172 501 42 35,199 22,600 12,599 97 14 1 347 760 50 2,906 32,741 361 1,538 8,686 1,360 90,776
Rents, rates and taxes 46,419 6,226 344 186,934 94,165 92,770 680 152 9 2,304 6,263 395 18,237 186,805 2,419 11,530 68,074 9,385 546,175
Repairs 19,494 2,271 120 94,269 47,137 47,132 314 86 5 824 2,307 134 9,467 94,215 1,222 4,685 15,805 4,031 249,247
Printing and stationery 19,787 1,049 22 50,263 23,135 27,128 329 301 7 591 1,388 28 12,871 52,446 563 1,625 32,815 1,963 176,049
Communication 5,731 428 16 44,370 23,298 21,072 123 30 2 173 489 18 4,195 44,788 577 1,228 2,449 1,465 106,082
Legal and professional charges 88,894 8,451 989 107,653 60,199 47,454 1,130 194 6 6,312 12,534 1,173 23,611 216,256 1,255 22,842 93,030 13,622 597,954
Auditors’ fees, expenses etc
(a) as auditors 1,344 117 11 3,563 1,776 1,787 18 3 — 85 180 13 380 4,036 51 338 2,299 259 12,700
(b) as advisor or in any other capacity,in respect of:
(i) Taxation matters — — — — — — — — — — — — — — — — — — —
(ii) Insurance matters — — — — — — — — — — — — — — — — — — —
(iii) Management services — — — — — — — — — — — — — — — — — — —
(c) in any other capacity (Refer Note 31 of Schedule 16) 573 50 5 1,518 757 761 8 1 --- 36 77 6 162 1,720 22 144 980 110 5,411
Advertisement and publicity 63,994 3,284 94 580,640 289,437 291,203 1,508 161 23 1,903 5,116 114 47,680 596,184 8,455 15,209 210,972 20,465 1,555,803
Interest and bank charges 19,898 1,342 90 1,21,914 60,770 61,144 378 47 5 900 2,084 109 10,537 126,985 1,771 4,863 270,758 5,201 566,881
Others:
Electricity expenses 11,914 1,167 85 39,287 19,663 19,624 174 46 2 643 1,490 101 4,442 42,016 536 2,816 15,349 2,258 122,325
Ofce expenses 2,297 140 3 12,518 3,451 9,068 40 35 1 68 165 4 1,105 8,764 63 192 5,059 223 30,677
Miscellaneous expenses 8,770 757 66 39,550 18,523 21,027 113 19 1 441 1,115 68 3,184 34,267 378 2,127 25,365 1,563 117,786
Information Technology expenses 125,079 10,940 1,026 327,395 163,215 164,180
1,698 267 16 7,964 16,824 1,238 35,112 371,599 4,716 31,887 214,772 24,018 1,174,550
Postage and courier 15,660 743 4 36,694 13,739 22,956 258 275 6 414 968 7 10,656 32,771 309 807 2,206 1,142 102,920
Loss/(Prot) on sale of assets (net) (166) (14) (1) (480) (240) (241) (2) --- --- (10) (22) (2) (50) (536) (7) (42) (310) (33) (1,676)
Depreciation 90,808 8,408 740 238,274 118,896 1,19,378 1,212 195 12 5,642 12,348 879 25,675 2,70,681 3,391 23,440 148,201 17,197 847,105
Total Operating Expenses 1,386,849 174,479 11,720 5,684,707 2,876,103 2,808,605 21,975 4,603 307 64,597 174,532 12,817 568,346 5,844,685 71,474 383,955 1,684,714 263,477 16,353,236
Schedule - 16 (Continued)
Notes to Accounts
154
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Annual Report
SEGMENT REPORTING FOR THE YEAR ENDED MARCH 31, 2023
Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty * Weather/
Crop
Others Total
Premium Earned (Net) (Schedule - A) 2,721,522 1,592,505 907 29,205,578 17,160,856 12,044,723 158,564 7,536 587 141,459 322,808 117 4,008,153 30,538,045 191,585 1,021,451 9,523,230 915,548 80,349,593
Prot on Sale of Investments 45,320 10,225 62 436,395 76,898 359,497 1,877 106 78 3,228 4,199 376 46,431 159,357 5,824 5,996 42,436 10,083 771,993
Interest, Rent and Dividend (Net of Amortisation) 614,350 138,612 843 5,915,748 1,042,427 4,873,322 25,443 1,432 1,055 43,758 56,928 5,097 629,420 2,160,235 78,952 81,285 575,258 136,688 10,465,104
Investment Income from Pool 53,023 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 53,023
Other Income 1,788 1,078 1 19,774 11,619 8,155 107 5 — 96 214 — 2,714 20,676 130 692 6,448 620 54,342
Total Segmental Revenue 3,436,002 1,742,420 1,812 35,577,496 18,291,799 17,285,696 185,991 9,079 1,720 188,541 384,149 5,590 4,686,718 32,878,313 276,490 1,109,423 10,147,371 1,062,939 91,694,055
Claims Incurred (Net) (Schedule - B) 1,590,463 2,173,217 725 22,807,746 13,357,949 9,449,797 109,100 1,281 128 271,159 376,138 (15,092) 1,305,029 26,000,476 79,848 481,844 8,134,824 912,645 64,229,530
Commission (Net) (Schedule - C) (1,954,068) 242,039 (4,998) 1,960,530 3,538,007 (1,577,477) 23,354 (668) (8) 2,492 (163,514) (5,668) (531,002) 753,814 69,963 (191,557) (2,499,635) (86,258) (2,385,184)
Operating Expenses Related to Insurance Business
(Schedule - D)
2,569,967 282,542 26,903 6,329,992 2,848,012 3,481,981 29,010 4,826 265 132,818 279,750 25,151 812,565 6,978,554 67,474 611,327 4,718,610 252,962 23,122,719
Premium Deciency — — — — — — — — — — — — — — — — — — —
Total Segmental Expenditure 2,206,363 2,697,798 22,631 31,098,268 19,743,968 11,354,301 161,465 5,439 385 406,469 492,374 4,391 1,586,592 33,732,844 217,285 901,614 10,353,799 1,079,349 84,967,065
Segmental Prot/(Loss) 1,229,640 (955,378) (20,819) 4,479,227 (1,452,169) 5,931,395 24,526 3,640 1,336 (217,928) (108,224) 1,199 3,100,126 (854,531) 59,205 207,809 (206,428) (16,411) 6,726,990
Exceptional Item — — — — — — — — — — — — — — — — — — —
Segmental Prot/(Loss) (after exceptional item) 1,229,640 (9,55,378) (20,819) 4,479,227 (1,452,169) 5,931,395 24,526 3,640 1,336 (217,928) (108,224) 1,199 3,100,126 (854,531) 59,205 207,809 (206,428) (16,411) 6,726,990
* Includes - 1. Directors’ and ofcers’ liability
2. Mutual fund assets protection
Schedule - A to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
PREMIUM EARNED [NET]
Premium from direct business written-net of GST 17,100,148 2,001,113 197,394 46,443,848 20,896,173 25,547,675 212,852 34,257 1,943 956,038 2,001,641 184,539 5,961,879 51,202,409 495,067 4,156,231 33,554,267 1,854,517 166,358,142
Add: Premium on Re-insurance accepted 1,892,347 73,377 --- --- --- --- --- 1,152 --- 18,460 57,259 --- --- --- --- 329,144 --- 1,495 2,373,234
Less: Premium on Re-insurance ceded (15,620,164) (401,941) (195,593) (13,617,435) (888,102) (12,729,332) (39,011) (27,269) (1,203) (844,940) (1,735,140) (184,446) (2,445,614) (16,378,004) (78,152) (3,352,637) (23,870,329) (1,131,113) (79,922,991)
Net Premium 3,372,332 1,672,548 1,801 32,826,413 20,008,071 12,818,343 173,840 8,140 740 129,558 323,760 93 3,516,265 34,824,405 416,915 1,132,738 9,683,937 724,899 88,808,385
Add/(Less): Adjustment for changes in reserve for
unexpired risks
(650,810) (80,044) (894) (3,620,835) (2,847,215) (773,620) (15,276) (604) (152) 11,901 (952) 24 491,888 (4,286,360) (225,331) (111,288) (160,708) 190,649 (8,458,792)
Total Premium Earned 2,721,522 1,592,505 907 29,205,578 17,160,856 12,044,723 158,564 7,536 587 141,459 322,808 117 4,008,153 30,538,045 191,585 1,021,451 9,523,230 915,548 80,349,593
Schedule - 16 (Continued)
Notes to Accounts
155
SEGMENT REPORTING FOR THE YEAR ENDED MARCH 31, 2023 (Continued)
Schedule - B to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
CLAIMS INCURRED [NET]
Claims paid direct 5,003,900 2,154,247 8,306 21,714,487 14,025,197 7,689,289 93,825 10 --- 152,892 886,685 4,218 2,060,620 36,202,174 31,678 905,870 18,060,008 1,045,105 88,324,025
Add: Claims on Re-insurance accepted 442,627 29,032 --- --- --- --- --- --- --- --- 22,392 1,669 1,060 --- --- --- --- 169 496,949
Less: Re-insurance ceded (4,311,743) (940,904) (7,942) (6,489,202) (643,000) (5,846,202) (4,556) (5) --- (76,500) (609,483) (1,459) (528,113) (9,728,020) (1,519) (672,270) (12,564,391) (251,575) (36,187,683)
Net Claims paid 1,134,784 1,242,375 364 15,225,285 13,382,197 1,843,088 89,269 5 --- 76,392 2,99,593 4,427 1,533,568 26,474,154 30,158 233,600 5,495,618 793,699 52,633,290
Add: Claims Outstanding at the end of the year 3,209,525 1,717,105 8,922 58,735,227 3,138,341 55,596,886 238,636 13,593 12,355 510,034 531,924 51,270 2,220,480 4,616,666 107,964 697,761 7,791,146 961,073 81,423,681
Less: Claims Outstanding at the beginning of the year (2,753,846) (786,263) (8,561) (51,152,766) (3,162,589) (47,990,177) (218,805) (12,316) (12,226) (315,267) (455,379) (70,789) (2,449,020) (5,090,344) (58,274) (449,518) (5,151,939) (842,128) (69,827,439)
Total Claims Incurred 1,590,463 2,173,217 725 22,807,746 13,357,949 9,449,797 109,100 1,281 128 271,159 376,138 (15,092) 1,305,029 26,000,476 79,848 481,844 8,134,824 912,645 64,229,532
Schedule - C to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
COMMISSION PAID [NET]
Commission paid direct 1,730,505 2,60,509 2,266 4,146,140 3663,419 482,720 28,846 2,610 262 131,152 204,533 6,894 809,302 6,884,340 73,638 519,485 43,402 79,206 14,923,091
Add: Commission paid on Re-insurance accepted 189,212 8,377 --- --- --- --- --- 239 --- 2,744 9,717 --- --- --- --- 44,556 --- 15 254,859
Less: Commission received on Re-insurance ceded (3,873,785) (26,846) (7,264) (2,185,609) (125,412) (2,060,197) (5,491) (3,517) (270) (131,404) (377,764) (12,563) (1,340,304) (6,130,526) (3,676) (755,597) (25,43,037) (165,480) (17,563,133)
Net commision paid/(received) (1,954,068) 2,42,039 (4,998) 1,960,530 3,538,007 (1,577,477) 23,354 (668) (8) 2,492 (163,514) (5,668) (531,002) 753,814 69,963 (191,557) (24,99,635) (86,258) (2,385,183)
Schedule - 16 (Continued)
Notes to Accounts
156
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SEGMENT REPORTING FOR THE YEAR ENDED MARCH 31, 2023 (Continued)
Schedule - D to Annexure 1
( ` ‘000)
Fire Marine
Cargo
Marine-
Hull
Motor Motor-OD Motor-TP Workmen’s
Compensation
Public
Liability
Product
Liability
Other
Liabilities
Engineering Aviation Personal
Accident
Health Home Specialty Weather/
Crop
Others Total
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
Employees’ remuneration and welfare benets (Refer note
11 of Schedule 16)
974,678 107,156 10,203 2,400,694 1,080,128 1,320,566 11,002 1,830 100 50,372 106,097 9,539 308,171 2,646,665 25,590 231,850 1,734,429 95,938 8,714,316
Travel, conveyance and vehicle running expenses 54,598 6,002 572 134,478 60,505 73,973 616 103 6 2,822 5,943 534 17,263 148,256 1,433 12,987 97,156 5,374 488,144
Training expenses 25,097 2,759 263 61,815 27,812 34,003 283 47 3 1,297 2,732 246 7,935 68,148 659 5,970 44,659 2,470 224,382
Rents, rates and taxes 66,150 7,273 692 162,932 73,307 89,625 747 124 7 3,419 7,201 647 20,915 179,625 1,737 15,735 1,17,713 6,511 591,428
Repairs 27,564 3,030 289 67,893 30,547 37,346 311 52 3 1,425 3,000 270 8,715 74,849 724 6,557 49,051 2,713 246,446
Printing and stationery 27,226 2,993 285 67,060 30,172 36,888 307 51 3 1,407 2,964 266 8,608 73,931 715 6,476 48,449 2,680 243,423
Communication 10,737 1,180 112 26,446 11,899 14,548 121 20 1 555 1,169 105 3,395 29,156 282 2,554 19,107 1,057 95,998
Legal and professional charges 385,920 42,428 4,040 950,546 427,673 522,873 4,356 725 40 19,945 42,009 3,777 122,019 1,047,937 10,132 91,800 686,741 37,986 3,450,401
Auditors’ fees, expenses etc
(a) as auditors 839 92 9 2,066 930 1,137 9 2 — 43 91 8 265 2,278 22 200 1,493 83 7,500
(b) as advisor or in any other capacity,in respect of:
(i) Taxation matters — — — — — — — — — — — — — — — — — — —
(ii) Insurance matters — — — — — — — — — — — — — — — — — — —
(iii) Management services — — — — — — — — — — — — — — — — — — —
(c) in any other capacity (Refer Note 31 of Schedule 16) 411 45 4 1,013 456 557 5 1 — 21 45 4 130 1,116 11 98 732 40 3,675
Advertisement and publicity 735,463 80,857 7,699 1,811,493 815,033 996,460 8,302 1,381 76 38,009 80,058 7,198 232,537 1,997,095 19,310 174,947 1,308,748 72,392 6,575,564
Interest and bank charges 30,725 3,378 322 75,677 34,049 41,628 347 58 3 1,588 3,345 301 9,714 83,431 807 7,309 200,057 3,024 420,084
Others:
Electricity expenses 11,456 1,259 120 28,217 12,696 15,522 129 22 1 592 1,247 112 3,622 31,109 301 2,725 20,386 1,128 102,427
Ofce expenses 2,097 231 22 5,166 2,324 2,842 24 4 — 108 228 21 663 5,695 55 499 3,732 206 18,751
Miscellaneous expenses 30,542 3,358 320 75,226 33,846 41,380 345 57 3 1,578 3,325 299 9,657 82,933 802 7,265 54,348 3,006 273,064
Information Technology expenses 99,607 10,951 1,043
245,338 110,383 134,955 1,124 187 10 5,148 10,843 975 31,493 270,475 2,615 23,694 177,249 9,804 890,555
Postage and courier 10,382 1,141 109 25,573 11,506 14,067 117 19 1 537 1,130 102 3,283 28,193 273 2,470 18,475 1,022 92,826
Loss/(Prot) on sale of assets (net) 666 73 7 1,641 738 903 8 1 — 34 73 7 211 1,809 17 158 1,185 66 5,956
Depreciation 75,808 8,334 794 186,720 84,010 102,710 856 142 8 3,918 8,252 742 23,969 205,851 1,990 18,033 134,899 7,462 677,777
Total Operating Expenses 2,569,967 282,542 26,903 6,329,992 2,848,012 3,481,981 29,010 4,826 265 132,818 279,750 25,151 812,565 6,978,554 67,474 611,327 4,718,610 252,962 23,122,719
Schedule - 16 (Continued)
Notes to Accounts
157
Annexure - 2
RATIOS FOR NON-LIFE COMPANIES
Sr.
No.
Performance Ratio As on March 31, 2024 As on March 31, 2023
Fire Marine Miscellaneous Total Fire Marine Miscellaneous Total
1 Gross premium growth rate (refer note 1a and 1b) 5.03% -15.23% 12.78% 11.61% 28.54% 26.76% 22.61% 23.25%
Gross Premium for Current period / Gross Premium for Previous period
2 Gross Premium to shareholders’ fund ratio NA NA NA 4.82 NA NA NA 4.60
Gross Premium for Current period / (Paid up Capital plus Free Reserves)
3 Growth rate of shareholders’ funds NA NA NA 6.53% NA NA NA 12.58%
Shareholders’ funds as at the current balance sheet date / Shareholders’ funds
at the previous balance sheet date
4 Net retention ratio (refer note 1a and 1b) 18.84% 77.68% 59.66% 55.52% 17.76% 73.70% 56.80% 52.63%
Net Premium / Gross Premium
5 Net commission ratio (refer note 1a and 1b) -24.97% 13.74% 9.97% 8.77% -57.94% 14.16% -0.80% -2.69%
Net Commission / Net Premium
6 Expenses of Management to gross direct Premium ratio 19.27% 22.34% 23.44% 23.03% 25.15% 26.03% 22.56% 22.87%
Operating Expenses + Gross Commission/ Gross Premium
7 Expenses of Management to Net written Premium ratio 92.32% 28.21% 39.21% 40.96% 127.52% 34.18% 39.60% 42.84%
Operating Expenses + Gross Commission/ Net Premium
8 Net Incurred Claims to Net Earned Premium 87.37% 90.15% 87.67% 87.70% 58.44% 136.43% 79.52% 79.94%
Net incurred Claim / Net earned premium
9 Combined ratio 99.40% 116.51% 112.55% 112.14% 76.70% 169.07% 102.89% 103.29%
Net incurred Claim, Net Commission plus Operating Expense / Net Premium +
Net earned premium
10 Technical reserves to net Premium ratio 2.66 1.44 1.55 1.58 2.35 1.30 1.50 1.52
Reserve for Unexpired Risks plus Deciency Reserve plus Reserve for
Outstanding Claims / Net Premium
11 Underwriting balance ratio -0.02 -0.15 -0.15 -0.14 0.19 -0.71 -0.05 -0.06
Underwriting Prot / Net Premium
12 Operating prot ratio 32.44% -0.08% 2.02% 2.97% 45.18% -61.26% 8.51% 8.37%
Underwriting Prot plus Investment Income / Net Premium
13 Liquid assets to liabilities ratio NA NA NA 0.16 NA NA NA 0.23
Liquid Assets of the Insurer / Policyholders’ Liabilities
14 Net earnings ratio NA NA NA 4.19% NA NA NA 7.35%
Prot after Tax / Net Premium
15 Return on net worth NA NA NA 11.36% NA NA NA 18.05%
Prot After Tax / Net Worth
16 Available Solvency Margin (ASM) to Required Solvency Margin (RSM) NA NA NA 1.68 NA NA NA 1.81
ASM / RSM
17
Gross NPA ratio*
Gross NPA / Gross Investment
NA NA NA 0.82% NA NA NA 0.99%
Net NPA ratio*
Net NPA / Net Investment
NA NA NA 0.00% NA NA NA 0.00%
*Pertains to Non - Performing Investments
Schedule - 16 (Continued)
Notes to Accounts
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Annexure - 2
RATIOS FOR NON-LIFE COMPANIES (Continued)
Notes:
1a. Miscellaneous Breakup for the year ended March 31, 2024
Sr. No. Particulars Miscellaneous
Motor Workmens
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others Total
Miscellenous
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty Weather/
Crop
Others
1 Gross premium growth rate
Gross Premium for Current period / Gross Premium for Previous period
25.86% 3.55% 13.59% 27.37% 23.21% 27.43% 28.24% 6.32% -5.52% 16.69% 24.02% 53.33% 16.06% 1.44% 106.66% 12.78%
2 Net retention ratio
Net Premium / Gross Premium
95.53% 48.10% 71.75% 82.85% 19.52% 40.17% 17.04% 0.03% 61.08% 62.41% 38.29% 81.29% 25.17% 44.51% 62.26% 59.66%
3 Net commission ratio
Net Commission / Net Premium
30.31% 8.69% 23.04% 18.83% 3.26% -4.39% -35.26% -9546.50% 0.23% 6.28% 4.68% 22.49% -10.25% -8.63% 9.04% 9.97%
1b. Miscellaneous Breakup for the year ended March 31, 2023
Sr. No. Particulars Miscellaneous
Motor Workmens
Compensation
Public
Liability
Product
Liability
Engineering Aviation Personal
Accident
Health
Insurance
Others Total
Miscellenous
Motor-OD Motor-TP Motor Total Other
Liability
Home Specialty Weather/
Crop
Others
1 Gross premium growth rate
Gross Premium for Current period / Gross Premium for Previous period
35.95% 26.98% 30.86% 27.11 % -2.07% 32.92% 9.03% 1.71% -0.43% 17.93% 14.48% -32.15% 61.58% 23.73% 18.65% 22.61%
2 Net retention ratio
Net Premium / Gross Premium
95.75% 50.17% 70.68% 81.67% 22.99% 38.07% 15.72% 0.05% 58.98% 68.01% 13.29% 84.21% 25.25% 28.86% 39.06% 56.80%
3 Net commission ratio
Net Commission / Net Premium
17.68% -12.31% 5.97% 13.43% -8.21% -1.15% -50.50% -6094.36% -15.10% 2.16% 1.92% 16.78% -16.91% -25.81% -11.90% -0.80%
2. Gross Premium represents Gross Direct Premium
3. Net Premium represents Gross Direct Premium including Premium accepted on reinsurance less reinsurance ceded
4. Underwriting Prot represents Segmental Prot / (Loss) excluding Investment Income
5. Liquid Assets represent Cash and Cash Equivalents and Short Term Investments.
Schedule - 16 (Continued)
Notes to Accounts
159
SUMMARY OF FINANCIAL STATEMENTS
Annexure - 3
Sr.
No.
Particulars 2023-24
( ` ‘000)
2022-23
( ` ‘000)
2021-22
( ` ‘000)
2020-21
( ` ‘000)
2019-20
( ` ‘000)
OPERATING RESULTS
1 Gross Written Premium 188,016,988 168,731,374 137,071,444 124,439,338 97,600,965
2 Net Premium Income 104,386,024 88,808,383 71,068,776 65,042,858 48,668,660
3 Income from Investments (net) 16,479,989 11,237,098 10,358,679 9,540,196 7,318,655
4 Other Income 101,184 107,365 62,715 118,832 78,665
5 Total Income 120,967,196 100,152,846 81,490,171 74,701,886 56,065,980
6 Commission (net) 9,153,060 (2,385,182) (2,770,514) (1,983,344) (2,119,040)
7 Operating Expenses 16,353,234 23,122,720 19,424,800 19,868,937 14,809,749
8 Premium Deciency - — — — —
9 Net Incurred Claims 83,964,387 64,229,533 57,810,582 48,520,486 35,241,187
10 Change in Unexpired Risk Reserve 8,650,220 8,458,791 2,282,301 987,052 4,165,145
11 Operating Prot/(Loss) 2,846,295 6,726,984 4,743,002 7,308,755 3,968,939
NON-OPERATING RESULTS
12 Total Income under shareholder’s account 2,937,224 1,957,469 1,934,694 608,935 620,710
13 Prot/(Loss) before tax 5,783,520 8,684,452 6,677,695 7,917,692 4,589,649
14 Provision for tax 1,406,809 2,157,859 1,676,379 2,001,182 1,320,231
15 Prot/(Loss) after tax 4,376,711 6,526,593 5,001,316 5,916,510 3,269,418
MISCELLANEOUS
16 Policyholders’ Account :
Total Funds 208,745,525 180,404,772 146,765,923 136,900,703 115,988,644
Total Investments (Refer note 2 (p) and 10 of
schedule 16)
208,745,525 180,404,772 146,765,923 136,900,703 115,988,644
Yield on Investments 8.8% 7.1% 7.4% 7.3% 8.1%
17 Shareholders’ Account :
Total Funds 38,520,172 36,159,558 32,118,923 29,268,562 25,429,010
Total Investments (Refer note 2 (p) and 10 of
schedule 16)
48,873,236 42,011,314 37,204,597 29,528,835 19,780,184
Yield on Investments 8.8% 7.1% 7.4% 7.3% 8.1%
18 Paid up equity capital 7,149,683 7,127,800 7,127,800 7,115,649 6,058,421
19 Net worth 38,520,172 36,159,558 32,118,923 29,268,562 25,429,010
20 Total Assets 38,520,172 36,159,558 32,118,923 29,268,562 25,429,010
21 Yield on Total Investments 8.8% 7.1 % 7.4% 7.3% 8.1%
22
Earnings per Share (Basic) (`)
6.12 9.16 7.02 8.32 5.32
23
Book Value per Share (`)
53.88 50.73 45.06 41.13 41.97
24 Total Dividend 2,501,501 2,494,730 2,316,535 2,134,695 —
25
Dividend per Share (`)
3.50 3.50 3.25 3.00 —
Schedule - 16 (Continued)
Notes to Accounts
160
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Schedule-16 (Continued)
Notes To Accounts
ANNEXURE 4
A) Statement showing the Age-wise Analysis of the Unclaimed amount of Policyholders
(` ‘000)
Particulars Total
Amount
AGE-WISE ANALYSIS
0-6*
months
7-12*
months
13-18
months
19-24
months
25-30
months
31-36
months
37-120
months
More
than 120
Months
Claims settled but
not paid to the
policyholders/in-
sured’s due to any
reasons except
under litigation from
the insured/policy-
holders
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
Sum due to the
insured/policyhold-
ers on maturity or
otherwise
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
—
(—)
Any excess
collection of the
premium/tax or any
other charges which
is refundable to the
policyholders either
as terms of condi-
tions of the policy
or as per law or as
may be directed by
the Authority but not
refunded so far
29,368
(46,381)
—
(—)
—
(7,773)
1,419
(12,209)
3,896
(15,437)
6,265
(1,304)
9,702
(2,360)
7,988
(7,298)
98
(—)
Cheques issued but
not encashed by the
policyholder/insured
(refer note below)
221,228
(289,915)
—
(—)
—
(18,586)
12,315
(21,848)
10,955
(14,098)
13,939
(15,069)
10,638
(17,132)
161,877
(190,953)
11,504
(12,230)
TOTAL
250,596
(336,296)
—
(—)
—
(26,359)
13,734
(34,057)
14,851
(29,535)
20,204
(16,373)
20,340
(19,492)
169,865
(198,251)
11,602
(12,230)
(Previous year’s figures are in brackets)
Notes:
1. The Policy Holder due includes ₹ 70,353 thousand (Previous year ₹ 97,518 thousand) pertains to “Litigation & Others” cases.
2. In case of crop insurance under the Government schemes, the payments are made as prescribed by the Government
and hence the same is not included under the unclaimed account.
3. The Policyholder due includes NIL amount (Previous year ₹ 2,200 thousand) pertains to cheques reissued but not
encashed by the policyholder/insured.
*Pursuant to Modified Circular IRDAI/Life/CIR/Misc/41/2/2024 on unclaimed amount of Policy Holder due’s issued by
IRDAI on February 16, 2024, the Company has considered the unclaimed amount which are payable to Policy Holders
remaining unclaimed beyond twelve months from the settlement date or due date whichever is earlier. Accordingly,
there are no additions in the unclaimed amount of Policy Holder dues in the category of 0-12 months.
161
Schedule-16 (Continued)
Notes To Accounts
B) Statement showing movement of Unclaimed Amount and Investment Income as per IRDAI Circular no. IRDA/F&A/
CIR/MISC/282/11/2020 dated November 18, 2020 read with Circular no. IRDAI/Life/CIR/MISC/41/2/2024 dated
February 16, 2024.
(` ‘000)
Particulars For the year ended
March 31, 2024
For the year ended March 31,
2023
Policy Dues Income
Accrued
Policy Dues Income
Accrued
Opening Balance 285,500 48,495 284,107 43,572
Add : Amount transferred to unclaimed fund 36,745 - 130,918 -
Add : Cheques issued out of the unclaimed amount
but not encashed by the policyholders (to be
included only when the cheques are stale)
836 - 2,330 -
Add: Investment Income on unclaimed Fund - 13786 - 11,695
Less: Amount of claims paid during the year 107,232 3,990 119,432 1,211
Less: Amount transferred to SCWF (net of claims paid
in respect of amounts transferred earlier)
15,375 8,168 12,423 5,561
Closing Balance of Unclaimed Amount Fund 200,474 50,123 285,500 48,495
“Unclaimed amount of policyholders (Investment) ` 130,121 thousand (Previous year ` 189,070 thousand) and “Income on
Unclaimed Amount of Policyholders (Investment)”
` 50,123 thousand (Previous year ` 48,583 thousand) are disclosed under
Schedule 12 – Advances and Other Assets.
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MANAGEMENT REPORT
In accordance with Part IV of Schedule B of the Insurance
Regulatory and Development Authority (Preparation of
Financial Statements and Auditor’s Report of Insurance
Companies) Regulations 2002, the Management submits the
following Report:
1. We confirm the validity of Certificate of Registration granted
by the Insurance Regulatory and Development Authority of
India to transact general insurance business.
2. To the best of our knowledge and belief, all the material
dues payable to the statutory authorities have been
duly paid.
3. We confirm that the shareholding pattern and the transfer
of shares during the year ended March 31, 2024 are in
accordance with the statutory or regulatory requirements.
4. We declare that funds of holders of policies issued in India
have not been directly or indirectly invested outside India.
5. We confirm that the Company has maintained the required
solvency margins laid down by Insurance Regulatory and
Development Authority of India.
6. We certify that the all assets of the Company have been
reviewed on the date of the Balance Sheet and to the best
of our knowledge and belief the assets set forth in the
Balance Sheet are shown in the aggregate at amounts not
exceeding their realizable or market value under the several
headings – “Loans”, “Investments”, “Agents balances”,
“Outstanding Premiums”, “Interest, Dividends and Rents
outstanding”, “Interest, Dividends and Rents accruing but
not due”, “Amounts due from other persons or Bodies
carrying on insurance business”, “Sundry Debtors”, “Bills
Receivable”, “Cash” and the several items specified under
“Other Accounts” except debt securities which are stated at
cost / amortised cost.
7. The Company is exposed to a variety of risks associated
with general insurance business such as quality of
risks undertaken, fluctuations in value of assets and
higher expenses in the initial years of operation. The
Company monitors these risks closely and eective
remedial action is taken wherever deemed necessary.
The Company has, through an appropriate reinsurance
program kept its risk exposure at a level commensurate
with its capacity.
8. The Company does not have operations outside India.
9. a. For ageing analysis of Gross Claims outstanding
(excluding provision for IBNR / IBNER and claims relating
to inward re-insurance from terrorism pool) during the
preceding five years, please refer Annexure 1.
b. For average claims settlement time during the
preceding five years, please refer Annexure 2.
10. Details of payments to individuals, firms, Companies and
organisations in which directors are interested during the
year ended on March 31, 2024:
Sr.
No.
Name of the Director Entity in which Director is interested Interested As Payment during
the year
(
` ‘000)
1. Keki M. Mistry HDFC Bank Limited Director 7,081,032
HDFC Life Insurance Company Limited Director 63,252
Tata Consultancy Services Limited Independent Director 192,412
Torrent Power Limited Independent Director 1,684
2. Renu Sud Karnad HDFC Bank Limited Nominee Director 7,081,032
3. Dr. Oliver Martin Willmes ERGO International AG Chairman of the Board
of Management
1,437,464
4. Mehernosh B. Kapadia Tata Capital Housing Finance Limited Director 216,001
5. Vijay Sanghi Suraj Sanghi Service Centre Partner 9
6. Ameet Hariani Mahindra Logistics Limited Independent
Non-Executive Director
1,861
7. Bernhard Steinruecke ERGO Technology & Services Private Limited Director 61
8. Ritesh Kumar Insurance Information Bureau of India Member 1,613
HDFC ERGO GENERAL INSURANCE COMPANY LIMITED
IRDAI Registration No: 146
Date of Registration with the IRDAI: July 09, 2010.
163
11. We certify that all debt securities excluding Additional
Tier I Bonds and non -convertible preference shares
are considered as ‘held to maturity’ and accordingly
stated at historical cost subject to amortisation of
premium or accretion of discount on constant yield to
maturity basis to the extent of policyholders funds in the
Revenue Accounts and to the extent of shareholders
funds in the Profit and Loss Account over the period
of maturity/holding. Money market instruments like
Commercial Papers, Certificate of Deposits, Treasury
Bills and TREPS are stated at historical cost subject
to accretion of discount on constant yield to maturity
basis. Government Securities traded under Reverse
repurchase (reverse repo) are recorded at historical cost.
All mutual fund investments are valued at
net asset value as at Balance Sheet date.
Equity shares actively traded as at the Balance Sheet
date are stated at fair value, being the last quoted closing
price on the National Stock Exchange (NSE) being
selected as Primary exchange as required by IRDAI
circular number IRDA/F&I/INV/CIR/213/10/2013 dated
October 30, 2013. However, in case of any stock not
being listed on NSE, the same is valued based on the last
quoted closing price on Bombay Stock Exchange (BSE).
Unlisted equity shares are measured at historical cost.
Additional Tier I Bond Investments are fair valued at
market yield rates published by rating agency registered
with the Securities and Exchange Board of India (SEBI).
In accordance with the Regulations, any unrealized
gains/losses arising due to change in fair value of
mutual fund investments, listed equity shares and
Additional Tier I Bonds are accounted in “Fair Value
Change Account” and carried forward in the Balance
Sheet and is not available for distribution.
12. The Company has adopted a prudent investment policy
which is reviewed every half year with emphasis on
optimizing return with minimum risk. Emphasis was
towards low risk investments such as Government
securities, rated debt instruments and liquid and Money
Market instruments in order to maintain optimum
liquidity. Investments are managed in consonance with
the investment policy laid down by the board from
time to time and are within the investment regulation
and guidelines of IRDAI. The Company has carried out
periodic review of the investment portfolio and where
found necessary, has made provision for diminution in
value of investments or written them o.
13. The Management of HDFC ERGO General
Insurance Company Limited certifies that:
The financial statements have been prepared in
accordance with the applicable provisions of the
Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s
Report of Insurance Companies) Regulations, 2002,
the Insurance Act, 1938 as amended by Insurance Laws
(Amendment) Act, 2015, the Insurance Regulatory and
Development Authority Act, 1999, circulars/notifications
issued by IRDAI from time to time (including Circular No.
IRDA/F&A/CIR/CPM/056/03/2016 dated April 04, 2016
and IRDA/F&A/CIR/CPM/010/01/2017 dated January 12,
2017), the Accounting Standards (AS) specified under
Section 133 of the Companies Act, 2013, read together
with Rule 7 of Companies (Accounts) Rule 2014 dated
March 31, 2014 and Companies (Accounting Standards)
amendment Rules 2016 dated March 30, 2016 to the
extent applicable and the relevant provisions of the
Companies Act, 2013, and disclosures have been
made, wherever the same is required. There is no
material departure from the said standards, principles
and policies.
i. The Company has adopted accounting policies and
applied them consistently and made judgments
and estimates that are reasonable and prudent, so
as to give a true and fair view of the state of aairs
of the Company as at March 31, 2024 and of the
operating profit for the year ended on that date.
ii. The Company has taken proper and sucient
care for the maintenance of adequate accounting
records in accordance with the applicable
provisions of the Insurance Act, 1938, (4 of 1938)
as amended by Insurance Laws (Amendment)
Act, 2015 / Companies Act, 1956, (1 of 1956)/ the
Companies Act, 2013, for safeguarding the assets
of the Company and for preventing and detecting
fraud and other irregularities.
iii. The financial statements of the Company have
been prepared on a going concern basis.
iv. The Company’s internal audit is conducted by an
in-house audit team and appointed audit firms. The
scope of work of internal audit is commensurate
with the size and nature of the Company’s business.
The management has ensured that an internal audit
system commensurate with the size and nature of
business exists and is operating eectively.
164
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Annual Report
Signatures to the Management Report
For and on behalf of the Board of Directors
Keki M Mistry
Chairman
(DIN: 00008886)
Renu S. Karnad
Non-Executive Director
(DIN: 00008064)
Dr. Oliver Martin Willmes
Non-Executive Director
(DIN: 08876420)
Edward Ler
Non-Executive Director
(DIN: 10426805)
Bernhard Steinruecke
Independent Director
(DIN: 01122939)
Mehernosh B. Kapadia
Independent Director
(DIN: 00046612)
Arvind Mahajan
Independent Director
(DIN: 07553144)
Ameet Hariani
Independent Director
(DIN: 00087866)
Sanjib Chaudhuri
Independent Director
(DIN: 09565962)
Vinay Sanghi
Independent Director
(DIN: 00309085)
Rajgopal Thirumalai
Independent Director
(DIN: 02253615)
Ritesh Kumar
Managing Director & CEO
(DIN: 02213019)
Anuj Tyagi
Joint Managing Director
(DIN: 07505313)
Samir H. Shah
Executive Director & CFO
(DIN: 08114828 )
Vyoma Manek
Company Secretary & Chief Compliance Ocer
(Membership No.: ACS 20384)
Mumbai
Dated: April 16, 2024
165
ANNEXURE TO MANAGEMENT REPORT
Annexure 1
Details of ageing analysis of Gross Claims outstanding
Outstanding As on 31.03.2024 (F. Y. 2023-24)
(` ‘000)
Period Fire Marine
Cargo
Marine
Hull
Motor OD Motor TP Workemens
Compensation
Public liability Product Liability Other Liabilities
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 102 494,696 239 51,727 1 450 16,413 686,726 4,404 2,836,235 106 16,264 - - - - 15 5,495
31 days to 6 months 307 4,459,253 359 281,416 10 30 4,650 517,724 3,845 2,671,215 203 34,405 3 805 - - 49 27,949
6 months to 1 year 152 2,587,524 89 107,807 5 3,410 102 33,264 7,368 5,753,333 27 7,633 4 1,820 - - 48 16,196
1 year to 5 years 46 4,825,522 101 763,115 2 50,590 - - 23,893 20,552,564 16 8,664 7 2,600 - - 184 157,757
5 years and above 1 407,444 43 96,136 - 19,556 - - 9,279 6,040,002 24 11,267 2 878 1 45,594 11 45,439
Total 608 12,774,438 831 1,300,201 18 74,036 21,165 1,237,714 48,789 37,853,349 376 78,233 16 6,103 1 45,594 307 252,835
(` ‘000)
Period Engineering Aviation Personal Accident Health Home Specialty Weather/Crop Others Total
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 113 68,287 1 400 440 203,585 25,666 1,615,324 14 1,782 24 74,976 911 12,528 134 103,855 48,583 6,172,331
31 days to 6 months 175 576,814 4 1,872 196 123,224 2,949 217,340 4 352 73 379,694 5,482 7,271 202 483,232 18,511 9,782,594
6 months to 1 year 84 1,363,898 1 453 - - 1 62 4 5,415 78 51,303 15,826 104,950 35 185,268 23,824 10,222,335
1 year to 5 years 30 953,605 25 34,177 - - - - - - 252 208,166 22,238 212,520 36 200,676 46,830 27,969,957
5 years and above 7 118,604 3 467,241 - - - - - - 30 185,436 262 787,478 - 5,926 9,663 8,231,000
Total 409 3,081,208 34 504,143 636 326,810 28,616 1,832,726 22 7,549 457 899,574 44,719 1,124,748 407 978,956 147,411 62,378,217
Outstanding As on 31.03.2023 (FY 2022-23)
(` ‘000)
Period Fire Marine
Cargo
Marine
Hull
Motor OD Motor TP Workemens
Compensation
Public liability Product Liability Other Liabilities
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 96 448,609 567 113,258 1 275 14,474 528,936 4,520 1,630,416 62 7,566 1 115 - - 5 1,800
31 days to 6 months 221 5,267,521 1,131 311,444 3 7,173 4,778 526,312 4,060 1,680,830 221 50,024 - - - - 34 759,520
6 months to 1 year 144 2,085,638 241 273,828 - 621 540 132,125 6,354 3,035,021 56 11,703 2 600 - - 39 12,803
1 year to 5 years 39 3,520,097 76 920,453 1 403,543 - - 21,539 12,589,727 34 14,032 8 3,271 - 107 182 80,087
5 years and above 1 398,963 19 59,118 - 19,556 - - 9,148 5,818,603 17 6,294 - 7 1 53,119 4 31,465
Total 501 11,720,828 2,034 1,678,101 5 431,168 19,792 1,187,373 45,621 24,754,597 390 89,619 11 3,993 1 53,226 264 885,675
(` ‘000)
Period Engineering Aviation Personal Accident Health Home Specialty Weather/Crop Others Total
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 149 57,453 1 408 544 177,751 23,912 1,447,815 24 6,200 25 5,488 7,240 28,149 129 123,788 51,750 4,578,027
31 days to 6 months 249 341,381 1 2,145 320 98,920 4,660 257,221 18 7,626 93 38,344 20,098 121,980 88 386,820 35,975 9,857,261
6 months to 1 year 77 1,127,873 1 2,015 - - 14 679 4 461 74 55,390 10,384 70,051 49 75,302 17,979 6,884,110
1 year to 5 years 33 573,005 26 47,086 - - - - 1 61 194 157,469 10,588 132,227 30 111,037 32,751 18,552,202
5 years and above 7 131,900 - 458,759 - - - - - - 22 283,162 245 787,445 1 8,459 9,465 8,056,850
Total 515 2,231,612 29 510,413 864 276,671 28,586 1,705,715 47 14,348 408 539,853 48,555 1,139,852 297 705,406 147,920 47,928,450
166
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ANNEXURE TO MANAGEMENT REPORT (Continued)
Outstanding As on 31.03.2022 (F. Y. 2021-22)
(` ‘000)
Period Fire Marine
Cargo
Marine
Hull
Motor OD Motor TP Workemens
Compensation
Public liability Product Liability Other Liabilities
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 104 134,332 262 87,390 4 1,036 13,516 502,779 1,140 398,360 81 14,997 - - - - 12 3,600
31 days to 6 months 219 1,428,803 240 196,332 - 948 3,633 433,418 5,859 2,367,705 217 36,604 2 800 - - 40 95,112
6 months to 1 year 135 2,403,935 76 82,412 1 523 113 62,127 4,471 1,907,254 109 40,032 1 400 - - 36 22,075
1 year to 5 years 58 5,486,023 49 1,583,698 5 754,605 - - 19,663 11,413,233 66 5,335 7 2,875 - 107 163 30,316
5 years and above 3 3,32,318 19 53,379 - 15,639 - - 9,809 5,682,124 15 21,461 - 7 1 53,119 7 10,419
Total 519 9,785,412 646 2,003,210 10 772,751 17,262 998,323 40,942 21,768,677 488 118,430 10 4,082 1 53,225 258 161,521
(` ‘000)
Period Engineering Aviation Personal Accident Health Home Specialty Weather/Crop Others Total
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 130 74,719 - 3,610 1,412 509,841 22,549 1,523,634 27 2,401 6 2,000 14,085 61,986 664 63,451 53,992 3,384,136
31 days to 6 months 213 257,266 19 48,897 46 30,048 238 24,944 12 2,229 46 615,719 29,466 175,228 89 39,435 40,339 5,753,487
6 months to 1 year 81 329,944 3 14,518 11 15,119 17 1,385 1 13 40 46,905 10,547 90,967 12 6,821 15,654 5,024,428
1 year to 5 years 45 750,956 - 422,647 4 7,499 11 2,372 - - 171 164,346 8,103 113,541 156 443,169 28,501 21,180,723
5 years and above 7 124,566 5 2,763 - - - - - - 21 12,567 245 787,445 - 6,183 10,132 7,101,991
Total 476 1,537,451 27 492,435 1,473 562,506 22,815 1,552,334 40 4,643 284 841,537 62,446 1,229,168 921 559,058 148,618 42,444,765
Outstanding As on 31.03.2021 (F. Y. 2020-21)
(` ‘000)
Period Fire Marine
Cargo
Marine
Hull
Motor OD Motor TP Workemens
Compensation
Public liability Product Liability Other Liabilities
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 99 972,707 147 103,916 2 7,510 11,942 698,735 1,360 447,458 64 12,064 2 760 - - 9 2,820
31 days to 6 months 132 1,013,281 91 103,668 4 53,475 5,111 632,750 4,719 1,825,600 190 39,633 - - - - 27 9,669
6 months to 1 year 86 1,776,277 13 1,538,188 1 50,007 337 114,644 1,813 662,644 110 26,792 - - - - 33 17,687
1 year to 5 years 40 5,271,345 48 273,365 2 702,237 1 10 20,257 12,176,993 180 59,616 6 2,482 - 5,440 138 151,973
5 years and above 2 277,635 5 37,745 - 14,040 - - 7,172 3,995,514 10 3,335 - 400 1 64,221 5 31,960
Total 359 9,311,245 304 2,056,883 9 827,268 17,391 1,446,138 35,321 19,108,209 554 141,441 8 3,642 1 69,661 212 214,110
(` ‘000)
Period Engineering Aviation Personal Accident Health Home Specialty Weather/Crop Others Total
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 198 36,462 - - 1,533 322,118 31,501 2,310,929 22 3,915 14 5,120 2,250 23,785 600 151,482 49,743 5,099,782
31 days to 6 months 130 300,808 5 2,979 961 338,764 13,541 1,150,462 8 6,295 40 68,556 9,000 89,329 237 213,980 34,196 5,849,249
6 months to 1 year 22 235,261 6 5,708 65 48,291 496 88,287 - - 61 22,990 5,863 86,618 55 169,385 8,961 4,842,780
1 year to 5 years 21 954,429 11 60,704 53 67,057 1,144 232,539 - - 164 373,915 993 15,043 64 291,776 23,122 20,638,924
5 years and above - 1,01,482 2 4,12,514 11 12,168 235 32,606 - - 19 110,698 245 787,445 - 763 7,707 5,882,525
Total 371 1,628,442 24 481,904 2,623 788,398 46,917 3,814,824 30 10,210 298 581,278 18,351 1,002,221 956 827,387 123,729 42,313,261
167
ANNEXURE TO MANAGEMENT REPORT (Continued)
Outstanding As on 31.03.2020 (F. Y. 2019-20)
(` ‘000)
Period Fire Marine
Cargo
Marine
Hull
Motor OD Motor TP Workemens
Compensation
Public liability Product Liability Other Liabilities
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 92 407,077 248 121,707 1 15 10,712 604,204 705 221,856 66 11,270 - - - - 9 6,067
31 days to 6 months 148 1,552,915 277 283,876 6 135,688 6,661 894,205 5,118 1,781,036 226 47,582 2 800 - - 52 19,807
6 months to 1 year 98 1,268,098 21 127,451 1 17,999 516 116,357 4,711 2,002,960 138 38,121 2 800 - - 37 59,946
1 year to 5 years 34 4,359,012 55 258,332 7 726,357 38 12,753 15,783 10,298,747 116 31,412 2 882 - 907 59 61,362
5 years and above 2 170,456 - 15,763 - 6,147 - - 6,034 3,110,935 5 1,994 - 400 1 64,221 3 22,396
Total 374 7,757,557 601 807,129 15 886,206 17,927 1,627,518 32,351 17,415,534 551 130,378 6 2,882 1 65,127 160 169,578
(` ‘000)
Period Engineering Aviation Personal Accident Health Home Specialty Weather/Crop Others Total
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 180 26,272 - 3,876 841 178,478 25,924 1,818,897 1 - 23 7,200 18,052 247,730 509 209,805 57,363 3,864,454
31 days to 6 months 118 570,668 - 824 761 234,788 3,243 304,563 2 2,070 59 22,921 11,286 102,543 287 471,297 28,246 6,425,581
6 months to 1 year 35 472,256 7 63,990 15 12,941 273 40,495 2 495 46 282,143 18 617 22 56,532 5,942 4,561,199
1 year to 5 years 22 333,754 5 152,488 30 53,690 1,029 155,247 1 155 103 207,095 22 41 15 244,357 17,321 16,896,593
5 years and above 1 99,018 2 331,246 8 11,075 197 20,064 - - 40 26,565 245 787,445 - 265 6,538 4,667,989
Total 356 1,501,968 14 552,425 1,655 490,973 30,666 2,339,266 6 2,720 271 545,924
29,623
1,138,376 833 982,256 115,410 36,415,816
168
17
th
Annual Report
Annexure 2
Details of Average Claims Settlement Time
(` ‘000)
Line of Business F.Y 2023-24* F.Y 2022-23* F.Y 2021-22* F.Y 2020-21* F.Y 2019-20
No. of
Claims
Average
Settlement Time
(Days)
No. of
Claims
Average
Settlement Time
(Days)
No. of
Claims
Average
Settlement Time
(Days)
No. of Claims Average
Settlement Time
(Days)
No. of
Claims
Average
Settlement Time
(Days)
Fire 2,621 72 2,076 97 1,666 113 1,853 75 1,762 4
Marine Cargo 20,732 11 19,332 25 11,891 17 11,103 12 12,471 5
Marine Hull 1 294 1 1,922 4 263 8 461 9 4
Motor OD 534,695 6 520,468 5 435,626 6 356,087 17 487,550 2
Motor TP 11,356 964 8,909 1,024 5,680 974 4,030 901 3,308 29
Workemens Compensation 701 118 584 208 362 209 314 198 564 2
Public liability 3 94 1 119 1 72 2 23 4 5
Product Liability - - - - - - - - - -
Other Liabilities 20 312 17 633 7 362 6 175 19 26
Engineering 9,973 30 18,036 9 29,702 7 43,585 3 50,330 1
Aviation 2 573 - - 1 786 1 426 - -
Personal Accident 7,248 21 7,368 34 9,137 9 7,635 28 12,107 3
Health 837,681 8 789,164 7 662,826 6 425,183 13 197,022 5
Home 376 27 331 45 279 35 172 18 31 3
Specialty 14,602 12 3,822 5 14 375 42 163 14 2
Weather/Crop 3,757,880 2 3,535,297 4 2,519,765 1 1,410,985 3 703,193 1
Others 8,987 56 24,121 10 20,830 17 26,550 14 27,917 6
Total 5,206,879 4,929,527 3,697,791 2,287,556 1,496,301
*
Date of intimation of claims is considered for computation of ‘Average Settlement Time’ basis Authority’s mail dated March 26, 2021.
ANNEXURE TO MANAGEMENT REPORT
169
OUR
PRODUCTS
Rural Products
Weather
Insurance
Crop
Insurance
HDFC ERGO Farm
Yield Insurance Policy
Cattle
Insurance
Commercial Products
Retail Products
Motor
Insurance
Health
Insurance
Travel
Insurance
Home
Insurance
Personal
Accident
• Product Liability
• Public Liability
• Public Liability Act
• Errors and Omission
(Tech)
• Commercial General
Liability
• Employee
Compensation Insurance
• Professional Indemnity
Liability
Insurance
• Directors and Ocers Liability
• Venture Capital Asset
Protection Policy
• Public Oering of Securities
Insurance
• Employment Practices Liability
• Multimedia Liability Insurance
• Commercial Crime Insurance
• Cyber Insurance
• Financial Institution
Professional Indemnity Policy
• Trade Credit
Insurance Policy
(Commercial)
• Surety
Insurance Policy
CASUALTY LINES FINANCIAL LINES SPECIALTY LINES
170
17
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Annual Report
Commercial Products
Engineering Insurance
• Erection All Risks Insurance
• Contractor’s All Risk Insurance
• Advance Loss of Profit
• Contractor’s Plant & Machinery
Insurance
• Machinery Breakdown Insurance
• Electronic Equipment Insurance
• Boiler and Pressure Plant
Insurance
Property Insurance
• Standard Fire and Special Perils
Policy
• Consequential Loss (Fire) Insurance
• Industrial All Risks Policy
(Commercial)
• Business Suraksha Classik – Laghu
Udyam
• HDFC ERGO Business Secure -
Sookshma Udyam
• HDFC ERGO Business Secure -
Laghu Udyam
Accidental and Health
Insurance
• Sarv Suraksha Plus
• my: Optima Secure
• Optima Restore
• HDFC ERGO Group Health
Insurance
• HDFC ERGO Explorer
• my:health Koti Suraksha
• my:health Medisure Super Top
Up Insurance
• Arogya Sanjeevani Policy, HDFC
ERGO
• Arogya Sanjeevani Policy, HDFC
ERGO (Group)
• Saral Suraksha Bima, HDFC ERGO
HEALTH
• HDFC ERGO - Bharat Griha Raksha
• HDFC ERGO - Bharat Laghu
Udyam Suraksha
• HDFC ERGO - Bharat Sookshma
Udyam Suraksha
PROPERTY INSURANCE
Marine Cargo Products
• Marine Specific Policy
• Marine Open Policy
• Sales Turnover Policy
Innovative CoversMiscellaneous Products
• Payment Protection Package • HDFC ERGO Cyber Sachet
Insurance
• e@Secure
• Contractual Liability Insurance
• Business Kisht Suraksha
• Mosquito Disease Protection
Policy – Group
• TravelX
• my: Health Comprehensive
Suraksha – Group
• Object Insurance
• CHOMP
• HDFC Ergo Paws n Claws
• Optima Wellbeing
Regulatory Products
171
Sr.
No.
Terms Description
1 Accretion Incremental growth over a period of time.
2 Actuary A person skilled in determining the present eects of future contingent events or
in finance modelling and risk analysis in dierent areas of insurance, or calculating
the value of life interests and insurance risks, or designing and pricing of policies,
working out the benefits, recommending rates relating to insurance business,
annuities, insurance and pension rates on the basis of empirically based tables
and includes a statistician engaged in such technology, taxation, employees'
benefits and such other risk management and investments and who is a fellow
member of the Institute of Actuaries.
3 Appropriations Money set aside for specific purpose.
4 Bad debts written o Bad debt expense is the amount of an account receivable that is considered to be
not collectible.
5 Book Value Per Share This is computed as networth divided by number of outstanding shares.
6 Company or We or Us Means HDFC ERGO General Insurance Company Limited (IRDAI Regn. 146).
7 Claim A request by a policyholder for payment following the occurrence of an insured
event. A claim does not necessarily lead to a payment.
8 Co-insurance Method of sharing insurance risk between several insurers. The policyholder will
deal with the Lead insurer who issues documents and collects premiums. The
policy will detail the shares held by each company.
9 Combined Ratio Incurred Claims Ratio plus Expense Ratio.
10 Commission paid Amount paid to intermediaries for acquiring business.
11 Customer Information Sheet It is a document provided by the Insurer along with the policy document that
explains in simple words, basic features of a policy at one place.
12 Deferred Tax Asset An asset that is used to represent lower amount of tax that a company will have to
pay in a later tax period.
13 Deferred Tax Liability A tax liability that a company owes and does not pay at the current point, although
it will be responsible for paying it in a later tax period.
14 EPS Earning Per Share (EPS) is arrived at by dividing Net Profit After Tax by the weighted
average number of shares.
15 Expense Ratio Expense Ratio is a proportion of the sum of all expenses (acquisition & operating)
and net commission received on reinsurance to net written premium expressed
as a percentage.
16 Fair Value Change Account It represents unrealized gains or losses at the end of the period with respect to
listed equity securities, derivative instruments and mutual fund investments.
17 Gross Written Premium (GWP) Gross Written Premium is the sum of gross direct premium and the reinsurance
premium accepted.
18 Incurred But Not Reported
(IBNR)
A reserve created by insurer and certified by an Actuary to cover the estimated
cost of losses that might have incurred but not yet reported.
19 Incurred But Not Enough Re-
ported (IBNER)
Losses that might have incurred but have not yet been enough reported.
20 Incurred Claims It is claims paid during the period plus the change in outstanding claims at the end
of the period versus at the beginning of the period.
21 Incurred Claims Ratio Proportion of incurred claims to premiums earned during a period.
GLOSSARY
172
17
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Annual Report
Sr.
No.
Terms Description
22 Industry Market Share Proportion of gross written premium of an insurer to the total gross premium
written of the General Insurance Industry - expressed as a percentage.
23 IRDAI Insurance Regulatory and Development Authority of India (IRDAI) established
under IRDA Act, 1999 to protect the interests of the policyholders, to regulate,
develop, promote and ensure orderly growth of the insurance industry.
24 Loss on sale Loss on sale of assets when an asset is sold below its book value.
25 Net Premiums Earned Net premium written adjusted for the change in unexpired risks reserve.
26 Net Premiums Written Gross written premium less reinsurance premium ceded.
27 Net Worth Paid up share capital (+/-) reserves/ accumulated losses (-) preliminary
expenses.
28 Operating Expenses Expenses for carrying out insurance / reinsurance business.
29 Operating Profit or Loss Surplus/ Deficit from carrying out insurance business activities i.e. profit before tax
excluding investment income and other income.
30 Policy The legal document issued by an Insurance Company to a policyholder which
outlines the terms and conditions of the insurance.
31 Policy Holder [Insured] A person who pays a premium to an insurance company in exchange for the
insurance protection provided by a policy of insurance.
32 Premium Deficiency Premium deficiency is recognised as the sum of expected claim costs, related
expenses and maintenance cost that exceeds related reserve for unexpired risks.
33 Reinsurance Transfer of an insurance (or part of the risk covered) from one insurance company
to another for a premium, not necessarily with the knowledge of the policyholder.
34 Retention The amount of risk retained by the insurer on its own account.
35 Solvency Margin A ratio of Available Solvency Margin (ASM)/ Required Solvency Margin (RSM)
(calculated as per IRDAI Guidelines).
36 Technical Reserves Amount set aside in the balance sheet to meet liabilities arising out of
insurance contracts, including claims provision (whether reported or
not) and reserve for unexpired risks.
37 Treaty Reinsurance It means a reinsurance arrangement between the cedant and the reinsurer, ususally
for one year or longer, which stipulates the technical particulars and financial terms
applicable to the reinsurance of defined class or classes of business.
38 Underwriting The process of selecting applicants for insurance and classifying them according
to their degrees of insurability so that the appropriate premium rates may be
charged. The process includes rejection of unacceptable risks.
39 Unexpired Risks Reserve Portion of premium with respect to the unexpired insurance contracts as at the
end of the period.
Note: The definitions of the ratios in the glossary above are used in this report unless specifically defined otherwise.
173
AWARDS
Best Customer
Retention Initiative of
the Year in Insurance
3
rd
Annual Excellence
Awards 2024 (Quantic)
Best General Insurance
Company
7
th
AnnualInsurance
Conclave & Awards by
InsuranceAlertss
Health Insurance
Company of the Year
India Insurance Summit
& Awards2024
Most Innovative
Mobile App
DigitalDragonAwards
by Indian Business
Council
BestDigitalStrategy/
Campaign by a BFSI
Enterprise
DigitalDragonAwards
by Indian Business
Council
Best General Insurance
Company of the Year
InsureNext Conference
& Awards 2024 by
Banking Frontiers
Swift and Prompt
Insurer
10
th
ET Edge
Insurance Summit
Innovative Mobile App
of the Year (here app)
4
th
ICC Emerging Asia
Insurance Conclave
2023
Smart Insurer
10
th
ET Edge
Insurance Summit
174
17
th
Annual Report
Best Health
Insurance Company
4
th
ICC Emerging Asia
Insurance Conclave
2023
Best General
Insurance Company
4
th
ICC Emerging Asia
Insurance Conclave
2023
Supercharger
Award
Karma Volunteering
Summit
HDFC ERGO has
been Recognised for
Excellence in Customer
Experience
The Times Group
Top 25 India’s Best
Workplaces in BFSI
for 2023
Grand Pix Award for
Gaon Mera Programme:
Empowering education and
sanitation in rural India
ACEF Asian
Leaders Award
Best CSR Initiative
(Category: Non-life
Insurance) for Gaon
Mera Programme
FICCI
Digital Transformation
Leader of the Year
Future of Insurance
Summit & Awards by
UBS Forums
Best Health
Insurance Company
4
th
ICC Emerging Asia
Insurance Conclave
2023
175
NOTES
176
17
th
Annual Report
NOTES
177
HDFC ERGO GENERAL INSURANCE
COMPANY LIMITED
Registered & Corporate Oce: HDFC House, 1st Floor, 165-166 Backbay Reclamation, H. T. Parekh
Marg, Churchgate, Mumbai – 400 020.
Customer Experience Management, Customer Happiness Center: D-301, 3rd Floor, Eastern
Business District (Magnet Mall), LBS Marg, Bhandup (West), Mumbai - 400 078.
CIN: U66030MH2007PLC177117. IRDAI Reg. No. 146.
Phone
+91 22 6638 3600
E-mail
Website
www.hdfcergo.com
