Annual Report 2022-23 2

20 GLORIOUS YEARS OF
SERVING INDIA

HDFC enters a
HDFC enters JV with ERGO Market
General Insurance International to share crosses
sector (enters a form HDFC ERGO 1% mark
JV with Chubb General Insurance
Corporation to form Co. Ltd HDFC Bank Pays claims in
‘HDFC Chubb becomes excess of
General Chubb distribution ` 500
Insurance’) exits the JV partner crore

2002 2007 2009 2011

2004 2008 2010 2013

Premium crosses Pays claims in Premium crosses More than

` 100 crore excess of ` 1,000 50 lakh
` 100 crore crore mark customers
added
More than
10 lakh Profit after Tax
customers reaches
added ` 154 crore
mark
Annual Report 2022-23 3

More than
Completes
HDFC ERGO 1 crore merger of
completes customers HDFC ERGO
Company
starts paying
merger with added Health
dividend L&T General Insurance
Insurance Services more than
Pays claims in 10 lakh claims Premium
excess of Premium crosses crosses
` 1,000 ` 5,000 Market share crosses ` 10,000
crore crore mark 5% mark crore mark

2014 2017 2019 2021

2016 2018 2020 2022

L&T
Acquires Services Merger of HDFC ERGO HDFC ERGO
more than Health Insurance with celebrates
General Insurance
(1st acquisition in Indian 5 lakh HDFC ERGO 20 glorious
General Insurance industry) claims years of
Market share crosses
serving India
6% mark
Becomes
4th largest Geographical
private insurer presence expands to
203 branches
Expands presence to
108 branches Services more than
pan India 20 lakh claims
Pays claims in excess of
` 5,000 crore
Annual Report 2022-23 4

In light of various regulatory reforms

by IRDAI coupled with a proposal for
a one-stop, Bima Sugam platform,
insurance penetration is likely to
accelerate in the years to come
with the Indian insurance customer
maturing, demanding and getting
value-added services.

- Ritesh Kumar
Annual Report 2022-23 5

CUSTOMER TESTIMONIALS

I have no words to explain the Quick and fast process, good HDFC ERGO has rendered
excellent experience. We are online support, and customer very good service in terms of
a big family and each one is care staff, easy and hassle-free. settling claims / reimbursement
very happy and would like to I received my reimbursement promptly. I am happy to be your
continue with our insurance. money in just five days. I customer and thank you for the
suggest all should join! services provided.

Health Insurance Customer (Optima Restore) Health Insurance Customer (Optima Restore) Health Insurance Customer (Health Wallet)
Policy No. 2805203541845500 Policy No. 2805203592314100 Policy No. 2803203844091500

This is my first time using We are very satisfied. You all It is good to be the best! Keep
HDFC ERGO and I would like to are doing an excellent job. up the good service.
recommend it to everyone. The Next time, when we apply
customer service is excellent as again, we will choose your
well as your response to every policy only.
request is quick and smooth.

Travel Insurance Customer (Retail Travel Travel Insurance Customer (Retail Travel Insurance Customer (Retail
Insurance Policy) Travel Insurance Policy) Travel Insurance Policy)
Policy No. 2919101210249000 Policy No. 2919101213670500 Policy No. 2919101212163700

Within a day of applying for this Hats off to your services. I never Each person that I interacted
policy, I received immediate thought changing ownership with, while resolving my
support, and everything was in insurance could be so easy problem, was very friendly and
covered. and fast. I transferred my four- pleasant. Also, I noticed that
wheeler under your insurance the staff was tracking each
cover so smoothly. milestone. I appreciated that
HDFC ERGO is concerned about
follow-ups at each step.

Motor Insurance Customer (Private Car Motor Insurance Customer (Two-Wheeler Motor Insurance Customer (Two-Wheeler
Package Policy Bundled) Comprehensive Policy) Comprehensive Policy)
Policy No. 2311204464210000 Policy No. 2312100593983400 Policy No. 2312202290836204
Annual Report 2022-23 6

TABLE OF CONTENTS

07 08 09
Chairman’s MD & CEO’s Board of Directors
Message Message & Key Management
Personnel

14 15 16
Company Distribution We are Future
Highlights Network Ready Today

20 76 86
Directors’ Independent Balance
Report Auditors’ Report Sheet

87 88 89
Profit and Loss Receipts and Revenue
Account Payments Account Account

90 154 161
Schedules Management Our Products
Report

163 165
Glossary Awards
Annual Report 2022-23 7

CHAIRMAN’S MESSAGE

After two years of enduring the pandemic, FY23 witnessed

a long-awaited return to normalcy. While this should have
led to a growth revival globally, central banks in advanced
economies raised interest rates to address high inflationary
pressures, thereby impacting growth. The continuing Russia-
Ukraine conflict further impacted global growth.

During the year, the Reserve Bank of India (RBI) reigned

in inflation through a series of calibrated measures. The
RBI increased the repo rate by 250 basis points to 6.50%.
Further, to contain inflationary expectations, there was a
focus on withdrawing excess liquidity in a gradual and non-
disruptive manner.

In FY23, India’s GDP grew by 7.2% which was slightly better

than the earlier projected growth of 7%. This was mainly due
to the stronger than expected growth in the fourth quarter
of FY23. During the year, India’s economic performance was
driven by agriculture, services, stable corporate performance Keki M. Mistry, Chairman
and inherent demand, which was supported by a sound
regulatory and financial system.
Your Company continued to grow faster than the industry in
During the year, the Indian economy became the 5th largest FY23, achieving a 23% growth in Gross Written Premium to
economy in the world and continues to be the fastest ` 16,873 crore and a 31% growth in Profit After Tax to ` 652.7
growing major economy. According to the RBI, the Indian crore. Your Company is now the fourth largest General Insurer
economy is projected to grow by 6.5% in FY24. External in India, with a 6.5% market share and the second largest in
factors, such as slowing global growth, trajectory of oil prices the private sector with a 10.5% share of the private sector.
and geopolitical uncertainty continue to pose downside risks
to economic growth. FY23 witnessed significant regulatory impetus to drive the
insurance penetration to the next level. The IRDAI announced
The broad-based growth of the economy resulted in all the vision of “Insurance for All by 2047”, i.e., by the 100th year
General Insurance (GI) industry segments – motor, health, of Indian independence. The core pillars on which efforts are
commercial and crop – registering double-digit growth in being directed are increasing awareness, accessibility and
FY23. The GI industry grew by ~ 16% to ~ ` 257,000 crore affordability. Working closely with the industry stakeholders,
in FY23, which was the highest growth rate in the last 5 IRDAI has already announced various reforms, while a
years. Accident & Health insurance continued to be the few more are under discussion. The reforms are aimed at
fastest growing segment, reflecting the low levels of health driving ease of doing business, ensuring value delivery and
insurance penetration. transparency to the policyholders and a larger transition from
“rule-based” to “principle-based” supervision.

The various regulatory changes are expected to encourage

further innovation and support strong industry growth
in the coming years, especially in the under-penetrated
General Insurance industry geographies and segments. Further, transition to Ind AS and
Risk Based Capital regime will further help comparability
achieved the highest growth with other industries and increase market attractiveness
for investors. Lastly, increasing adoption of digitization will
rate in the last five years enable seamless reach of the industry to the last mile. These
developments will benefit the customers in the form of
in Financial Year 2022-23, improved products and services.

supported by robust economic I thank all the stakeholders for their support to the

growth.” Company and look forward to their continued support in

the coming years.
Annual Report 2022-23 8

MD & CEO’S MESSAGE

In FY23, the Indian economy achieved a robust growth of 7.2%

after two years of muted growth, benefitting from a stable
financial system. At the same time, global growth was impacted
by high interest rates and the Russia-Ukraine war. The Indian
economy is expected to grow by 6.5% in FY24, however,
adverse macroeconomic or geopolitical developments may
slow down domestic economic growth.

The pandemic once again brought to the fore the criticality

and importance of insurance. The General Insurance industry
helped minimise the financial strain and individual hardships
due to COVID-19 hospitalisation, by paying ~ ` 25,000 crore
of pandemic related claims.

The General Insurance industry registered a growth of 16.4%

in FY23, growing to Gross Direct Premium of ~ ` 257,000
crore. Accident & Health insurance segment led the industry
growth with 21% premium growth. Motor insurance segment
grew by 15% on the back of 20% growth in vehicle sales.
Commercial lines registered a growth of 14%, while crop Ritesh Kumar, MD & CEO
insurance witnessed a 9% growth. Private sector insurers
(including standalone health insurers) further improved market
share and now have a 62% market share in the industry.
as we initiated migration of our core technology systems
IRDAI introduced various regulatory reforms in FY23, with the to cloud. We are also further leveraging digital and artificial
prominent ones being introduction of mandatory Know Your intelligence to improve our claims processes, and upgrading
Customer (KYC) requirement, easing entry of new insurers, the experience of our customers and intermediaries.
improving access to capital, increasing flexibility to insurers
in product development and managing expenses, distribution We are an Equal Opportunity employer, and I am happy to
reforms, encouraging innovation, etc. It also suggested a share that this year we took further steps in our Diversity
guide-path for transition to Ind AS and Risk Based Capital and Inclusion journey. Our gender diversity ratio improved
regimes. The Insurance Act Amendments, which are currently from 19% to 23%. In addition, our ‘Nari Shakti’ program – an
awaiting Parliamentary approval, propose structural changes endeavor to employ women colleagues in positions that have
and expand the ambit of insurance to include value added long been dominated by men – was well received, and we
services. These changes, along with the proposed measures now have as many as 17 women motor insurance surveyors.
to create the Bima Sugam platform, the State Insurance Plan
and the Bima Vistaar - Bima Vahak initiatives would increase We also formalised an Environmental, Social and Governance
insurance penetration and accelerate the maturity of Indian (ESG) Framework as a part of our journey to further embrace
insurance market in the coming years. sustainability in various aspects of our business, and plan to
build on it in the coming years.
Your Company took another step in the journey towards
consistently delivering high quality customer service this year, FY23 being a non-COVID year, supported by our portfolio
steering measures, resulted in an improvement in our loss
ratio – from 84.0% in FY22 to 79.9%. As a result, our profit after
tax grew by 31%, from ` 500 crore to ` 652.7 crore.

Your Company registered a strong growth of 23.1% in Gross

Written Premium in FY23, from ` 13,707 crore to ` 16,873
The Company is now the fourth crore. With a 6.5% market share, we ended as the fourth
largest General Insurance Company in the country, and
largest General Insurance the second largest in the private sector. This is an important
milestone for us, and I would like to thank all our customers,
Company in India and second advisors, intermediaries, partners, employees and all our
stakeholders for their contribution made and look forward
largest in the private sector.” to their continued patronage.
Annual Report 2022-23 9

BOARD OF DIRECTORS

Keki M. Mistry

Keki M. Mistry (DIN: 00008886) is the Non- Executive Chairman of the Company. He is
a fellow member of The Institute of Chartered Accountants of India. He joined Housing
Development Finance Corporation Limited (HDFC) in 1981 and was appointed as the
Executive Director in 1993, as the Deputy Managing Director in 1999 and as the Managing
Director in 2000. He was re-designated as the Vice Chairman & Managing Director
of HDFC in October 2007 and as the Vice Chairman & Chief Executive Officer w.e.f
January 1, 2010. He is currently a member of the Primary Markets Advisory Committee
set up by the Securities and Exchange Board of India (SEBI). He is the Chairman of the
sub-group constituted by SEBI to ‘Review the Reverse Book Building Process and Review the Compulsory Delisting
Framework Adopted by Stock Exchanges’. He was also the Chairman of the sub-group constituted by SEBI to ‘Review
the SEBI Buyback Regulations’. He was a member on the Committee of Corporate Governance set up by the SEBI in
2017. He was the Chairman of the CII National Council of Corporate Governance for five years (2016-17 to 2017-18 and
2019-20 to 2021-22). He was also a member of the CII Economic Affairs Council for 2021-22.

Renu Sud Karnad

Renu Sud Karnad (DIN: 00008064) is a Non- Executive Director of the Company. She is
the Managing Director of Housing Development Finance Corporation Limited (HDFC).
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 Affairs, Princeton University, USA. She joined HDFC
in 1978 and was appointed as the Executive Director in 2000, re-designated as the Joint
Managing Director of HDFC in October 2007. She has been the Managing Director of
HDFC w.e.f. January 1, 2010. She is currently the President of the International Union for Housing Finance (IUHF), an
association of global housing finance firms.

Dr. Oliver Martin Willmes

Dr. Oliver Martin Willmes (DIN: 08876420) is a Non-Executive Director of the Company.
He has studied Business Administration at the University of Cologne. Dr. Willmes has
done MBA from Eastern Illinois University, USA. Dr. Willmes is currently the Chairman of
the Board of Management and Chief Operating Officer at ERGO International AG.

Dr. Clemens Matthias Muth

Dr. Clemens Matthias Muth (DIN: 07824451) is a Non-Executive Director of the

Company. He has studied Economics at the Universities of Mainz and Munich. He has
done Doctorate in Economics from Munich University. He is currently Member of the
Board of Management of ERGO Group AG, responsible as Chief Underwriting Officer
for all lines of Insurance and is also the Chairman of the Board of Management of DKV
Deutsche Krankenversicherung AG.
Annual Report 2022-23 10

Bernhard Steinruecke

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

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 35 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
Officer 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 Affairs, 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.

Arvind Mahajan

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 35 years 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 area
of business strategy and helping “make strategy happen” through growth and transformation initiatives. He also has
strong background in corporate finance, enterprise risk management and people and change. He has advised clients in
a 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 of 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.
Annual Report 2022-23 11

Ameet P. Hariani

Ameet P. 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, and 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 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 has been recommended for re-appointment for a subsequent five year period.

Sanjib Chaudhuri

Sanjib Chaudhuri (DIN: 09565962) has over forty 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, Sanjib started off 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. for 19 years in diverse set of roles including
the challenge of introducing computerised data processing across the industry. He left
National as Assistant General Manager in 1997 and joined Munich Reinsurance Company, Munich, Germany as the Chief
Representative for India. Besides setting up a permanent office 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 Office 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. Sanjib 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.

Vinay Sanghi

Vinay Sanghi (DIN: 00309085) has more than three decades of experience in the auto
industry and 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.

Vinay is the Founder, Chairman and Managing Director of CarTrade Tech and has been
the driving force of CarTrade Tech since its inception in 2009 and he recently taking the
company public.

In his current role, Vinay has been instrumental in CarTrade Tech establishing market leadership and effecting
consolidation in the space by acquiring CarWale, BikeWale, Adroit Auto, and Shriram Automall.

Before starting CarTrade Tech, Vinay was the CEO of Mahindra First Choice Wheels Ltd. As CEO he was influential in
taking the company from a start-up to becoming one of India’s leading used-car companies.

Vinay is also a partner in the Sah and Sanghi group of companies.

Annual Report 2022-23 12

Dr. Rajgopal Thirumalai

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 thirty years of experience with 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 pandemic management, global health insurance, medical and occupational
health services (physical and mental well-being), 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. It was under his leadership that Unilever won the Global Healthy Workplace Award in 2016. He was also
the Independent Director at Apollo Hospitals Enterprise Limited and Apollo Super Speciality Hospitals Ltd from August 2017
to March 2021. He also served as the COO for Breach Candy Hospital, Mumbai from April 2021 to March 2022. Dr. Rajgopal
was awarded the Dr. B C Roy National Award (Medical field), which was bestowed by the President of India in 2016.

Samir H. Shah

Samir H. Shah (DIN: 08114828) is a fellow member of The Institute of Chartered

Accountants of India (FCA), and 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 32 years of work experience, of which
over 16 years is in the General Insurance sector. He was appointed as the Executive
Director & CFO of the Company for a period of five years w.e.f. June 1, 2018 and was re-
appointed for another term of five years w.e.f. June 1, 2023 and is currently responsible
for Finance, Accounts, Tax, Secretarial, Legal & Compliance, Risk Management, Internal
Audit functions of the Company.

Anuj Tyagi

Anuj Tyagi (DIN: 07505313) is a Chemistry (H) graduate and has a Post Graduate Diploma
in Business Management. He has worked in banking and insurance services for over
25 years with leading financial institutions and insurance groups in the country and
has been associated with the Company since 2008. He was appointed as Whole-time
Director (designated as Executive Director & CBO) of the Company for a period of five
years w.e.f. May 1, 2016. On November 13, 2020, Anuj was re-appointed as the Executive
Director & CBO for a further period of five years and thereafter re-designated as the
Deputy Managing Director w.e.f. April 20, 2021 and then as Joint Managing Director
w.e.f. April 27, 2023.

Ritesh Kumar

Ritesh Kumar (DIN: 02213019) is the Managing Director and CEO of the Company since
2008. He has about 31 years of experience in the Financial Services Industry, of which
the first 10 years were in Banking and the last 21 years in Insurance. He is a commerce
graduate from Shriram College of Commerce, Delhi and holds a MBA degree from
Faculty of Management Studies (FMS), Delhi.
Annual Report 2022-23 13

KEY MANAGEMENT PERSONNEL

Ankur Bahorey Parthanil Ghosh Sanjay Kaw Sriram Naganathan Sudakshina

President – President - Retail Chief Underwriting Chief Technology Bhattacharya
Bancassurance Business Officer Officer Chief Human
Resources Officer

Hiten Kothari Chirag Sheth Sanjay Kulshrestha Vyoma Manek

Appointed Chief Risk Chief Investment Company Secretary
Actuary Officer Officer & Chief Compliance
Officer

COMPANY COMPANY SECRETARY & DEBENTURE

SECRETARY CHIEF COMPLIANCE OFFICER TRUSTEE
Dayananda V. Shetty Vyoma Manek IDBI Trusteeship Services Limited
Membership No.: FCS 4638 Membership No.: ACS 20384 Universal Insurance Building,
(upto January 31, 2023) (Company Secretary w.e.f. Ground Floor, Sir P.M. Road, Fort,
Mumbai - 400 001
February 1, 2023)
Tel. No: +91 22 40807008/0
Fax No: +91 22 66311776
AUDITORS BANKERS
Axis Trustee Services Limited
G. M. Kapadia & Co. HDFC Bank Ltd. The Ruby, 2nd Floor,
Chartered Accountants SW, 29 Senapati Bapat Marg, Dadar
(West),
B S R & Co. LLP. Mumbai - 400028
Chartered Accountants Tel. No: +91 22 62260056/7
Fax No: +91 22 43253000

HDFC ERGO General Insurance Company Limited

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: care@hdfcergo.com | Tel. No. : +91 22 6638 3600
CIN: U66030MH2007PLC177117 | IRDAI Reg. No. 146.

Customer Service Address: D-301, 3rd Floor, Eastern Business District (Magnet Mall), LBS Marg, Bhandup (West), Mumbai 400 078.
Customer Service No.:022-6234 6234/0120-6234 6234 | care@hdfcergo.com | www.hdfcergo.com
Annual Report 2022-23 14

COMPANY HIGHLIGHTS

2 4 23%
nd th
largest General growth in Gross
Insurance player in the largest Direct Premium
private sector and overall income over FY’22

6.5%
CRISIL/AAA, ICRA/AAA,
20% CARE/AAA and Acuité/
vis-à-vis AAA Credit Rating
market share with a industry 10%
3-year compound annual growth
growth rate (CAGR) of rate of Stable outlook for Non-Convertible
Debentures (Subordinated Debt) programme

~85,000 ~99,000 215

branches and
multi-line agents health-only agents

423
digital offices across

490
districts of the country
totalling to ~1.8 lakh agents including Point of Sales
Personnel (POSPs)

9,900 + 85% 12 crore+

empanelled hospitals of assets in Indians’
and diagnostic centres Sovereign and insurance needs
across 570 districts of AAA or equivalent covered since
the country rated assets inception

12.2 million
policies issued
5.8 million
claims serviced

Solvency ratio of
ISO certified processes for: Claims Services,
Operations, Customer Services, Business
Continuity Management System and
1.81 times
vis-a-vis IRDAI required solvency
Information Security Management System
ratio of 1.50 times
Annual Report 2022-23 15

DISTRIBUTION NETWORK

2
2

1
10
7 1
6
3
12
10
1
5
7
1
1
18 3 31 1
10
8 33
1 2
3 37 3
1

1
4 27 1
19 20
9 10
20 9

2
1 4
18
8

52
31

5 26

215
14 17
29 BRANCHES
1

11 1
36
24
DIGITAL
8
423 OFFICES
Annual Report 2022-23 16

WE ARE FUTURE READY

Digital innovation has changed the landscape of the insurance industry and at HDFC ERGO we are pioneers of the
digital journey. ‘A digital-first company with a human heart’, the company has several tech innovation firsts to its credit.
Holding our future-ready strategy together are two very important tenets - ‘Putting the Customer First’ and ‘Investing
in Our Poeple’.

PUTTING THE CUSTOMER FIRST

97%
claim settlement ratio
Average time taken to settle a claim –
1 day* for Motor Insurance
18 customer
queries serviced in
in Health and Motor
and 38 min** for Health a minute***
Insurance Insurance

*88% of motor claims were settled within a day, post receipt of all required documents
**Average time taken for cashless pre-authorization approval
***Across all customer touchpoints

How we do it?

1. 3.
Implemented WhatsApp-based Launched PIHU, a WhatsApp
buying journeys (including AI chatbot for farmers
powered features that allow
customers to renew their
lapsed policies and enjoy a
hassle-free vehicle inspection
experience, without having to
4.
Covered 85% of customers’
download any app)
policy servicing needs in the
digital ecosystem

2.
Provided servicing capabilities
for customers, agents and
farmers in 11 languages
Annual Report 2022-23 17

INVESTING IN OUR PEOPLE

Recognised in the Recognised among

Top 25 India’s Best Best Organisations for
Workplaces™ in BFSI Women
for 2023 by Great Place To Work by The Economic Times

How we do it?

1. 2. 3.
Committed to diversity- Implemented an AI-based, Rolled out a hybrid learning and
focused hiring – 30% of mobile-first HR system offering development system with structured
our FY’23 new joinees employees an end-to-end mobile- learning journeys, over 3.5 lakh content
are women driven experience, automation pieces, social learning and dynamic
and collaboration tools dashboards and skill-based learning

BEING FUTURE READY

AI-based models facilitate Partnered with Paytm to launch

reduction of TAT on certain type a first of its kind insurance cover
of motor claims from couple of against cyber fraud
hours to around five minutes.
Online KYC for new business.

Fuelling the movement of

~ 93% of retail policies ‘Making India a Healthy Place to
issued digitally Work for All’

Launched ‘All Things EV’,

the country’s first one-stop-
solution portal for electric
vehicles (EVs)
Annual Report 2022-23 18

How we do it?

1. 3.
Developed Pehchaan, an in-house Created Kompass, a digital advisory tool to identify
digital solution for due diligence customer insurance protection gaps and recommend
and KYC suitable need-based projects

4.
Partnered with IIT Bombay (IITB)
to set up innovation labs and
incubators with IIT graduates

2.
and professors to support high-
impact projects, jointly owned
by HDFC ERGO and IITB BOMBAY

HDFC ERGO and

Implemented an AI motor claims system – Intelligent IIT Bombay Initiative

Damage Estimation and Assessment Solution (IDEAS)-

that has led to faster detection of external damage and
faster claim processing
Annual Report 2022-23 19

6.
Hosted the Wellness Confluence in conjunction with
‘Great Place to Work India’ to roll out a charter for the
country’s wellbeing

5.
Launched largest edition of the HDFC ERGO Insurance
Quiz, expanding the quiz geographically to more than
1,500+ schools and 2,600 students in over 110+ cities
countrywide
Annual Report 2022-23 20

DIRECTORS’ REPORT

TO THE MEMBERS
Your Directors are pleased to present the Sixteenth Annual Report of your Company together with the audited financial
statements for the financial year ended on March 31, 2023.

Financial Results
(` in crore)
Year ended Year ended
March 31, 2023 March 31, 2022

Gross Written Premium 16,873.1 13,707.1

Net Written Premium 8,880.8 7,106.9

Net Earned Premium 8,035.0 6,878.6
Other Income/Liabilities written back 5.4 2.2
Net Incurred Claims 6,423.0 5,781.1
Net Commission (Income)/ Expenses (238.5) (277.1)
Expenses of Management 2,406.1 2,009.0
Investment Income – Policyholders 1,129.0 1,040.0
General Insurance Result 578.9 407.7
Investment Income – Shareholders 272.1 243.7
Profit before Tax - Before providing for diminution in value of investments & write-off of 851.0 651.4
Bad and Doubtful Investments
Provision towards diminution in value of investments & write-off of Bad and Doubtful (17.5) (16.3)
Investments
Profit before Tax - After providing for diminution in value of investments & write-off of 868.4 667.8
Bad and Doubtful Investments
Provision for Tax 215.8 167.6
Profit after Tax 652.7 500.1
Interim Dividend 249.5 231.7
Transfer to Debenture Redemption Reserve - -
Profit carried to Balance Sheet 403.2 268.5
Credit balance in P & L account at the year end 1,450.1 1,046.9

Performance Dividend
The Gross Written Premium (GWP) of the Company The Board of Directors had approved the payment of an
increased to ` 16,873.1 crore (PY: ` 13,707.1 crore). The interim dividend of ` 3.5 per equity share of ` 10 each
Net Earned Premium increased to ` 8,035.0 crore for the financial year 2022-23 in March 2023 (as against
(PY: ` 6,878.6 crore). The Company achieved a Profit ` 3.25 per equity share paid during the previous year).
before Tax of ` 868.4 crore (PY: ` 667.8 crore). The The said dividend was encashed by all shareholders.
Profit after Tax for the year is ` 652.7 crore (PY: ` 500.1
crore). The Board of Directors has not recommended final
dividend for FY23.
Annual Report 2022-23 21

Increase in Paid-up Share Capital Non-Convertible Debentures

During the year, there was no allotment of equity shares On September 19, 2022, in terms of IRDAI (Other Forms
pursuant to exercise of stock options under the Employees of Capital) Regulations, 2015 (‘OFC Regulations’), the
Stock Option Plan-2009 (ESOP-2009). Company exercised the call option on 800 Unsecured,
Subordinated, Fully Paid-up, Listed, Redeemable, Non-
The Paid-up equity share capital and Share Premium Convertible Debentures (‘NCDs’) of the face value of
Account of the Company stood at ` 712.78 crore ` 10,00,000 each, aggregating to ` 80 crore bearing
and ` 1,416.6 crore as on March 31, 2023. Housing interest of 8.40% per annum, issued on September 18,
Development Finance Corporation Limited, Indian 2017. All the NCD holders holding the said NCDs as on
Promoter, holds 49.988% of the paid-up share capital of the Record Date were paid the redemption amount along
the Company, ERGO International AG, Foreign Promoter with the interest accrued thereon.
holds 48.992% and balance 1.020% by other employees.
During the year, the Company issued and allotted the
Proposed Merger of HDFC Limited with following Unsecured, Subordinated, Fully Paid-up, Listed,
Redeemable, Non-Convertible Debentures on a private
HDFC Bank Limited
placement basis, in accordance with OFC Regulations
The Board of Directors of HDFC Limited (HDFC) has and SEBI (Issue and Listing of Non-Convertible Securities)
approved, on April 4, 2022, a composite scheme of Regulations, 2021 read with the Operational Circular
amalgamation (Scheme) for the amalgamation of issued by SEBI dated August 10, 2021.
i. HDFC Investments Limited and HDFC Holdings
Date of Allotment No. of Face Value Coupon
Limited, wholly-owned subsidiaries of HDFC, with and NCDs (` per NCD) Rate
into HDFC and
September 19, 2022 800 10,00,000 7.72% p.a.
ii. HDFC with and into HDFC Bank Limited (HDFC Bank),
February 20, 2023 30,000 1,00,000 8.15% p.a.
and their respective shareholders and creditors,
under Sections 230 to 232 of the Act, the Companies
(Compromises, Arrangements and Amalgamations) The aforementioned NCDs are redeemable at the end of
Rules, 2016 and other rules and regulations framed 10 years from the date of allotment, for cash at par, with a
thereunder. call option at the end of 5 years from the date of allotment
and annually thereafter. The said NCDs are rated by CRISIL
The aforesaid Scheme is subject to the receipt of requisite and ICRA and were assigned the highest ratings of CRISIL
approvals from the statutory and regulatory authorities. AAA/Stable and ICRA AAA/ Stable respectively.

As at March 31, 2023, the Company’s outstanding Unsecured, Subordinated, Fully Paid-up, Listed, Redeemable
NCDs stood at ` 829.00 crore consisting of:

Date of Allotment No. of NCDs Face Value Total value of Coupon Rate Date of Credit Rating
(` per NCD) NCDs (` in crore) Redemption

September 18, 740 10,00,000 74 10.25% p.a. September 17, CRISIL AAA/Stable, CARE AAA/
2018 2028 Stable, Acuité AAA/Stable and
ICRA AAA/Stable
November 9, 3,750 10,00,000 375 7.10% p.a. November 9, CRISIL AAA/Stable and ICRA
2021 2031 AAA/Stable
September 19, 800 10,00,000 80 7.72% p.a. September 19, CRISIL AAA/Stable and ICRA
2022 2032 AAA/Stable
February 20, 30,000 1,00,000 300 8.15% p.a. February 20, CRISIL AAA/Stable and ICRA
2023 2033 AAA/Stable
Total 829

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.
Annual Report 2022-23 22

Debenture Redemption Reserve iii. performance measurement parameters are in place

to assess the overall performance of Directors,
As required under Section 71(4) of the Act read with KMPs, Members of Senior Management and other
Rule 18(7)(b)(iv)(B) of the Companies (Share Capital and employees; and
Debentures) Rules, 2014, as amended, the Company is iv. the remuneration of Whole-time Directors including
required to create a Debenture Redemption Reserve Managing Director & CEO is ascertained in accordance
(DRR) out of the profits available for payment of dividend. with the guidance of the NRC & the Board, keeping
As at March 31, 2023, the balance in DRR stands at ` 35.6 in perspective the various risks including their time
crore. horizon and that such remuneration reflects the
performance of the Company measured against
Annual Return performance objectives including risk outcomes.
The Annual Return in prescribed Form MGT- 7 for FY23 The said policies are hosted on the website of the
can be accessed on the website of the Company (www. Company (www.hdfcergo.com).
hdfcergo.com).
Comments on Auditor’s Report
Number of meetings of the Board
Neither the Secretarial Auditor nor the Joint Statutory
During the year, the Board met six (6) times on April 25,
Auditors have made any qualification, reservation or
2022, July 21, 2022, October 20, 2022, January 6, 2023,
adverse remark or disclaimer in their reports. The reports
January 25, 2023 and March 2, 2023.
of the Secretarial Auditor and the Joint Statutory Auditors
are appended to this Report.
The details of attendance of the Directors at the Board
and Committee meetings are provided in the Report of
Further, during the year under review, the Joint Statutory
the Directors on Corporate Governance.
Auditors have not reported any incidents of fraud to the
Audit and Compliance Committee of Directors.
Policy on Director’s Appointment and
Remuneration Particulars of Loans, Guarantees or
The Company has in place a Board approved Policy on Investments under Section 186
Appointment of Directors, Key Managerial Personnel
The Company has not given any loan or guarantee to any
(KMP) and Senior Management (Appointment Policy) and
person or body corporate.
Remuneration Policy for the Directors, Key Managerial
Personnel (KMPs) and Senior Management and other
The investments of the Company are done in accordance
Employees (Remuneration Policy).
with the IRDAI (Investment) Regulations 2016, as amended
The objective of the Appointment Policy is to inter- from time to time, the Corporate Governance Guidelines
alia provide a framework and set standards for the dated May 18, 2016 issued by IRDAI (‘CG Guidelines’)
appointment of Directors and KMPs who should have and circulars issued by IRDAI from time to time and the
the capacity and ability to lead the Company towards Investment Policy of the Company. The particulars of
achieving its stated goals and strategic objectives, taking Investment Assets are provided in the Management
into account the interest of all stakeholders including Discussion and Analysis Report section.
shareholders, policyholders, channel partners and
employees while ensuring appropriate balance of skills, Related Party Transactions
experience, knowledge and expertise among its Directors.
Transactions/ arrangements by the Company are in its
The objective of the Remuneration Policy is inter-alia to ordinary course of business with related parties and
ensure that primarily includes sale of various insurance policies,
i. the level and composition of remuneration is in line selling of insurance policies by related parties appointed
with other companies in the industry, sufficient to as Corporate Agents, receipt of premium and payment
attract and retain right talent at all levels and keep of claim thereof, banking arrangements, purchase/
them motivated enough to meet the organisational sale of securities directly or indirectly through a related
objectives; party, payment of premium / receipt of commission on
ii. a reasonable balance is maintained in the composition reinsurance ceded, etc.
of remuneration (fixed and variable component);
Annual Report 2022-23 23

The Audit and Compliance Committee of Directors has Risk Management Framework
granted omnibus approval to enter into Related Party
Transactions which are recurring in nature and in the The Company recognises that risk is an integral element
ordinary course of business. of insurance business and realises the criticality of
institutionalised risk management practices to meet its
The Related Party Transactions that were entered into objectives. The Company has therefore established an
during the year were in the ordinary course of business effective and robust enterprise wide Risk Management
and on an arm’s length basis. The details of transactions Framework (RMF), which addresses all relevant risks
with related parties were placed before the Audit and including strategic risk, operational risks, investment risks,
Compliance Committee of Directors at its quarterly insurance risks and information & cyber security risks. The
meetings. material aspects Environmental, Social and Governance
(ESG) are mapped into and integrated with the RMF.
The Policy on related party transactions of the Company
is hosted on the Company’s website. The Risk Management Committee of Directors (RMC) has
laid down the Risk Management Philosophy and Policy of
During the year, there were no material, financial or
the Company. The RMC oversees the functioning of the
commercial transactions by the Senior Management
RMF which has been designed in line with the aforesaid
having personal interest that had potential conflict with
Philosophy and Policy. The Chief Risk Officer (CRO) is
the interest of the Company at large.
responsible for the consistent implementation of the RMF.
Pursuant to provisions of Regulation 23 of SEBI (Listing The CRO reports to the RMC. The CRO inter-alia presents
Obligations and Disclosure Requirements) Regulations, the key and top risks to the RMC at its quarterly meetings.
2015. The Company has taken requisite approval
of Members for entering into material related party The RMC is further assisted by a Sub-Committee
transactions with HDFC Bank and Munich Re during FY23. comprising the CEO, Executive Directors, CRO and
Heads of various business units which ensures the
As required under Regulation 53(f) read with Para A implementation of the Company’s Risk Management
of Schedule V of LODR Regulations and Accounting Philosophy, Strategies, Policies and Procedures.
Standard AS-18 on Related Party Disclosures, the details
of related party transactions entered into by the Company Under RMF, the Company has entrusted designated
during the year are included in the Notes to Accounts. Risk Owners to periodically identify, assess, manage and
mitigate the risks pertaining to their respective areas of
responsibility.
Material Changes and Commitments
affecting the Financial Position The material risks identified by the Company and the
mitigation measures are as under:
There were no Material Changes or Commitments,
affecting the Financial Position of the Company between
1. Underwriting and Reserving Risks
March 31, 2023 and the date of this report.
Underwriting Risk is the risk of change in value due
Particulars regarding Conservation of to a deviation of the actual claims payment from the
Energy, Technology Absorption and expected amount of claims payment. Underwriting Risk
encompasses risk of concentration and insufficient
Foreign Exchange Earnings and Outgo
diversification.
Since the Company does not carry out any manufacturing
activity, the provisions with respect to disclosure of Reserving Risk is the risk of eventual cost of claims
particulars regarding conservation of energy and diverging from the booked reserves due to under-
technology absorption are not applicable to the Company. reserving which can make certain classes of business
look profitable than they really are. Conversely, over-
During the year, the Company incurred an expenditure reserving tends to lock in unnecessary capital and could
of ` 226.13 crore in foreign exchange (PY: ` 291.98 crore) result in portfolio steering in the wrong direction.
mainly on account of reinsurance premium and claims
payment. Premium received and claims received on The following controls and mitigation measures have
reinsurance ceded in foreign exchange during the year been established to effectively mitigate aforesaid risks:
was ` 244.37 crore (PY: ` 211.89 crore). • The Underwriting Guidelines are used as a basis for
Annual Report 2022-23 24

underwriting of risks and basis for pricing charged to in securities with prescribed Credit Rating (Sovereign and
the proposer; AAA rated securities).
• Prudent margins are built in reserves and a regular
monitoring of its adequacy is done; The aforementioned risks are reviewed and monitored
on a regular basis by the Management, Investment
• Adequate protection is ensured through a well-
Committee and the Risk Management Committee.
designed Reinsurance Program with financially sound
reinsurers;
Credit risk also arises on the reinsurance protection taken
• Catastrophe (CAT) protection has also been ensured by the Company. The Company ensures that it enters into
to mitigate the risks of large losses arising from reinsurance agreements with reinsurers who comply with
probable catastrophic events; the prescribed minimum Financial Strength Rating (FSR).
• Detailed Reserving Guidelines are documented for all This minimises its credit risk exposures in reinsurance
classes of business which define the procedures to protection arrangements.
be adhered to; and
• The default reserve values are reviewed on a 3. Operational Risks
periodic basis to identify any significant changes in
loss development patterns/IBNR utilisation trends The Company faces varied operational risks in the various
and formulas are adjusted if deemed necessary and processes it operates in the course of its day-to-day
agreed by all stakeholders. business such as Underwriting, Policy Administration,
Claims, Finance, Investment, Marketing, Customer
Experience, etc. Operational risks majorly arise from
2. Credit and Market Risk breakdowns in internal processes, people and systems.

Adverse change in financial situation due to fluctuation Operational risks are mitigated by developing
in the market price of investment assets, its liquidity and comprehensive policies and processes and by
credit quality are some of the material risks faced by the implementing both automated and manual controls across
General Insurers. various activities performed by various departments.

The Company’s Investment Function is overseen Business Continuity risks are managed by implementing
by the Investment Committee, duly assisted by the a robust Business Continuity Policy and Processes to
Chief Investment Officer (CIO). The investments of ensure safety of human resources and continuity of
the Company are made as per the Board approved key services and offering from bouquet of products at
Investment Policy, Investment Strategy Document and the minimum acceptable level of business. The Company has
Standard Operating Guidelines and are compliant with an alternate Disaster Recovery (DR) site and the identified
the provisions of IRDAI (Investment) Regulations, 2016 critical business processes are tested periodically at the
and circulars issued thereunder. DR site to assess its operational preparedness in case of
any eventuality. The Company has been certified under
The Investment Policy and the Standard Operating ISO 22301:2019 standard for its Business Continuity
Guidelines have been designed to be more conservative practices.
than regulatory provisions relating to investment in debt
and equity instruments. Information and Cyber Security
Market risk is managed by maintaining exposure in The Company assigns critical importance to information
equity within the limits set out in the Investment Policy and cyber security risks. Insurance business is highly
and guidelines thereunder. Exposure to debt is managed information driven where information is recognised as
by maintaining a modified duration of the debt portfolio a critical business asset. Due to emerging information
within the limits set by the Investment Policy. and cyber security threats in the Insurance Industry,
it is imperative that business information is protected
Liquidity risk is managed by maintaining investments adequately through appropriate controls and proactive
in money market instruments upto the desired level as measures.
required.
To manage the existing and emerging information and
Credit risk or risk of default of counter parties is managed cyber security risks, following controls are in place:
by investing a substantial portion of the investible corpus • Board approved Information and Cyber Security Policy;
Annual Report 2022-23 25

• Board approved Information and Cyber Security The Company under its Health Program Niramaya has
Crisis Management Plan; supported over 2,100 underprivileged children and adults
• ISO 27001:2013 Certified Information Security towards surgeries in the areas of congenital heart defects,
Management System; cochlear implant, bone marrow transplant, facial and
skull deformities, cataract. Also, supported 65 patients
• Awareness programme for employees such as
affected by thalassemia and cancer.
awareness mailers, simulation and tabletop exercises,
etc; and
Besides the above, the Company has set up Sewage
• Vulnerability Assessment and Penetration Testing Treatment Plant at ADHAR Centre to benefit 354 specially
exercise on a periodic basis. abled adults.
Further, the Company constantly endeavours towards
improvement of the Information & Cyber Security posture The Company has also completed reconstruction of two
given the dynamic and complex cyber security threat Government Hospitals in Maharashtra and Karnataka
landscape. which will benefit 1.22 lakh villagers.

Corporate Social Responsibility (CSR) The Company’s Health Care Initiative is benefitting over
1.25 lakh lives.
The Company’s CSR Policy is hosted on its website -
www.hdfcergo.com. The Policy inter-alia specifies the The Company has undertaken Women Empowerment
broad areas of CSR activities that could be undertaken by Initiatives (Roshini) and has contributed to the cause of
the Company, the approach and process for undertaking education of girl children by supporting learning centres
CSR projects and the monitoring mechanism. impacting 1,285 girls; sustainable livelihood to support
1,000 women in West Bengal. The Company has also
During the year, the Company has completely spent supported 467 girls by providing them with job oriented
the mandated amount of ₹ 12.66 crore on various CSR vocational skills.
activities.
In total, Company’s Women Welfare Initiatives Roshini is
Under the Gaon Mera Program, the re-construction of benefitting over 2,700 lives.
two Government schools in Jikhangaon, Mathura, Uttar
Pradesh and Pole, Hooghly, West Bengal were fully The Company has also selected two accident prone road
completed, during the year. intersections in Maharashtra and Karnataka for redesign,
impacting over 4.19 lakh commuters every day.
Additionally, reconstruction was undertaken for two
Government schools in Kutba and Kutbi, Muzaffarnagar, In total, Company’s CSR Initiatives is benefitting over 5.5
Uttar Pradesh, during the year.
lakh lives.

Further, solar panels were set up in seven Government

schools and 12 smart classes were setup in six Government
Board Evaluation
schools.
The evaluation of the Board and the Board Committees
was carried out on the basis of various parameters like
The school reconstruction and refurbishment projects
optimum mix, quality and experience of Board members,
undertaken are expected to positively impact the growth
regularity and frequency of meetings, cohesion in the
in student enrolment, girl education, interest in sports
Board/Committee meetings, constitution and terms of
and extra-curricular activities. Nearly 4,000 students and
reference of various Board Committees, contribution
teachers have benefitted through this.
in shaping the Company’s strategy, protecting
legitimate interest of various stakeholders, implement
Besides the above, the Company has supported 15
best corporate governance practices, follow up on
underprivileged students with full scholarship for
implementation of decisions taken at Board/Committee
undergraduate / graduate programme. The Company has
meetings, Board Committee’s promptness and efficacy to
contributed to create infrastructure at Ashoka University
report issues requiring Board’s attention, quality, quantity
and support school buses to Trust School.
and timeliness of flow of information, etc.
In total, the Company’s education initiative is benefitting
The evaluation of Non-Executive Directors (including
over 4,700 lives.
Independent Directors) was carried out based on
Annual Report 2022-23 26

parameters like attendance, active participation, exercise Disclosures on remuneration of Managing Director and
of independent judgement, bringing in objectivity in Key Management Persons as mandated under IRDAI
decision making process, knowledge and competency, Guidelines on Remuneration of Non-Executive Director
commitment, high levels of integrity, leadership, bringing and Managing Director/ Chief Executive Officer/ Whole-
one’s own experience to bear on the items for discussion, Time Director of Insurers dated August 5, 2016
awareness and observance of governance, value addition
to the business and strategic aspects of the Company. (i) Qualitative Disclosures:

In addition to the above, Whole-time Directors were also (a) Information relating to the design and structure
evaluated on other parameters such as involvement in the of remuneration processes and Key Features and
job with dedication, competence, quest for improvement Objectives of the Remuneration Policy:
in performance, ability to function as an effective team-
The Nomination & Remuneration Committee (NRC)
member, sufficient understanding and knowledge of the
reviews the principles and practices of the Company
Company and the sector in which the Company operates,
with respect to salary increase, promotions,
understanding and fulfillment of functions assigned by
performance management and bonus to all employees
the Board and the law, taking initiative with respect to
of the Company. The Remuneration Policy provides
various areas.
that the level and composition of remuneration is in
line with other companies in the industry, sufficient
The Independent Directors at its separate meeting
to attract and retain the right talent at all levels
evaluated the performance of the Non-Independent
and keep them motivated enough to meet the
Directors, Whole-time Directors, Chairman, Board as a
organisational objectives and a reasonable balance
whole and the Board Committees and the views were
is maintained in the composition of remuneration
shared with the Chairman of the Board.
(fixed and variable component). The performance
measurement parameters are in place to assess the
The evaluation was shared with the Chairman of the
overall performance of Directors, KMPs, Members of
Board. The overall performance evaluation exercise was
Senior Management and other Employees. The NRC,
completed to the satisfaction of the Board.
whilst recommending remuneration of the Managing
Director and CEO and other Whole-time Directors to
Particulars of Employees and other Related the Board, considers the above factors, which are
Disclosures subject to the approval of IRDAI.

The total employee strength of the Company as on March (b) Description of the ways in which current and future
31, 2023 stood at 10,912. risks are taken into account in the remuneration
processes:
During the year, 18 employees, including Whole-time
Directors, employed throughout the year were in receipt The remuneration fixing process of Whole-time
of remuneration of ` 1.02 crore or more per annum or Directors including that of the Managing Director
` 8.50 lakh or more per month. In accordance with the and CEO, includes evaluation of performance against
provisions of Rule 5(2) of the Companies (Appointment performance objectives defined by NRC which
and Remuneration of Managerial Personnel) Rules, 2014, includes performance criteria covering the enterprise
the names and other particulars of such employees are wide Risk Management Framework.
set out in the annex to the Directors’ Report. In terms of the
provisions of the Act read with the said Rule, the Directors’ (c) Description of the ways in which the Company
Report is being sent to the shareholders excluding the seeks to link performance during a performance
annex. Any shareholder interested in obtaining a copy of measurement period with levels of remuneration:
the said annex may write to the Company Secretary.
The level of remuneration of Whole-time Directors
including Managing Director and CEO for any financial
Further, the disclosures on managerial remuneration as
year is inter-alia linked to the following performance
required under Rule 5(1) of the said Rules are provided in
objectives set by NRC:
Annexure 1 appended to the Directors’ Report.
a. Top line and bottom line targets of the Company
including portfolio steering;
b. Overall financial position of the Company including
Annual Report 2022-23 27

In addition to the above, the Whole-time Directors are

adherence to IRDAI stipulations on Minimum
entitled to and provided perquisite in the nature of
Solvency Margin and Expenses of Management
Company owned car with fuel reimbursement, provident
Limits;
fund, gratuity, club membership, housing loan subsidy
c. Key strategic and operational deliverables for the
and benefit of medical, life and personal accident
year and progress on the mid-term deliverables;
insurance, as approved by the NRC in accordance with
d. Satisfactory claim settlement and repudiation
the Remuneration Policy.
performance;
e. Effectiveness of the Grievance Redressal
Mechanism; and
Secretarial Audit
f. Overall compliance to applicable laws including In accordance with the provisions of Section 204 of the
CG Guidelines and other statutory bodies. Act and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, the Company
The remuneration payable to the Whole-time Directors
appointed Messrs. Bhandari & Associates, Practicing
including Managing Director and CEO is subject to approval
Company Secretaries for conducting Secretarial Audit
from the shareholders of the Company and IRDAI.
for FY 2022-23.
(ii) Quantitative Disclosures
The Secretarial Audit Report is appended to this Report
The following table sets forth the details of quantitative and does not contain any qualifications.
disclosure of remuneration of Whole-time Directors
including the Managing Director and CEO: Employees Stock Option Plan (ESOP)

Year ended Year ended During the year, the Company granted stock options
Particulars March 31, March 31, in respect of 16,45,160 equity shares of ` 10 each at an
2023 2022 exercise price of ` 536 per option under ESOP (Options)
Number of MD/ CEO/ WTDs 3 3 to eligible employees.
having received a variable
remuneration award during the
The Options granted vest in tranches - 25% on completion
financial year
of two years from grant date, 25% at the end of three years
Number and total amount of NIL NIL from the grant date and the balance 50% on completion of
sign-on awards made during
the financial year four years from the grant date and are exercisable within
a period of five years from the date of respective vesting.
Details of guaranteed bonus, NIL NIL
if any, paid as joining / sign on
During the year, Options vested aggregated to 9,41,607.
bonus
During the year, 6,15,033 Options lapsed and the Options
Breakdown of amount of
remuneration awards in the in force as on March 31, 2023 were 57,78,323.
financial year (Amount in ₹)
Fixed 9,75,80,019 8,67,32,313 There has been no variation in the terms of the Options
granted.
Variable 3,45,58,025 4,33,62,283
Deferred NIL NIL The diluted Earnings Per Share is ` 9.13 against a basic
Non-deferred NIL NIL EPS of ` 9.16.
Total amount of deferred remu- NIL NIL
neration paid out in the finan- No Options granted to KMPs and employees including
cial year Whole-time Directors amounting to 5% or more of the
Total amount of outstanding Options granted during the year.
deferred remuneration
Cash (₹ in million) NIL NIL No employee is granted Options in excess of 1% of the
Shares (nos.) NIL NIL issued share capital of the Company at the time of grant.
Shares-linked instruments* NIL 3,74,000
Other forms NIL NIL
Public Deposits
* Aggregate ESOPs granted to Whole-time Directors at the The Company did not accept any deposits from the public
prevailing fair market value, detailed elsewhere in this report. during the year.
Annual Report 2022-23 28

Auditors The Board, pursuant to the provisions of the Act and

based on the recommendation of the NRC, recommends
At the fifteenth Annual General Meeting (AGM) held on the re-appointment of Ameet Hariani for the second
July 21, 2022, Members had re-appointed Messrs. G. M. term of five years w.e.f. July 16, 2023. As required under
Kapadia & Co., Chartered Accountants (Registration No. the provisions of Section 149(10) of the Act, read with
of the firm with the ICAI: FRN 104767W) and appointed LODR Regulations, the re-appointment of Ameet Hariani
Messrs. B S R & Co. LLP, Chartered Accountants as Independent Director shall be subject to requisite
(Registration No. of the firm with the ICAI: 101248W/W- approvals.
100022), as the Joint Statutory Auditors of the Company to
audit the accounts of the Company upto FY 2026-27 and The Board is of the view that Ameet Hariani possesses
hold office as such upto the conclusion of the twentieth relevant qualification and experience to be re-appointed
AGM of the Company. as Independent Director of the Company and fulfils
the conditions specified in the Act and the rules made
Subsidiary Company thereunder and is independent of the Management.

The Company has no subsidiaries. Change in Company Secretary

Directors and Key Managerial Personnel Dayananda V. Shetty retired from the services of the
Company and as its Company Secretary with effect from
Re-appointment of Directors liable to retire by February 1, 2023 on attaining the age of superannuation.
rotation Consequently, Vyoma Manek was appointed as Company
Secretary (designated as Company Secretary & Chief
In accordance with the provisions of the Act and the Compliance Officer) of the Company w.e.f. February 1,
Articles of Association of the Company, Keki M. Mistry 2023.
(DIN: 00008886) and Renu Sud Karnad (DIN: 00008064),
Directors, would retire by rotation at the ensuing AGM Directors & Officers Liability Insurance
and being eligible, have offered themselves for re-
appointment and the same is included in the Notice of the The Company has in place Directors & Officers Liability
sixteenth AGM circulated to the Members. Insurance (D&O) for all its Directors (including Independent
Directors) and members of the Senior Management Team
Re-appointment of Samir H. Shah as Executive for such quantum and risks as determined by the Board in
Director and CFO line with Regulation 25(10) of the SEBI LODR Regulations.

Samir H. Shah (DIN: 08114828) was appointed on June 1, Declaration by Directors

2018 for a period of five years as a Whole-time Director
designated as the Executive Director and CFO upto May The Company has received declarations from all
31, 2023. Independent Directors confirming that they meet the
criteria of independence as provided under sub-section 6
The Nomination and Remuneration Committee of of Section 149 of the Act read with Regulation 16(1)(b) of
Directors (NRC) and Audit and Compliance Committee LODR Regulations as amended.
(ACC) recommended the re-appointment of Samir H.
Shah, as Executive Director and CFO of the Company As required under Rule 6(1) and 6(2) of the Companies
for a further period of five years from June 1, 2023 to (Appointment and Qualification of Directors) Rules, 2014,
May 31, 2028 or date of superannuation, whichever is the Independent Directors have confirmed that their
earlier, liable to retire by rotation. Thereafter, the Board of names are available in the data bank maintained by the
Directors at its meeting held on April 27, 2023 approved Indian Institute of Corporate Affairs and they have either
the reappointment of Samir H. Shah, as Executive Director undertaken the online proficiency self-assessment test or
and CFO for term of five years subject to the requisite are exempted therefrom.
approvals.
The Board is of the opinion that the Independent Directors
Re-appointment of Independent Director(s) of the Company are eminent persons with the highest
standard of integrity and have necessary expertise and
The present term of Ameet Hariani (DIN: 00087866) as experience to continue to discharge their responsibilities
Independent Director expires on July 15, 2023. as Directors of the Company.
Annual Report 2022-23 29

The Company has received declarations from all Directors Audit and Compliance Committee
confirming that they are not disqualified from being
appointed as Directors under the provisions of Section 164 The Audit and Compliance Committee comprises six
of the Act. Further, all the Directors have confirmed that members – four Independent Directors and two Non–
they comply with the ‘fit and proper’ criteria prescribed Executive Directors. The Chairman of the Committee
under the CG Guidelines. is an Independent Director and a qualified Chartered
Accountant. The composition of the Committee is in
Significant and Material Orders passed by the conformity with the provisions of Section 177 of the Act
Regulators or Courts or Tribunals and the CG Guidelines.

There are no significant or material orders passed by the All the Committee members possess adequate
Regulators or Courts or Tribunals impacting the going qualifications to fulfill their duties as stipulated under the
concern status and the Company’s operations in future. Act and the CG Guidelines and LODR.

The other details about the Committee are provided in

Internal control over Financial Reporting
the Report of the Directors on Corporate Governance.

The internal control over financial reporting is a process

Indian Accounting Standards (Ind AS)
designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of The Ministry of Corporate Affairs (MCA) had notified the
financial statements for external purposes in accordance Companies (Indian Accounting Standards) Rules, 2015 (Ind
with applicable accounting principles and includes those AS), consequent to which IRDAI vide circular dated March
policies and procedures that: 1, 2016, directed insurance companies to prepare Ind AS
(i) Pertain to the maintenance of records that, in reasonable financial statements from April 1, 2018 and onwards.
detail, accurately and fairly reflect the transactions and
disposition of the assets of the Company; With the International Accounting Standards Board (IASB)
(ii) Provide reasonable assurance that transactions issuing IFRS 17: Insurance Contracts (replacing IFRS 4:
are recorded as necessary to permit preparation of Insurance Contracts), IRDAI vide circular dated June 28,
financial statements in accordance with generally 2017, deferred the implementation of Ind AS to periods
accepted accounting principles, and that receipts and effective from FY 2020-21.
expenditures of the Company are being made only in
accordance with authorisations of Management and Considering the challenges in implementation, the IASB,
Directors of the Company; and on November 14, 2018 proposed the deferral of IFRS 17 to
be implemented from January 1, 2022.
(iii) Provide reasonable assurance regarding prevention
and timely detection of unauthorised acquisition, use
IRDAI vide circular No. IRDAI/F&A/CIR/ACTS/023/01/2020
or disposition of the Company’s assets that could have
dated January 21, 2020 informed the insurance
a material effect on the financial statements.
companies that IRDAI would be in a position to notify the
regulations on preparation of Ind AS compliant financial
The Company has established adequate internal control statements only after final amendments to IFRS 17 are
procedures, commensurate with the nature of its business carried out by IASB and corresponding Indian equivalent
and size of its operations and the same are periodically standard is notified by MCA and stated that it has decided
monitored and reviewed by the Management for its to implement all applicable Ind AS simultaneously from an
adequacy and appropriateness. Standard Operating effective date that would be decided after the finalisation
Procedures are in place largely for all areas of operations of IFRS 17 by IASB.
and the same are reviewed periodically. The Management
has assessed the effectiveness of the Company’s internal Further, vide notification dated March 17, 2020, IASB
control over financial reporting as of March 31, 2023. As a decided that the effective date of IFRS 17, will be deferred
result of the evaluation, the Management has concluded to annual reporting periods beginning on or after January 1,
that the Company’s internal control over financial 2023. The Institute of Chartered Accountants of India (ICAI)
reporting was effective as of March 31, 2023 with no has issued an exposure draft of amendments to Ind AS 117
significant deficiency. corresponding to aforesaid amendments in IFRS 17 issued
by IASB.
Annual Report 2022-23 30

As advised by IRDAI vide their Circular No. 100/2/Ind Private Limited). The address of the RTA is as follows:
AS-Mission Mode/2022-23/1 dated July 14, 2022, the KFin Technologies Ltd.
Company has set up a Steering Committee under the Karvy Selenium Tower B, Plot No. 31-32,
aegis of the Executive Director & CFO. The Committee Nanakramguda, Gachibowli,
comprises members from cross-functional areas such as Serilingampally, Hyderabad – 500 032, Telangana
Finance & Accounts, Actuarial, Information Technology and Email id: einward.ris@kfintech.com
Project Management Group. The Company has appointed Tel No. : +91-40-67162222
a knowledge partner to understand the nuances and Website: www.kfintech.com
carry out the diagnostic analysis for few select Portfolio
Segments. The said activity is currently underway. Further, Directors’ Responsibility Statement
the Audit Committee and Board is updated on a quarterly
basis of the progress made on the diagnostic exercise. In accordance with the provisions of Section 134 (5) of
the Act and based on the confirmation provided by the
Disclosure under the Sexual Harassment of Management, your Directors state that:
Women at Workplace (Prevention, Prohibition and
(a) In the preparation of the annual accounts, the applicable
Redressal) Act, 2013
accounting standards have been followed and there
were no material departures;
The Company has framed a Policy on Prohibition of Sexual
Harassment at the workplace (POSH Policy) based on the (b) Accounting policies selected were applied
Sexual Harassment of Women at Workplace (Prevention, consistently. Reasonable and prudent judgements
Prohibition and Redressal) Act, 2013 (POSH Act) with an and estimates were made so as to give a true and fair
objective to promote a safe and secure work environment view of the state of affairs of the Company as at March
for all employees and to provide protection against sexual 31, 2023 and of the profit of the Company for the year
harassment of employees and prevention thereof and ended on that date;
redressal of complaints. (c) Proper and sufficient care has been taken for the
maintenance of adequate accounting records in
In accordance with the provisions relating to the accordance with the provisions of the Act and Rules
constitution of Internal Complaints Committee under made thereunder, Insurance Act, 1938, as amended,
the POSH Act, the Company has constituted an Internal Insurance Rules, 1939 and IRDAI Regulations, Orders,
Complaints Committee (ICC). Presently, ICC comprises Circulars and Guidelines for safeguarding the assets of
six (6) members, of which four (4) are women including a the Company and for preventing and detecting frauds
member from a non-governmental organisation, who is an and other irregularities;
expert on the subject matter. One of the women members (d) The annual accounts of the Company have been
is the presiding officer of ICC. prepared on a going concern basis;
(e) Internal financial controls have been laid down to be
The role of ICC is to monitor complaints and redressal followed by the Company and such internal financial
of grievances under the POSH Policy. An online POSH controls are adequate and operating effectively; and
module was enabled for all employees (including study
(f) Proper systems are in place to ensure compliance
material followed by compulsory test). Also, during the year,
with the provisions of all applicable laws and that such
mandatory online modules on POSH were conducted to
systems were adequate and operating effectively.
create awareness about the Policy amongst the employees.

During the year under review, no cases were reported.

Secretarial Standards

The Company has complied with the applicable provisions

of Secretarial Standards issued by the Institute of Company
Secretaries of India (ICSI).

Registrar & Share Transfer Agent

The Company’s Registrar and Transfer Agent (RTA) is KFin

Technologies Ltd. (formerly known as Kfin Technologies
Annual Report 2022-23 31

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 Affairs 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 such as the 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 – Housing Development Finance Corporation 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 On behalf of the Board of Directors

April 27, 2023
KEKI M. MISTRY
Chairman
(DIN: 00008886)
Annual Report 2022-23 32

ANNEXURE 1 TO DIRECTORS’ REPORT

Disclosures on Managerial Remuneration Dayananda V. Company 10%

Shetty Secretary
Details of remuneration as required under Rule 5(1) of Vyoma Manek Company 8%
the Companies (Appointment and Remuneration of Secretary & Chief
Managerial Personnel) Rules, 2014, is provided below: Compliance Officer

Ratio of remuneration of each director to the median The Company did not pay any commission to Non-
remuneration of the employees of the Company for FY Executive Directors. It is proposed to pay commission of
2022-23: ` 10 lakh each to the Independent Directors for FY 2022-
23, which is the same as paid for FY 2021-22. Further
Name Designation Ratio of remu- details are provided in Form MGT-7, available on the
neration of each
Director to the
website of the Company (www.hdfcergo.com).
median remuner-
ation of the em- Percentage increase in the median remuneration of
ployees
employees in FY 2022-23: 7.85%
Keki M. Mistry Chairman (Non- 10:1
Executive) Number of permanent employees on the rolls of the
Renu Sud Karnad Non-Executive 7:1 Company as on March 31, 2023: 10,192
Director
Dr. Oliver Willmes Non-Executive - Average percentile increase already made in the salaries
Director
of employees other than the managerial personnel
Dr. Clemens Non-Executive -
in the last financial year and its comparison with the
Matthias Muth Director
percentile increase in the managerial remuneration
Bernhard Independent 11:1
Steinruecke Director and justification thereof and point out if there are
Mehernosh B. Independent 12:1 any exceptional circumstances for increase in the
Kapadia Director managerial remuneration:
Arvind Mahajan Independent 12:1
Director The average increase in the remuneration of all employees
Ameet P. Hariani Independent 13:1 in FY 2022-23 was 7.85%. The average increase in the
Director remuneration of managerial personnel (i.e. Whole-time
Sanjib Chaudhuri Independent 5:1 Directors) stood at 11% and of non-managerial personnel
Director was 7.85%.
Dr. Rajgopal Independent 5:1
Thirumalai Director The average increase in remuneration of both the
Vinay Sanghi Independent 5:1 managerial and non-managerial personnel was
Director
determined based on the overall performance of the
Samir H. Shah Executive Director 83:1 Company. Further, the criteria for remuneration of non-
and CFO
managerial personnel is based on an internal evaluation
Anuj Tyagi Deputy Managing 106:1
Director
of key result areas, while the remuneration of the
managerial personnel is based on the remuneration policy
Ritesh Kumar Managing Director 276:1
and CEO as recommended by the NRC and approved by the Board
of Directors and Guidelines on Remuneration of Non-
Percentage increase in remuneration of each Director Executive Directors, Managing Director/Chief Executive
Officer/Whole-time Directors of Insurers issued by IRDAI.
and Key Managerial Personnel in FY 2022-23:
The Company confirms that that there were no exceptional
Name Designation Increase in
circumstances which warranted an increase in managerial
Remuneration
remuneration which was not justified by the overall
Ritesh Kumar Managing Director 12% performance of the Company.
and CEO
Anuj Tyagi Deputy Managing 12%
The remuneration of Key Managerial Personnel is based
Director
on the overall performance of the Company.
Samir H. Shah Executive Director 9%
and CFO
Annual Report 2022-23 33

REPORT OF THE DIRECTORS ON

CORPORATE GOVERNANCE

Good Governance is an integral element of the and timely disclosure of matters of interest to the
Company’s operations. Corporate Governance is the art stakeholders and ensuring compliance with the applicable
of directing and controlling the organisation by balancing laws and conducting business in an ethical manner.
the needs and interests of various stakeholders of the
Company. Corporate Governance is the application of The Company is not only committed to following the
the best management practices, and a commitment to good corporate governance practices embodied in
conduct business in a fair, transparent and ethical manner various regulatory provisions, but also constantly strives
in compliance with the applicable laws. Corporate to adopt and adhere to the emerging best practices and
Governance creates a system of rules, practices and benchmarking itself against such practices.
procedures that determines how a Company operates and
how it aligns the interest of all its stakeholders. Corporate The Board of Directors have taken cognizance of various
Governance is required to create a corporate culture of statutory and regulatory requirements in the overall
transparency, accountability and disclosure. It enhances governance framework and remains committed to imbibe
organisational performance, enterprise valuation, risk the spirit of governance in all spheres of the Company’s
management and instils accountability. business and has complied with various provisions of
the Companies Act, 2013 (‘Act’), SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
COMPANY’S PHILOSOPHY ON (‘LODR Regulations’) and the Guidelines on Corporate
CORPORATE GOVERNANCE Governance for the Insurance Sector (‘Guidelines’) issued
by the Insurance Regulatory and Development Authority
The Company’s philosophy on Corporate Governance has of India (‘IRDAI’).
been influenced by its Promoters, Housing Development
Finance Corporation Limited (HDFC) and ERGO BOARD OF DIRECTORS
International AG (ERGO). The Company endeavours to
adhere to the well-established and proven practices of The Board of Directors of the Company are responsible
HDFC and ERGO in maintaining corporate culture and the for ensuring fairness, transparency and accountability
spirit of managing the business. Corporate Governance is of the Company’s business operations and they provide
intrinsic to the Management of the Company affairs. Good appropriate directions, with regard to leadership, vision,
Governance aids effective management and control strategies, policies, monitoring, supervision, accountability
of the business. Your Company believes that sound to shareholders and to achieve greater levels of
Corporate Governance plays a crucial role in enhancing performance on a sustained basis as well as adherence
and retaining the trust of the stakeholders. It enables the to the best practices of Corporate Governance. The
Company to maintain high level of business ethics and Board plays a pivotal role in creation of stakeholder value
optimise the value for all its stakeholders. and ensures that the Company adopts sound and ethical
business practices and that the resources of the Company
The Company believes that Corporate Governance is a are optimally used. The Board periodically reviews and
continuous journey towards sustainable value creation approves the strategy and oversees the decisions of the
for all the stakeholders and is driven by its values of Management.
Sensitivity, Excellence, Ethics and Dynamism (SEED).
The Company’s vision is to be the most trusted partner The Company has a multi-tier management structure,
for every stakeholder and the Company is committed to comprising the Board of Directors and its Committees at
provide fair, transparent and equitable treatment to all the apex, followed by management committees and the
stakeholders. officials of the Company. Through this, it is ensured that
strategic supervision is provided by the Board; control and
The Company endeavours to abide by its value system implementation of the Company’s strategy are achieved
guided by the principles of accountability, transparency effectively, operational management remains focused on
Annual Report 2022-23 34

implementation; information regarding the Company’s As at March 31, 2023, the Board comprised 14 members,
operations and financial performance is made available of which three are Whole-time Directors and 11 are Non-
promptly; delegation of decision making with accountability Executive Directors. The three Whole-time Directors
is achieved; financial and operating control and integrity include the Managing Director & CEO, Deputy Managing
are maintained at an optimal level; and risks are suitably Director and Executive Director & CFO. Of the 11 Non–
evaluated and dealt with.
Executive Directors, two Directors represent HDFC, which
includes one Woman Director, two Directors represent
COMPOSITION ERGO and seven Independent Directors.

The Board has a mix of executive, non-executive and The roles of the Chairman and the Managing Director and
independent directors. The Board comprises competent the CEO are distinct and separate.
and qualified directors to drive the strategies in a manner
that would sustain the growth of the Company and Details of the Board of Directors in terms of their
protect the interest of various stakeholders in general and directorships/memberships in committees of public
policyholders in particular. companies as on March 31, 2023 are as set out in the
table below:

Sr. No. Directors Category No. of Directorships as Of which Number of Committees ##

of March 31, 2023# Member Chairperson

1. Keki M. Mistry Non-Executive Director, Chairman 5 8 2

2. Renu Sud Karnad Non-Executive Director 6 6 3

3. Dr. Oliver Martin Willmes Non-Executive Director - 1 -
4. Dr. Clemens Matthias Muth Non-Executive Director - 1 -
5. Bernhard Steinruecke Independent Director 1 1 -
6. Mehernosh B. Kapadia Independent Director 4 8 5
7. Arvind Mahajan Independent Director 2 3 -
8. Ameet P. Hariani Independent Director 7 6 3
9. Sanjib Chaudhuri Independent Director - - -
10. Vinay Sanghi Independent Director 2 2 -
11. Dr. Rajgopal Thirumalai Independent Director - - -
12. Samir H. Shah Executive Director & CFO - - -
13. Anuj Tyagi Deputy Managing Director - - -
14. Ritesh Kumar Managing Director & CEO - 1 -

# Directorships held in public companies including its subsidiaries registered under the provisions of the Companies
Act, 1956/2013 (excluding the Company) have been considered
## For the purpose of considering the Committee Memberships and Chairpersonship, the Audit Committee and
Stakeholders Relationship Committee of public limited companies (including the Company) have been considered

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.

BOARD EXPERTISE AND ATTRIBUTES the overall Board’s effectiveness. The Directors have
expertise in insurance, banking, finance, healthcare,
The Board of Directors have a wide range of skills, accountancy, economics, law and human resources.
expertise and experience in the areas which enhances
Annual Report 2022-23 35

The details of the Directors of the Company, as at March 31, 2023, with their qualifications, field of specialisation/core
skills/expertise are as set out in the table below:

Name of the Qualification Field of specialisation/core skills/ expertise

Director
Governance Corporate Insurance & Business Accountancy Health
Strategy Risk Management and Finance Care
and Management and
Planning Marketing

Keki M. Fellow of The Institute of Chartered ✓ ✓ ✓ ✓ ✓

Mistry Accountants of India
Renu Law Graduate from The University of ✓ ✓ ✓ ✓
Sud Karnad Mumbai and Master’s degree in Economics
from Delhi University and Parvin Fellow –
Woodrow Wilson School of International
Affairs, Princeton University, USA
Dr. Oliver Business Administration at The University ✓ ✓ ✓ ✓ ✓
Martin of Cologne and MBA from The Eastern
Willmes Illinois University, USA
Dr. Clemens Economics at The University of Mainz and ✓ ✓ ✓ ✓ ✓
Matthias Munich, Doctorate in Economics from The
Muth Munich University
Bernhard Law and Economics in Vienna, Bonn, ✓ ✓ ✓
Steinruecke Geneva and Heidelberg and Law Degree
from The University of Heidelberg &
passed the Bar exam at the High Court of
Hamburg
Mehernosh Master’s degree in Commerce (Honours) ✓ ✓ ✓ ✓ ✓
B. Kapadia and Member of The Institute of Chartered
Accountants of India and The Institute of
Company Secretaries of India
Arvind Graduate (B.Com. Hons) from Shriram ✓ ✓ ✓
Mahajan College of Commerce, Delhi University
and Post Graduate Diploma in
Management from IIM, Ahmedabad.
Ameet Law degree from Government Law ✓ ✓
P. Hariani College, Mumbai and Masters in Law
degree from the University of Mumbai
Sanjib B.SC, CMA, AIII ✓ ✓
Chaudhuri
Vinay B.Com ✓ ✓
Sanghi
Dr. Rajgopal Post Graduate in Preventive Medicine ✓ ✓ ✓ ✓ ✓
Thirumalai (MD), Public Health (DPH), Occupational
Health (DIH) and Health & Hospital
Administration (DNB).
Samir Fellow Member of The Institute of ✓ ✓ ✓ ✓
H. Shah 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 Chemistry (H) graduate and Post Graduate ✓ ✓ ✓ ✓
Tyagi Diploma in Business Management
Ritesh Commerce Graduate from Shriram ✓ ✓ ✓ ✓ ✓
Kumar College of Commerce, Delhi and MBA
degree from Faculty of Management
Studies, Delhi
Annual Report 2022-23 36

All Independent Directors of the Company, have furnished the industry and the business model of the Company.
declarations to the Company under Section 149(7) of the
Act, confirming that they meet the criteria prescribed for Non-Executive Directors including Independent Directors
Independent Directors under Section 149(6) of the Act, have also undergone the Orientation Programme of Insurance
Rule 6(1) and (2) of the Companies (Appointment and Companies organised by the National Insurance Academy
Qualification of Directors) Rules, 2014 and Regulation 16(1) (‘NIA’) to familiarise them with the compliances, overview of
(b) of LODR Regulations and that their names have been general insurance, complexities in general insurance, digital
included in the data bank of Independent Directors as opportunities, regulatory aspects of general insurance,
prescribed under the Act. actuarial aspects of general insurance, board leadership,
the role of independent directors, insights from financial
The Board of Directors are of the opinion that Independent statements and global best practices.
Directors possess the requisite qualification, experience and
expertise and they uphold the highest standards of integrity. An overview of the familiarisation programme during the
year has been hosted on the Company’s website.
RESPONSIBILITIES
DIRECTOR’S TERM & TENURE
The Board of Directors consider the interest of the
Company’s shareholders in optimising long-term value In accordance with the provisions of Section 152(6) of
by providing the Management with guidance and the Act, not less than two-thirds of the total number of
strategic direction. The Board’s mandate is, to oversee directors shall be persons whose period of office is liable
the Company’s strategic direction, review financial, to determination by retirement by rotation. One-third of
operational and investment performance, review such directors are liable to retire every year and if eligible,
risks pertaining to the business to approve the annual offer themselves for re-appointment.
business plan/budget, to ensure regulatory compliance
and safeguard the interests of all stakeholders. The In accordance with the provisions of Section 149(10) and
Board plays a pivotal role in ensuring good governance 152(5) of the Act, the Independent Directors are not liable
and creating value for all stakeholders. The Directors to retire by rotation and are appointed for a fixed term of
acknowledge their duties as prescribed under the Act, five years.
the rules framed thereunder and the Guidelines.
BOARD MEETINGS AND PROCEDURES
ROLE OF INDEPENDENT DIRECTORS
All Directors participate in discussing the strategies,
The Independent Directors bring an independent business performance, financials, investment
judgment to the Board’s deliberation and objectivity in performance and key risks pertaining to the business
the Board’s decision-making process. The Independent of the Company. The Board follows a set of appropriate
Directors participate constructively and actively in the standard procedures in the conduct of Board meetings
Committees of the Board. They represent and safeguard which are summarised below:
the interest of the stakeholders.
The meetings of the Board of Directors are generally
FAMILIARISATION PROGRAMME held at the Company’s registered office in Mumbai.
The schedule of meetings to be held in a calendar year
The Company familiarises new and all its existing Directors. is planned well in advance and communciated to the
The Directors are briefed through presentations on the Directors. The notice of each Board and Committee meeting
economy and industry overview, business overview, is given in writing through email to each Director, Appointed
Actuary, Key Management Personnel, members of Senior
key regulatory developments, governance, strategy,
Management and Statutory and Internal Auditors, as and
investment, human resources and operating performance
when required. The Company also facilitates participation of
which are made to the Directors from time to time. The Directors in the meeting through Video-Conferencing (VC), if
familiarisation programme enables the Non-Executive for any reason they are unable to participate in the meeting
Directors to make better-informed decisions in the interest in person or the meeting could not be held in physical form.
of the Company and its stakeholders. The Board and its Committees meet at least once a quarter
to inter alia review the financial, operational, investment
A familiarisation programme is arranged to familiarise performance and key risks impacting the business of the
the newly inducted Directors with their roles, rights and Company.
responsibilities in the Company, as well as with the nature of
Annual Report 2022-23 37

The Company Secretary in consultation with the Executive approved by passing resolution through circulation, which
Board prepares a detailed agenda for the meetings. All are noted at the subsequent meeting. At the Board Meetings,
departments communicate with the secretarial team the Whole-Time Directors and Senior Management deliver
regarding matters requiring approval of the Board to enable presentations covering market developments, updates on
inclusion of the same in the agenda for the meetings. With industry performance, key regulatory changes, Company’s
the objective of transparent flow of information from the performance covering the financial results, operations, risk
Management, detailed agenda notes are sent to all Directors management, liquidity, asset liability management, customer
in advance and are also uploaded on a digital application. grievance redressal mechanisms and any other matters which
The Members of the Board also recommend inclusion of the Board needs to be apprised of. The Chief Compliance
any matter in the agenda for discussion. In case of matters Officer and Company Secretary attend all the Committee
requiring urgent consideration by the Board and arising post Meetings. The Company Secretary records the minutes of the
the dispatch of agenda, the same is taken up for discussion by proceedings of each Board and Committee meetings. The
the Board as part of any other business with the permission draft minutes of each Board and Committee meetings are
of the Chairman and the consent of the majority of Directors circulated to the members of the Board / Committee within
present at the meeting. 15 days from the date of the meeting and the comments, if
any on the draft minutes are received within seven days of
The Members of the Board have access to all information its circulation. The minutes are finalised within 30 days and
of the Company. The Appointed Actuary is a permanent thereafter recorded in the Minutes Book.
invitee at the Meetings of the Board, Audit and Compliance
Committee, Policyholder Protection and Grievance Redressal During FY 2022-23, the Board met six (6) times on April 25,
Committee and Risk Management Committee. Members 2022, July 21, 2022, October 20, 2022, January 6, 2023,
of the Senior Management team are invited to attend the January 25, 2023 and March 2, 2023. The time gap between
Board and Committee meetings so as to provide additional any two meetings did not exceed 120 days.
inputs on the items being discussed, which also gives the
Senior Management Team direct access to the Board and The attendance of the Directors at the said meetings is listed
Board Members. Urgent matters are also considered and below:

Name of Nature of Meeting dated

Director Directorship
April 25, July 21, October 20, January 6, January 25, March 2,
2022 2022 2022 2023 2023 2023

Keki M. Mistry Non-Executive Chairman ✓ ✓ ✓ ✓ ✓ ✓

Renu Sud Karnad Non-Executive Director ✓ ✓ ✓ ✓ ✓ ✓
Dr. Oliver Martin Willmes Non-Executive Director ✓ ✓ ✓ ✓ ✓ ✓
Dr. Clemens Matthias Muth Non-Executive Director ✓ ✓ ✓ ✓ ✓ ✓
Bernhard Steinruecke Independent Director ✓ ✓ ✓ ✓ ✓ ✓
Mehernosh B. Kapadia Independent Director ✓ ✓ ✓ ✓ ✓ ✓
Arvind Mahajan Independent Director ✓ ✓ ✓ ✓ ✓ ✓
Ameet P. Hariani Independent Director ✓ ✓ ✓ ✓ ✓ ✓
Vinay Sanghi Independent Director ✓ ✓ ✓ ✓ ✓ ✓
Dr. Rajgopal Thirumalai Independent Director ✓ ✓ ✓ ✓ ✓ ✓
Sanjib Chaudhuri Independent Director ✓ ✓ ✓ ✓ ✓ ✓
Samir H. Shah Executive Director & CFO ✓ ✓ ✓ ✓ ✓ ✓
Anuj Tyagi Deputy Managing Director ✓ ✓ ✓ ✓ ✓ ✓
Ritesh Kumar Managing Director & CEO ✓ ✓ ✓ ✓ ✓ ✓
‘✓’ indicates meeting attended & ‘x’ indicates meeting not attended
Annual Report 2022-23 38

The Board also met on April 27, 2023 inter alia for Minutes of the Committee meetings/ report on the
consideration and approval of audited financial statements activities of the Committee are submitted to the Board
for the year ended March 31, 2023. 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.
COMMITTEES
To enable better and more focused attention on the The Board has constituted the following Committees with
affairs of the Company and as required under regulatory specific terms of reference:
provisions, the Board has constituted various Committees. 1. Audit and Compliance Committee (ACC)
These Committees lay down the groundwork for decision- 2. Investment Committee (IC)
making and the Minutes of these Committees are placed 3. Risk Management Committee (RMC)
at the subsequent Board meeting. The terms of reference 4. Policyholder Protection and Grievance Redressal
of the Committees are approved by the Board, which inter- Committee (PPGRC)
alia includes all the statutory and regulatory stipulations. 5. Nomination and Remuneration Committee (NRC)
Details about the meetings of all Committees are detailed 6. Corporate Social Responsibility Committee (CSR)
in this report. 7. Stakeholders Relationship cum Allotment Committee
(SR&AC)
Annual Report 2022-23 39

The organisation structure is illustrated below:

Annual Report 2022-23 40

The role and composition of various Committees, approves transactions with related parties, and notes/
including the number of meetings held during the year ratifies the statement of related party transactions which
and the related attendance of the Committee Members at were carried out pursuant to omnibus/specific approval
the said meetings are given below: provided by the Committee, oversees age-wise analysis
of the unclaimed amount of policyholders, progress on
Audit and Compliance Committee (ACC) the settlement of unclaimed amount and steps taken by
the Company to reduce the unclaimed amount, reviews
The Audit and Compliance Committee comprises six (6) the process and mechanism in place to comply with the
members – four Independent Directors and one Non- provisions of applicable laws. The Committee recommends
Executive Director each representing HDFC and ERGO. to the Board the appointment or re-appointment of the
The Chairman of the Committee is an Independent Statutory Auditors, Internal Auditors, Secretarial Auditors,
Director and a qualified Chartered Accountant. The Concurrent Auditors, Auditors for audit of remuneration
composition of the Committee is in conformity with the paid to Motor Insurance Service Providers, Investment
provisions of Section 177 of the Act, Regulation 18 of the Risk Management Auditors and their remuneration. The
LODR Regulations and the Guidelines. Committee and Statutory Auditors discuss the nature and
scope of the audit prior to the commencement of the
All the Committee Members possess adequate audit and areas of concern, if any, arising post audit. The
qualifications to fulfill their duties as stipulated under the Committee approves the payment to Statutory Auditors
Act and the Guidelines. for other services rendered by the Statutory Auditors. The
Committee oversees the internal financial control and risk
The Members of the Senior Management and Auditors management systems of the Company and ensures that
are invited to participate in the meetings of the Committee adequate procedures and processes have been setup to
as and when necessary. The Committee invites Senior address all concerns relating to the adequacy of checks
Executives as it considers their presence to be appropriate and control mechanisms. All the Independent Directors
at its meetings. The Chairman of the Committee briefs who are Members of the Committee separately meet
the Board of Directors about significant discussions and the Statutory Auditors prior to the approval of the annual
decisions made during the meeting. audited financial statements.

The Committee inter alia oversees the quarterly and During the year, the credit rating agencies which rate
annual financial statements before submission to the the Company’s debt instruments, met the Committee on
Board and financial reporting process. The Committee also December 16, 2022, to inter alia discuss matters relating
reviews matters to be included in Directors Responsibility to related party transactions, liquidity, capital/solvency
Statement, changes in accounting policies, if any, and risk control measures, internal financial controls and
compliance with listing and other legal requirements, the economic capital requirement of the Company.
related party transaction and the audit report.
During FY 2022-23, the ACC met six (6) times on April 25,
The Committee reviews the internal audit function, 2022, June 17, 2022, July 21, 2022, October 20, 2022,
compliance function and the work of the Statutory December 13, 2022 and January 25, 2023.
Auditors. It also reviews the reports of the Internal
Auditors and Statutory Auditors along with the comments The Committee also met on April 27, 2023 wherein it
and action taken reports of the Management. The recommended the audited Financial Statements for the
Committee provides appropriate directions to the year ended March 31, 2023 to the Board for approval.
Management in areas that need to be strengthened. It
Annual Report 2022-23 41

The composition of the ACC and attendance of the Committee Members at the meetings held during FY 2022-23 are
listed below:

Name of Nature of Designation in Meeting dated

Director Directorship Committee
April 25, June 17, July 21, October 20, December 13, January 25,
2022 2022 2022 2022 2022 2023

Mehernosh B. Independent Chairman ✓ ✓ ✓ ✓ ✓ ✓

Kapadia Director
Bernhard Independent Member ✓ ✓ ✓ ✓ ✓ ✓
Steinruecke Director
Arvind Mahajan Independent Member ✓ ✓ ✓ ✓ ✓ ✓
Director
Ameet P. Hariani Independent Member ✓ ✓ ✓ ✓ ✓ ✓
Director
Keki M. Mistry Non-Executive Member ✓ ✓ ✓ ✓ ✓ ✓
Director
Dr. Oliver Martin Non-Executive Member ✓ ✓ ✓ ✓ ✓ ✓
Willmes Director
‘✓’ indicates meeting attended & ‘x’ indicates meeting not attended

Investment Committee (IC) reviews the ALM and the investment strategies adopted
from time to time and gives suitable directions as needed.
The Investment Committee comprises eight (8) members – The Committee at its quarterly meetings inter alia
one Non-Executive Director each representing HDFC and reviews the report of the concurrent auditors on the
ERGO, one Independent Director, the Managing Director audit of investment transactions and related systems, the
and CEO, the Executive Director and Chief Financial investments made by the Company during the quarter,
Officer, the Appointed Actuary, the Chief Investment ALM position and the investment strategy for the period
Officer and the Chief Risk Officer. The composition of ahead and provides advice and suggestions.
the Committee is in conformity with the provisions of the
IRDAI (Investment) Regulations, 2016, as amended from All the Committee Members are fully conversant with
time to time. various responsibilities cast on them by the IRDAI
(Investment) Regulations, 2016, as amended from time to
The Committee reviews the Investment Policy of the time. The Committee regularly apprises the Board on the
Company, its implementation and the operational performance and analysis of the Company’s investment
framework for investment operations, ensuring liquidity for portfolio and strategy.
smooth operations, compliance with prudential regulatory
norms on investments and risk management / mitigation During FY 2022-23, the IC met five (5) times on April 25,
strategies to ensure adequate return on investment of 2022, July 6, 2022, July 21, 2022, October 20, 2022 and
Policyholder and Shareholder funds. The Committee also January 25, 2023. The IC also met on April 27, 2023.
Annual Report 2022-23 42

The composition of the IC and attendance of the Committee Members at the meetings held during the year are listed
below:

Name of Nature of Designation in Meeting dated

Director Directorship Committee
April 25, July 6, July 21, October 20, January 25,
2022 2022 2022 2022 2023

Keki M. Mistry Non-Executive Chairman ✓ ✓ ✓ ✓ ✓

Director
Dr. Clemens Non-Executive Member ✓ ✓ ✓ ✓ ✓
Matthias Muth Director
Arvind Mahajan Independent Member ✓ ✓ ✓ ✓ ✓
Director
Ritesh Kumar Managing Director Member ✓ ✓ ✓ ✓ ✓
& CEO
Samir H. Shah Executive Director Member ✓ ✓ ✓ ✓ ✓
& CFO
Hiten B. Kothari Appointed Actuary Member ✓ ✓ ✓ ✓ ✓
Sanjay Chief Investment Member ✓ ✓ ✓ ✓ ✓
Kulshrestha Officer
Sanjay Mishra* Chief Risk Officer Member ✓ - - - -
Chirag Sheth* Chief Risk Officer Member - ✓ ✓ ✓ ✓
* inducted as Member of the Committee, in place of Sanjay Mishra w.e.f. June 20, 2022
‘✓’ indicates meeting attended & ‘x’ indicates meeting not attended

Risk Management Committee (RMC) of risk exposure and laying down risk tolerance limits and
thereby assisting the Board in effective monitoring of the
The Risk Management Committee comprises ten (10) Risk Management Framework (RMF). The RMC advises
members – five Independent Directors, two Non-Executive the Board with regard to risk management in relation to
Directors representing HDFC, one Non-Executive Director strategic and operational matters. The RMC also reviews
representing ERGO, the Managing Director and CEO and the ALM and the solvency position on a regular basis. The
the Executive Director and Chief Financial Officer. The Committee would also review appointment, removal and
Chairman of the Committee is an Independent Director. terms of remuneration of the Chief Risk Officer (CRO).

The Chief Risk Officer is a permanent invitee to the In accordance with the framework, the RMC provides an
meetings of the Committee and has attended all the assurance that risk exposures are adequately controlled
meetings of the Committee. and identified gaps are effectively taken care of by
implementing appropriate risk minimisation measures.
The terms of reference of the Committee inter alia include
overseeing the Company’s risk management policy During FY 2022-23, the RMC met four (4) times on April
and practices, reviewing various key risks and frauds 25, 2022, July 21, 2022, October 20, 2022 and January
associated with the business of the Company, evaluation 25, 2023. The RMC also met on April 27, 2023.
Annual Report 2022-23 43

The composition of the RMC and attendance of the Committee Members at the meetings held during FY 2022-23 are
listed below:

Name of Nature of Designation in Meeting dated

Director Directorship Committee
April 25, July 21, October 20, January 25,
2022 2022 2022 2023

Bernhard Steinruecke Independent Director Chairman ✓ ✓ ✓ ✓

Mehernosh B. Kapadia Independent Director Member ✓ ✓ ✓ ✓
Ameet P. Hariani Independent Director Member ✓ ✓ ✓ ✓
Sanjib Chaudhuri* Independent Director Member NA ✓ ✓ ✓
Dr. Rajgopal Thirumalai* Independent Director Member NA ✓ ✓ ✓
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 ✓ ✓ ✓ ✓
* inducted as Member of the Committee w.e.f. April 25, 2022.
‘✓’ indicates meeting attended & ‘x’ indicates meeting not attended

The Company has a Sub-Committee of the RMC (SC- The Committee also reviews (i) the awards given by
RMC) comprising senior executives including the Insurance Ombudsman/Consumer Forums and the
Managing Director and CEO and Executive Directors. root cause of customer complaints (ii) the claims report
The SC-RMC inter alia discusses the Company’s RMF including the status of outstanding claims with ageing and
and its effectiveness, monitors key areas of existing repudiated claims with an analysis of the reasons thereof.
and emerging risks and assists the RMC in fulfilling its
objectives of managing various risks associated with the The Policy on Protection of Interests of Policyholders
business of the Company. (PPHI Policy) is available on the website (www.hdfcergo.
com). The key objective of the Policy is to provide a
mechanism to redress the grievance and complaints
Policyholder Protection and Grievance of the Policyholders in a time-bound manner and to
Redressal Committee (PPGRC) their satisfaction in accordance with the applicable
laws. A designated email id viz. grievance@hdfcergo.
The Policyholder Protection and Grievance Redressal com is provided to enable Policyholders to submit their
Committee comprises nine (9) members –four grievance/ complaint and its speedy redressal.
Independent Directors, two Non-Executive Directors
representing HDFC, one Non-Executive Director The Committee regularly submits its report to the Board
representing ERGO, and two Executive Directors. The inter alia with regard to complaints/ grievances received
Chairman of the Committee is an Independent Director. and resolved, mechanism in place/ process being
followed for resolution of the complaints/ grievances and
The Committee reviews the processes followed in its observations on the efficacy of the existing mechanism.
redressal of Policyholder grievances and the grievance The report also contains the status of outstanding claims
redressal mechanism of the Company and suggests with ageing and repudiated claims with an analysis of the
mechanism for the speedy redressal of complaints/ reasons thereof.
grievances from Policyholders. The Committee also
reviews the steps taken by the Company to reduce During FY 2022-23, the PPGRC met four (4) times on April
unclaimed amount due to the Policyholders. 25, 2022, July 21, 2022, October 20, 2022 and January
25, 2023. The PPGRC also met on April 27, 2023.
Annual Report 2022-23 44

The composition of the PPGRC and the attendance of the Committee Members at the meetings held during the year
are listed below:

Name of Nature of Designation in Meeting dated

Director Directorship Committee
April 25, July 21, October 20, January 25,
2022 2022 2022 2023

Arvind Mahajan Independent Director Chairman ✓ ✓ ✓ ✓

Keki M. Mistry Non-Executive Director Member ✓ ✓ ✓ ✓
Renu Sud Karnad Non-Executive Director Member ✓ ✓ ✓ ✓
Dr. Clemens Matthias Non-Executive Director Member ✓ ✓ ✓ ✓
Muth
Ameet P. Hariani Independent Director Member ✓ ✓ ✓ ✓
Sanjib Chaudhuri* Independent Director Member NA ✓ ✓ ✓
Vinay Sanghi* Independent Director Member NA ✓ ✓ ✓
Anuj Tyagi Deputy Managing Director Member ✓ ✓ ✓ ✓
Samir H. Shah Executive Director & CFO Member ✓ ✓ ✓ ✓
* inducted as Member of the Committee w.e.f. April 25, 2022.
‘✓’ indicates meeting attended & ‘x’ indicates meeting not attended

In terms of the Guidelines stipulated by IRDAI, Ravi Vaidee appointment or re-appointment of the existing directors
has been appointed as the customer representative / to the Board, ensuring that such persons meet the
expert to the PPGRC. relevant criteria as prescribed under the applicable laws
including qualification, area of expertise and experience,
Nomination and Remuneration Committee track record and integrity.
(NRC)
The terms of reference of the Committee also includes
The Nomination and Remuneration Committee comprises consideration and determination of the salary and other
six (6) members – four Independent Directors, one Non- terms of the compensation package for the Whole-
Executive Director each representing HDFC and ERGO. time Directors, recommend to the Board the annual
The Chairman of the Committee is an Independent compensation of the Whole-time Directors, subject
Director. to approval of IRDAI, recommends to the Board the
remuneration payable to the Key Managerial Personnel,
The terms of reference of the Committee inter alia Senior Management Personnel and approve overall
include formulation of the criteria for determining salary increase across the organisation, administration
qualifications, positive attributes and independence of a of the Employee Stock Option Plan (ESOP), recommend
director and recommend to the Board a policy relating grant of stock options to eligible employees, fixing of
to the appointment and remuneration of the directors, criteria inter alia for evaluation of the performance of
key managerial personnel, senior management and individual Directors, the Board as a whole and the Board
other employees of the Company as well as a policy on Committees.
board diversity. The Committee determines the criteria
for evaluation of performance of the Board and its During the year, the NRC met two (2) times on April 25,
Committees and of individual Directors.The Committee’s 2022 and January 25, 2023. The NRC also met on April
function includes identifying persons who are qualified to 27, 2023.
become directors of the Company, recommending their
Annual Report 2022-23 45

The composition of the NRC and the attendance of the Committee Members at the meetings held during the year are
listed below:

Name of Nature of Designation in Meeting dated

Director Directorship Committee
April 25, 2022 January 25, 2023

Mehernosh B. Kapadia Independent Director Chairman ✓ ✓

Bernhard Steinruecke Independent Director Member ✓ ✓
Arvind Mahajan Independent Director Member ✓ ✓
Ameet P. Hariani* Independent Director Member NA NA
Keki M. Mistry** Non-Executive Director Member ✓ ✓
Renu Sud Karnad Non-Executive Director Member ✓ ✓
Dr. Clemens Matthias Muth Non-Executive Director Member ✓ ✓
* w.e.f. January 25, 2023; **upto January 25, 2023
‘✓’ indicates meeting attended & ‘x’ indicates meeting not attended

Corporate Social Responsibility Committee (CSR)

The CSR Committee comprises seven (7) members – four Director. During FY 2022-23, the Committee met four (4)
Independent Directors, one Non-Executive Director each times on April 25, 2022, July 21, 2022, October 20, 2022
representing HDFC and ERGO and one Executive Director. and January 25, 2023.The CSR Committee also met on
The Chairman of the Committee is an Independent April 27, 2023.

The composition of the CSR Committee and the attendance of the Committee Members at the meetings held during
the year are listed below:

Name of Nature of Designation in Meeting dated

Director Directorship Committee
April 25, July 21, October 20, January 25,
2022 2022 2022 2023

Ameet P. Hariani Independent Director Chairman ✓ ✓ ✓ ✓

Mehernosh B. Kapadia Independent Director Member ✓ ✓ ✓ ✓
Vinay Sanghi* Independent Director Member NA ✓ ✓ ✓
Dr. Rajgopal Thirumalai* Independent Director Member NA ✓ ✓ ✓
Renu Sud Karnad Non-Executive Director Member ✓ ✓ ✓ ✓
Dr. Oliver Martin Willmes Non-Executive Director Member ✓ ✓ ✓ ✓
Anuj Tyagi Deputy Managing Director Member ✓ ✓ ✓ ✓
* inducted as Members of the Committee w.e.f. April 25, 2022
‘✓’ indicates meeting attended & ‘x’ indicates meeting not attended
Annual Report 2022-23 46

The CSR Policy of the Company inter alia specifies the holders, adherence to the service standards adopted
key focus areas for CSR activities/ projects that could be in respect of various services being rendered by the
undertaken by the Company, formulation of the Annual Registrar & Share Transfer Agent, reviewing various
Action Plan, approach and process for undertaking measures and initiative taken for reducing the quantum
CSR projects and the monitoring mechanism. The CSR of unclaimed dividends, as and when arises and ensuring
Policy is available on the website of the Company (www. timely receipt of dividend warrants/ annual reports/
hdfcergo.com). The Annual Report on CSR activities, as statutory notices by the shareholders of the Company
prescribed under Section 135 of the Act read with Rule 9 and consideration and approval of allotment of shares
of the Companies (Accounts) Rules, 2014 and Rule 8 of the and other securities.
Companies (Corporate Social Responsibility Policy) Rules,
2019, as amended is appended to the Board’s Report. Meeting of Independent Directors
The Company has a sub-committee of the CSR Committee
(SC-CSR) comprising the Senior Management team In terms of Section 149(8) read with Schedule IV and
including Executive Directors. Regulation 25(3) of LODR Regulations, the Independent
Directors met on March 29, 2023 to evaluate the
The SC-CSR evaluates and identifies CSR projects and performance of the Whole-time Directors, Non-
includes the same in the Annual Action Plan and assists Independent Directors, Chairman, Board Committees and
the CSR Committee / Board of Directors in fulfilling the the Board as a whole and to assess the quality, quantity
Company’s CSR obligations and ensures timely execution and timeliness of the flow of information between the
and implementation of CSR projects and monitoring Company’s Management and the Board.
thereof.

Stakeholders Relationship cum Allotment REMUNERATION

Committee of Directors (SR&AC) Non-Executive Directors
In accordance with the Regulation 20 of Chapter IV
of LODR Regulations, the Company has constituted a The remuneration of Non-Executive Directors (other
Stakeholders Relationship Committee, to specifically look than Independent Directors) consists of sitting fees and
into various aspects of interest of shareholders, debenture the Independent Directors are paid sitting fees and
holders and other security holders, comprising minimum commission. The commission payable to Independent
three Directors with at least one Independent Director. (Non-executive) directors is within the overall limits as
approved by the shareholders.
Considering the roles and responsibilities of the
Stakeholders Relationship Committee similar to the The Non-Executive Directors are covered under Group
Allotment Committee, the Board of Directors at its meeting Medical Insurance Policy, the premium for such Non-
held on January 25, 2023 renamed Allotment Committee Executive Directors, other than Independent Directors, is
of Directors as Stakeholders Relationship cum Allotment borne by the Company.
Committee of Directors (SR&AC) comprising the following
members: The Independent Directors and the Non-Executive
Directors representing HDFC are paid sitting fees of
Members Position
` 1,00,000 each for attending Board and Committee
Meetings. Also, each Independent Director is paid a
Mehernosh B. Kapadia Independent Director
commission of ` 10,00,000 per annum.
Keki M. Mistry Non-Executive Director
Renu Sud Karnad Non-Executive Director Executive Directors
Dr. Clemens Matthias Muth Non-Executive Director
The details of elements of remuneration paid to Managing
Ritesh Kumar Managing Director and CEO
Director & Chief Executive Officer and other Directors
and Key Management Persons are disclosed under
The terms of reference of the SR&AC inter alia includes ‘Managerial Remuneration’ section of Schedule 16 - Notes
resolving grievances of the shareholders and debenture to Accounts forming part of the financial statements.
Annual Report 2022-23 47

The remuneration details of Whole-Time Directors as Non-Executive Directors and Managing Director/ Chief
mandated under IRDAI Guidelines on Remuneration of Executive Officer/ Whole-Time Director of Insurers dated
August 5, 2016 is disclosed in the Directors report.

Details of the remuneration paid and stock options granted to the Whole-Time Directors and KMPs during FY23 are
as under:
(Amount in `)
Particulars Name of MD/ WTD/ Manager
Ritesh Kumar Anuj Tyagi Samir H. Shah Dayanand Shetty Vyoma Manek
(Managing Director (Deputy Managing (Executive Director (Company (Company Secretary & Chief
and CEO) Director) and CFO) Secretary)* Compliance Officer)*

Salary 5,69,42,368 2,16,28,108 1,72,49,980 68,08,261 48,20,012

Perquisites & bonus 4,03,35,932 1,60,87,937 1,30,81,753 25,97,393 17,56,296

Total 9,72,78,300 3,77,16,045 3,03,31,733 94,05,654 65,76,308

*The remuneration for FY23 for Dayananda V. Shetty who served till January 31, 2023 and Vyoma Manek who served from February 1, 2023.

Further, the consolidated fixed remuneration of all the In terms of the Policy, any person including employees,
KMPs, for FY2022-23, defined under the CG Guidelines, customers and vendors may report malpractice, actual
except the Whole-time Directors, is as under: or suspected fraud, violations of the Company’s Code of
(Amount in `)
Conduct, abuse of power or authority by any official of the
Company or any other Act with an intention of unethical
Particulars KMPs
personal gain or cause damage to the Company or its
Salary, Perquisites & bonus 17,67,50,108 employees to the Whistleblower Complaints Committee
Contribution to Provident Fund 42,19,246 (WBCC) constituted for the purpose. The Policy provides
Total 18,09,69,352 for maintaining the confidentiality of such reporting and
ensures that the Whistleblowers are protected and not
subjected to any discriminatory practices.
RELATED PARTY TRANSACTIONS
In terms of the Policy, whistle blowing complaint can be
The Policy on related party transactions of the Company is sent directly to the Chairman of the Audit and Compliance
available on the Company’s website-www.hdfcergo.com. Committee of Directors. During the year, no person was
denied access to the Committee for expressing concerns
Except to the extent of insurance policies taken in or reporting grievances under the Policy.
the ordinary course of business, the sitting fees and
commission paid as mentioned hereinabove, the Non- During the year, four intimations were received at the
Executive Directors (including Independent Directors) do whistleblower email ID, mainly business-related – increase
not have any pecuniary relationships or transactions with in premium, wrong claims by the advisor and HR related –
the Company. violation of Code of Conduct.

Details of related party transactions entered into by CODE OF CONDUCT

the Company during the year are covered under Notes
forming part of the financial statements. The Company’s Code of Conduct is applicable to all
employees and Directors. All the members of the Board
and Senior Management Personnel have confirmed
WHISTLEBLOWER POLICY adherence to the provisions of the said Code of Conduct.
The Company promotes ethical behaviour in all its
dealings, business or otherwise and has put in place SECURITIES DEALING CODE
a Whistleblower Policy (Policy) for reporting of any
unethical or improper activity. The Policy is available As required under the provisions of Regulation 13(B)(2) of
on the website of the Company- www.hdfcergo.com. IRDAI (Investment) Regulations, 2016 and the Securities
Annual Report 2022-23 48

and Exchange Board of India (Prohibition of Insider of the Company without obtaining prior approval of the
Trading) Regulations, 2015, as amended, the Company Compliance Officer.
has framed HDFC ERGO Securities Dealing Code for
prevention of Insider Trading in the securities of investee DETAILS OF CLAIMS
companies and NCDs of the Company.
The details of all claims incurred, paid, outstanding at the
The Directors, Key Management Persons, Designated end of the year have been disclosed under Annexure
Employees, other identified employees and their 4 to Schedule 16-Notes to Accounts and Annexure 1 to
immediate relatives are required to comply with various the Management Report forming part of the financial
provisions of the Code, to the extent applicable. These statements.
identified persons are prohibited from trading in the
securities of the investee companies whilst in possession On behalf of the Board of Directors
of any unpublished price sensitive information of such
investee companies and prohibited from trading in NCDs KEKI M. MISTRY
Mumbai Chairman
April 27, 2023 (DIN: 00008886)

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 Officer 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.

Mumbai VYOMA MANEK

April 27, 2023 Company Secretary and Chief
Compliance Officer
ACS:20384
Annual Report 2022-23 49

MANAGEMENT DISCUSSION
AND ANALYSIS REPORT

THE MACRO-ECONOMIC ENVIRONMENT This year, the Union Budget aims to further strengthen
India’s economy. FY 2023-24 Union Budget focuses on
As the world is trying to come out of the impact of three key themes that include:
COVID-19, global growth continues to slow down sharply • Promoting growth and ensuring inclusive welfare,
owing to high inflation, elevated interest rates and • Driving technology-enabled development, energy
reduced investments on account of dampened business transition and climate action,
sentiments. The surge in inflation has led to a swift and
• Establishing a virtuous cycle initiated by private
simultaneous tightening of monetary policy across the
investment and reinforced by public capital
world. The situation has been aggravated by the geo-
investment.
political situation in Europe.
In its February 2023 meeting, the Monetary Policy
According to The World Bank, global growth is expected
Committee (MPC) pegged real gross domestic product
to decline to 1.7% in 2023 — the lowest rate in almost 30
(GDP) growth for FY 2023-24 at 6.5%. With these
years, except for the global downturns triggered by the
growth projections, India would be among the fastest-
pandemic in 2020 and the financial crisis in 2008.
growing major economies in the world. Overall, the
macroeconomic outlook for India is cautiously optimistic,
Risks to this outlook lean to the downside. Global inflation
with growth prospects supported by policy measures
could remain high or increase further due to new supply
and public consumption but subject to global economic
shocks. Furthermore, The World Bank estimates that the
conditions.
investment growth in 2022-24 for emerging markets
and developing economies will be 3.5% per year, half
the average annual growth rate during 2000-21. This is THE GENERAL INSURANCE INDUSTRY
expected to have a lasting impact on the output growth
of these markets. A. Regulatory developments
On the domestic front, despite the slowdown caused by Despite the strong growth of the Indian General Insurance
the pandemic, the Indian economy is poised to bounce industry over the last two decades, the insurance
back to its pre-pandemic growth trajectory in FY 2022-23. penetration continues to be low. With an aim to improve
It is expected to grow at 7% in FY 2022-23 as compared to the insurance penetration, the Insurance Regulatory and
8.7% in FY 2021-22 as per the First Advance Estimates of Development Authority of India (IRDAI) announced the
National Income for FY 2022-23 released by the National multi-decadal vision of “Insurance for All by 2047”, i.e.
Statistical Office (NSO). This positive growth projection by the 100th year of Indian independence, every citizen
arises from various factors, including the upsurge in and every enterprise should have appropriate insurance
production activity spurred by the recovery of private coverage.
spending and increased capital expenditure. In the first
eight months of FY 2022-23, the capital expenditure of The IRDAI, based on discussions with various industry
the central government rose by 63%. stakeholders, announced various regulatory reforms to
support the industry’s journey towards achieving this
Thanks to the near-universal vaccine coverage, people vision. The prominent changes included a transition to
are now able to spend money on contact-based services, Ind AS regime, making ‘Know Your Customer’ mandatory,
including dining establishments, lodging, retail outlets and improving ‘Ease of Doing Business’ for insurers,
movie theatres. The housing market inventory has also announcing a single Expense of Management limit, easing
significantly decreased as a result of migrant labourers the norms for entry of new insurers and introduction of
returning to cities to work on construction sites.
Annual Report 2022-23 50

‘State Insurance Plan’ to improve insurance awareness

across all states of the country. Industry Premium
(₹ in crore)
These reforms are expected to strengthen the insurance +16%
industry and augment sustainable growth in the medium +11% 256,912
to long term.
220,700 10% 26%
198,715 9%
B. Business performance SAHI 8%
51% 20%
The general insurance industry grew by 16% in FY 2022- 50%
23, led by Accident and Health (A&H) business. The Private 49%
momentum in A&H business continued in FY 2022-23
leading to 21% growth. The motor segment registered a
growth of 16%. Excluding the crop segment, the industry 38% 10%
Public 43% 41%
witnessed 18% growth on a year-on-year (Y-o-Y) basis.
Growth

FY21 FY22 FY23

Industry - Product-Wise Premium
(₹ in crore) Source: IRDAI & GI Council

+16%
+11%
256,912
C. Company performance
220,700 12% 1. Competitive strength
198,715 9%
13%
18% 1.1. One of the fastest-growing companies
Crop 16% 14%
18%
Commercial 18% The Company has been one of the fastest-growing
38%
general insurance company with a 3-year compound
36% 21% annual growth rate (CAGR) of 20% vis-à-vis an industry
A&H 32%
growth rate of 10% over the same period. The Company is
the second largest private general insurer with an overall
32% 16% market share of 6.5% and a private sector share of 10.5%,
Motor 34% 32%
Growth
ascertained based on gross direct premium.

FY21 FY22 FY23 1.2. Large agency force

The Company has a large agency channel with ~85,000

Source: IRDAI & GI Council
multi-line agents and ~99,000 health-only agents totalling
to ~1.8 lakh agents including the Point of Sales Personnel
(POSPs).
During FY 2022-23, private sector insurers grew by 20%,
while standalone health insurers grew by 26% and public 1.3. Increased presence in districts
sector insurers (including the specialised insurers) grew
by 10%. Private sector insurers grew faster than public The Company follows a multi-geography, multi-product
sector insurers across all segments. and multi-channel distribution strategy. As of March 31,
2023, the Company has a strong network of 215 branches
In the A&H segment, private and standalone sector and 423 digital offices spread across ~490 districts.
insurers grew faster in retail health, personal accident &
group health while public sector insurers grew faster in The Company’s geographical and channel expansion
government schemes. strategy is focused on increasing insurance penetration
in tier-3 cities and beyond. The Digital Office (DO) has
Private sector general insurance companies continue to helped increase the Company’s presence in upcountry
have ~51% share of the industry due to the muted growth locations and now contributes 4.8% of the Company’s
rate of the public sector companies. retail business.
Annual Report 2022-23 51

1.4. Retail health insurance focus and Chat bot Dia have matured in Natural Language
Processing (NLP) to accurately and intelligently engage
In FY 2022-23, the Company was one of the leading with customers. The Company has been able to develop
retail health insurers in the industry. The Company’s retail a hybrid environment, where man and machine coexist
health premium was ₹ 3,440 crore with a market share and work seamlessly to provide a truly digital customer
of 9.7%. The Company has an extensive network of over experience.
9,900 empanelled hospitals and diagnostic centres
spread across 570 districts of India. The Company’s Chat services over WhatsApp are increasingly becoming
flagship products – Optima Secure and Optima Restore – a preferred channel of servicing across all customer
continue to drive the retail health portfolio. segments and geographies. The Company’s WhatsApp
chatbot MyRA caters to servicing the customers, the Aqua
1.5. Large, seamless and integrated digital business chatbot supports our channel partners and the chatbot
Pihu is dedicated to serving farmers. In FY23, 11.4 lakh+
The Company continuously endeavours to digitally customer queries were addressed through WhatsApp,
connect its customers and distributors. There has been marking a 33% increase over the previous year.
a consistent improvement in digital business contribution
to the Company’s retail Gross Written Premium (GWP) and The Company has launched its signature program ‘ReD
currently, it contributes to ~13% of the retail business. Circle’ for its premium customers – a program that provides
a first of its kind ‘Dedicated Virtual Relationship Manager’
With its strides in digital optimisation and marketing, the (VRM). The dedicated VRM is empowered to service the
Company has launched unique propositions and enabled customers through the policy lifecycle and focuses on
enhanced customer experiences. Additionally, the experience-building and customer delight. The All-Women
Company has been able to scale up its aggregator and team at ‘ReD Circle’ is already creating value in terms of
affinity business with the help of integration capabilities, higher satisfaction, personalized one-to-one connection
seamless customer journeys, wide product offerings and and higher brand affinity.
contextual personalised propositions for affinity partners.
1.6.2. Unbroken end-to-end journeys
1.6. The digital transformation leap
With advanced analytics within underwriting, claims and
In line with the changing Technology landscape the servicing, the Company’s processes are transforming
Company has strategized to invest in areas like Products, from ‘automated’ to ‘autonomous’, thereby improving
Digital Channels, Ecosystems and Partnerships, Core customer experience, operational efficiencies and
Tech modernization, Analytics and AI and Human Capital information security.
enhancement.
The Company has embarked on a critical application-
The four key pillars of this transformation journey are: based cloud migration strategy to optimise usage. A multi-
• Customer first cloud strategy has also been adopted for diversification.
• Unbroken end-to-end journeys
• Talent management The Company has developed ‘Pehchaan’ – an in-house
• Being future ready digital solution for due diligence and KYC of customers to
meet the requirements of the IRDAI AML/CFT Guidelines
1.6.1. Customer first 2022. Since its inception, over nine lakh KYC requests
have been approved and 90% of those were verified
The Company continues to explore new-age technologies instantly.
like speech recognition, robotics, natural language
processing and generation. Multilingual support across The key features of ‘Pehchaan’ include
digital platforms is in place to service the customers in • Tech stack on KYC and customer due diligence built
their preferred language. The Company can service in-house
~85% of the request types digitally. In FY23, the company • A web and mobile-based platform
serviced 66% of policy servicing requests digitally. One- • Cloud native built to scale
third of these requests were serviced purely through AI • Single solution to cater to multiple product journeys,
platforms. channels and business models

The Company’s AI-based applications like Email bot eRA The Company has also undertaken other initiatives, such
Annual Report 2022-23 52

as Automated Rule based Underwriting, Data Lake and 1.7. Engaged, happy and skill-ready organisation
Nudge Factory to induce orbit-shifting changes in its tech
landscape. To further sharpen the skillset of the workforce, the
Company has been continuously engaged in delivering
1.6.3. Talent management capability-building programmes for its employees. This
has inculcated a coaching culture within the organisation,
The Company has implemented a new-age, AI-based,
cutting across various geographies and levels.
mobile-first HR system. With an integrated digital platform
containing all HR services in one place, it offers an
The Company aims to be the home for Great People
end-to-end mobile-driven experience, automation and
Managers and the ground zero for building managerial
collaboration tools, powerful analytics and an AI-based
capabilities. The Company’s flagship manager capability
chatbot. This new HR system will serve to create a
development programme – Pivot+ – came into existence
workplace of the future.
with this vision. The company has partnered with Great
To enhance the competencies of its employees the Manager Institute® to build the Pivot+ programme.
Company has also implemented a hybrid learning and
An initiative at creating leaders of the future, WeLead
development system. It includes a learning management
is aimed at high-potential women employees in the
system (LMS) with structured learning journeys, over 3.5
Company to achieve holistic development as they aspire
lakh content and skill-based learning.
to move up their career ladder. The Women Leadership
1.6.4. Being future ready Development Program looks to groom future women
leaders by enhancing their confidence, credibility,
The Company has implemented systems to make itself capability and connections. WINspiration, another
future-ready. women-led talent programme, make the alumni of
WeLead mentors to high-performing women colleagues
• The Motor AI Claims system IDEAS (Intelligent in middle management.
Damage Estimation and Assessment Solution)
provides an end-to-end autonomous journey with a The Company established STEP – Support to Enhance
focus on Customer experience. AI-enabled IDEAS Performance, consisting of well-defined SMART goals,
has led to faster detection of external damage to coaching interventions and robust feedback mechanisms.
automobiles and provides a complete assessment The programme is a key enabler for employees to re-
with the estimation of repair/replacement of parts establish themselves into the mainstream through the
thus resulting in faster claim processing. performance improvement plan.
• ~97% of the decisions through AI-powered digital
pre-inspections are STP. Over one lakh motor claims The Company has also been working towards nurturing
have been processed through the AI model in FY23 an equitable environment. Project Shakti is the Company’s
with turnaround time being reduced from a couple of gender diversity pillar. As part of Project Shakti, the
hours to around five minutes. Company aims to improve its gender diversity over the
• The Company has deployed tools using AI-based next few years. The Company currently stands at an
predictive modelling and analytical engines to flag encouraging 23%, 4% higher than the previous year.
claims suspected to be fraudulent.
• The Company has created Kompass – a digital Project Purple is about the diversity of abilities. With
advisory tool to identify customer insurance Project Purple, the Company hopes to create a more
protection gaps and recommend suitable need-based sensitive, equitable and inclusive workplace that provides
projects, and Vault – an industry-first digital customer opportunities for growth without restrictions.
engagement and rewards programme under the
regulatory sandbox. The Company also holds wellness and health as one of its
• The Company has a strategic partnership with IIT top priorities. Company sponsored annual health check-
Bombay (IITB) which has consistently been ranked ups, financial well-being sessions, yoga and fitness contests
the 1st engineering college in India and 49th globally, are some of the initiatives launched during the year.
among science and technology institutes, as per QS
1.8. Strong brand presence
World University Ranking. The partnership will set up
innovation labs and incubators with IIT graduates and The ‘HDFC ERGO’ brand focuses on generating
professors to support high-impact projects, jointly conversations, connecting with customers and building
owned by HDFC ERGO and IITB. relationships. One of the most formidable channels
Annual Report 2022-23 53

for brand conversations is our strong social media 24, 2023 in Mumbai. This event was envisaged to be a
presence. Brand HDFC ERGO has an active and engaged momentous occasion as the Workplace Wellness IndexTM
community of close to a million followers across social was formally launched.
media platforms.
Inspiring stories of India’s first batch of women motor
The Brand has active and engaged communities comprising claims surveyors: The Company believes in diversity,
7,98,000+ followers on Facebook, 1,53,000+ on LinkedIn, equity and inclusion (DEI) not just for its employees but
18,700+ on Instagram and 12,100+ on Twitter. The Brand for everyone in general. To further its belief, HDFC ERGO
has an average engagement rate of 12% on Facebook and launched a campaign to encourage women to pursue
Twitter, 8% on Instagram and 7.58% on LinkedIn. their dreams and careers of their choice with passion.
The campaign film featured seven in-house women motor
The Company has drawn media eyeballs on several claims surveyors, who narrated their inspiring stories of
occasions and has garnered positive coverage from time becoming one of the first women motor claims surveyors
to time on its initiatives. It ranks 4th in Share of Voice (SOV) in the country.
among General Insurance companies in India.
2. Business overview
20 years of serving India: The Company celebrated
its 20th business anniversary with a campaign that was The Company issued 122 lakh policies (NOP) resulting in
themed ‘20 Years of Serving India’. Under this campaign, a Gross Written Premium (GWP) of ₹ 16,873 crore in FY
the Company launched its corporate brand film that 2022-23, with a market share of 6.5%, based on GDP. This
highlighted the Company’s growth in the past 14 years. resulted in a Y-o-Y growth rate of 23% on a GWP base, which
translates to a CAGR of 20% over the last three years.
Making India future-ready with HDFC ERGO Insurance
Quiz: The year 2022 saw one of the largest editions of
Company Premium and
the HDFC ERGO Insurance Quiz yet. The brand expanded Policies issued
the quiz geographically and reached out to more than
1,100 schools and 2,200 students in over 110 cities across 122
102
the country. 86
16,873
13,707
Luxuries can wait, health insurance can’t: The Company 12,444
launched a two-month-long marketing campaign – ‘Pehle
Health Ki Baat’ – to raise awareness about the significance
of health insurance throughout India. Outdoor and social
media campaigns proved to be crucial in reaching tier-
FY21 FY22 FY23
2 and tier-3 locations, while radio and audio streaming
platform advertisements helped the brand in targeting GWP in ₹ Cr No of Policies in Lakhs
millennials and tier-1 locations.

Driving the change: The Company executed a themed In FY 2022-23, the Company achieved a profit after tax
campaign on social media, with the hashtag ‘When Ma of ` 653 crore as compared to the ₹ 500 crore in the
Drives Life Thrives’. It was based on the insight that driving previous year, representing a growth of 31%.
is not just an activity but an expression of freedom that
instils confidence and independence in an individual. The Profit After Tax
campaign engaged millions of users and generated more (₹ in crore)
than 2.5 million views, 2,000 shares and 12,500 likes. 653
592
Making India a healthy place to work for all: The Company 500
entered into a strategic partnership with Great Place
To Work® India to drive the mission of ‘Making India a
Healthy Place to Work for All’. The Company truly believes
that there is a need and opportunity for leaders in India
to come together and strengthen the ecosystem that will
fuel this movement. To enable this, the Company and FY21 FY22 FY23
Great Place To Work® India curated an event on March
Annual Report 2022-23 54

3. Performance highlights 3.2. Claims settlement

3.1. Premium In FY 2022-23, 50.7 lakhs (PY: 38.9 lakh) claims were
reported to the Company with a rise of 30%. During FY
The Company’s GWP increased to ₹ 16,873 crore in FY
2022-23, the net claims incurred amounted to ₹ 6,423
2022-23 (PY: 13,707 crore) at a growth rate of 23% over the
crore (PY: ₹ 5,781 crore), an increase of 11% over last year.
previous year. The share of motor business contribution
increased to 28% from 26% in the previous year.
The Company has a fair and robust claims management
The Company continues to focus on agency channel. With practice. Following its core values, the Company has
been able to provide a prompt response and quick claim
~85,000 general insurance agents and ~99,000 health
insurance agents, the Company has one of the largest settlement to all the policyholders. During FY 2022-
agent networks in the industry. Likewise, the Company 23, the Company has paid ~5.3 lakh motor claims. The
also leverages its 127 bank and corporate agent partners Company has helped the insured manage their Motor
for distributing its products. Own Damage claims by providing claims servicing across
689 districts of the country. The faster settlement turn-
around-times (TAT) and higher settlement rate resulted in
Product wise Premium (₹ in crore) a Net Promoter Score (NPS) of 20 in FY23 for motor OD
+23% claims.

16,873 The Company maintained its focus on serving its A&H

+10% Gr%
customers. The Company has a network of over 9,960
13,707 20% 24% empanelled hospitals and diagnostic centres across
12,444 about 577 districts. The Company endeavours to provide
20% 18% 27% customers with the best claims experience in the industry.
Crop 21%
In line with this philosophy, the Company has embarked
18%
Commercial 18% on several initiatives to further streamline processes.
34% 16% During FY 2022-23, the Company has paid ~8 lakhs in
34% 37% A&H claims.
A&H

28% 31%
3.3. Claims reserving
Motor 27% 26%
The outstanding claims liability is measured as the central
FY21 FY22 FY23
estimate of the expected future ultimate payments relating
to claims incurred at the reporting date. The Company
In FY 2022-23, the Company’s retail business grew across establishes outstanding claims liability basis statistical
geographies through the agency and online channels. methods for all retail lines of business (Motor, Health, etc.)
Growth in motor business was driven by an uptick in and case-by-case estimates for other lines of business
primary sales. in-line with the Insurance Regulatory and Development
Authority of India (Assets, Liabilities and Solvency Margin
Channel wise Premium (₹ in crore) of General Insurance Business) (Amendment) Regulations,
2022. The ultimate claims liability is measured based on
Gr%
the advice of/ valuations performed by the Appointed
Agents 20% 20% 19% 18%
Actuary. The expected future payments include those
in relation to claims reported but not yet paid or not yet
Brokers 28% 30% paid in full, claims incurred but not enough reported
33% 37%
(IBNER), claims incurred but not reported (IBNR) and the
Corp. Agents 5% 5% anticipated direct and indirect claims handling costs.
5% 16%
Bancassurance 13% 11% 9% -1% Thus, the total of outstanding and IBNR/IBNER reserves
represents the overall liabilities of the Company. While
Direct 29% 30% 29% 21% estimating the future ultimate claims liability, no allowance
is made for discounting of reserves or negative provisions
Others 6% 4% 5% 30% for any particular year of occurrence in compliance with
FY21 FY22 FY23 IRDAI regulations. The ultimate liability is estimated using
established actuarial methods depending on the class
Annual Report 2022-23 55

of business and nature of claims. The ultimate claims claims handling procedures, inflation, minimum wages,
reserves are estimates involving actuarial projections at court decisions, legislative changes, customer behavior,
a given point of time, of what the Company expects the claims reporting delays, etc. The ultimate reserves also
ultimate settlement of claims will cost. consider the emerging claims experience.

The claims reserve for the motor third party liability During the current financial year, the COVID-19
portfolio comprises a significant proportion of the hospitalization claims witnessed a significant reduction
Company’s total liability. The claims for Motor Third Party as compared to the previous year. However, principles of
liability are characterized by a relatively long-time delay prudence have been followed by the Appointed Actuary
for reporting and settlement of claims. Thus, the ultimate while estimating the liability for the impact of COVID-19
claim liabilities are estimated basis available information pandemic across the line of business based on internal
at the valuation date and assumptions around future and external sources of information.
trends in claims severity and frequency, judicial rulings
and other factors. The Motor Vehicle (Fifth Amendment) The table below provides an overview of the development
Act, 2022 prescribes a 6-month limitation period for filing of the Company’s estimates of gross ultimate claim
third party claims from the occurrence of the accident. amounts and gross paid losses (including loss adjustment
Basis the historical trends, this can possibly reduce the expenses) in relation to a given accident year over
Company’s ultimate claims liability significantly. However, time. This estimate of losses and their corresponding
the Appointed Actuary has exercised principles of provision is increased or decreased as more information
prudence and no benefit has been allowed for while becomes known about the development of losses for
estimating the claims reserves for Third party claims. each individual accident years.
Further, the assumptions are influenced by the Company’s

Gross Incurred Losses and Allocated Expenses (Ultimate Movement) (` in crore)

As at March 31, AY 2012 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23
2023 & Prior

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

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
Two years later 2,040 1,050 2,293 2,535 2,998 4,660 5,225 6,981 7,588 8,075
Three years later 1,993 1,116 2,289 2,579 3,017 4,648 5,231 6,966 7,401
Four years later 2,030 1,080 2,316 2,578 3,014 4,656 5,237 6,883
Five years later 2,039 1,093 2,323 2,562 3,028 4,656 5,124
Six years later 2,040 1,098 2,327 2,566 3,007 4,669
Seven years later 2,049 1,094 2,334 2,567 3,005
Eight years later 2,055 1,106 2,335 2,575
Nine years later 2,061 1,108 2,339
Ten years later 2,059 1,108
Eleven years later 2,060
Annual Report 2022-23 56

Gross Paid Losses and Loss Adjustment Expenses (` in crore)

As at March 31, AY 2012 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23
2023 & Prior

End of First year 1,433 548 1,263 1,390 1,808 2,071 2,705 3,882 3,810 3,612 5,298 5,489

One year later 1,703 840 1,801 2,020 2,387 3,717 4,186 5,310 5,561 5,692 7,468
Two years later 1,798 903 1,928 2,186 2,573 4,136 4,364 5,903 5,857 6,136
Three years later 1,837 948 2,000 2,264 2,682 4,211 4,469 6,069 6,129
Four years later 1,875 973 2,043 2,327 2,749 4,271 4,551 6,216
Five years later 1,897 993 2,082 2,369 2,769 4,321 4,691
Six years later 1,918 1,005 2,110 2,386 2,799 4,377
Seven years later 1,935 1,042 2,125 2,413 2,838
Eight years later 1,952 1,047 2,141 2,445
Nine years later 1,958 1,055 2,163
Ten years later 1,964 1,060
Eleven years later 1,970

Gross Unpaid Losses and Loss Adjustment Expenses (` in crore)

As at March 31, AY 2012 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23
2023 & Prior

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

One year later 344 264 522 527 593 835 1,090 1,641 2,100 2,455 2,670
Two years later 242 146 366 349 425 524 861 1,078 1,731 1,938
Three years later 157 168 289 314 335 437 762 897 1,272
Four years later 155 107 272 251 265 385 686 667
Five years later 142 100 241 193 259 335 433
Six years later 123 93 217 180 207 292
Seven years later 114 52 209 154 168
Eight years later 103 59 195 130
Nine years later 103 53 176
Ten years later 95 48
Eleven years later 90

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, Accident Year corresponds to the year in which Premium is received.
4. The impact on the unpaid claims liability of the Company on account of landmark judgements issued by Supreme Court of
India and various High Courts e.g. Sarla Verma (April 2009), Pranay Sethi (October 2017) etc. has been allowed for in the claims
ultimate.
Annual Report 2022-23 57

4. Investments events affecting multiple risks across portfolios. As per

regulatory requirements, the Company has ceded 4% of
The investment function complements the core business its business as obligatory cession to the General Insurance
of the Company. The Company’s investments are made Corporation of India (GIC).
in accordance with the Investment Policy as approved
by the Board of Directors. The Investment Committee The Company has had a successful reinsurance renewal
oversees the implementation of the Investment Policy. The for FY 2022-23. The Company experienced a few large
Company’s investment strategy reflects the coordination losses mostly in commercial lines of business. Further, the
between assets and liabilities given the nature of the impact of CAT losses was subdued during the year. The
business of the Company while keeping the regulatory impact of these losses on the net account was significantly
framework in perspective. The Investment Policy mandate reduced due to adequate reinsurance protection.
includes maintaining a high degree of liquidity and safety
of assets, optimising returns and consistency of returns The Company has a strong reinsurance panel comprising
commensurate with the risks undertaken. the National Reinsurer – GIC, foreign reinsurers who
have set up their branches in India and cross border
As on March 31, 2023, the investment assets of the Company reinsurers with a financial strength rating of A- and above.
stood at ₹ 22,242 crore (PY: ₹ 18,397 crore). The IRDAI The participation of foreign reinsurance branches has
(Investment) Regulations, 2016 require non-life companies gradually increased over the years.
to invest 30% of its investment assets in government and
approved securities and 15% in the infrastructure sector and 6. Risk management
housing sector. The Company held ₹ 9,381 crore (42.2%) in
government securities, ₹ 6,781 crore (30.5%) in securities The Company has a robust and integrated enterprise-
of the infrastructure and housing sector and the remaining wide Risk Management Framework (RMF) to identify,
₹ 6,080 crore (27.3%) in approved and other investments. assess, manage and mitigate all relevant risks in the
The Company held 85% of its assets in sovereign and AAA Company’s operating environment. The RMF works at all
or equivalent rated assets, reflecting a high degree of levels across the Company and is a proactive institution-
safety. Further, the Company held ₹ 2,822 crore in assets wide programme. It has been aligned and integrated
maturing within one year. The total investment income with business processes and covers all relevant risks,
generated for the year ended March 31, 2023, was ₹1,401 including strategic risks – duly considering environmental,
crore (PY: ₹ 1,284 crore). social and governance (ESG) aspects, operational risks,
investment risks, insurance risks, information and cyber
security risks. The Company’s risk strategy is embedded
Portfolio Mix - Investments in its business planning process.

Under the RMF, periodic assessment of risk exposure is

27.3%
conducted based on the impact and the likelihood of the
occurrence of a risk.
42.2%
The Company’s risk management is overseen by the
Risk Management Committee of Directors. The Board-
approved risk management policy and manual provides
30.5%
the framework and guidelines for the management and
mitigation of all risks associated with the business of
the Company. The risk performance is comprehensively
Govt./ approved securities reviewed by the Risk Management Committee at its
Infrastructure and Housing Sector quarterly meetings.
Other approved investments
The Company’s investment function is overseen by
the Investment Committee constituted by the Board of
5. Reinsurance Directors. The Board-approved investment policy and
the standard operating guidelines provide the framework
The Company’s reinsurance programme is designed for management and mitigation of the risks associated
to ensure protection against exposure to large losses with investments. The investment portfolio and its
affecting single risks as well as catastrophic (CAT) loss performance are comprehensively reviewed by the
Annual Report 2022-23 58

Investment Committee and the Board of Directors at its The Fraud Monitoring Committee at the executive
quarterly meetings. management level and the Risk Management Committee
of the Board of Directors periodically deliberate on
The Company also assigns critical importance to material fraud events, and undertake necessary remedial
information and cyber security risks. Accordingly, the actions or advise on preventive actions.
Company has an Information Security and Business
Continuity framework within the RMF that ensures all the 8. Solvency
information assets are adequately protected by instituting
required controls. These controls are assessed periodically An insurance company needs to maintain financial assets
to determine their adequacy and effectiveness. The or cash flow to meet its claims obligations as they fall
Company is ISO27001:2013 (Information Security due. The solvency ratio is a key metric used to measure
Management Standard) and ISO22301:2019 (Business an insurance company’s financial health, i.e., the ability
Continuity Management Standard) certified. to meet its claims obligations and indicates whether a
company’s cash flow is sufficient. An insurance company
Further, the Company constantly endeavours to improve is considered to be solvent if its assets are adequate and
its information and cyber security posture given the liquid to pay off claims or liabilities as and when they arise.
dynamic and complex cyber security threat landscape. Thus, an insurance company’s solvency ratio indicates its
claim paying ability – the higher the solvency ratio, the
The Internal Audit function is an independent function better the ability to pay claims.
of the Company. Risk-based audits of processes and
branches are conducted as per the annual audit plan As on March 31, 2023, the Company had a solvency
approved by the Audit and Compliance Committee (ACC) of ratio of 1.81 times, as against the minimum regulatory
Directors. The planning and conduct of internal audits are requirement of 1.5 times.
focused on assessing the existence and design of controls
and providing reasonable assurance on the operating
effectiveness of internal controls. Key observations Solvency Ratio
arising out of the internal audits are presented to the ACC
periodically. These changes are expected to strengthen 1.90
1.78 1.81
customer experience and facilitate wider access to 1.64
insurance. All audit findings are tracked and monitored to 1.5 Solvency
confirm the implementation of remediation plans. Ratio
Requirement
7. 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
FY20 FY21 FY22 FY23
fraud detection mechanisms.
Actual Solvency Ratio
The Company has an independent risk and loss mitigation
department that implements this framework. The
department is responsible for taking all possible steps to 9. Environment Social Governance (ESG) framework
prevent, detect and mitigate risks emanating from various
types of fraud attempted to be perpetrated against the The Company believes in building a sustainable
Company. ecosystem to ensure that it can continue providing
value to its customers and to the society at large. The
It employs various automated tools using predictive Company’s strategy is to integrate sustainability into its
modelling, analytical engines and AI-based solutions overall business through partnership and collaboration
to flag claims suspected to be fraudulent. It also across functions.
investigates complaints by whistle-blowers and ensures
that appropriate action is taken. The department deploys Accordingly, the Company has developed an ESG policy
cyber and forensic expertise to investigate important and framework, which will be periodically assessed,
cases. It also initiates recoveries of stolen assets and monitored and reviewed. The principles of planet,
takes legal action against fraudsters. people and governance are the key pillars supporting
Annual Report 2022-23 59

the Company’s ESG initiatives. This framework is still 9.3 Governance

evolving and the Company is proactively focusing on
strengthening its role in the new normal. The following The Company’s corporate governance has always been
were the initiatives under the framework for FY 2022-23. about promoting the stability of long-term outcomes,
where risks and financial outcomes are focused on and
9.1 Environmental disclosed on a periodic basis.

The Company believes in the importance of environmental The Company’s governance structures and processes
sustainability for long-term development. It is the strive to promote accountability, transparency and ethical
Company’s constant endeavour to reduce operational behaviour. The Board of Directors bring a combination
emissions through the adoption of technologies, energy- of executive experience and skills aligned with business
efficient practices and creating awareness among and strategy. The Board oversees the Company through
employees towards environmental conservation. seven sub-committees of the Board of Directors, mostly
chaired by Independent Directors.
To support the Company’s focus on environment
protection the following initiatives were implemented:
9.4 Corporate Social Responsibility (CSR)
• ~ 93% of its retail policies were issued digitally;
• The solar panel warranty insurance product developed The Company is committed to serving society and has
and distributed by the Company is designed to aligned its CSR interventions under four major pillars. FY
protect the balance sheet of the solar module sellers 2022-23 initiatives under these pillars are as given below:
as well as the investment of the buyers;
• The Company has installed solar panels in schools
and hospitals across various locations through its Education
CSR initiatives;
• The Company has planted more than 4,000 saplings
through its employee volunteering programme; • Through its flagship programme of government
• The Company has launched ‘All Things EV’, the school reconstruction – GAON MERA, the Company
country’s first one-stop-solution portal for electric has undertaken the revamp of seven schools.
• The Company has contributed towards improving the
vehicles (EVs).
infrastructure and facilities of educational institutions
9.2 Social by providing buses, installing solar panels and smart
classrooms.
The Company is focused on making a positive impact • The Company has also supported underprivileged
on social and economic outcomes for its customers, students with scholarships for premier institutes.
employees and the community at large. The Company
continuously strives to earn the confidence and trust of the
community in which it operates. It has undertaken various Healthcare (Niramaya)
CSR initiatives in the areas of Education, Healthcare,
Women Empowerment and Road Safety.
• Reconstruction of government hospitals with
The Company’s CSR initiatives touched more than 10 improved facilities for the rural population has meant
lakh lives. reaching out to over 1.2 lakh lives.
• The Company has funded over 2,100 critical surgeries
To drive a culture of Diversity, Equity and Inclusion (DEI) for the underprivileged.
in the Company, steps have been taken to incorporate • The Company has also extended support to specially-
diversity in recruitment, training and development of abled adults.
employees. Opportunities are also being created for
employee advancement while fostering an environment
of inclusivity through various initiatives. Women’s Welfare (Roshini)
For FY 2022-23, the share of women in the overall
workforce of the Company was 23% vis-à-vis 19% in FY • Over 1,000 destitute women were supported with
2021-22. The Company also hired 26 differently-abled sustainable livelihood solutions and capacity building
employees in FY 2022-23. in remote areas of West Bengal.
Annual Report 2022-23 60

• Job-oriented vocational training was provided to over Aligned with its vision of ‘Insurance for All by 2047’, IRDAI
400 young girls from urban slums. announced many progressive measures.
• Access to education was provided to over 1,200 girls
through learning centres. IRDAI replaced the earlier separate limits on commission
payments on insurance products and a limit on expenses,
with a single overall limit on expenses of management at
company level. These regulatory changes are expected
Road Safety
to further improve the ease of doing business for non-life
insurance companies, as they can adapt to different ways
• The Company has adopted two high-fatality of selling and serving their customers. Customers will also
intersections in Maharashtra and Karnataka to transform benefit from more choices, better products and improved
them into safe intersections and zones through tactical service quality.
urbanism benefiting ~4 lakh commuters.
Some of the reforms include: expanding the distribution
9.5 Employee volunteering network and allowing more partnerships for corporate
agents and insurance marketing firms; improving its
In its endeavour to establish a culture of volunteering Integrated Grievance Redressal System to Bima Bharosa;
within the organisation and increase its social footprint, leveraging digital tools for better customer experience;
the Company furthered its volunteering programme – launching Bima Sugam, a comprehensive platform for
‘SAATHI’. Under this programme, the employees have customers’ insurance requirements – from purchase
volunteered for over 30,000 hours through various to claim settlements. These changes are expected to
activities in areas like environment, inclusiveness, women strengthen customer experience and facilitate wider
welfare, elderly care, children’s welfare, animal welfare access to insurance.
and road safety. The employees could participate both
physically and virtually. The company also launched its With economic expansion, supported by digital
maiden volunteering week – 21st to 27th September, infrastructure and innovation, improvement of consumer
2022 – during which the employees across the country sentiment and a conducive regulatory environment, the
contributed to over 16,000 volunteering hours. industry is expected to continue its growth trajectory.
IRDAI has estimated that the Indian insurance market will
10. Future outlook reach $200 billion by 2027; consequently, the growth
opportunity for insurance providers is huge.
The global economy is slowing down and the risk of
inflationary recession in a number of economies has The Company believes that, over the coming years, the
increased. As per the Swiss Re Sigma report (4/2022), this growth potential of the domestic economy and regulatory
economic slowdown and the high-inflation environment changes will result in strong growth and penetration of the
will weigh on insurance markets. general insurance industry. The Company would continue
to innovate, use technological solutions and strive to
On the domestic front, the Reserve Bank of India expects provide better policyholder and stakeholder propositions
the economy to grow at 6.5% in FY 2023-24. The CPI- in the future.
based inflation is forecasted to be 5.1% for FY 2023-24.
As per the Economic Survey 2023, the non-life insurance Disclaimer: This report contains forward-looking statements
sector growth is likely to be driven by demand for based on beliefs of HDFC ERGO’s management. The words
‘expected’, ‘estimate’, ‘believe’ and ‘intend’ used to identify
health coverage, with people becoming more aware of forward-looking statements, reflects the Company’s current
health security post-pandemic and strong support from views with respect to the future events and are subject to risks
the government-sponsored mass health programme - and uncertainties. Many factors could cause the actual result
Ayushman Bharat. This growth is expected to be further to be materially different, including, amongst others, changes
aided by the currently low insurance penetration levels. of competitors’/competing products, lack of acceptance of
new products and may vary materially from those projected
here. HDFC ERGO does not intend to assume any obligation to
In FY 2022-23, the general insurance sector experienced update these forward-looking statements.
many changes. The pandemic has boosted the adoption
of digital tools and the recognition of the importance of
health insurance. Insurance seekers in India’s smaller
cities are likely to adopt new-age insurance products that
are technology-driven, personalised and transparent.
Annual Report 2022-23 61

ANNEXURE –II ANNUAL REPORT

ON CSR ACTIVITIES

1. BRIEF OUTLINE ON CSR POLICY OF THE ii. Planning

COMPANY:
The identification of CSR activities is done using one or
A. CSR Policy more of the following methods:

The CSR Policy of the Company, inter-alia, specifies the (i) In-house planned projects;
key focus areas for CSR activities/projects that could be (ii) Proposals from District Administration/ Local Govt.
undertaken by the Company; approach and process for body/ Public representatives etc; and
undertaking CSR projects and the monitoring mechanism. (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
The Policy is available on the website of the Company -
fulfils the criteria as prescribed in the statute in this
www.hdfcergo.com.
regard.
B. Organisation setup
iii. Implementation Methodology
The CSR projects are implemented under the guidance
The CSR activities/projects are implemented using
of the CSR Committee of Directors, which presently
internal resources (in-house manpower) or through
comprises seven (7) Directors. The Company also has a
collaborating with NGOs / specialised agencies/ trusts/
Sub-Committee of CSR (SC-CSR) comprising the Senior
institutions / foundations / societies / Government bodies,
Management team including the Executive Directors.
etc. in accordance with the provisions of the Act and the
Companies (Corporate Social Responsibility Policy) Rules,
The terms of reference of the CSR Committee, inter-alia,
2014.
includes:

i. Formulate and review the CSR Policy and recommend The details of major CSR initiatives undertaken by the
the same to the Board for its approval; Company during the financial year 2022-23 are given
ii. Formulate and recommend to the Board an Annual below:-
Action Plan on CSR activities;
iii. Recommend the amount of expenditure to be incurred
I. EDUCATION
on the CSR activities;
iv. Review the CSR projects/ programmes from time to
The Company has deployed various projects towards
time;
improving quality of education and has benefitted over
v. Ensure overall governance and compliance for CSR;
and 4700 students in FY23.
vi. Annually report to the Board, the details of the CSR
activities. A. Gaon Mera Government School Reconstruction &
Development Project -
C. Scope of activities
The focal area for the Company’s CSR intervention is a
dedicated “My Village” Program called “GAON MERA”.
The CSR activities of the Company are as per the
The program is aimed at improving the current status of
provisions of Schedule VII of the Companies Act, 2013
Education, Sanitation and Healthcare in selected village(s).
(‘Act’).
The main objective of Gaon Mera program is to address the
need for sustainable educational infrastructure, a support
i. Geographical Span of CSR Projects system for rural development and holistic advancement of
education in the communities. The project works towards
The CSR activities are taken up across the country and
sustainable development in core focus area of education
attempt is made to cover maximum geography.
in the selected village(s).
Annual Report 2022-23 62

The Company aims to work holistically towards communicable diseases; supporting mental health and
development of education with all relevant stakeholders differently abled, public and community health initiatives
in these villages on Government School Reconstruction for the underprivileged sections of society; addressing
Programme to make a sustainable impact in the lives of malnutrition amongst women and children, provision of
the marginalised communities living in these villages. clean and safe drinking water to communities, etc.

Preliminary evaluation of the applications is done as B. Other Healthcare Initiatives -

per internal guidelines and a detailed study is done by
the Implementation Partners in the form of rapid need The Company has also supported over 2,000 eye
assessment and development of project proposal. The surgeries for people from economically challenged
Government School Construction Project is adopted backgrounds across India. Support has been extended
using BaLA (Building as Learning Aid), an innovative to 25 underprivileged children suffering from Congenital
concept for qualitative improvement in education, through Heart Defect (CHD) from 8 states, 10 Cochlear implants
developing child-friendly, learning and fun based physical and bone marrow transplant surgeries in Maharashtra, 19
environment. Vinoba Sewa Ashram, Yuva Unstoppable, surgeries of children from economically weak backgrounds
Haritika, Round Table India Trust and Habitat for Humanity who are affected by facial and skull deformities.
Trust have worked as Implementation Partners for the
above activities of FY23. A Sewage treatment plant has also been installed to
support 354 Differently abled at ADHAR, a specially
The Company has also installed solar panel setup in abled adult home centre near Mumbai. Additionally, the
7 Government schools and 12 Smart Class rooms were Company has supported 65 underprivileged children
created in 6 Government schools. suffering from Thalassemia and Cancer in Maharashtra.

B. Other Education Initiatives III. ROSHINI - Women Welfare -

Besides the above, the Company has supported Through Women welfare initiatives, the company has
15 students from low economic backgrounds, with benefitted over 2,750 women in FY23.
full scholarship for undergraduate and/or graduate
programme. Further, the Company has contributed This initiative aims at supporting women through
towards upgrading Infrastructure at Ashoka University interventions like sustainable livelihood projects for
and supporting HDFC School with School buses. unemployed / dropout women from rural and urban
areas, by assisting them with skill training (technical and
non-technical), vocational and life skills training, etc. and
II. NIRAMAYA Healthcare Initiative -
enabling them to generate livelihoods and in turn contribute
to the economy. This would also include initiatives towards
Considering Healthcare as one of the important pillars, women empowerment like education, confidence building,
the company has worked towards providing solutions in to help women progress in their lives.
the area and has touched over 1.25 lakh lives.
Bandhan Konnagar in West Bengal is working as an
A. Government Hospital Development Project - Implementation Partner in targeting 1,000 very poor
women in West Bengal state.
The Company has selected villages through an internal
employee nomination programme. Preliminary evaluation The Company is also supporting Vocational Skill training
of the applications is done as per internal guidelines and for 467 Girls in Maharashtra and 1,285 girl students by
a detailed study of the Primary Health Centre is done by running learning centres in 3 states.
the Implementation Partners in the form of rapid need
assessment and development of project proposal. IV. Road Safety Initiative -

Doctors For You has worked as an Implementation Partner This initiative is an effort towards improving road
for Niramaya projects for 1 Government Hospital each in conditions and infrastructure to reduce accidents and
Maharashtra and Karnataka states. fatalities, thereby helping in making road travel safer. It
involves facilitating and/or providing enabling conditions
This would include initiatives to support affordable for driving and travelling on roads and supporting
healthcare, through awareness and preventive post trauma interventions, thus providing better travel
programmes for various communicable and non- conditions and saving lives.
Annual Report 2022-23 63

Save Life Foundation is working as an Implementation This is being done through Tactical Urbanism which is a
Partner for redesigning of accident-prone road low cost intervention and based on result, the same is
intersections in the states of Maharashtra and Karnataka, sought to be implemented as a permanent solution by
which is benefitting more than 4 lakh commuters on a the government.
daily basis.

2. COMPOSITION OF CSR COMMITTEE

Sr. Name of Director Designation / Nature of Number of meetings of Number of meetings of

No Directorship CSR Committee held CSR Committee attended
during the year during the year
1. Ameet P. Hariani Chairman-Independent Director 4 4

2. Mehernosh B. Kapadia Independent Director 4 4

3. Vinay Sanghi* Independent Director 3 3

4. Dr. Rajgopal Thirumalai* Independent Director 3 3

5. Renu Sud Karnad Non-Executive Director 4 4

6. Dr. Oliver Martin Willmes Non-Executive Director 4 4

7. Anuj Tyagi Deputy Managing Director 4 4

* inducted as Members of the Committee w.e.f April 25, 2022

3. Provide the web-link where the 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(s) of Impact Assessment of CSR Projects carried out in
pursuance of sub-rule (3) of rule 8, if applicable:

Not Applicable

5. (a) Average net profit of the Company as per sub-section (5) of section 135 : ` 63,31,820
(b) Two percent of average net profit of the Company as per sub-section (5) of section 135: ` 12,66,62,305
(c) Surplus arising out of the CSR projects or programmes or activities for the previous financial years: NIL
(d) Amount required to be set-off for the financial year, if any: NIL
(e) Total CSR obligation for the financial year [(b)+(c)- (d)]: ` 12,66,62,305

6. (a) Amount spent on CSR Projects (both ongoing Project and other than ongoing Project): ` 12,03,30,485
Details of CSR amount spent against ongoing projects for the financial year:
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from Local Location of the project Project Amount Amount spent Amount Mode of Mode of Implementation -Through
No Projects/ the list of area duration allocated for in the current transferred to Implementation - Implementing Agency
Activities activities in (Yes/ the project financial Year Unspent CSR Direct (Yes/No)
Schedule No) (in ₹) (in ₹) Account for
VII to the the project as
Act. per Section
Annual Report 2022-23

135(6) (in ₹)

State District Name CSR Registration

number
1 Gaon Mera - Promotion No Haryana Dighal, Jhajjar 3 Years 90,97,760 Direct NA No Habitat For CSR00000402
Reconstruction of expenditure: Humanity Trust
project of Education 4,54,888
Govt. School in Overheads–
village under Nil
Gaon Mera
FY21 Projects
2 Gaon Mera - Promotion No Rajasthan Jagsa, Barmer 2 Years 84,24,695 Direct NA No Yuva CSR00000473
Reconstruction of expenditure: Unstoppable
project of Education 4,21,234
Govt. School in Overheads–
village under Nil
Gaon Mera
FY22 Projects
3 Gaon Mera - Promotion No Uttar Jikhangaon, 3 Years 70,35,350 Direct NA No HARITIKA CSR00000516
Reconstruction of Pradesh Mathura expenditure:
project of Education 3,51,768
Govt. School in Overheads–
village under Nil
Gaon Mera
FY22 Projects
4 Gaon Mera - Promotion No Rajasthan Naikalan, 2 Years 34,32,309 Direct NA No Yuva CSR00000473
Reconstruction of Ajmer expenditure: Unstoppable
project of Education 1,71,615
Govt. School in Overheads–
villages Nil
under Gaon
Mera
FY22 Projects
5 Reconstruction Promotion No West Pole, Hooghly 2 Years 75,67,774 Direct NA No Round Table CSR00000895
project of of Bengal expenditure: India Trust
Govt. School in Education 52,97,441
village under Overheads–
Gaon Mera Nil
FY22 Projects
6 Gaon Mera Promotion No Uttar Kutba, 3 Years 62,30,400 Direct NA No Vinoba Sewa CSR00001094
-Reconstruction of Pradesh Muzaffarnagar expenditure: Ashram
project of Education 56,07,360
Govt. School in Overheads–
village under Nil
Gaon Mera
FY23 Projects
64
1 2 3 4 5 6 7 8 9 10 11

Sr. Name of the Projects/ Item from Local Location of the project Project Amount Amount spent Amount Mode of Mode of Implementation -Through
No Activities the list of area duration allocated for in the current transferred Implementation Implementing Agency
activities in (Yes/ the project financial Year to Unspent - Direct (Yes/No)
Schedule No) (in ₹) (in ₹) CSR Account
VII to the for the
Act. project as
per Section
Annual Report 2022-23

135(6) (in ₹)
State District Name CSR
Registration
number
7 Gaon Mera -Recon- Promotion No Uttar Kutbi, 3 Years 44,13,200 Direct NA No Vinoba Sewa CSR00001094
struction project of of Pradesh Muzaffarnagar expenditure: Ashram
Govt. School in village Education 39,71,880
under Gaon Mera FY23 Overheads–
Projects Nil
8 Supporting 3 students Promotion Yes Jharkhand, Ranchi, Thane 3 Years 95,52,075 Direct NA No International CSR00000712
on full scholarship for of Maharashtra and Unnao expenditure: Foundation For
three year undergradu- Education and 33,40,575 Research and
ate program Uttar Overheads– Education
Pradesh Nil
9 Support to Ashoka Promotion No Haryana Sonipat 3 Years 5,00,00,000 Direct NA No International CSR00000712
University Infrastructure of expenditure: Foundation For
Development Education 50,00,000 Research and
Overheads– Education
Nil
10 Niramaya-Redevelop- Health No Karnataka Hattimattur 3 Years 1,89,74,634 Direct NA No Doctors for You CSR00000608
ment project of Govt. Care Haveri expenditure:
Hospitals in villages 1,23,33,512
under Niramaya Pro- Overheads–
gram FY22 Projects Nil

11 Niramaya-Redevelop- Health Yes Maharashtra Chopda, 3 Years 45,02,925 Direct NA No Doctors for You CSR00000608
ment project of Govt. Care Jalgaon expenditure:
Hospitals in villages un- 29,26,902
der Niramaya Program Overheads–
FY22 Projects Nil

12 Road Safety -ZFC for Road No Karanataka Bangalore 2 Years 2,53,00,000 Direct NA No Save Life CSR00000728
Karnataka Silk Board Safety expenditure: Foundation
Junction – SLF Awareness 1,09,25,280
Overheads–
Nil
13 Project Roshini-Target- Livelihood No West Bengal Jalpaiguri 3 Years 2,91,00,000 Direct NA No Bandhan CSR00001463
ing the Hardcore Poor expenditure: Konnagar
Programme 1,50,00,000
Overheads–
Nil
Total 6,58,02,455
65
Details of CSR amount spent against other than ongoing projects for the financial year:
1 2 3 4 5 6 7 8

Sr. Name of the Projects/ Item from Local Location of the project Amount spent in the current Mode of Mode of Implementation -Through
No Activities the list of area financial Year (in ₹) Implementation - Implementing Agency
activities in (Yes/ Direct
Schedule No) (Yes/No)
VII to the
Annual Report 2022-23

Act.
State District Name CSR Registration number

1 Gaon Mera - Smart Promotion Yes Maharashtra, Kolamba-Jalgaon, Direct expenditure -21,18,600 No Yuva CSR00000473
Classrooms (12 classrooms of Education Uttar Pradesh, Machala-Jalgaon, Overhead - Nil Unstoppable
in 6 completed Government Andhra Pradesh, Tandia-Varanasi,
schools) Odisha, Agraharam-Anantpur,
Haryana, Pandiapathar-
Karnataka Ganjam,
Dombramattur,
Haveri

2 Gaon Mera - Solar Panel Promotion Yes Maharashtra Uttar Machala-Jalgaon, Direct expenditure -56,00,000 No Vinoba Sewa CSR00001094
Setup (completed in 7 of Education Pradesh Tandia-Varanasi, Overhead - Nil Ashram
Government Schools) Andhra Pradesh Agraharam-Anantpur,
Odisha Pandiapathar-
Haryana Ganjam, Dighal-
Jhajjar, Kutba &
Kutbi-Muzaffarnagar

3 Gaon Mera - Maintenance Promotion Yes Tamilnadu, Maharashtra Singaneri-Tirunelveli, Direct expenditure -2,60,000 No Vinoba Sewa CSR00001094
of Government Schools of Education Kolamba-Jalgaon, Overhead - Nil Ashram
Machala-Jalgaon,
Gadewadi-Satara

4 Supporting 11 Students Education Yes Maharashtra Mumbai Direct expenditure -29,96,000 No Indian Institute CSR00007536
from financially Overhead - Nil of Technology -
challenged backgrounds Bombay, IIT
for Professional Graduate Bombay
Education
5 Donating Buses For School Education Yes Maharashtra Pune Direct expenditure -90,43,480 No Maharashtra 3E CSR00036742
Students to HDFC Schools Overhead - Nil Education Trust
6 Support Cataract Surgeries Health Care No Rajasthan, Bihar, Udaipur, Direct expenditure -50,00,000 No Vision CSR00002065
for underprivileged Karnataka, Uttar Pradesh, Aurangabad, Banka, Overhead - Nil Foundation of
Punjab, Karnataka, Assam. Bengaluru, Loni, India
Chattisgarh Jalandhar, Hubali,
Jorhat, Raipur
66
1 2 3 4 5 6 7 8

Sr. Name of the Projects/ Item from Local Location of the project Amount spent in the current financial Mode of Mode of Implementation -Through
No Activities the list of area Year (in ₹) Implementation Implementing Agency
activities in (Yes/ - Direct
Schedule No) (Yes/No)
VII to the
Act.
Annual Report 2022-23

State District Name CSR Registration

number
7 Congenital Heart Health Care No Telangana, Kerala, Nizamabad, Direct expenditure -38,00,000 No Genesis Foundation CSR00001713
Surgeries for Children Punjab, Chattisgarh, Hyderabad, Overhead - Nil
through Project Save Bihar, Arunachal Karimnagar,
Little Hearts Pradesh, Tripura, Mehbubnagar,
Jammu & Kashmir, Rangareddy,
Ladakh. Malappuram, Faridkot,
Mansa, Muktsar,
Raipur, Muzaffarpur,
Rohtas, Patna, Katihar,
West Kameng,
Kacharichhara,
Pulwama, Kargil,
8 Support for Cancer Health Care Yes Bihar, Maharashta, Khagaria, Direct expenditure -30,00,000 No The Society For The CSR00003225
Surgeries & cochlear Rajasthan, Uttar Raigad, Thane, Overhead - Nil Rehabilitation Of
transplant for Pradesh, West Bengal Mumbai, Buldhana, Crippled Children
economically challenged Aurangabad, Nasik,
kids through medical Banswara, Pratapgarh,
procedures Nadia
9 Support the surgeries Health Care Yes Maharashtra, Mumbai, Bengaluru Direct expenditure -20,00,000 No Inga Health Foundation CSR00001727
of children from Karnataka Overhead - Nil
economically weak
background who are
affected by facial and
skull deformities
10 Sewage Water Treatment Health Care Yes Maharashtra Badlapur, Thane, Direct expenditure -20,00,000 No Association of Parents CSR00000230
Plant at ADHAR Centre Mumbai Overhead - Nil of Mentally Retarded
Children, Mumbai
(ADHAR)
11 Support to Health Care Yes Maharashtra Mumbai Direct expenditure -27,23,150 No Poor Box Charity Fund CSR00032119
underprivileged kids Overhead - Nil MCGM Comprehensive
Thalassemia & Cancer Thalassemia Care PHO
Care & BMT Centre
12 Transformation of Road Safety Yes Maharashtra Nagpur Direct expenditure -53,02,800 No Save Life Foundation CSR00000728
Nagpur Intersection – Awareness Overhead - Nil
SLF
13 Supporting 30 Learning Education No Uttarakhand Haryana Dehradun, Uttarkashi Direct expenditure -50,00,000 No IIMPACT CSR00002935
Centers for education Chhattisgarh Mewat Overhead - Nil
Raigarh
14 Vocational Skill training Women Yes Maharashtra Mumbai Direct expenditure -56,84,000 No Plan International (India CSR00001490
for women in urban Welfare & Overhead - Nil Chapter)
areas - Plan India Livelihood
Total 5,45,28,030
67
Annual Report 2022-23 68

(b) Amount spent in Administrative Overheads: ` 63,31,820

(c) Amount spent on Impact Assessment, if applicable: Nil
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: ` 12,66,62,305
(e) CSR amount spent or unspent for the Financial Year: Nil

Total Amount Amount Unspent (in ₹)

Spent for the
Financial Year Total Amount transferred to Unspent CSR Amount transferred to any fund specified under Schedule VII
(in ₹) Account as per sub-section (6) of section 135 as per second proviso to sub-section (5) of section 135

Amount Date of transfer Name of the Fund Amount Date of transfer

12,66,62,305 NIL Not Applicable Not Applicable NIL Not Applicable

(f) Excess amount for set-off, if any: Nil

Sr. No Particulars Amount (in ₹)

(i) Two percent of average net profit of the Company as per Section 135(5) of the Act 12,66,36,404
(ii) Total amount spent for the financial year 12,66,62,305
(iii) Excess amount spent for the financial year [(ii)-(i)] 25,901
(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 off in succeeding financial years [(iii)-(iv)] NIL

7. Details of Unspent Corporate Social Responsibility amount for the preceding three financial years:
1 2 3 4 5 6 7 8
Sr. Preceding Amount transferred Balance Amount Amount Amount transferred to a Fund Amount remaining Deficiency,
No Financial Year to Unspent CSR in Unspent CSR Spent in the as specified under Schedule to be spent in if any
Account under sub- Account under financial year VII as per second proviso to succeeding
section (6) of section sub-section (6) (in ₹) sub-section (5) of section 135, financial years
135 of section 135 if any (in ₹)
(in ₹) (in ₹)
Amount Date of transfer
(in ₹)

1. FY-1 NIL Not Not Not Not Not Applicable Not

Applicable Applicable Applicable Applicable Applicable
2. FY-2 NIL Not Not Not Not Not Applicable Not
Applicable Applicable Applicable Applicable Applicable
3. FY-3 NIL Not Not Not Not Not Applicable Not
Applicable Applicable Applicable Applicable Applicable

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 : 6

Annual Report 2022-23 69

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount
spent in the financial year:

Sr. Short particulars of the Pincode of the Date of Amount of CSR Details of entity/ Authority/ beneficiary of the
No property or asset(s) [including property or creation amount spent registered owner
complete address and asset(s)
location of the property]
1 2 3 4 5 6

CSR Name Registered

Registration address
Number, if
applicable
1 Reconstruction project of 281501 July 23, Total Outlay - Not School School
Govt. School in Jikhangaon 2022 ` 70,35,350 Applicable Management Management
village, Mathura, Uttar Total Committee, Committee,
Pradesh under Gaon Mera disbursement Jikhangaon Jikhangaon
Program Project completed ` 66,83,583 till village, Mathura, village, Mathura,
and inaugurated in July
FY23 Uttar Pradesh Uttar Pradesh
2022. A brief overview of
Including
facilities provided by us in
the project is as follows - disbursement
` 3,51,768 in FY23
1. Reconstruction of whole
school in 2,699 Sqft area
provided with all amenities
and garden area with BaLA
tools.
2. Total more than 11 BaLA
tools provided like pipe
phone, door angle, noise
meter and different types of
charts/maps for classrooms,
etc.
3. Total more than 26
Furnishing tools provided
like green boards, notice
board, wooden benches and
wooden desk, school bags
and medical kit for students
in all classes.
4. Refurbishment work
provided including existing
Class-6, Class-7, library,
boundary wall work have
been completed.
5. Additionally, developed
playground area by
doing ground levelling
and drainage channels,
interlocking tile pathways
under garden.
Total 153 students getting
benefitted in newly
constructed school.

2 Reconstruction project of 712406 March 17, Total Outlay - Not School School
Govt. School in Pole village, 2023 ` 75,67,774 Applicable Management Management
Hooghly, West Bengal under Total Committee, Pole Committee, Pole
Gaon Mera Projects. Project disbursement village, Hooghly, village, Hooghly,
completed and inaugurated ` 75,67,774 till West Bengal West Bengal
in March 2023.
FY23
A brief overview of facilities
Including
provided by us in the project
is as follows – disbursement
` 52,97,441 in
FY23
Annual Report 2022-23 70

Sr. Short particulars of the Pincode of the Date of Amount of CSR Details of entity/ Authority/ beneficiary of the
No property or asset(s) [including property or creation amount spent registered owner
complete address and asset(s)
location of the property]
1 2 3 4 5 6

CSR Name Registered

Registration address
Number, if
applicable
1. Reconstruction of 1,765
Sqft area provided in which
includes construction of new
kitchen - 315 Sq ft and toilet
1,450 Sqft (Girls, Boys and
Physically Abled) block.
2. Total more than 16
furnishing tools provided
like sanitary pad incineration
machine, steel dustbins,
RO filter, cemented chairs,
football goal post, kitchen
utensils, indoor and outdoor
games, flag post, medical kit,
kitchen utensils etc.
3. Refurbishment work
provided including
drinking water station,
new galvanizing roof for
stair case, roof water
proofing, school building
– re-plastering as per
requirement, repairing doors
and windows, painting of
existing benches and desks,
painting of blackboards work
have been completed.
4. Addi t i o n a l l y, develop
playground area by doing
installation of new main gate,
plantation, construction of
new boundary wall, pathway
from entrance to school, etc.
benefitting 808 students in
newly constructed school.
3 Solar Panel setup in Govt. 425107 March 20, Total Outlay - Not School School
School in village under Gaon Machala- 2023 ` 56,00,000 Applicable Management Management
Mera Jalgaon, Total Committee, Committee,
221305 disbursement Machala- Machala- Jalgaon,
Solar Panel has been setup
Tandia- Varanasi, ` 56,00,000 all in Jalgaon, Maharashtra
in 7 Govt. Schools under
515154 FY23 Maharashtra Tandia- Varanasi,
Gaon Mera program. Project
Agraharam- Tandia- Varanasi, Uttar Pradesh
completed and handed over
Anantpur, Uttar Pradesh Agraharam-
in March 2023
761116 Agraharam- Anantpur, Andhra
Benefitting 1,339 students Pandhiapather- Anantpur, Andhra Pradesh
Ganjam, Pradesh Pandhiapather-
124107 Pandhiapather- Ganjam, Odisha
Dighal-Jhajjar, Ganjam, Odisha Dighal- Jhajjar,
251318 Dighal- Jhajjar, Haryana
Kutba & Kutbi- Haryana Kutba,
Muzaffarnagar Kutba, Muzaffarnagar,
Muzaffarnagar, Uttar Pradesh
Uttar Pradesh Kutbi-
Kutbi- Muzaffarnagar,
Muzaffarnagar, Uttar Pradesh
Uttar Pradesh
Annual Report 2022-23 71

Sr. Short particulars of the Pincode of the Date of Amount of CSR Details of entity/ Authority/ beneficiary of the
No property or asset(s) [including property or creation amount spent registered owner
complete address and asset(s)
location of the property]
1 2 3 4 5 6

CSR Name Registered

Registration address
Number, if
applicable
4 Smart Class setup in Govt. 425107 December Total Outlay - Not School School
School in village under Gaon Machala- 30, 2022 ` 21,18,600 Applicable Management Management
Mera Jalgaon, Total Committee, Committee,
221305 disbursement Machala- Machala-
12 Smart Class has been
Tandia- ` 21,18,600 Jalgaon, Jalgaon,
setup in 6 Govt. Schools
Varanasi, all in FY23 Maharashtra Maharashtra
under Gaon Mera program.
515154 Tandia- Tandia-
Project completed and
Agraharam- Varanasi, Uttar Varanasi, Uttar
handed over in December
Anantpur, Pradesh Pradesh
2022
761116 Agraharam- Agraharam-
The Smart Classroom Pandhiapather- Anantpur, Anantpur,
facilities includes 5in1 Kyan, Ganjam, Andhra Andhra
smart board, mouse and 425107 Pradesh Pradesh
keyboard & stylus pen Kolamba- Pandhiapather- Pandhiapather-
with UPS and smart class Jalgaon, Ganjam, Ganjam,
infographic 581118 Odisha Odisha
Total 1,481 students getting Dombramattur- Kolamba- Kolamba-
benefitted Haveri Jalgaon, Jalgaon,
Maharashtra Maharashtra
Dombramattur- Dombramattur-
Haveri, Haveri,
Karnataka Karnataka
5 Reconstruction project of 425107 June 10, Total Outlay - Not Medical Medical
Govt. Hospital in Chopda, 2022 ` 45,02,925 Applicable Officer/In Officer/In
Jalgaon, Maharashtra under Total charge charge
Niramaya Projects disbursement
` 42,77,780
Project completed and
till FY23
inaugurated virtually in May
2022. A brief overview of Including
disbursement
facilities provided by us in
` 29,26,902
the project is as follows –
in FY23
1. Refurbishment - Area
- 3,200 sq. ft includes
painting, 6 doors change,
wall repairs, water proofing,
room partition main building
(labour room partition -
septic and aseptic, semi
partition - OPD room,
counter for antenatal
checkup - 6ft x 8ft)
2. Specified equipment
needs which include 25
items
3. Solar Panel setup Appx.
1,00,000 patients will be
benefitted
Annual Report 2022-23 72

Sr. Short particulars of the Pincode of the Date of Amount of CSR Details of entity/ Authority/ beneficiary of the
No property or asset(s) [including property or creation amount spent registered owner
complete address and asset(s)
location of the property]
1 2 3 4 5 6

CSR Name Registered

Registration address
Number, if
applicable
6 Reconstruction project of 581118 January, Total Outlay - Not Medical Medical
Govt. Hospital in Hattimattur, 2023 ` 1,89,74,634 Applicable Officer/In Officer/In
Haveri, Karnataka under Total charge charge
Niramaya Projects disbursement
` 1,80,25,902
Project completed and
till FY23
inaugurated virtually in
Including
January 2023. A brief
disbursement
overview of facilities
` 1,23,33,512
provided by us in the project
in FY23
is as follows –
1. Civil work includes New
Block Construction of 6,000
Sqft built up area. for
General Operation Theatre
room - 1 OT table, Labour
room - 4 labour table, Post-
operative ward - 2 beds,
Neonatal Care Unit- 2 beds
+ 2 Baby warmer, Ultrasound
room; OPD room 4 -Obc,
Paediatric, Gynic, ANC;
Store room, Ward -5 beds
2. Specified equipment
needs which include 39
items
3. Solar Panel setup 22,952
patients will be benefitted

8. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub-sec-
tion (5) of section 135: NIL

Ritesh Kumar Ameet P. Hariani

(DIN: 02213019) (DIN: 00087866)
(Managing Director & CEO) (Chairman - CSR Committee)
Annual Report 2022-23 73

Secretarial Audit Report for the Financial Year Ended 31st March, 2023
[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, a. The Securities and Exchange Board of India

(Substantial Acquisition of Shares and Takeovers)
The Members, Regulations, 2011#;
HDFC ERGO General Insurance Company Limited
CIN: U66030MH2007PLC177117 b. The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence c. The Securities and Exchange Board of India
to good corporate practices by HDFC ERGO General (Issue of Capital and Disclosure Requirements)
Insurance Company Limited (hereinafter called “the Regulations, 2018#;
Company”). Secretarial Audit was conducted in a manner
that provided us a reasonable basis for evaluating the d. The Securities and Exchange Board of India
corporate conducts/statutory compliances and expressing (Share Based Employee Benefits and Sweat
our opinion thereon. Equity) Regulations, 2021#;
Based on our verification of the Company’s books, e. The Securities and Exchange Board of India
papers, minute books, forms and returns filed and
(Issue and Listing of Non-Convertible Securities)
other records maintained by the Company and also the
Regulations, 2021;
information provided by the Company, its officers, agents
and authorised representatives during the conduct of
f. The Securities and Exchange Board of India
secretarial audit, we hereby report that in our opinion, the
(Registrars to an Issue and Share Transfer Agents)
Company has, during the audit period covering the financial
year ended on 31st March, 2023 complied with the statutory Regulations, 1993 regarding the Companies Act,
provisions listed hereunder and also that the Company 2013 and dealing with client;
has proper Board-processes and compliance-mechanism
in place to the extent, in the manner and subject to the g. The Securities and Exchange Board of India
reporting made hereinafter: (Delisting of Equity Shares) Regulations, 2021#; and

We have examined the books, papers, minute books, h. The Securities and Exchange Board of India (Buy-
forms and returns filed and other records maintained by back of Securities) Regulations, 2018#;
the Company for the financial year ended on 31st March, # The Regulations or Guidelines, as the case may be
2023 according to the provisions of: were not applicable to the Company for the period
under review.
i. The Companies Act, 2013 (the Act) and the Rules made
thereunder; The list of Acts, Laws and Regulations specifically
applicable to the Company are given below:
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder; vi. The Insurance Act, 1938, as amended;

iii. The Depositories Act, 1996 and the Regulations and vii. The Insurance Regulatory and Development Authority
Bye-laws framed thereunder; Act, 1999, as amended and Regulations framed
thereunder and as amended from time to time.
iv. Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent We have also examined compliance with the applicable
of Foreign Direct Investment. The Company does not
clauses of the following:
have any Overseas Direct Investment and External
Commercial Borrowings during the financial year;
i. Secretarial Standards issued by The Institute of
Company Secretaries of India;
v. The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
ii. The Securities and Exchange Board of India
1992 (‘SEBI Act’):-
(Listing Obligations and Disclosure Requirements)
Regulations, 2015.
Annual Report 2022-23 74

During the period under review, the Company has We further report that during the audit period, the
complied with the provisions of the Act, Rules, Regulations, Company has undertaken following events/actions:
Guidelines, Standards, etc. mentioned above, to the extent
applicable. i. On 19 th September, 2022, the Company has
exe r c i s e d c a l l o p t i o n a n d r e d e e m e d 8 0 0
We further report that - Unsecured, Subordinated, Listed, Redeemable, Non
- Convertible Debentures (NCDs) aggregating to
The Board of Directors of the Company is duly constituted ` 80 Crore, issued on 18th September, 2017.
with proper balance of Executive Directors, Non-Executive
and Independent Directors. The changes in the composition ii. During the period under review, Company has
issued and allotted 30,800 Unsecured, Listed,
of the Board of Directors that took place during the period
Redeemable, Non-Convertible Debentures (NCDs),
under review were carried out in compliance with the
in the nature of subordinated debt aggregating to
provisions of the Act.
` 380 Crore on a private placement basis.
Adequate notice is given to all Directors to schedule the iii. Approval of members of the Company has been
Board Meetings, agenda and detailed notes on agenda obtained at the Extra Ordinary General Meeting held
were sent at least seven days in advance for meetings other on 23rd March, 2023 to amend HDFC ERGO Employees
than those held at shorter notice and a system exists for Stock Option Plan - 2009 permitting pledge on shares
seeking and obtaining further information and clarifications allotted pursuant to exercise of stock options by eligible
on the agenda items before the meeting and for meaningful employees and extending flexibility with regard to
participation at the meeting. opening of exercise window and sale window.

During the period under review, decisions were carried

through unanimously and no dissenting views were
For Bhandari & Associates
observed, while reviewing the minutes. Company Secretaries
Firm Registration No: P1981MH043700
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 S. N. Bhandari
Partner
guidelines.
Mumbai FCS No: 761; C P No. : 366
27th April, 2023 ICSI UDIN: F000761E000362617

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.
Annual Report 2022-23 75

Annexure ‘A’

To,

The Members,
HDFC ERGO General Insurance Company Limited
CIN: U66030MH2007PLC177117

Our Secretarial Audit Report for the financial year ended on 31st March, 2023 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 efficacy or
effectiveness with which the management has conducted the affairs of the Company.

For Bhandari & Associates

Company Secretaries
Firm Registration No: P1981MH043700

S. N. Bhandari
Partner
Mumbai FCS No: 761; C P No. : 366
27th April, 2023 ICSI UDIN: F000761E000362617
Annual Report 2022-23 76

Independent Auditors’ Report

Independent Auditor’s Report to the Members of HDFC Miscellaneous Insurance Revenue Account; and
ERGO General Insurance Company Limited operating loss in so far as it relates to Marine
Insurance Revenue Account for the year ended on
Report on the Audit of the Financial Statements that date;
Opinion c. in the case of Profit and Loss Account, of the profit
We have audited the financial statements of HDFC ERGO for the year ended on that date; and
General Insurance Company Limited (the “Company”) d. in the case of the Receipts and Payments Account,
which comprise the Balance sheet as at 31 March 2023, of the receipts and payments for the year ended on
the Revenue Account, the Profit and Loss account and that date.
the Receipts and Payments Account for the year then Basis for Opinion
ended, and notes to the financial statements, including
We conducted our audit in accordance with the Standards
a summary of significant accounting policies and other
on Auditing (SAs) specified under Section 143(10) of
explanatory information (hereinafter referred to as the
the Act. Our responsibilities under those SAs are further
“financial statements”).
described in the Auditor’s Responsibilities for the Audit
In our opinion and to the best of our information and of the Financial Statements section of our report. We are
according to the explanations given to us, the aforesaid independent of the Company in accordance with the Code
financial statements give the information required in of Ethics issued by the Institute of Chartered Accountants
accordance with the provisions of the Insurance Act, of India together with the ethical requirements that are
1938 (the “Insurance Act”), the Insurance Regulatory relevant to our audit of the financial statements under
and Development Authority Act, 1999 (the “IRDA Act”), the Insurance Act, the IRDA Act, the Regulations, the
Insurance Regulatory and Development Authority Act and the Rules thereunder, and we have fulfilled our
(Preparation of Financial Statements and Auditors’ other ethical responsibilities in accordance with these
Report of Insurance Companies) Regulations, 2002 (the requirements and the Code of Ethics. We believe that
“IRDA Financial Statements Regulations”) and orders/ the audit evidence we have obtained is sufficient and
directions/circulars issued by the Insurance Regulatory appropriate to provide a basis for our opinion on the
and Development Authority of India (“IRDAI”/ “the financial statements.
Authority”) and the Companies Act, 2013, as amended
(the “Act”), to the extent applicable, in the manner so Key Audit Matters
required and give a true and fair view in conformity with Key audit matters are those matters that, in our
the accounting principles generally accepted in India, as professional judgement were of most significance in our
applicable to insurance companies: audit of the financial statements of the current year. These
a. in the case of the Balance Sheet, of the state of affairs matters were addressed in the context of our audit of
of the Company as at 31 March 2023; the financial statements as a whole, and in forming our
b. in the case of Revenue Account, of the operating opinion thereon, and we do not provide a separate opinion
profit in so far as it relates to Fire Insurance and 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 Our audit procedures included the following:
various information technology systems including • We involved our IT specialists for assessment of the IT
automated controls to process and record large systems and controls over financial reporting;
volume of transactions, such that there exists a risk
• Understood General IT Controls (GITC) over key financial
that gaps in the IT control environment could result in
accounting and reporting systems (referred to as “in-
the financial accounting and reporting records being
scope systems”) which covered access controls, program/
materially misstated.
system changes, program development and computer
operations;
Annual Report 2022-23 77

Independent Auditors’ Report (Continued)

Due to the pervasive nature, complexity and • Understood the IT infrastructure i.e. operating systems
importance of the impact of the IT systems and related and databases and related data security controls;
control environment on the Company’s financial • Tested controls over IT infrastructure covering user access
statements, we have identified testing of such IT including privilege users and system changes;
systems and related control environment as a key
• Evaluated design and operating effectiveness for in-
audit matter for the current year audit.
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.

Valuation and impairment determination of Investments (31 March 2023: INR 222,416,086
31 March 2022: INR 183,970,520)
(INR 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 Our audit procedures included the following:
bifurcated into Policyholders investments and • Understood the Company’s process and tested the
Shareholders investments in terms of IRDAI guidelines. controls on the valuation of investments;
Total investments represent 88.73 percent of the • Evaluated design, implementation and operating
Company’s total assets as at 31 March 2023. effectiveness of key controls over the valuation process
Investments are valued in accordance with the including impairment, including management’s review
provisions of the Insurance Act, the IRDA Financial and approval of the estimates and assumptions used for
Statements Regulations, orders/ directions/ circulars the valuation including key authorization and data input
issued by IRDAI and / or policies as approved by the controls;
Board of Directors of the Company (collectively the • Evaluated appropriateness of valuation methodologies
“Valuation Policy”). with reference to the Valuation Policy;
Investments amounting to INR 222,416,086 (‘000) • Performed independent price-verification for samples
are valued as per their accounting policy, based on using external quoted prices and by agreeing the
which: management’s observable inputs used in valuation
techniques to external data for listed and unlisted
• the unrealized gains/ losses arising due to
investments on test check basis;
changes in fair value of listed equity shares,
• Examined movement and appropriateness of accounting
additional Tier I bonds and mutual fund units are
in Fair Value Change Account for specific investments;
recorded in the “Fair Value Change Account” in
the Balance Sheet; and • For selected samples of investments measured at
historical cost, we have tested the Company’s assessment
• debt securities and unlisted equity shares are of impairment and evaluated whether the same was in
valued at historical cost. accordance with the Company’s impairment policy; and
Annual Report 2022-23 78

Independent Auditors’ Report (Continued)

Investments in listed equity shares, additional Tier I • Evaluated appropriateness and reasonableness of
bonds and mutual funds does not represent higher methodology, assumptions and judgements used by
risk of material misstatement, however, is considered management with reference to the Company’s investment
to be a key audit matter due to its materiality to the valuation and impairment assessment as per policy.
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.
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.

Information Other than the Financial Statements and including the provisions of the Insurance Act as amended
Auditor’s Report Thereon by Insurance Laws (Amendment) Act 2015 read with the
The Company’s Management and Board of Directors IRDA Act the IRDA Financial Statements Regulations,
are responsible for the other information. The other orders/directions/circulars issued by IRDAI in this regard
information comprises the information included in the and Accounting Standards specified under Section 133
Company’s annual report, but does not include the of the Act to the extent applicable. This responsibility also
financial statements and auditor’s report thereon. includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
Our opinion on the financial statements does not cover
of the assets of the Company and for preventing and
the other information and we do not express any form of
detecting frauds and other irregularities; selection and
assurance conclusion thereon.
application of appropriate accounting policies; making
In connection with our audit of the financial statements, judgments and estimates that are reasonable and
our responsibility is to read the other information and, prudent; and design, implementation and maintenance of
in doing so, consider whether the other information is adequate internal financial controls, that were operating
materially inconsistent with the financial statements effectively for ensuring the accuracy and completeness of
or our knowledge obtained in the audit or otherwise the accounting records, relevant to the preparation and
appears to be materially misstated. If, based on the work presentation of the financial statements that give a true
we have performed, we conclude that there is a material and fair view and are free from material misstatement,
misstatement of this other information, we are required to whether due to fraud or error.
report that fact. We have nothing to report in this regard.
In preparing the financial statements, the Management
Management’s and Board of Directors’ Responsibilities and Board of Directors are responsible for assessing
for the Financial Statements the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern
The Company’s Management and Board of Directors are
and using the going concern basis of accounting unless
responsible for the matters stated in Section 134(5) of
the Board of Directors either intends to liquidate the
the Act with respect to the preparation of these financial
Company or to cease operations, or has no realistic
statements that give a true and fair view of the state
alternative but to do so.
of affairs, net surplus/deficit, profit/loss and receipts
and payments of the Company in accordance with The Board of Directors is also responsible for overseeing
the accounting principles generally accepted in India, the Company’s financial reporting process.
Annual Report 2022-23 79

Independent Auditors’ Report (Continued)

Auditor’s Responsibilities for the Audit of the Financial we conclude that a material uncertainty exists, we
Statements are required to draw attention in our auditor’s report
Our objectives are to obtain reasonable assurance about to the related disclosures in the financial statements
whether the financial statements as a whole are free from or, if such disclosures are inadequate, to modify our
material misstatement, whether due to fraud or error, and opinion. Our conclusions are based on the audit
to issue an auditor’s report that includes our opinion. evidence obtained up to the date of our auditor’s
Reasonable assurance is a high level of assurance, but report. However, future events or conditions may
is not a guarantee that an audit conducted in accordance cause the Company to cease to continue as a going
with SAs will always detect a material misstatement when concern.
it exists. Misstatements can arise from fraud or error and • Evaluate the overall presentation, structure and
are considered material if, individually or in the aggregate, content of the financial statements, including the
they could reasonably be expected to influence the disclosures, and whether the financial statements
economic decisions of users taken on the basis of these represent the underlying transactions and events in
financial statements. a manner that achieves fair presentation.
As part of an audit in accordance with SAs, we exercise We communicate with those charged with governance
professional judgment and maintain professional regarding, among other matters, the planned scope and
skepticism throughout the audit. We also: timing of the audit and significant audit findings, including
• Identify and assess the risks of material misstatement any significant deficiencies in internal control that we
of the financial statements, whether due to fraud identify during our audit.
or error, design and perform audit procedures We also provide those charged with governance with
responsive to those risks, and obtain audit evidence a statement that we have complied with relevant
that is sufficient and appropriate to provide a ethical requirements regarding independence, and to
basis for our opinion. The risk of not detecting communicate with them all relationships and other
a material misstatement resulting from fraud is matters that may reasonably be thought to bear on our
higher than for one resulting from error, as fraud independence, and where applicable, related safeguards.
may involve collusion, forgery, intentional omissions, From the matters communicated with those charged with
misrepresentations, or the override of internal governance, we determine those matters that were of
control. most significance in the audit of the financial statements
• Obtain an understanding of internal control relevant of the current period and are therefore the key audit
to the audit in order to design audit procedures that matters. We describe these matters in our auditor’s report
are appropriate in the circumstances. Under Section unless law or regulation precludes public disclosure about
143(3)(i) of the Act, we are also responsible for the matter or when, in extremely rare circumstances, we
expressing our opinion on whether the Company has determine that a matter should not be communicated in
adequate internal financial controls with reference our report because the adverse consequences of doing
to financial statements in place and the operating so would reasonably be expected to outweigh the public
effectiveness of such controls. interest benefits of such communication.
• Evaluate the appropriateness of accounting policies
Other Matters
used and the reasonableness of accounting
estimates and related disclosures made by the a. The actuarial valuation of liabilities for non-life policies
Management and Board of Directors. is the responsibility of the Company’s Appointed
Actuary (the “Appointed Actuary”). The actuarial
• Conclude on the appropriateness of the Management
valuation of the outstanding claims reserves that
and Board of Directors use of the going concern basis
are estimated using statistical methods, Premium
of accounting in preparation of financial statements
Deficiency Reserve (the “PDR”), Incurred but Not
and, based on the audit evidence obtained, whether
Reported (“IBNR”) including Incurred but Not Enough
a material uncertainty exists related to events or
Reported (“IBNER”) as at 31 March 2023 has been
conditions that may cast significant doubt on the
duly certified by the Appointed Actuary and in his
Company’s ability to continue as a going concern. If
opinion, the assumptions for such valuation are in
Annual Report 2022-23 80

Independent Auditors’ Report (Continued)

accordance with the guidelines and norms issued principles prescribed in the IRDA Financial
by IRDAI and the Institute of Actuaries of India in Statements Regulations and orders/ directions/
concurrence with the Authority. We have relied upon circulars issued by IRDAI in this regard.
the Appointed Actuary’s certificate in this regard for f. In our opinion, investments have been valued in
forming our opinion on the valuation of liabilities for accordance with the provisions of the Insurance
outstanding claims reserves that are estimated using Act, the IRDA Financial Statements Regulations,
statistical methods, PDR, IBNR (including IBNER) the IRDA Act and/or orders/directions issued by
reserves, as contained in the financial statements the IRDAI in this regard
of the Company.
g. In our opinion, the accounting policies selected
b. The financial statements of the Company for the by the Company are appropriate and are in
year ended 31 March 2022 were audited by one compliance with the applicable Accounting
of the predecessor auditors, B. K Khare & Co. and Standards specified under Section 133 of the Act
continuing joint auditor, G. M. Kapadia & Co. whose to the extent they are not inconsistent with the
report dated 25 April 2022 had expressed an accounting principles as prescribed in the IRDA
unmodified opinion. Financial Statements Regulations and orders/
Our opinion is not modified in respect of these directions issued by the IRDAI in this regard.
matters. h. On the basis of the written representations
received from the directors as on 31 March
Report on Other Legal and Regulatory Requirements 2023 taken on record by the Board of Directors,
1. As required by IRDA Financial Statements Regulations, none of the directors is disqualified as on 31
we have issued a separate certificate dated 27 April March 2023 from being appointed as a director
2023 certifying the matters specified in paragraphs 3 in terms of Section 164(2) of the Act.
and 4 of Schedule C to the IRDA Financial Statements i. With respect to the adequacy of the internal
Regulations. financial controls with reference to financial
2A. As required by IRDA Financial Statements Regulations statements of the Company and the operating
read with Section 143(3) of the Act, we report that: effectiveness of such controls, refer to our
a. We have sought and obtained all the information separate Report in “Annexure A”.
and explanations which to the best of our B. With respect to the other matters to be included in
knowledge and belief were necessary for the the Auditor’s Report in accordance with Rule 11 of
purposes of our audit. the Companies (Audit and Auditors) Rules, 2014, in
b. In our opinion, proper books of account as our opinion and to the best of our information and
required by law have been kept by the Company according to the explanations given to us:
so far as it appears from our examination of a. The Company has disclosed the impact of
those books. pending litigations as at 31 March 2023 on its
c. As the Company’s financial accounting system financial position in its financial statements -
is centralized at Head Office, no returns for Refer Note 4 to the financial statements.
the purpose of our audit are prepared at the b. The Company has made provision, as required
branches and other offices of the Company under the applicable law or accounting
d. The Balance Sheet, the Revenue Account, the standards, for material foreseeable losses, if
Profit and Loss Account and the Receipts and any, on long-term contracts including derivative
Payment Account dealt with by this Report are contracts. The Company did not have any
in agreement with the books of account. outstanding long-term derivative contracts –
Refer Note 35 to the financial statements.
e. In our opinion, the aforesaid financial statements
comply with the Accounting Standards specified c. There has been no delay in transferring amounts,
under Section 133 of the Act, to the extent required to be transferred, to the Investor
they are not inconsistent with the accounting Protection and Education Fund by the Company.
Annual Report 2022-23 81

Independent Auditors’ Report (Continued)

d.(i) The management has represented that, to the e. The interim dividend declared and paid by the
best of its knowledge and belief, as disclosed in Company during the year is in accordance with
the Note 37 to the financial statements, no funds Section 123 of the Act.
have been advanced or loaned or invested (either f. Proviso to Rule 3(1) of the Companies (Accounts)
from borrowed funds or share premium or any Rules, 2014 for maintaining books of account
other sources or kind of funds) by the Company using accounting software which has a feature of
to or in any other person(s) or entity(ies), recording audit trail (edit log) facility is applicable
including foreign entities (“Intermediaries”), with to the Company with effect from April 1, 2023,
the understanding, whether recorded in writing and accordingly, reporting under Rule 11(g) of
or otherwise, that the Intermediary shall: Companies (Audit and Auditors) Rules, 2014 is
• directly or indirectly lend or invest in other not applicable for the financial year ended March
persons or entities identified in any manner 31, 2023.
whatsoever by or on behalf of the Company C. With respect to the matter to be included in the
(“Ultimate Beneficiaries”) or Auditor’s Report under Section 197(16) of the Act,
• provide any guarantee, security or the like in our opinion and according to the information and
on behalf of the Ultimate Beneficiaries. explanations given to us, the remuneration paid by
(ii) The management has represented that, to the the Company to its directors during the current year
best of its knowledge and belief, as disclosed in is in accordance with the provisions of Section 197
the Note 37 to the financial statements, no funds of the Act read with Section 34A of the Insurance Act,
have been received by the Company from any 1938. The remuneration paid to any director is not
person(s) or entity(ies), including foreign entities in excess of the limit laid down under Section 197
(“Funding Parties”), with the understanding, of the Act read with Section 34A of the Insurance
whether recorded in writing or otherwise, that Act, 1938. The Ministry of Corporate Affairs has not
the Company shall: prescribed other details under Section 197(16) of
the Act which are required to be commented upon
• directly or indirectly, lend or invest in other
persons or entities identified in any manner by us.
whatsoever by or on behalf of the Funding
Parties (“Ultimate Beneficiaries”) or For G. M. Kapadia & Co. For B S R & Co. LLP
Chartered Accountants Chartered Accountants
• provide any guarantee, security or the like Firm’s Registration Number: Firm’s Registration Number:
on behalf of the Ultimate Beneficiaries. 104767W 101248W/W-100022
(iii) Based on the audit procedures performed
that have been considered reasonable and Rajen Ashar Ritesh Goyal
appropriate in the circumstances, nothing has Partner Partner
Membership No. 048243 Membership No. 115007
come to our notice that has caused us to believe ICAI UDIN: 23048243BGXPRF9355 ICAI UDIN: 23115007BGXPOX9537
that the representations under sub-clause (i)
and (ii) of Rule 11(e), as provided under (i) and Mumbai
(ii) above, contain any material misstatement. Dated: 27 April 2023
Annual Report 2022-23 82

Annexure A to Independent Auditors’ Report

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 2023

Report on the internal financial controls with reference of the Act, to the extent applicable to an audit of internal
to the aforesaid financial statements under Clause (i) of financial controls with reference to financial statements.
Sub-section 3 of Section 143 of the Act Those Standards and the Guidance Note require that we
(Referred to in paragraph 2(A)(j) under ‘Report on Other comply with ethical requirements and plan and perform
Legal and Regulatory Requirements’ section of our report the audit to obtain reasonable assurance about whether
of even date) adequate internal financial controls with reference to
financial statements were established and maintained
Opinion and if such controls operated effectively in all material
We have audited the internal financial controls with respects.
reference to financial statements of HDFC ERGO General Our audit involves performing procedures to obtain audit
Insurance Company Limited (“the Company”) as of evidence about the adequacy of the internal financial
31 March 2023 in conjunction with our audit of the controls with reference to financial statements and their
financial statements of the Company for the year ended operating effectiveness. Our audit of internal financial
on that date. controls with reference to financial statements included
In our opinion, the Company has, in all material respects, obtaining an understanding of internal financial controls
adequate internal financial controls with reference to with reference to financial statements, assessing the risk
financial statements and such internal financial controls that a material weakness exists, and testing and evaluating
were operating effectively as at 31 March 2023, based the design and operating effectiveness of internal control
on the internal financial controls with reference to based on the assessed risk. The procedures selected
financial statements criteria established by the Company depend on the auditor’s judgement, including the
considering the essential components of internal control assessment of the risks of material misstatement of the
stated in the Guidance Note on Audit of Internal Financial financial statements, whether due to fraud or error.
Controls Over Financial Reporting issued by the Institute We believe that the audit evidence we have obtained is
of Chartered Accountants of India (the “Guidance Note”). sufficient and appropriate to provide a basis for our audit
Management’s and Board of Directors’ Responsibilities opinion on the Company’s internal financial controls with
for Internal Financial Controls reference to financial statements.
The Company’s Management and the Board of Directors Meaning of Internal Financial Controls with Reference to
are responsible for establishing and maintaining internal Financial Statements
financial controls based on the internal financial controls
A company’s internal financial controls with reference
with reference to financial statements criteria established
to financial statements is a process designed to provide
by the Company considering the essential components
reasonable assurance regarding the reliability of financial
of internal control stated in the Guidance Note. These
reporting and the preparation of financial statements
responsibilities include the design, implementation and
for external purposes in accordance with generally
maintenance of adequate internal financial controls that
accepted accounting principles. A company’s internal
were operating effectively for ensuring the orderly and
financial controls with reference to financial statements
efficient conduct of its business, including adherence
include those policies and procedures that (1) pertain
to company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the to the maintenance of records that, in reasonable
accuracy and completeness of the accounting records, detail, accurately and fairly reflect the transactions and
and the timely preparation of reliable financial information, dispositions of the assets of the company; (2) provide
as required under the Act. reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in
Auditor’s Responsibility accordance with generally accepted accounting principles,
Our responsibility is to express an opinion on the and that receipts and expenditures of the company
Company’s internal financial controls with reference to are being made only in accordance with authorisations
financial statements based on our audit. We conducted of management and directors of the company; and
our audit in accordance with the Guidance Note and the (3) provide reasonable assurance regarding prevention
Standards on Auditing, prescribed under Section 143(10) or timely detection of unauthorised acquisition, use, or
Annual Report 2022-23 83

disposition of the company’s assets that could have a Incurred but Not Enough Reported (“IBNER”) as at 31
material effect on the financial statements. March 2023 has been duly certified by the Appointed
Actuary and in his opinion, the assumptions for such
Inherent Limitations of Internal Financial Controls with valuation are in accordance with the guidelines and
Reference to Financial Statements norms issued by IRDAI and the Institute of Actuaries of
Because of the inherent limitations of internal financial India in concurrence with the Authority. We have relied
controls with reference to financial statements, including upon the Appointed Actuary’s certificate in this regard
the possibility of collusion or improper management for forming our opinion on the valuation of liabilities for
override of controls, material misstatements due to error outstanding claims reserves that are estimated using
or fraud may occur and not be detected. Also, projections statistical methods, PDR, IBNR (including IBNER) reserves,
of any evaluation of the internal financial controls with as contained in the financial statements of the Company.
reference to financial statements to future periods are Our opinion is not modified in respect of this matter.
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 For G. M. Kapadia & Co. For B S R & Co. LLP
degree of compliance with the policies or procedures may Chartered Accountants Chartered Accountants
deteriorate. Firm’s Registration Number: Firm’s Registration Number:
104767W 101248W/W-100022
Other Matters
The actuarial valuation of liabilities for non-life policies Rajen Ashar Ritesh Goyal
Partner Partner
is the responsibility of the Company’s Appointed Actuary
Membership No. 048243 Membership No. 115007
(the “Appointed Actuary”). The actuarial valuation of the ICAI UDIN: 23048243BGXPRF9355 ICAI UDIN: 23115007BGXPOX9537
outstanding claims reserves that are estimated using
statistical methods, Premium Deficiency Reserve (the Mumbai
“PDR”), Incurred but Not Reported (“IBNR”) including Dated: 27 April 2023
Annual Report 2022-23 84

Independent Auditors’ Certificate

TO THE MEMBERS OF HDFC ERGO GENERAL INSURANCE Financial Statements Regulations for the year ended
COMPANY LIMITED 31 March 2023.
(Referred to in paragraph 1 of our Report on Other 4. We conducted our examination in accordance with the
Legal and Regulatory Requirements forming part of the Guidance Note on Reports or Certificates for Special
Independent Auditors’ Report dated 27 April 2023) Purposes (Revised 2016) and Standards on Auditing
1. This certificate is issued to comply with the provisions issued by the Institute of Chartered Accountants of
of paragraph 3 and 4 of Schedule C of the Insurance India (ICAI) in so far as applicable for the purpose of
Regulatory and Development Authority (Preparation this Certificate, which include the concepts of test
of Financial Statements and Auditor’s Report of checks and materiality. This Guidance Note requires
Insurance Companies) Regulations 2002, (“the that we comply with the ethical requirements of the
IRDA Financial Statements Regulations”) read with Code of Ethics issued by the ICAI.
Regulation 3 of the IRDA Financial Statements 5. We have complied with the relevant applicable
Regulations requirements of the Standard on Quality Control (SQC)
1, “Quality Control for Firms that Perform Audits and
Management and Board of Directors’ Responsibility Reviews of Historical Financial Information, and Other
2. The Company’s Management and Board of Directors Assurance and Related Services Engagements”.
are responsible for complying with the provisions of
the Insurance Act, 1938 as amended by the Insurance Opinion
Laws (Amendment) Act, 2015 (the “Insurance Act”), 6. In accordance with the information and explanations
the Insurance Regulatory and Development Authority and representations given to us and to the best of our
Act, 1999 (the “IRDA Act”), the IRDA Financial knowledge and belief and based on our examination,
Statements Regulations, orders/circulars/directions of the books of account and other records maintained
issued by the Insurance Regulatory and Development by the Company for the year ended 31 March 2023,
Authority of India (the “IRDAI”) which includes (i) we certify that:
preparation of management report consistent with
a) We have reviewed the Management Report
the financial statements; (ii) compliance with the
attached to the financial statements for the year
terms and conditions of the registration stipulated
ended 31 March 2023, and on the basis of our
by the Authority; (iii) maintenance and custody of
review, there is no apparent mistake or material
cash balances and maintenance of investments
inconsistencies with the financial statements;
with custody and depository; and (iv) ensuring that
no part of the assets of the policyholders’ funds has b) Based on information and explanations
been directly or indirectly applied in contravention received during the normal course of our audit,
of the provisions of the Insurance Act, relating to the management representations and compliance
application and investments of the Policyholders’ certificates submitted to the Board of Directors
Funds. This responsibility includes collecting, collating by the officers of the Company charged with
and validating data and designing, implementing and compliance and the same being noted by the
monitoring of internal controls suitable for ensuring Board, we certify that the Company has complied
the aforesaid and applying an appropriate basis of with the terms and conditions of registration
preparation; and making estimates and judgments stipulated by the IRDAI;
that are reasonable in the circumstances. c) We have verified the cash balances to the extent
considered necessary, and securities relating
Independent Auditor’s Responsibility to the Company’s investments as at 31 March
3. Pursuant to the requirement of the IRDA Financial 2023, by actual inspection or on the basis of
Statements Regulations, our responsibility for the certificates/confirmations received from the
purpose of this certificate, is to provide reasonable concerned branches and/HO personnel of
assurance on the matters contained in paragraphs 3 the company, Custodian and/or Depository
and 4 of Schedule C of the IRDA Financial Statements Participants appointed by the Company, as the
Regulation read with Regulation 3 of the IRDA case may be. Further, we have also relied upon
Annual Report 2022-23 85

the management’s certificate for cash/cheque be and should not be used for any other purpose without
balances as at 31 March 2023; our prior consent. Accordingly, we do not accept or assume
d) We have been given to understand by the any liability or any duty of care for any other purpose or
management that the Company is not a trustee to any other person to whom this Certificate is shown or
of any trust; and into whose hands it may come without our prior consent
in writing.
e) No part of the assets of the Policyholders’
Funds has been directly or indirectly applied in
contravention to the provisions of the Insurance For G. M. Kapadia & Co. For B S R & Co. LLP
Act, relating to the application and investments Chartered Accountants Chartered Accountants
of the Policyholders’ Funds. Firm’s Registration Number: Firm’s Registration Number:
104767W 101248W/W-100022
Restriction on Use
This certificate is issued at the request of the Company Rajen Ashar Ritesh Goyal
Partner Partner
solely for use of the Company for inclusion in the annual
Membership No. 048243 Membership No. 115007
accounts in order to comply with the provisions of ICAI UDIN: 23048243BGXPRF9355 ICAI UDIN: 23115007BGXPOX9537
paragraph 3 and 4 of Schedule C of the IRDA Financial
Statements Regulations read with Regulation 3 of the IRDA Mumbai
Financial Statements Regulations and is not intended to Dated: 27 April 2023
Annual Report 2022-23 86

FORM B - BS
IRDAI Registration No: 146
Date of Registration with the IRDAI: July 09, 2010

Balance Sheet as at March 31, 2023

Particulars Schedule As at As at
March 31, 2023 March 31, 2022
(Audited) (Audited)
(` ‘000) (` ‘000)
SOURCES OF FUNDS
SHARE CAPITAL 5 7,127,800 7,127,800
SHARE APPLICATION 8,769 —
RESERVES AND SURPLUS 6 32,026,002 27,994,137
FAIR VALUE CHANGE ACCOUNT - SHAREHOLDERS 56,360 132,032
FAIR VALUE CHANGE ACCOUNT - POLICYHOLDERS 242,013 520,846
BORROWINGS 7 8,290,000 5,290,000
DEFERRED TAX LIABILITY — —
TOTAL 47,750,944 41,064,815
APPLICATION OF FUNDS
INVESTMENTS - SHAREHOLDERS 8 42,011,314 37,204,597
INVESTMENTS - POLICYHOLDERS 8A 180,404,772 146,765,923
LOANS 9 — —
FIXED ASSETS 10 3,640,987 2,992,962
DEFERRED TAX ASSET 523,078 586,610
(Refer note 15 of Schedule 16)
CURRENT ASSETS
Cash and Bank Balances 11 3,152,831 1,342,855
Advances and Other Assets 12 20,920,783 24,011,507
Sub-Total (A) 24,073,614 25,354,362
CURRENT LIABILITIES 13 148,692,843 126,225,710
PROVISIONS 14 54,209,978 45,613,929
Sub-Total (B) 202,902,821 171,839,639
NET CURRENT ASSETS/(LIABILITIES) (C) = (A-B) (178,829,207) (146,485,277)
MISCELLANEOUS EXPENDITURE 15 — —
(to the extent not written off or adjusted)
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT — —
TOTAL 47,750,944 41,064,815
Schedules referred to above and the notes to accounts form an integral part of the financial 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. B S R & Co. LLP Keki M Mistry Renu S. Karnad Oliver Martin Willmes Clemens Matthias Muth
Chartered Accountants Chartered Accountants Chairman Non-Executive Director Non-Executive Director Non-Executive Director
Firm Registration No.: 104767W Firm’s Registration No.: 101248W/W-100022 (DIN: 00008886) (DIN: 00008064) (DIN: 08876420) (DIN: 07824451)
Rajen Ashar Ritesh Goyal Bernhard Steinruecke Mehernosh B. Kapadia Arvind Mahajan Ameet Hariani
Partner Partner Independent Director Independent Director Independent Director Independent Director
Membership No.: 048243 (Membership No. 115007) (DIN: 01122939) (DIN: 00046612) (DIN: 07553144) (DIN: 00087866)
Sanjib Chaudhuri Vinay Sanghi Rajgopal Thirumalai Ritesh Kumar
Independent Director Independent Director Independent Director Managing Director & CEO
(DIN: 09565962) (DIN: 00309085) (DIN: 02253615) (DIN: 02213019)
Anuj Tyagi Samir H. Shah Vyoma Manek
Mumbai Deputy Managing Director Executive Director & CFO Company Secretary & Chief Compliance Officer
Dated: April 27, 2023 (DIN: 07505313) (DIN: 08114828 ) (Membership No.: ACS 20384)
Annual Report 2022-23 87

FORM B - PL
IRDAI Registration No: 146
Date of Registration with the IRDAI: July 09, 2010

Profit and Loss Account for the year ended March 31, 2023
Particulars Schedule For the year ended For the year ended
March 31, 2023 March 31, 2022
(` ‘000) (` ‘000)
OPERATING PROFIT/(LOSS)
Fire Insurance 1,229,641 872,725
Marine Insurance (976,202) (259,603)
Miscellaneous Insurance 6,473,545 4,129,879
6,726,984 4,743,001
INCOME FROM INVESTMENTS
Interest, Dividend and Rent – Gross (Refer note 2 (c) of Schedule 16) 2,533,855 2,089,248
Profit on sale of investments 195,684 351,153
Less: Loss on sale of investments (8,765) (3,490)
2,720,774 2,436,911
OTHER INCOME
TOTAL (A) 9,447,758 7,179,912
PROVISIONS (OTHER THAN TAXATION)
For diminution in the value of investments (Refer note 10 of Schedule 16) (174,669) (296,751)
For doubtful debts 222,536 (1,183)
47,867 (297,934)
OTHER EXPENSES
Expenses other than those related to insurance business
Employees’ related remuneration and welfare benefits (Refer note 11 of Schedule 16) 120,325 112,483
Corporate Social Responsibility Expenses (Refer note 29 of Schedule 16) 126,636 113,876
Bad debts written off 18,661 18,126
Remuneration to directors and others 7,015 4,170
Bad & Doubtful Investments written off (Refer note 10 of Schedule 16) — 133,400
Interest on Debentures 433,202 409,148
Debenture issuance expenses 9,598 8,948
TOTAL (B) 763,304 502,217
PROFIT/(LOSS) BEFORE TAX 8,684,454 6,677,695
Provision for Taxation
- Current Tax 2,094,328 1,526,455
- Deferred Tax (Refer note 15 of Schedule 16) 63,531 149,924
PROFIT/(LOSS) AFTER TAX 6,526,595 5,001,316
APPROPRIATIONS
Interim Dividends paid during the year (Refer note 34 of Schedule 16) 2,494,730 2,316,535
Proposed final 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 Profit/(Loss) brought forward from previous year 10,468,714 7,783,933
BALANCE CARRIED FORWARD TO BALANCE SHEET 14,500,579 10,468,714
EARNINGS PER SHARE (Basic) (in `) 9.16 7.02
EARNINGS PER SHARE (Diluted) (in `) 9.13 7.00
(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 Profit and Loss Account.
Signatures to the Profit 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. B S R & Co. LLP Keki M Mistry Renu S. Karnad Oliver Martin Willmes Clemens Matthias Muth
Chartered Accountants Chartered Accountants Chairman Non-Executive Director Non-Executive Director Non-Executive Director
Firm Registration No.: 104767W Firm’s Registration No.: 101248W/W-100022 (DIN: 00008886) (DIN: 00008064) (DIN: 08876420) (DIN: 07824451)
Rajen Ashar Ritesh Goyal Bernhard Steinruecke Mehernosh B. Kapadia Arvind Mahajan Ameet Hariani
Partner Partner Independent Director Independent Director Independent Director Independent Director
Membership No.: 048243 (Membership No. 115007) (DIN: 01122939) (DIN: 00046612) (DIN: 07553144) (DIN: 00087866)
Sanjib Chaudhuri Vinay Sanghi Rajgopal Thirumalai Ritesh Kumar
Independent Director Independent Director Independent Director Managing Director & CEO
(DIN: 09565962) (DIN: 00309085) (DIN: 02253615) (DIN: 02213019)
Anuj Tyagi Samir H. Shah Vyoma Manek
Mumbai Deputy Managing Director Executive Director & CFO Company Secretary & Chief Compliance Officer
Dated: April 27, 2023 (DIN: 07505313) (DIN: 08114828 ) (Membership No.: ACS 20384)
Annual Report 2022-23 88

IRDAI Registration No: 146

Date of Registration with the IRDAI: July 09, 2010

Receipts and Payments Account for the year ended March 31, 2023

Particulars Schedule For the year ended For the year ended
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)
Cash flows from operating activities
Premium received from policyholders, including advance receipts 196,628,477 151,502,343
Payments to re-insurers, net of commission and claims (23,376,300) (22,808,999)
Payments to co-insurers, net of claims recovery 337,644 623,568
Payments of claims (91,144,196) (82,709,792)
Payments of commission and brokerage (15,793,812) (12,818,928)
Payments of other operating expenses (26,208,371) (19,756,326)
Corporate Social Responsibility (CSR) expenses (126,636) (113,876)
Deposits, advances and staff loans (322,455) 139,022
Income taxes paid (Net) (1,869,785) (1,561,635)
Goods and Services Tax paid (9,797,054) (8,335,878)
Net cash generated from/(used in) operating activities (A) 28,327,512 4,159,499
Cash flows from investing activities
Purchase of fixed assets (1,344,298) (798,634)
Proceeds from sale of fixed assets 22,902 12,621
Purchase of investments (1,035,962,940) (125,942,910)
Sale of investments 986,748,329 102,971,221
Rent/Interest/Dividend received 14,573,865 12,381,513
Investments in money market instruments and in liquid mutual funds (Net) 9,394,778 6,150,646
Net cash flow from/(used in) investing activities (B) (26,567,364) (5,225,543)
Cash flows from financing activities
Proceeds from issuance of share capital and share premium — 165,580
Receipt of Share application money pending allotment 8,769 —
Repayments of borrowing (800,000) (3,500,000)
Proceeds from issuance of borrowing 3,800,000 3,750,000
Interest Paid (435,589) (408,905)
Dividend paid (Including dividend distribution tax) (2,494,730) (2,316,535)
Net cash flow from/(used in) financing activities (C) 78,450 (2,309,860)
Effect of foreign exchange rates on cash and cash equivalents (Net) (D) (1,571) (6,152)
Net increase/(decrease) in cash and cash equivalents (A + B + C + D) 1,837,027 (3,382,056)
Cash and cash equivalents at the beginning of the year 1,305,453 4,687,509
Cash and cash equivalents at the end of the period 3,142,480 1,305,453
Net increase/(decrease) in cash and cash equivalents 1,837,027 (3,382,056)
Reconciliation of Cash and cash equivalents with the Balance Sheet:
Cash and Bank balances 3,152,831 1,342,855
Less: Deposit Accounts not considered as Cash and cash equivalents as defined in AS-3 (10,351) (37,402)
“Cash Flow Statements”
Cash and cash equivalents at the end of the period 3,142,480 1,305,453
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. B S R & Co. LLP Keki M Mistry Renu S. Karnad Oliver Martin Willmes Clemens Matthias Muth
Chartered Accountants Chartered Accountants Chairman Non-Executive Director Non-Executive Director Non-Executive Director
Firm Registration No.: 104767W Firm’s Registration No.: 101248W/W-100022 (DIN: 00008886) (DIN: 00008064) (DIN: 08876420) (DIN: 07824451)
Rajen Ashar Ritesh Goyal Bernhard Steinruecke Mehernosh B. Kapadia Arvind Mahajan Ameet Hariani
Partner Partner Independent Director Independent Director Independent Director Independent Director
Membership No.: 048243 (Membership No. 115007) (DIN: 01122939) (DIN: 00046612) (DIN: 07553144) (DIN: 00087866)
Sanjib Chaudhuri Vinay Sanghi Rajgopal Thirumalai Ritesh Kumar
Independent Director Independent Director Independent Director Managing Director & CEO
(DIN: 09565962) (DIN: 00309085) (DIN: 02253615) (DIN: 02213019)
Anuj Tyagi Samir H. Shah Vyoma Manek
Mumbai Deputy Managing Director Executive Director & CFO Company Secretary & Chief Compliance Officer
Dated: April 27, 2023 (DIN: 07505313) (DIN: 08114828 ) (Membership No.: ACS 20384)
 ( ` ‘000)
FIRE INSURANCE MARINE INSURANCE
MISCELLANEOUS TOTAL
INSURANCE
Particulars Schedule For the year For the year For the year For the year For the year For the year For the year For the year
ended March ended March ended March ended March ended March ended March ended March ended March

FORM B — RA
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
1 Premiums Earned (Net) 1 2,721,523 2,843,511 1,593,410 1,215,563 76,034,659 64,727,401 80,349,592 68,786,475
Annual Report 2022-23

2 Profit/Loss on Sale/Redemption 45,319 85,094 10,288 12,827 716,387 1,379,905 771,993 1,477,826
of Investments (Net)
IRDAI Registration No: 146

3 Others:
Investment Income from 53,023 40,886 — — — — 53,023 40,886
Terrorism Pool
Miscellaneous Income 1,788 893 1,079 386 51,475 20,550 54,342 21,829
4 Interest, Dividend and Rent 614,351 511,366 139,455 77,083 9,711,299 8,292,404 10,465,105 8,880,853
– Gross (Refer note 2 (c) of
Schedule 16)
TOTAL (A) 3,436,004 3,481,750 1,744,232 1,305,859 86,513,820 74,420,260 91,694,055 79,207,869
Date of Registration with the IRDAI: July 09, 2010

1 Claims Incurred (Net) 2 1,590,464 1,780,148 2,173,943 1,143,283 60,465,127 54,887,151 64,229,533 57,810,582
2 Commission (Net) 3 (1,954,068) (1,277,634) 237,042 166,238 (668,156) (1,659,118) (2,385,182) (2,770,514)
3 Operating Expenses Related to 4 2,569,967 2,106,511 309,449 255,941 20,243,304 17,062,348 23,122,720 19,424,800
Insurance Business
4 Premium Deficiency — — — — — — — —
(Refer Note 27 of Schedule 16)
TOTAL (B) 2,206,363 2,609,025 2,720,434 1,565,462 80,040,275 70,290,381 84,967,071 74,464,868
Operating Profit/(Loss) (A-B) 1,229,641 872,725 (976,202) (259,603) 6,473,545 4,129,879 6,726,984 4,743,001
APPROPRIATIONS
Transfer to Shareholders’ 1,229,641 872,725 (976,202) (259,603) 6,473,545 4,129,879 6,726,984 4,743,001
Account
Transfer to Catastrophe Reserve — — — — — — — —
Transfer to Other Reserves — — — — — — — —
Revenue Accounts for the year ended March 31, 2023

TOTAL (C) 1,229,641 872,725 (976,202) (259,603) 6,473,545 4,129,879 6,726,984 4,743,001
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. B S R & Co. LLP Keki M Mistry Renu S. Karnad Oliver Martin Willmes Clemens Matthias Muth
Chartered Accountants Chartered Accountants Chairman Non-Executive Director Non-Executive Director Non-Executive Director
Firm Registration No.: 104767W Firm’s Registration No.: 101248W/W-100022 (DIN: 00008886) (DIN: 00008064) (DIN: 08876420) (DIN: 07824451)
Rajen Ashar Ritesh Goyal Bernhard Steinruecke Mehernosh B. Kapadia Arvind Mahajan Ameet Hariani
Partner Partner Independent Director Independent Director Independent Director Independent Director
Membership No.: 048243 (Membership No. 115007) (DIN: 01122939) (DIN: 00046612) (DIN: 07553144) (DIN: 00087866)
Sanjib Chaudhuri Vinay Sanghi Rajgopal Thirumalai Ritesh Kumar
Independent Director Independent Director Independent Director Managing Director & CEO
(DIN: 09565962) (DIN: 00309085) (DIN: 02253615) (DIN: 02213019)
Anuj Tyagi Samir H. Shah Vyoma Manek
Mumbai Deputy Managing Director Executive Director & CFO Company Secretary & Chief Compliance Officer
Dated: April 27, 2023 (DIN: 07505313) (DIN: 08114828 ) (Membership No.: ACS 20384)
89
SCHEDULE - 1
PREMIUM EARNED (NET) ( ` ‘000)
For the year ended March 31, 2023 For the year ended March 31, 2022
Particulars Fire Marine * Miscellaneous Total Fire Marine ** Miscellaneous Total

Schedules
Marine Cargo Marine Hull Marine Total Marine Cargo Marine Hull Marine Total
Premium from direct business written-net of GST 17,100,149 2,001,113 197,393 2,198,506 147,059,485 166,358,140 13,303,548 1,537,005 197,443 1,734,448 119,937,511 134,975,507
Annual Report 2022-23

Add: Premium on Re-insurance accepted 1,892,347 73,376 — 73,376 407,511 2,373,234 1,685,528 75,992 — 75,992 334,416 2,095,936
Less: Premium on Re-insurance ceded (15,620,164) (401,941) (195,593) (597,534) (63,705,293) (79,922,991) (11,884,310) (352,903) (196,583) (549,486) (53,568,871) (66,002,667)
Net Premium 3,372,332 1,672,548 1,800 1,674,348 83,761,703 88,808,383 3,104,766 1,260,094 860 1,260,954 66,703,056 71,068,776
Add/(Less): Adjustment for changes in reserve for (650,809) (80,044) (894) (80,938) (7,727,044) (8,458,791) (261,255) (45,094) (297) (45,391) (1,975,655) (2,282,301)
unexpired risks
Total Premium Earned (Net) 2,721,523 1,592,504 906 1,593,410 76,034,659 80,349,592 2,843,511 1,215,000 563 1,215,563 64,727,401 68,786,475

* Miscellaneous Premium Breakup for the year ended March 31, 2023 ( ` ‘000)
Miscellaneous
Motor Workmen’s Public Product Engineering Aviation Personal Health Others
Particulars
Motor-OD Motor-TP Motor Total Compensation Liability Liability Accident Insurance Other Home Specialty Weather/Crop Others Total
Liability Miscellaneous
Premium from direct business written-net 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
of GST
Add: Premium on Re-insurance accepted — — — — 1,152 — 57,259 — — — 18,460 — 329,144 — 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 (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)
reserve for unexpired risks
Annexed to and forming part of the Revenue Accounts

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

** Miscellaneous Premium Breakup for the year ended March 31, 2022 ( ` ‘000)
Miscellaneous
Motor Workmen’s Public Product Engineering Aviation Personal Health Others
Particulars
Motor-OD Motor-TP Motor Total Compensation Liability Liability Accident Insurance Other Home Specialty Weather/Crop Others Total
Liability Miscellaneous
Premium from direct business written-net 15,370,918 20,119,060 35,489,978 167,450 34,979 1,461 1,835,923 181,440 5,987,876 43,418,660 835,100 729,689 2,572,167 27,119,738 1,563,050 119,937,511
of GST
Add: Premium on Re-insurance accepted — — — — 700 — 66,787 — 3,250 — 21,402 — 240,718 — 1,559 334,416
Less: Premium on Re-insurance ceded (801,449) (9,068,682) (9,870,131) (23,847) (29,052) (943) (1,463,867) (181,278) (2,624,326) (14,654,266) (617,555) (69,918) (2,166,340) (21,029,278) (838,070) (53,568,871)
Net Premium 14,569,469 11,050,378 25,619,847 143,603 6,627 518 438,843 162 3,366,800 28,764,394 238,947 659,771 646,545 6,090,460 726,539 66,703,056
Add/(Less): Adjustment for changes in 61,074 (96,776) (35,702) 17 (1) 181 5,309 (34) 918,953 (2,353,570) (2,789) (556,562) (54,021) (110,349) 212,913 (1,975,655)
reserve for unexpired risks
Total Premium Earned (Net) 14,630,543 10,953,602 25,584,145 143,620 6,626 699 444,152 128 4,285,753 26,410,824 236,158 103,209 592,524 5,980,111 939,452 64,727,401
90
SCHEDULE - 2
CLAIMS INCURRED (NET) ( ` ‘000)
For the year ended March 31, 2023 For the year ended March 31, 2022
Particulars Fire Marine * Miscellaneous Total Fire Marine ** Miscellaneous Total
Marine Cargo Marine Hull Marine Total Marine Cargo Marine Hull Marine Total

Schedules
Claims paid direct 5,003,900 2,154,248 8,306 2,162,554 81,157,570 88,324,024 4,141,614 1,240,915 37,735 1,278,650 75,072,195 80,492,459
Add: Claims on Re-insurance accepted 442,627 29,032 — 29,032 25,290 496,949 450,649 54,379 — 54,379 17,310 522,337
Annual Report 2022-23

Less: Claims on Re-insurance ceded (4,311,743) (940,904) (7,942) (948,846) (30,927,094) (36,187,683) (3,517,788) (529,933) (37,475) (567,408) (27,895,575) (31,980,771)
Net Claims paid 1,134,784 1,242,376 364 1,242,740 50,255,766 52,633,290 1,074,475 765,361 260 765,621 47,193,930 49,034,025
Add: Claims Outstanding at the end 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
Less: Claims Outstanding at the beginning of the year (2,753,846) (786,263) (8,560) (794,823) (66,278,769) (69,827,438) (2,048,173) (408,477) (8,683) (417,160) (58,585,548) (61,050,881)
Total Claims Incurred (Net) 1,590,464 2,173,217 726 2,173,943 60,465,127 64,229,534 1,780,148 1,143,147 136 1,143,283 54,887,151 57,810,582

* Miscellaneous Claims Incurred (Net) Breakup for the year ended March 31, 2023 ( ` ‘000
Miscellaneous
Particulars Motor Workmen’s Public Product Engineering Aviation Personal Health Others Total
Motor-OD Motor-TP Motor Total Compensation Liability Liability Accident Insurance Other Liability Home Specialty Weather/Crop Others Miscellaneous
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 — — — — — — 22,392 1,669 1,060 — — — — — 169 25,290
Re-insurance accepted
Less: Claims on (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)
Re-insurance ceded
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 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
the end of the year
Annexed to and forming part of the Revenue Accounts

Less: Claims Outstanding (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)
at the beginning of the year
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

** Miscellaneous Claims Incurred (Net) Breakup for the year ended March 31, 2022 ( ` ‘000)
Miscellaneous
Particulars Motor Workmen’s Public Product Engineering Aviation Personal Health Others Total
Motor-OD Motor-TP Motor Total Compensation Liability Liability Accident Insurance Other Liability Home Specialty Weather/Crop Others Miscellaneous
Claims paid direct 11,204,364 4,302,821 15,507,185 91,448 327 11,902 739,341 2,270 1,948,056 38,822,825 89,789 23,425 584,485 16,290,247 960,895 75,072,195
Add: Claims on — — — — — — 16,390 (4,605) 2,331 — — — 3,183 — 11 17,310
Re-insurance accepted
Less: Claims on (756,894) (3,547,977) (4,304,871) (4,573) (124) (11,648) (428,576) (2,316) (565,195) (9,132,289) (19,168) (1,521) (513,140) (12,618,514) (293,640) (27,895,575)
Re-insurance ceded
Net Claims paid 10,447,470 754,844 11,202,314 86,875 203 254 327,155 (4,651) 1,385,192 29,690,536 70,621 21,904 74,528 3,671,733 667,266 47,193,930
Add: Claims Outstanding at 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
the end of the year
Less: Claims Outstanding (2,452,449) (40,800,584) (43,253,033) (234,886) (11,244) (12,317) (606,723) (86,863) (2,272,400) (6,423,038) (311,521) (30,447) (387,622) (4,268,080) (687,376) (58,585,548)
at the beginning of the year
Total Claims Incurred (Net) 11,157,610 7,944,437 19,102,047 70,794 1,276 163 175,813 (20,725) 1,561,812 28,357,841 74,367 49,731 136,423 4,555,592 822,017 54,887,151
91
SCHEDULE - 3
COMMISSION (NET) ( ` ‘000)
For the year ended March 31, 2023 For the year ended March 31, 2022
Fire Marine Marine
Particulars
Marine Marine Hull Marine Total * Miscellaneous Total Fire Marine Marine Hull Marine Total ** Miscellaneous Total

Schedules
Cargo Cargo
Commission paid direct 1,730,505 260,509 2,266 262,775 12,929,812 14,923,092 1,294,565 187,224 2,124 189,348 9,964,110 11,448,023
Annual Report 2022-23

Add: Commission paid on Re-insurance accepted 189,212 8,377 — 8,377 57,271 254,860 153,928 8,618 — 8,618 46,013 208,559
Less: Commission received on Re-insurance ceded (3,873,785) (26,846) (7,264) (34,110) (13,655,239) (17,563,134) (2,726,127) (23,497) (8,231) (31,728) (11,669,241) (14,427,096)
Net commission paid/(received) (1,954,068) 242,040 (4,998) 237,042 (668,156) (2,385,182) (1,277,634) 172,345 (6,107) 166,238 (1,659,118) (2,770,514)

* Miscellaneous Commission Breakup for the year ended March 31, 2023 ( ` ‘000)
Miscellaneous
Motor Others
Particulars Workmen’s Public Product Personal Health Total
Motor-OD Motor-TP Motor Total Engineering Aviation Other Weather/
Compensation Liability Liability Accident Insurance Home Specialty Others Miscellaneous
Liability Crop
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 — — — — 239 — 9,717 — — — 2,744 — 44,556 — 15 57,271
Re-insurance accepted
Less: Commission received on (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)
Re-insurance ceded
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)

** Miscellaneous Commission Breakup for the year ended March 31, 2022 ( ` ‘000)
Miscellaneous
Motor Others
Particulars Workmen’s Public Product Personal Health Total
Motor-OD Motor-TP Motor Total Engineering Aviation Other Weather/
Annexed to and forming part of the Revenue Accounts

Compensation Liability Liability Accident Insurance Home Specialty Others Miscellaneous

Liability Crop
Commission paid direct 2,645,281 222,312 2,867,593 23,741 2,068 1,096 135,453 5,964 834,186 5,421,296 99,581 109,455 333,715 62,921 67,041 9,964,110
Add: Commission paid on — — — — 109 — 6,138 — — — 2,927 — 36,823 — 16 46,013
Re-insurance accepted
Less: Commission received on (112,320) (2,561,408) (2,673,728) (4,158) (3,538) 646 (285,157) (10,609) (1,400,384) (5,193,152) (109,378) (6,846) (445,802) (1,417,391) (119,744) (11,669,241)
Re-insurance ceded
Net commission paid/(received) 2,532,961 (2,339,096) 193,865 19,583 (1,361) 1,742 (143,566) (4,645) (566,198) 228,144 (6,870) 102,609 (75,264) (1,354,470) (52,687) (1,659,118)

SCHEDULE - 3 A
COMMISSION PAID DIRECT ( ` ‘000)
For the year ended March 31, 2023 For the year ended March 31, 2022
Particulars
Fire Marine Miscellaneous Total Fire Marine Miscellaneous Total
Agents 70,757 38,441 5,017,983 5,127,181 51,008 25,495 3,767,086 3,843,589
Brokers 1,342,064 221,637 4,599,970 6,163,671 1,000,224 162,269 3,113,180 4,275,673
Corporate Agency 317,494 2,623 2,767,953 3,088,070 243,189 1,541 2,706,636 2,951,366
Referral — — — — — — — —
Others: Web aggregator, CSC, IMF, MISP and POSP 190 74 543,906 544,170 143 43 377,209 377,395
Total 1,730,505 262,775 12,929,812 14,923,092 1,294,565 189,348 9,964,110 11,448,023
92
SCHEDULE - 4
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS ( ` ‘000)
For the year ended March 31, 2023 For the year ended March 31, 2022
Particulars Marine Marine
Fire * Miscellaneous Total Fire ** Miscellaneous Total

Schedules
Marine Cargo Marine Hull Marine Total Marine Cargo Marine Hull Marine Total
Employees’ remuneration and welfare benefits 974,678 107,156 10,203 117,359 7,622,276 8,714,313 725,740 78,561 9,616 88,177 5,857,538 6,671,455
Annual Report 2022-23

Travel, conveyance and vehicle running expenses 54,598 6,002 572 6,574 426,971 488,143 26,626 2,882 353 3,235 214,917 244,778
Training expenses 25,097 2,759 263 3,022 196,266 224,385 22,108 2,393 293 2,686 178,435 203,229
Rents, rates and taxes 66,150 7,273 693 7,966 517,312 591,428 47,176 5,107 625 5,732 380,767 433,675
Repairs 27,564 3,030 289 3,319 215,563 246,446 23,072 2,497 306 2,803 186,215 212,090
Printing and stationery 27,226 2,994 286 3,280 212,917 243,423 13,693 1,481 181 1,662 110,514 125,869
Communication 10,737 1,180 112 1,292 83,969 95,998 11,135 1,205 148 1,353 89,875 102,363
Legal and professional charges 385,920 42,428 4,040 46,468 3,018,012 3,450,400 521,670 56,471 6,912 63,383 4,210,461 4,795,514
Auditors’ fees, expenses etc
(a) as auditors 839 92 9 101 6,560 7,500 707 77 9 86 5,707 6,500
(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 49 3,216 3,676 407 44 5 49 3,285 3,741
Annexed to and forming part of the Revenue Accounts

Advertisement and publicity 735,463 80,857 7,700 88,557 5,751,544 6,575,564 508,915 55,089 6,743 61,832 4,107,504 4,678,251
Interest and bank charges 30,725 3,378 322 3,700 385,661 420,086 43,291 4,686 574 5,260 409,845 458,396
Others:
Electricity expenses 11,456 1,259 120 1,379 89,592 102,427 8,874 961 118 1,079 71,621 81,574
Office expenses 2,097 231 22 253 16,401 18,751 4,015 435 53 488 32,403 36,906
Miscellaneous expenses 30,542 3,358 320 3,678 238,844 273,064 7,596 823 101 924 61,310 69,831
Information Technology expenses 99,607 10,951 1,043 11,994 778,955 890,556 77,198 8,357 1,023 9,380 623,070 709,648
Postage and courier 10,383 1,141 109 1,250 81,195 92,828 5,411 586 72 658 43,674 49,743
Loss/(Profit) on sale of assets (net) 666 73 7 80 5,209 5,955 (77) (8) (1) (9) (618) (705)
Depreciation 75,808 8,334 794 9,128 592,841 677,777 58,954 6,382 781 7,163 475,825 541,942
Total Operating Expenses 2,569,967 282,541 26,908 309,449 20,243,304 23,122,720 2,106,511 228,029 27,912 255,941 17,062,348 19,424,800
93
SCHEDULE - 4 (Continued)
* Miscellaneous Operating expenses related to Insurance business Breakup for the year ended March 31, 2023 ( ` ‘000)

Miscellaneous
Motor Workmen’s Public Product Engineering Aviation Personal Health Others Total
Particulars
Compensation Liability Liability Accident Insurance Miscellaneous

Schedules
Motor-OD Motor-TP Motor Total Other Home Specialty Weather/ Others
Liability Crop
Annual Report 2022-23

Employees’ remuneration and welfare 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
benefits
Travel, conveyance and vehicle running 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
expenses
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 — — — — — — — — — — — — — — — —
Annexed to and forming part of the Revenue Accounts

(ii) Insurance matters — — — — — — — — — — — — — — — —

(iii) Management services — — — — — — — — — — — — — — — —
(c) in any other capacity 456 557 1,012 5 1 — 45 4 130 1,116 21 11 98 732 40 3,216
(Refer Note 31 of Schedule 16)
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
Office 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/(Profit) 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
94
SCHEDULE - 4 (Continued)
** Miscellaneous Operating expenses related to Insurance business Breakup for the year ended March 31, 2022 ( ` ‘000)
Miscellaneous
Motor Workmen’s Public Product Engineering Aviation Personal Health Others Total
Particulars
Liability Accident Insurance

Schedules
Motor-OD Motor-TP Motor Total Compensation Liability Other Home Specialty Weather/ Others Miscellaneous
Liability Crop
Annual Report 2022-23

Employees’ remuneration and welfare 748,640 979,899 1,728,539 8,156 1,737 71 92,366 8,837 291,798 2,114,705 41,716 35,540 137,001 1,320,867 76,205 5,857,538
benefits
Travel, conveyance and vehicle running 27,468 35,953 63,421 299 63 3 3,389 324 10,706 77,590 1,531 1,304 5,027 48,464 2,796 214,917
expenses
Training expenses 22,805 29,850 52,655 248 53 2 2,814 269 8,889 64,420 1,271 1,083 4,173 40,237 2,321 178,435
Rents, rates and taxes 48,665 63,698 112,363 530 113 5 6,005 574 18,968 137,465 2,712 2,310 8,906 85,862 4,954 380,767
Repairs 23,800 31,152 54,952 259 55 2 2,937 281 9,276 67,227 1,326 1,130 4,355 41,991 2,423 186,215
Printing and stationery 14,124 18,487 32,611 154 33 1 1,743 167 5,506 39,897 787 671 2,585 24,920 1,438 110,514
Communication 11,487 15,035 26,522 125 27 1 1,417 136 4,477 32,447 640 545 2,102 20,267 1,170 89,875
Legal and professional charges 538,131 704,362 1,242,493 5,862 1,249 51 66,393 6,352 209,747 1,520,074 29,986 25,546 98,478 949,453 54,776 4,210,461
Auditors’ fees, expenses etc
(a) as auditors 729 955 1,684 8 2 — 90 9 284 2,060 41 35 133 1,287 74 5,707
(b) as advisor or in any other capacity,
in respect of:
(i) Taxation matters — — — — — — — — — — — — — — — —
Annexed to and forming part of the Revenue Accounts

(ii) Insurance matters — — — — — — — — — — — — — — — —

(iii) Management services — — — — — — — — — — — — — — — —
(c) in any other capacity (Refer Note 31 420 550 970 5 1 — 52 5 164 1,186 23 20 77 741 42 3,285
of Schedule 16)
Advertisement and publicity 524,972 687,138 1,212,110 5,719 1,219 50 64,770 6,197 204,618 1,482,904 29,253 24,922 96,070 926,236 53,437 4,107,504
Interest and bank charges 44,657 58,452 103,109 486 104 4 5,510 527 17,406 126,144 2,488 2,120 8,172 139,228 4,545 409,845
Others:
Electricity expenses 9,154 11,981 21,135 100 21 1 1,129 108 3,568 25,856 510 435 1,676 16,150 932 71,621
Office expenses 4,141 5,421 9,562 45 10 — 511 49 1,614 11,698 231 197 758 7,307 422 32,403
Miscellaneous expenses 7,836 10,257 18,093 85 18 1 967 93 3,054 22,134 437 372 1,434 13,825 798 61,310
Information Technology expenses 79,633 104,233 183,866 868 185 8 9,825 940 31,039 224,943 4,437 3,780 14,573 140,502 8,106 623,070
Postage and courier 5,582 7,306 12,888 61 13 1 689 66 2,176 15,767 310 266 1,022 9,849 568 43,674
Loss/(Profit) on sale of assets (net) (79) (104) (183) (1) — — (10) (1) (31) (223) (4) (4) (14) (140) (8) (618)
Depreciation 60,814 79,600 140,414 663 141 6 7,503 718 23,704 171,784 3,389 2,887 11,129 107,298 6,190 475,825
Total Operating Expenses 2,172,979 2,844,225 5,017,204 23,672 5,044 206 268,099 25,649 846,964 6,138,078 121,084 103,161 397,657 3,894,345 221,189 17,062,348
95
Annual Report 2022-23 96

Schedules
Annexed to and forming part of the Balance Sheet

SCHEDULE – 5
SHARE CAPITAL
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘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
712,780,035 Equity Shares of ` 10/- each 7,127,800 7,127,800
(Previous year: 712,780,035 Equity Shares of ` 10/- each)
Subscribed Capital
712,780,035 Equity Shares of ` 10/- each 7,127,800 7,127,800
(Previous year: 712,780,035 Equity Shares of ` 10/- each)
Called-up Capital
712,780,035 Equity Shares of ` 10/- each 7,127,800 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 7,127,800 7,127,800

During Financial Year 2021-22, pursuant to stake sale by HDFC Ltd of 0.62% of the issued and paid-up share capital
of the Company to ERGO International AG, the shareholding of HDFC Ltd reduced to below 50 % w.e.f. May 11, 2021
Accordingly, HDFC Limited ceased to be the Holding Company of the Company with effect from that date.

SCHEDULE – 5A
SHARE CAPITAL
PATTERN OF SHAREHOLDING As at March 31, 2023 As at March 31, 2022
[As certified by the Management] (Number of Shares) (% of Holding) (Number of Shares) (% of Holding)
Promoters:
Indian: Housing Development Finance 356,306,882 49.99% 356,253,482 49.98%
Corporation Limited
Foreign: ERGO International AG 349,204,344 48.99% 349,204,344 48.99%
Others: Employees 7,268,809 1.02% 7,322,209 1.03%
Total 712,780,035 100.00% 712,780,035 100.00%
Annual Report 2022-23 97

Schedules
Annexed to and forming part of the Balance Sheet

SCHEDULE – 6
RESERVES AND SURPLUS
Particulars As at March 31, 2023 As at March 31, 2022
( ` ‘000) ( ` ‘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 14,012,512
Add: Addition during the period — 14,165,941 153,429 14,165,941
General Reserves
Balance Brought forward from Previous Year — —
Less: Debit balance in Profit 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 Profit/(Loss) in Profit and Loss Account
Balance Brought forward from Previous Year 10,468,714 7,783,933
Add: Profit/(Loss) during the period 4,031,865 2,684,781
Less: Transfer to Debenture Redemption Reserve — 14,500,579 — 10,468,714
Total 32,026,002 27,994,137

SCHEDULE – 7
BORROWINGS
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)
Debentures/Bonds 8,290,000 5,290,000
(Refer note 33 of Schedule 16)
Banks — —
Financial Institutions — —
Others — —
Total 8,290,000 5,290,000
Annual Report 2022-23 98

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, 2023 As at March 31, 2022
( ` ‘000) ( ` ‘000)
LONG TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 9,653,429 8,057,038
Other Approved Securities 15,806,977 13,130,047
Other Investments:
Shares
- Equity 369,009 391,611
Less : Provision for Diminution in value of Investments* — 369,009 (48,643) 342,968
- Preference — —
Mutual Funds —
Derivative Instruments — —
Debentures/Bonds 346,943 699,823
Less : Provision for Diminution in value of Investments* (346,943) — (649,265) 50,558
Other Securities (Alternative Investment Fund) 10,401 23,110
Investments in Infrastructure and Housing 10,840,983 9,872,218
Sub-total (A) 36,680,799 31,475,939
SHORT TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 41,438 630,512
Other Approved Securities 3,491,544 3,984,484
Other Investments:
Shares
- Equity — —
- Preference — —
Mutual Funds — —
Derivative Instruments — —
Debentures/Bonds 1,914,599 1,741,641
Less : Provision for Diminution in value of Investments * (1,867,378) 47,221 (1,691,083) 50,558
Other Securities (Alternative Investment Fund) 16,288
Subsidiaries — —
Investment Properties-Real Estate — —
Investments in Infrastructure and Housing 1,734,024 1,063,104
Sub-total (B) 5,330,515 5,728,658
Total (A+B) 42,011,314 37,204,597

Note:
a) Aggregate value of the investments other than Equity Shares and Mutual Fund
As at March 31, 2023 As at March 31, 2022
( ` ‘000) ( ` ‘000)
Long term investments - Book Value 32,611,466 29,316,939
Market Value 32,075,488 29,625,033
Short term investments - Book Value 5,128,566 4,412,690
Market Value 5,106,162 4,446,569
b) Investments made outside India: ` Nil (Previous Year ` Nil)
* Refer note 10 of Schedule 16
Annual Report 2022-23 99

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 As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)
LONG TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 41,453,706 31,783,666
Other Approved Securities 67,878,239 51,795,842
Other Investments: — —
Shares — —
- Equity 1,584,597 1,352,953
- Preference — —
Mutual Funds — —
Derivative Instruments — —
Debentures/Bonds — 199,442
Other Securities (Alternative Investment Fund) 44,662 91,167
Subsidiaries — —
Investment Properties-Real Estate — —
Investments in Infrastructure and Housing 46,553,295 38,944,248
Sub-total (A) 157,514,499 124,167,318
SHORT TERM INVESTMENTS
Government securities and Government guaranteed bonds
including Treasury Bills 177,941 2,487,266
Other Approved Securities 14,993,374 15,718,129
Other Investments: — —
Shares — —
- Equity — —
- Preference — —
Mutual Funds — —
Derivative Instruments — —
Debentures/Bonds 202,778 199,442
Other Securities (Alternative Investment Fund) 69,943 —
Subsidiaries — —
Investment Properties-Real Estate — —
Investments in Infrastructure and Housing 7,446,237 4,193,768
Sub-total (B) 22,890,273 22,598,605
Total (A+B) 180,404,772 146,765,923

Note:
a) Aggregate value of the investments other than Equity Shares and Mutual Fund
As at March 31, 2023 As at March 31, 2022
( ` ‘000) ( ` ‘000)
Long term investments - Book Value 140,039,991 115,650,422
Market Value 137,738,397 116,865,805
Short term investments - Book Value 22,023,062 17,407,325
Market Value 21,926,855 17,540,971
b) Investments made outside India: ` Nil (Previous Year ` Nil)
Annual Report 2022-23 100

Schedules
Annexed to and forming part of the Balance Sheet

SCHEDULE - 9
LOANS
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)
SECURITY-WISE CLASSIFICATION
Secured
(a) On mortgage of property
(aa) In India — —
(bb) Outside India — —
(b) On Shares, Bonds, Goverment 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 classified 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 — —
SCHEDULE – 10
FIXED ASSETS
( ` ‘000)
Cost/Gross Block Depreciation/Amortisation Net Block

Schedules
Particulars Opening Additions Deductions Closing Upto last year For the period On Sales/ To Date As at March 31,
Adjustments 2023
Annual Report 2022-23

Goodwill — — — — — — — — —
— — — — — — — — —
Intangibles - Computer Software 2,867,205 317,655 4,040 3,180,820 2,151,364 299,209 3,051 2,447,522 733,298
(2,380,642) (486,602) (39) (2,867,205) (1,939,522) (211,880) (38) (2,151,364) (715,841)
Land-Freehold — — — — — — — — —
— — — — — — — — —
Leasehold Property 157,681 49,434 4,689 202,426 154,168 6,522 4,689 156,001 46,425
(160,325) (277) (2,921) (157,681) (144,569) (11,972) (2,373) (154,168) (3,513)
Building 1,516,086 — — 1,516,086 184,754 25,192 — 209,946 1,306,140
(1,516,086) — — (1,516,086) (159,562) (25,192) — (184,754) (1,331,332)
Furniture and Fittings 434,601 34,729 80,698 388,632 265,516 37,133 67,903 234,746 153,886
(426,240) (10,749) (2,388) (434,601) (230,772) (36,257) (1,513) (265,516) (169,085)
Annexed to and forming part of the Balance Sheet

Information Technology Equipment 1,460,994 386,759 254,775 1,592,978 1,045,400 227,911 251,482 1,021,829 571,149
(1,343,048) (265,615) (147,669) (1,460,994) (1,003,410) (186,893) (144,903) (1,045,400) (415,594)
Vehicles 256,040 145,113 89,460 311,693 137,375 48,667 79,472 106,570 205,123
(218,696) (86,567) (49,223) (256,040) (139,535) (39,323) (41,483) (137,375) (118,665)
Office Equipment 370,971 39,750 60,348 350,373 290,501 33,143 58,553 265,091 85,282
(337,820) (34,374) (1,223) (370,971) (261,313) (30,424) (1,236) (290,501) (80,470)
Total 7,063,578 973,440 494,010 7,543,008 4,229,078 677,777 465,150 4,441,705 3,101,303
(6,382,857) (884,184) (203,463) (7,063,578) (3,878,683) (541,941) (191,546) (4,229,078) (2,834,500)
Capital Work-in-progress 158,462 690,833 309,611 539,684 — — — — 539,684
(229,430) (414,008) (484,976) (158,462) — — — — (158,462)
Grand Total 7,222,040 1,664,273 803,621 8,082,692 4,229,078 677,777 465,150 4,441,705 3,640,987
(6,612,287) (1,298,192) (688,439) (7,222,040) (3,878,683) (541,941) (191,546) (4,229,078) (2,992,962)
(Figures in bracket pertains to Previous year)
101
Annual Report 2022-23 102

Schedules
Annexed to and forming part of the Balance Sheet

SCHEDULE - 11
CASH AND BANK BALANCES
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)

Cash (including cheques, drafts and stamps) 450,274 171,807

Bank Balances
(a) Deposit Accounts — —
(aa) Short-term (due within 12 months) 86,274 46,376
(bb) Others 2,500 11,272
(b) Current Accounts 2,613,783 1,113,400
(c) Others — —
Money at Call and Short Notice
(a) With Banks — —
(b) With Other Institutions — —
Others — —
Total 3,152,831 1,342,855

SCHEDULE - 12
ADVANCES AND OTHER ASSETS
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)

ADVANCES
Reserve deposits with ceding companies — —
Application money for investments — —
Prepayments 410,803 308,434
Advance to Directors/Officers — —
Advance tax paid and taxes deducted at source 295,569 396,216
(Net of provision for taxation)
Others:
   Advances to employees 25,091 9,634
   Advances to suppliers 850,663 550,086
Less : Provisions for doubtful debts (229,110) 621,553 — 550,086
   Goods and Service tax Unutilised Credit 23,877 1,165,360
Sub-total (A) 1,376,893 2,429,730
Annual Report 2022-23 103

Schedules
Annexed to and forming part of the Balance Sheet

SCHEDULE - 12
ADVANCES AND OTHER ASSETS (Continued)
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)

OTHER ASSETS
Income accrued on investments 4,719,153 4,140,719
Outstanding Premiums 13,223,805 16,424,872
Less : Provisions for doubtful debts (315) 13,223,490 (6,856) 16,418,016
Agents’ Balances 4,744 10,191
Less : Provisions for doubtful debts — 4,744 (34) 10,157
Due from other entities carrying on insurance 1,220,616 657,220
business (including reinsurers)
Due from subsidiaries/holding Company — —
Foreign Agencies’ balances — —
Others:
Deposits for premises 137,904 120,974
Stock of Salvaged Cars 329 2,874
Unclaimed amount of Policyholders Investment 189,071 188,201
Interest Income on Unclaimed amount of
Policyholders Investment 48,583 43,616
Sub-total (B) 19,543,890 21,581,777

Total (A+B) 20,920,783 24,011,507

SCHEDULE - 13
CURRENT LIABILITIES
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)

Agents’ Balances 732,829 704,800

Balances due to other insurance companies 42,563,217 32,521,287
Deposits held on re-insurance ceded — —
Premiums received in advance 9,662,841 8,685,254
Unallocated Premium 6,870,286 6,943,492
Unclaimed amount of Policyholders (Refer note 28 of Schedule 16) 285,513 284,107
Interest on Unclaimed amount of Policyholders (Refer note 28 of Schedule 16) 48,583 43,616
Sundry creditors 6,030,965 6,308,138
Annual Report 2022-23 104

Schedules
Annexed to and forming part of the Balance Sheet

SCHEDULE - 13
CURRENT LIABILITIES (Continued)
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)

Due to subsidiaries/holding company — —

Claims Outstanding 81,423,682 69,827,438
Due to Officers/Directors 6,219 3,600
Others:
   Tax deducted at source 778,415 620,633
   Other statutory dues 56,835 48,892
   Interest payable on debentures 233,458 234,453
Total 148,692,843 126,225,710

SCHEDULE - 14
PROVISIONS
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)

Reserve for Unexpired Risk 53,994,757 45,535,965

For taxation (less advance tax paid and taxes deducted at source) 133,538 9,349
For proposed dividends _ —
Others:
   Provision for Employee benefits 81,683 68,615
Total 54,209,978 45,613,929

SCHEDULE - 15
MISCELLANEOUS EXPENDITURE
(To the extent not written off or adjusted)
Particulars As at As at
March 31, 2023 March 31, 2022
( ` ‘000) ( ` ‘000)

Discount Allowed in issue of shares/debentures — —

Others — —
Total — —
Annual Report 2022-23 105

Schedule - 16
Notes to Accounts
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, 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 off to the nearest thousand.
Accounting policies applied have been consistent with previous year except where different 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 affect 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 differ 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
Annual Report 2022-23 106

Schedule - 16 (Continued)
Notes to Accounts
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.

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 difference 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 difference 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 off 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
Annual Report 2022-23 107

Schedule - 16 (Continued)
Notes to Accounts
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 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 different methods to the different 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
Annual Report 2022-23 108

Schedule - 16 (Continued)
Notes to Accounts
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 difference 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 off 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
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 effectively 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
Annual Report 2022-23 109

Schedule - 16 (Continued)
Notes to Accounts
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 effectively 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 differences 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, 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 off 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 off Other assets. Other liabilities comprise
of Premium received in advance, Unallocated premium, Balance due to other Insurance Companies, Due
to others members of the Motor third party pool and Due to Policyholders. Other assets comprises
Annual Report 2022-23 110

Schedule - 16 (Continued)
Notes to Accounts
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 off 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.
Annual Report 2022-23 111

Schedule - 16 (Continued)
Notes to Accounts
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 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
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, utilizing 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 recognizes 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 effects of timing differences 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
Annual Report 2022-23 112

Schedule - 16 (Continued)
Notes to Accounts
evidence that sufficient 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 Tariff
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 GIC. The reinsurance
accepted on account of terrorism pool has been recorded in accordance with the last statement
received from the GIC.
The Company has ensured that it has created liability, to the extent of premium retroceded to the
Company, through reserve for unexpired risks.

(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
Annual Report 2022-23 113

Schedule - 16 (Continued)
Notes to Accounts
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.

(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
Annual Report 2022-23 114

Schedule - 16 (Continued)
Notes to Accounts
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 difference if any, between the fair value of the share and the grant price, being the compensation
cost is amortized 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.
Annual Report 2022-23 115

Schedule - 16 (Continued)
Notes to Accounts
3. Stake sale by Housing Development Finance Corporation Limited and Munich Health Holding AG.
During the previous year, pursuant to stake-sale by Housing Development Finance Corporation Limited (HDFC
Ltd) of 0.62% of the issued and paid-up share capital of the Company to ERGO International AG, the shareholding
of HDFC Ltd reduced to below 50% with effect from May 11, 2021 and accordingly HDFC Ltd ceased to be the
Holding Company of the Company from the said date.
Additionally, Munich Health Holding AG transferred its entire shareholding of 7.21% in the Company consisting of
51,321,532 shares to ERGO International AG on November 12, 2021 and accordingly ceased to be a shareholder
of the Company from the said date

4. CONTINGENT LIABILITIES
(` ‘000)

Sr. Particulars As at As at
No. Mar 31, 2023 March 31, 2022

1 Partly paid up investments Nil Nil

2 Underwriting commitments outstanding (in respect of shares and Nil Nil
securities)
3 Claims, other than those under policies, not acknowledged as debts Nil Nil
by the Company
4 Guarantees given by or on behalf of the Company Nil Nil
5 Statutory demands/liabilities in dispute, not provided for (Refer Note 3,517,180 1,778,984
1 below)
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 ` 3,517,180 thousand (March 31, 2022 ` 1,778,984 thousand) towards base service
tax and goods and service tax. Appeals against these demand orders/notice is filed before the appropriate
Authorities.

5. ENCUMBRANCES ON ASSETS
The assets of the Company are free from encumbrances.

6. COMMITMENTS
There are commitments made and outstanding of ` 27,888 thousand (Previous year ` 67,719 thousand) for
investments.
Estimated amount of contracts remaining to be executed on capital account and not provided for, [net of payments
` 307,795 thousand (Previous year ` 158,461 thousand)] is ` 465,884 thousand (Previous year ` 285,452
thousand).
There are no commitments made and outstanding for loans (Previous year ` Nil).
Annual Report 2022-23 116

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.)
(` ‘000)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022
Outside India 570,337 117,114
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:
(` ‘000)
Particulars As at As at
March 31, 2023 March 31, 2022
More than six months 33,493,162 33,307,142
Others 14,435,288 9,137,623

8. PREMIUM
(a) All premiums net of reinsurance are written and received in India.
(b) Premium income recognized 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, 2023
Particulars Basis Gross Retention Cession Retention Cession
Premium
(` ‘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 / Speciality 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.
Annual Report 2022-23 117

Schedule - 16 (Continued)
Notes to Accounts
For the year ended on March 31, 2022
Particulars Basis Gross Retention Cession Retention Cession
Premium
(` ‘000) (` ‘000) (` ‘000) % %
Fire Total sum insured 14,989,077 3,613,079 11,375,998 24 76
Marine Cargo Value at Risk 1,612,997 1,366,115 246,882 85 15
Marine Hull Total sum insured 197,443 860 196,583 0 100
Miscellaneous
- Motor Total sum insured 35,489,979 25,699,293 9,790,686 72 28
- Workmen’s Compensation Value at Risk 167,450 143,887 23,563 86 14
- Public/Product Liability Value at Risk 37,140 7,145 29,995 19 81
- Engineering Total sum insured 1,902,710 526,690 1,376,020 28 72
- Aviation Value at Risk 181,441 163 181,278 0 100
- Personal Accident Value at Risk 5,991,125 3,402,248 2,588,877 57 43
- Health Insurance Value at Risk 43,418,660 28,766,707 14,651,953 66 34
- Other Liability / Speciality Value at Risk 3,669,385 885,491 2,783,894 24 76
- Others Value at Risk 29,414,036 7,542,782 21,871,254 26 74
The above excludes Excess of Loss cover reinsurance premium of ` 885,685 thousand for the year ended on
March 31, 2022.
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.
The Company’s 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 by the
Company 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.
During previous year, pursuant to the Order dated June 7, 2021, passed by the Honorable National Company
Law Tribunal (NCLT), based on Reserve Bank of India (RBI) initiated insolvency proceeding of DHFL under the
Insolvency and Bankruptcy Code (IBC), 2016, the Company recovered ` 108,200 thousand being the partial claim.
Based on the above Order and the pending expected claim, the Company has written off ` 133,400 thousand in
the previous year. In view of further expected recovery, the balance of ` 8,400 thousand investment in DHFL’s
Non-Convertible Debentures (NCDs) has been carried forward.
Further, pursuant to the Order dated May 31, 2022, passed by the Honorable National Company Law Appellate
Tribunal (NCLAT), on an application filed by Ministry of Corporate Affairs (MCA) seeking approval for IL&FS group
to undertake an interim distribution, the Company recovered ` 126,027 thousand from IL&FS Financial Services
Annual Report 2022-23 118

Schedule - 16 (Continued)
Notes to Accounts
Limited (one of the entities of the IL&FS group) being interim distribution of proceeds. In view of further expected
claim, the balance provision of ` 2,005,942 thousand investment in IL&FS group securities has been carried
forward.
Historical cost of investments which have been valued on a market value basis:
Mutual Funds– ` 276,098 thousand (Previous year ` 6,635,681 thousand)
Equity Shares – ` 22,038,533 thousand (Previous year ` 9,894,589 thousand)
(` ’000)

Particulars As at As at
March 31, 2023 March 31, 2022
Aggregate market value of the Investments other than Mutual Fund and 196,846,903 168,478,378
Equity Shares
Aggregate amortized cost/cost of the Investments other than Mutual Fund 199,803,085 166,787,375
and Equity Shares

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, 2023
Minimum Maximum Daily average Outstanding as on
outstanding outstanding during outstanding March 31, 2023
during the year the year during the year
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 59,940 9,748,321 2,664,165 9,748,321
(Nil) (Nil) (Nil) (Nil)
2. Corporate Debt Securities Nil Nil Nil Nil
(Nil) (Nil) (Nil) (Nil)
(Previous year’s figures are in brackets)
11. MANAGERIAL REMUNERATION
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 Officer (MD & CEO), the
Executive Directors, all other directors and Key Management Persons are as follows:
(a) The Managing Director and Chief Executive Officer (MD & CEO) and the Executive Directors are remunerated
in terms of the approval granted by IRDAI.
Annual Report 2022-23 119

Schedule - 16 (Continued)
Notes to Accounts
Details of their remuneration included in employee remuneration and welfare benefits are as follows:
(` ‘000)

Particulars For the year ended For the year ended

March 31, 2023 March 31, 2022
Salary, perquisites and bonus 160,141 152,831
Contribution to Provident Fund 5,184 4,652
Total 165,325 157,483
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 ` 15,000 thousand (Previous year ` 15,000 thousand) remuneration for each Director has
been charged to Revenue Accounts and balance ` 120,325 thousand (Previous year ` 112,483 thousand)
has been transferred to Profit and Loss Account.
(b) During the year, the Company has paid an amount of ` 6,910 thousand (Previous year ` 4,000 thousand) as
Commission to Independent Directors. An amount of ` 18,100 thousand (Previous year ` 15,600 thousand)
has been paid as fees to Non-Executive Directors for attending Board/Committee meetings and ` 105
thousand (Previous year ` 170 thousand) has been paid for a Group Mediclaim insurance cover policy for
the Non-Executive Directors.
(c) 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:
(` ‘000)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022
Salary, perquisites and bonus 176,750 215,295
Contribution to Provident Fund 4,219 5,301
Total 180,969 220,596
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.

12. SECTOR WISE BUSINESS BASED ON GROSS DIRECT PREMIUM INCOME (GDPI)
Business Sector For the year ended March 31, 2023 For the year ended March 31, 2022
GDPI (` ‘000) % of GDPI GDPI (` ‘000) % of GDPI
Rural 46,276,855 28 37,005,332 27
Urban 120,081,285 72 97,970,175 73
Total 166,358,140 100 134,975,507 100

Social Sector For the year ended For the year ended
March 31, 2023 March 31, 2022
Number of lives 9,882,355 8,449,491
GDPI (` ‘000) 29,690,773 26,096,710
Annual Report 2022-23 120

Schedule - 16 (Continued)
Notes to Accounts
13. REINSURANCE REGULATIONS
As per Para 6 of Insurance Regulatory and Development Authority of India (Re-insurance) 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%
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.

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:
(`‘000)

Particulars As at As at
March 31, 2023 March 31, 2022
Not later than one year 320,161 244,467
Later than one year but not later than five years 493,384 181,637
Later than five years — —
The aggregate operating lease rental, charged to the Revenue Accounts in the current year is ` 343,575 thousand
(Previous year ` 314,645 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.

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 different from the
reported income due to timing differences, 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.
(` in ‘000)

Particulars As at As at
March 31, 2023 March 31, 2022
Deferred Tax Assets:
Provision for Leave Encashment 20,360 17,636
Provision for Variable Pay/ Incentive/ Bonus 2,402 12,572
Rule 6 E of the Income-tax rules, 1962 (Reserve for unexpired risk) — —
Amalgamation Expenses 49,448 75,211
Provision for diminution in value of Investment 558,212 602,173
Provision for bad and doubtful Debts 53,365 (2,643)
Total 683,787 704,949
Annual Report 2022-23 121

Schedule - 16 (Continued)
Notes to Accounts
Particulars As at As at
March 31, 2023 March 31, 2022

Deferred Tax Liabilities:

Depreciation 160,709 118,339
Total 160,709 118,339
Deferred Tax Asset (Net) 523,078 586,610

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 two tranches viz. 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 (Previous year Tranche XVI,
having 100,000 options granted at ` 536.00 per option and Tranche XVII having 3,382,475 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 For the year ended

March 31, 2023 March 31, 2022

HI Tranche III 5,845 —

HI Tranche IV 25,974 8,312
HI Tranche V 9,093 15,587
HI Tranche VI 60,070 6,494
HI Tranche VII 31,250 —
Tranche IX — 967,500
Tranche X 395,000 210,000
Tranche XI 50,000 25,000
Tranche XII — 25,000
Tranche XIV 361,875 ­­—
Tranche XV 2,500 —
Total 941,607 1,257,893
Annual Report 2022-23 122

Schedule - 16 (Continued)
Notes to Accounts
Movement in the options:
(No. of Options)
Particulars Tranche XIX Tranche XVIII Tranche XVII Tranche XVI
As at March As at March As at March As at March As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Outstanding at the beginning of — — — — 3,280,475 — 100,000 —
the year
Granted during the year 40,000 — 1,605,160 — — 3,382,475 — 100,000
Exercised during the year — — — — — — — —
Lapsed during the year — — 103,880 — 270,775 102,000 100,000 —
Outstanding at the end of the year 40,000 — 1,501,280 — 3,009,700 3,280,475 — 100,000
Unvested at the end of the year 40,000 — 1,501,280 — 3,009,700 3,280,475 — 100,000
Vested at the end of the year — — — — — — — —
Weighted average price per option 536 536 536 536 536 536 536 536
(No. of Options)
Particulars Tranche XV Tranche XIV Tranche XIII Tranche XII
As at March As at March As at March As at March As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Outstanding at the beginning of 10,000 10,000 1,447,500 1,502,500 — — 100,000 100,000
the year
Granted during the year — — — — — — — —
Exercise during the year — — — — — — — —
Lapsed during the year — — 42,000 55,000 — — 75,000 —
Outstanding at the end of the year — 10,000 1,405,500 1,447,500 — — 25,000 100,000
Unvested at the end of the year 7,500 10,000 1,043,625 1,447,500 — — — 100,000
Vested at the end of the year 2,500 — 361,875 — — — 25,000 —
Weighted average price per option 363.80 363.80 363.80 363.80 364.40 364.40 364.40 364.40

(No. of Options)
Particulars Tranche XI Tranche X Tranche IX Tranche VIII
As at March As at March As at March As at March As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Outstanding at the beginning of 75,000 100,000 518,481 746,749 1,199,500 1,725,000 — —
the year
Granted during the year — — — — — — — —
Exercise during the year — 25,000 — 180,768 — 510,500 — —
Lapsed during the year — — — 47,500 — 15,000 — —
Outstanding at the end of the year — 75,000 518,481 518,481 1,199,500 1,199,500 — —
Unvested at the end of the year — 50,000 — 395,000 — — — —
Vested at the end of the year 75,000 25,000 518,481 123,481 1,199,500 1,199,500 — —
Weighted average price per option 257 257 257 257 151 151 91 91
Annual Report 2022-23 123

Schedule - 16 (Continued)
Notes to Accounts
(No. of Options)

Particulars HI Tranche VII Tranche VII HI Tranche VI Tranche VI

As at March As at March As at March As at March As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Outstanding at the beginning of 125,000 125,000 181,000 520,600 116,890 201,308 — —
the year
Granted during the year — — — — — — — —
Exercise during the year — — — 339,600 — — — —
Lapsed during the year — — — — 6,493 84,418 — —
Outstanding at the end of the year 125,000 125,000 181,000 181,000 110,397 116,890 — —
Unvested at the end of the year 93,750 125,000 — — 55,197 110,396 — —
Vested at the end of the year — — — 181,000 55,200 6,494 — —
Weighted average price per option 359.21 359.21 80 80 364.60 364.60 80 80
(No. of Options)

Particulars HI Tranche V Tranche V HI Tranche IV Tranche IV

As at March As at March As at March As at March As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Outstanding at the beginning of 62,342 77,928 — 57,000 24,935 33,247 2,000 80,000
the year
Granted during the year — — — — — — — —
Exercised during the year — — — 57,000 — 8,312 — 78,000
Lapsed during the year 16,885 15,586 — — — — — —
Outstanding at the end of the year 45,457 62,342 — — 24,935 24,935 — 2,000
Unvested at the end of the year 27,271 46,755 — — — 24,935 — —
Vested at the end of the year 18,186 15,587 — — 24,935 — — 2,000
Weighted average price per option 281.05 281.05 62.50 62.50 75.81 75.81 50 50
(No. of Options)

Particulars HI Tranche III Tranche III HI Tranche II Tranche I

As at March As at March As at March As at March As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Outstanding at the beginning of 5,845 8,767 — — — — 13,000
the year
Granted during the year — — — — — — — —
Exercised during the year — 2,922 — — — — — 13,000
Lapsed during the year — — — — — — — —
Outstanding at the end of the year 5,845 5,845 — — — — — —
Unvested at the end of the year — 5,845 — — — — — —
Vested at the end of the year 5,845 — — — — — — —
Weighted average price per option 75.81 75.81 50 50 10 10 10 10
Annual Report 2022-23 124

Schedule - 16 (Continued)
Notes to Accounts
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 recognized 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 ` 216,280 thousand (Previous year ` 207,320
thousand) and profit after tax would have been lower by ` 162,540 thousand (Previous year ` 155,274 thousand).
Consequently, the Company’s basic and diluted earnings per share would have been ` 8.93 and ` 8.90 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 for as on grant date are as follows:
Particulars Date of Grant Risk Free Expected Life Expected Expected
Interest Rate Volatility* Dividend Yield
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
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
*Volatility of BSE Sensex for one year has been considered.
Annual Report 2022-23 125

Schedule - 16 (Continued)
Notes to Accounts
Particulars Fair Value Method
For the year ended For the year ended
March 31, 2023 March 31, 2022
A Net Profit after Tax (` ‘000) 6,364,055 4,846,042
B Less: Preference dividend — —
C Weighted Average number of Equity Shares of `10/- each 712,780 712,655
(Basic) (in ‘000)
D Weighted Average number of Equity Shares of `10/- each 714,729 714,616
(Diluted) (in ‘000)
E Basic Earnings Per Share (`) 8.93 6.80
F Diluted Earnings Per Share (`) 8.90 6.78

Information in respect of Options outstanding

Particulars Exercise Price (`) No. of Options Weighted Average
remaining life

Tranche XIX As at March 31, 2023 536 40,000 88 Months

As at March 31, 2022 — — —
Tranche XVIII As at March 31, 2023 536 1,501,280 89 Months
As at March 31, 2022 — — —
Tranche XVII As at March 31, 2023 536 3,009,700 79 Months
As at March 31, 2022 536 3,280,475 91 Months
Tranche XVI As at March 31, 2023 536 100,000 76 Months
As at March 31, 2022 536 100,000 88 Months
Tranche XV As at March 31, 2023 363.80 10,000 66 months
As at March 31, 2022 363.80 10,000 78 months
Tranche XIV As at March 31, 2023 363.80 1,405,500 65 months
As at March 31, 2022 363.80 1,447,500 77 months
Tranche XIII As at March 31, 2023 — — —
As at March 31, 2022 — — —
Tranche XII As at March 31, 2023 364.40 25,000 61 months
As at March 31, 2022 364.40 100,000 73 months
Tranche XI As at March 31, 2023 257 75,000 44 Months
As at March 31, 2022 257 75,000 56 Months
Tranche X As at March 31, 2023 257 518,481 40 months
As at March 31, 2022 257 518,481 52 months
Tranche IX As at March 31, 2023 151 1,199,500 28 months
As at March 31, 2022 151 1,199,500 40 months
Annual Report 2022-23 126

Schedule - 16 (Continued)
Notes to Accounts
Particulars Exercise Price (`) No. of Options Weighted Average
remaining life

Tranche VIII As at March 31, 2023 — — —

As at March 31, 2022 — — —
HI Tranche VII As at March 31, 2023 359.21 125,000 65 months
As at March 31, 2022 359.21 125,000 77 months
Tranche VII As at March 31, 2023 80 181,000 6 months
As at March 31, 2022 80 181,000 14 months
HI Tranche VI As at March 31, 2023 364.60 110,397 61 months
As at March 31, 2022 364.60 116,890 73 months
Tranche VI As at March 31, 2023 — — —
As at March 31, 2022 — — —
HI Tranche V As at March 31, 2023 281.05 41,457 64 months
As at March 31, 2022 281.05 62,342 74 months
Tranche V As at March 31, 2023 — — —
As at March 31, 2022 — — —
HI Tranche IV As at March 31, 2023 75.81 24,935 56 months
As at March 31, 2022 75.81 24,935 68 months
Tranche IV As at March 31, 2023 50 2,000* —
As at March 31, 2022 50 2,000* —
HI Tranche III As at March 31, 2023 75.81 5,845 33 months
As at March 31, 2022 75.81 5,845 45 months
Tranche III As at March 31, 2023 — — —
As at March 31, 2022 — — —
Tranche II As at March 31, 2023 — — —
As at March 31, 2022 — — —
Tranche I As at March 31, 2023 — — —
As at March 31, 2022 — — —
*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 in the next exercise window in the month of April
2023 by the Management.

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.
Annual Report 2022-23 127

Schedule - 16 (Continued)
Notes to Accounts
19. EMPLOYEE BENEFITS
(a) Defined Contribution Plan:
(`‘000)
Expenses on defined contribution plan (included in Schedule 4: Operating For the year ended For the year ended
Expenses) March 31, 2023 March 31, 2022
Contribution to Staff Provident fund 295,969 242,006
Contribution to Superannuation fund Nil Nil
Contribution to National Pension Scheme 19,510 17,528
Total 315,479 259,534

(b) Defined Benefit Plan – Gratuity:

Disclosures as per AS-15 (Revised) “Employee Benefits” for the year ended on March 31, 2023:
(`‘000)
Sl. Particular March 31, 2023 March 31, 2022
No.
I. Assumptions
Discount Rate 7.31% 6.09%
Rate of increase in compensation levels 7.00% 7.00%
Rate of Return on Plan Assets p.a. 7.31% 6.09%
Rate of Employee Turnover 15%-26% 15%-26%
Mortality Rate During Employment Indian Assured Indian Assured
Lives Mortality Lives Mortality
2012-14 2012-14
(Urban) (Urban)
II. Table Showing Change in Benefit Obligation
Net liability as per books (A) 540,598 481,316
Fair value of Assets at the beginning of the year (B) Nil Nil
Shortfall/(Excess) in opening liability determined as per actuarial Nil Nil
valuation (C)
Opening net Liability as per actuarial valuation (A)+(B)+(C) 540,598 481,316
Interest Cost for the year 32,922 26,857
Service Cost for the year 75,969 66,902
Past Service cost Nil Nil
Benefits paid during the year (53,575) (69,523)
Actuarial (Gain)/Loss on obligations (8,372) 35,046
Plan Benefit Obligation at the end of the year 587,542 540,598
III. Tables of Fair value of Plan Assets
Fair Value of Plan Assets at the beginning of the year 542,055 489,530
Expected Return on Plan Assets for the year 33,011 27,316
Contributions during the year 81,265 101,244
Benefits Paid during the year (53,575) (69,523)
Actuarial Gain/(Loss) on Plan Assets (16,002) (6,512)
Fair Value of Plan Assets at the end of the year 586,754 542,055
Annual Report 2022-23 128

Schedule - 16 (Continued)
Notes to Accounts
(`‘000)
Sl. Particular March 31, 2023 March 31, 2022
No.
IV. The Amounts to be recognised in the Balance Sheet
Present Value of Obligation (587,542) (540,599)
Fair Value of Plan Assets 586,754 542,055
Asset/(Liability) recognised in Balance Sheet (788) 1,456
V. Amounts to be recognised in the Revenue Accounts (Net Periodic Cost)
Current Service Cost 75,969 66,902
Past Service cost Nil Nil
Interest Cost (89) (458)
Expected Return on Plan Assets Nil Nil
Net actuarial (Gain) / Loss recognised in the year 7,628 41,558
Actuarial determined charge for the year (A) 83,508 108,002
Shortfall/(Excess) (B) Nil Nil
Total Charge as per books (A+B) 83,508 108,002
(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) (1,456) (8,214)
Shortfall/(Excess) in opening liability determined as per actuarial Nil Nil
valuation (B)
Opening net liability(A+B) (1,456) (8,214)
Expense as above 83,508 108,002
Net Liability / (Asset) Transfer In Nil Nil
Net (Liability) / Asset Transfer Out Nil Nil
Contribution paid (81,264) (101,244)
Closing Net (Asset)/Liability 788 (1,456)
VII. Actual Return on Plan Assets
Expected return on Plan Assets 33,011 27,316
Actuarial Gain/(Loss) on Plan Assets (16,001) (6,512)
Actual return on Plan assets 17,010 20,804
Experience adjustments (` ‘000)
Particulars March 31, 2023 March 31, 2022 March 31, 2021 March 31, 2020 March 31, 2019
Defined Benefit Obligation 587,542 540,599 481,316 452,296 276,106
Plan Assets 586,754 542,055 489,530 433,566 277,036
Surplus/(Deficit) (788) 1,456 8,214 (18,730) 930
Experience Adjustment on 25,930 48,743 (67,395) 4,214 (21,701)
Plan Liabilities
Experience Adjustment on (16,002) (6,512) 6,365 8,608 (1,808)
Plan Assets
Annual Report 2022-23 129

Schedule - 16 (Continued)
Notes to Accounts
The Company’s gratuity funds are managed by HDFC Life Insurance Company Limited. Secure Managed Fund
constitutes 92.88% (Previous year 100%), Defensive Managed Funds constitutes 7.12% (Previous year Nil) of
the total fund balance.
Investment Pattern of Company’s Gratuity Funds in HDFC Life Insurance Company Limited:
Particular Invested as on March 31, 2023 Invested as on March 31, 2022
Secure Managed Defensive Secure Liquid Fund
Fund Managed Fund Managed Fund
Government Securities 48.14% 43.56% 60% —
Debentures/Bonds 48.40% 28.58% 36% —
Deposits, Money Market Securities 3.46% 7.22% 4% 100%
and Net Current Assets
Equity — 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 2023-24, amounts to ` 79,698
thousand (Previous year ` 74,513 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) (upto May 10, 2021)

Fellow subsidiaries (with whom Company has transactions) (Refer Note 3)

HDFC Asset Management Company Limited (upto May 10, 2021)
HDFC Sales Private Limited (upto May 10, 2021)
HDFC Property Ventures Limited (upto May 10, 2021)
HDFC Credila Financial Services Private Limited (upto May 10, 2021)
HDFC Education and Development Services Private Limited (upto May 10, 2021)
HDFC Capital Advisors Limited (upto May 10, 2021)

Investing Party and its Group Company

Housing Development Finance Corporation Limited (HDFC Limited) (Refer Note 3)
ERGO International AG
Munich Re (Group Company of Investing Party)
Munich Health Holding AG (upto November 12, 2021)

Key Management Personnel and Relatives of Key Management Personnel (with whom Company has transaction)
Ritesh Kumar, Managing Director and CEO (MD & CEO)
Reena Kumar, Spouse of Ritesh Kumar (MD & CEO)
Annual Report 2022-23 130

Schedule - 16 (Continued)
Notes to Accounts
Harshita Agarwal, Daughter of Ritesh Kumar (MD & CEO)
Saloni Agarwal, Daughter of Ritesh Kumar (MD & CEO)
Amish Kumar Agarwal, Brother of Ritesh Kumar (MD & CEO)
Anuj Tyagi, Deputy Managing Director (Deputy MD)
Ramesh Tyagi, Father of Anuj Tyagi (Deputy MD)
Anjali Tyagi, Spouse of Anuj Tyagi (Deputy MD)
Anya Tyagi, Daughter of Anuj Tyagi (Deputy MD)
Alka Tyagi, Sister of Anuj Tyagi (Deputy MD)
Samir H. Shah, Executive Director & CFO (ED & CFO)
Sanjay H. Shah, Brother of Samir H. Shah (ED & CFO)
(b) Details of Transactions:
(`‘000)
Particulars Holding Company Fellow Subsidiaries Investing Party and its Key Managerial Personnel
(Up to May 11, 2021) Group Company (including relatives)
Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
March March March March March March March March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022

INCOME
Interest, Dividend and — 54,032 — — 589,484 442,585 — —
Rent-Gross
Premium from direct — 11,647 — 17,667 202,658 182,064 388 500
business written - net of
GST
Commission received on — — — — 5,283,867 4,197,923 — —
Reinsurance ceded
Claims on Re-insurance — — — — 8,350,902 7,129,132 — —
ceded
Other Income — 30 — — 135 240 — —
Total — 65,709 — 17,667 14,427,046 11,951,944 388 500
EXPENSES
Rent, rates and taxes — 7,086 — — 65,349 56,529 — —
Name Usage Fees — 36,175 — — 723,997 465,275 — —
Electricity expenses — — — — 1,488 1,460 — —
Claims paid direct — — — 9 34 100 13 —
Commission paid — — — 46,260 — — — —
Employees’ remuneration — — — — — — 165,276 157,483
and welfare benefits
Annual Report 2022-23 131

Schedule - 16 (Continued)
Notes to Accounts
(`‘000)
Particulars Holding Company Fellow Subsidiaries Investing Party and its Key Managerial Personnel
(Up to May 11, 2021) Group Company (including relatives)
Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
March March March March March March March March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022

Premium on Reinsurance — — — — 23,674,723 17,547,163 — —

ceded
Interest on Debentures — — — — 15,741 112,182 — —
Dividend — — — — 2,469,102 2,292,738 — —
Insurance Premium Paid — — — — — — — —
Repairs (Office — — — — 6,710 6,865 — —
Maintenance)
Others — — — — 1,507 4,620 — —
Total — 43,261 — 46,269 26,958,651 20,486,932 165,289 157,483
ASSETS
Transactions during the
year
Investment purchased — — — — — — — —
during the year
Investment sold during — — — — 500,000 250,000 — —
the year
Account Balances:-
Investments — — — — 8,900,126 6,399,596 — —
Income accrued on — — — — 317,652 201,425 — —
investments
Other Receivable — — — — — — — —
LIABILITIES
Account Balances:-
Share Capital — — — — 7,055,112 7,054,578 — —
Securities Premium — — — — 13,719,287 13,719,287 — —
Debentures — — — — — 400,000 — —
Balance due to other — — — — 18,770,390 11,721,722 — —
insurance companies
Due to holding company — — — — — — — —
Interest Payable on — — — — — 29,387 — —
Debentures
Unallocated premium — — — 4,892 36,681 21,028 — —
Annual Report 2022-23 132

Schedule - 16 (Continued)
Notes to Accounts
(`‘000)
Particulars Holding Company Fellow Subsidiaries Investing Party and its Key Managerial Personnel
(Up to May 11, 2021) Group Company (including relatives)
Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
March March March March March March March March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022

Agents’ Balances — — — 1,627 — — — —

Name Usage Fees Payable — — — — 155,701 241,571 — —
Other Payables — — — — — 4,620 — —

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:
(`‘000)
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 (Office 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 — —
Account Balances
Investments 8,900,126 — —
Other Receivable — — —
Interest accrued on investments 317,652 — —
Annual Report 2022-23 133

Schedule - 16 (Continued)
Notes to Accounts
(`‘000)
Particulars Investing Party and its Group Company
HDFC Limited ERGO International AG Munich Re
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:
(` ‘000)
Particulars Ritesh Kumar Anuj Tyagi Samir H. Shah
(Incl. Relatives) (Incl. Relatives) (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
Annual Report 2022-23 134

Schedule - 16 (Continued)
Notes to Accounts
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 2021-22:
(` ‘000)
Particulars Holding Investing Party and its Group Company Fellow Subsidiaries
Company
(Upto May 11,
2021)
HDFC Limited HDFC Limited ERGO Munich Re HDFC Credila HDFC Sales
(From May 11, International AG Private Limited
2021)
INCOME
Premium from direct business 11,647 182,064 — — 1 (334)
written-net of GST
Commission received on — — — 4,197,923 — —
Reinsurance ceded
Claims on Re-insurance ceded — — — 7,129,132 — —
Interest Dividend and Rent – 54,032 442,585 — — — —
Gross
Other Income 30 240 — — — —
Total 65,709 624,889 — 11,327,055 1 (334)
EXPENSES
Name Usage Fees 36,175 375,040 90,235 — — —
Claims paid direct — 100 — — — 9
Premium on Reinsurance — — — 17,547,163 — —
ceded
Interest on Debentures — — 78,582 33,600 — —
Dividend — 1,157,824 1,134,914 — — —
Commission Paid — — — — — 46,260
Rent, Rates and Taxes 7,086 56,529 — — — —
Electricity Expenses — 1,460 — — — —
Repairs (Office Maintenance) — 6,865 — — — —
Other expense — 4,620 — — — —
Total 43,261 1,602,438 1,303,731 17,580,763 — 46,269
ASSETS:
Transactions during the year
Investment purchased during — — — — — —
the year
Investment sold during the year — 250,000 — — — —
Account Balances
Investments — 6,399,596 — — — —
Other Receivable — — — — — —
Interest accrued on investments — 201,425 — — — —
Annual Report 2022-23 135

Schedule - 16 (Continued)
Notes to Accounts
(` ‘000)
Particulars Holding Investing Party and its Group Company Fellow Subsidiaries
Company
(Upto May 11,
2021)
HDFC Limited HDFC Limited ERGO Munich Re HDFC Credila HDFC Sales
(From May 11, International AG Private Limited
2021)
LIABILITIES:
Account Balances
Share Capital — 3,562,535 3,492,043 — — —
Securities Premium — 4,940,894 8,778,393 — — —
Debentures — — — 400,000 — —
Balance due to other — — — 11,721,722 — —
insurance companies
Interest Payable on Debentures — — — 29,387 — —
Unallocated Premium — 21,028 — — 3,978 726
Agent Balances — — — — — —
Name Usage Fees Payable — 129,227 112,343 — — 1,627
Other Payables — 4,620 — — — —
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 2021-22:
(` ‘000)

Particulars Ritesh Kumar Anuj Tyagi Samir H. Shah

(Incl. Relatives) (Incl. Relatives) (Incl. Relatives)
INCOME
Premium from direct business written - net of GST 215 141 144
Total 215 141 144
EXPENSES
Commission paid direct — — —
Employees remuneration and welfare benefits 95,810 33,771 27,902
Total 95,810 33,771 27,902
21. LOAN RESTRUCTURING
The Company has not given any loans in the financial year 2022-23 (Previous year ` Nil)

22. SUMMARY OF FINANCIAL STATEMENTS

The summary of financial statements is provided in Annexure 3.
23. FOREIGN EXCHANGE GAIN/(LOSS) (NET)
(a) During the year Foreign Exchange Gain (net) earned by the Company is ` 28,850 thousand (Previous year
Gain (net) incurred of ` 26,267 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.
Annual Report 2022-23 136

Schedule - 16 (Continued)
Notes to Accounts
(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 effect 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 effect from April 1,
2010. During the year the Company has charged ` 25,548 thousand (Previous year ` 20,119 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 ` 2,631 thousand (Previous year ` 2,350 thousand) was collected towards
Environment Relief Fund for public liability policies and an amount of ` 2,638 thousand (Previous year
` 2,416 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 ` 118 thousand (Previous year ` 125 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.

25. EARNINGS PER SHARE (EPS)

Sr. Particulars For the year ended For the year ended
No. March 31, 2023 March 31, 2022

1 Net Profit After Tax for the year (` ‘000) 6,526,595 5,001,316
2 Number of Shares outstanding at the beginning of the year. 712,780,035 711,564,933
3 Shares issued during the year — 1,215,102
4 Number of Shares outstanding at the end of the year. 712,780,035 712,780,035
5 Weighted Average No. of Equity Shares for Basic (` ‘000) 712,780 712,655
6 Add: Number of potentially dilutive equity shares 1,949 1,961
7 Weighted Average No. of Equity Shares for Diluted (` ‘000) 714,729 714,616
8 Basic Earnings per Share (`) 9.16 7.02
9 Diluted Earnings per Share (`) 9.13 7.00
10 Nominal Value per Share (`) 10.00 10.00
Annual Report 2022-23 137

Schedule - 16 (Continued)
Notes to Accounts
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:
(` ‘000)
Sr. Particulars For the year ended For the year ended
No. March 31, 2023 March 31, 2022
1 The principal amount remaining unpaid to any supplier as at the end 22,596 —
of the year
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 294,600 306,493
day during the year
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 Development 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
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).

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 Affairs has notified Section 135 of the Companies Act, 2013 on Corporate Social
Responsibility with effect 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 2022-23.
Under the “Adopt Village” program called “Gaon Mera”, the Company has undertaken reconstruction of Government
schools along with setting up Solar panels in these Schools. Additionally, the Company has provided scholarships
to students from low economic backgrounds for undergraduate/graduate program, created infrastructure at
universities and provided buses to schools.
Further, under its Health Program “Niramaya”, the Company has sponsored eye surgeries for children from
economically challenged backgrounds, extended support to under privileged children suffering from Congenital
Heart Defect, supported Cochlear implants and bone marrow transplant surgeries.
Additionally, under program “Roshini”, the Company supported learning for girl child education and contributed
towards sustainable livelihood for women.
Annual Report 2022-23 138

Schedule - 16 (Continued)
Notes to Accounts
(`‘000)

Sr. Particulars For the year ended For the year ended
No. March 31, 2023 March 31, 2022

1 Gross amount required to be spent by the Company during the 126,636 113,776
year
2 Amount approved by the Board to be spent during the year 126,636 113,776
3 Amount spent during the year on:
(i) Construction / acquisition of any asset Nil Nil
(ii) On purposes other than (i) above 126,662 113,876
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

7 Details of ongoing projects For the year ended March 31, 2023
Amount required to be spent during the year 65,802
Amount spent during the year 65,802

30. PROVISION FOR FREE LOOK PERIOD

The provision for Free Look period is ` Nil (Previous year ` Nil), as certified by the Appointed Actuary.

31. DISCLOSURE ON OTHER WORK GIVEN TO AUDITORS

Pursuant to clause 7.1(g) of Corporate Governance Guidelines issued by IRDAI on May 18, 2016 the services of
the statutory auditors are disclosed below:
(` ‘000)
Name of the auditor Services rendered For the year ended For the year ended
March 31, 2023 March 31, 2022

Review of quarterly financial information 1,000 1,200

Agreed upon procedures 1,600 1,600
G. M. Kapadia & Co.
Certifications 390 240
Out of Pocket Expenses 126 67
Review of quarterly financial Information 500 —
B S R & Co. LLP
Out of Pocket Expenses 60 —
Tax Audit — 450
B. K. Khare & Co.
Certifications — 185
Annual Report 2022-23 139

Schedule - 16 (Continued)
Notes to Accounts
32. PENALTIES LEVIED BY VARIOUS GOVERNMENT AUTHORITIES
(` ‘000)

Sr. Authority Non- Penalty Penalty Paid Penalty

No. Compliance/ Awarded Waived/
Violation Reduced

1 Insurance Regulatory and Development Authority N.A. Nil Nil Nil

of India (N.A.) (Nil) (Nil) Nil
2 Goods & Service Tax Authorities N.A. Nil Nil Nil
(N.A.) (Nil) (Nil) (Nil)
3 Income Tax Authorities N.A. Nil Nil Nil
(N.A.) (Nil) (Nil) (Nil)
4 Any other Tax Authorities N.A. Nil Nil Nil
(N.A.) (Nil) (Nil) (Nil)
5 Enforcement Directorate/ Adjudicating Authority/ N.A. Nil Nil Nil
Tribunal or any Authority under FEMA (N.A.) (Nil) (Nil) (Nil)
6 Registrar of Companies/ NCLT/CLB/Department N.A. Nil Nil Nil
of Corporate Affairs or any Authority under (N.A.) (Nil) (Nil) (Nil)
Companies Act, 2013/1956
7 Penalty awarded by any Court/ Tribunal for any N.A. Nil Nil Nil
matter including claim settlement but excluding (N.A.) (Nil) (Nil) (Nil)
compensation
8 Securities and Exchange Board of India N.A. Nil Nil Nil
(N.A.) (Nil) (Nil) (Nil)
9 Competition Commission of India N.A. Nil Nil Nil
(N.A.) (Nil) (Nil) (Nil)
10 Any other Central/State/Local Government/ N.A. Nil Nil Nil
Statutory Authority (N.A.) (Nil) (Nil) (Nil)
(Previous year’s figures are in brackets)

33. Pursuant to receipt of approval from the Insurance Regulatory and Development Authority of India (IRDAI) to exercise
its call option and redeem ` 800,000 (‘000) of its 10 years, 800 nos. of 8.40% Unsecured, Subordinated, Fully
paid up, Listed, Redeemable Non - Convertible Debentures (NCDs) having face value of ` 1,000 (‘000) each, the
Company redeemed the said debentures on September 19, 2022. Further, pursuant to approval received from
IRDAI, the Company issued 10 years, 800 nos of 7.72% Unsecured, Subordinated, Fully paid up, Listed, Redeemable
Non-Convertible Debentures (NCDs) having face value of ` 1,000 (‘000) each, on September 19, 2022.
The Board of Directors of the Company, at its meeting held on January 6, 2023, approved raising of capital by
issuance of Unsecured, Redeemable, Non-Convertible Debentures (NCDs), in the nature of subordinated debt
upto ` 3,000,000 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 30,000 Unsecured, Subordinated, Fully
Paid-up, Listed, Redeemable, Non-Convertible Debentures of the face value of ` 100 thousand each, for cash,
at par, aggregating to ` 3,000,000 thousand. The NCDs have coupon of 8.15% per annum, payable annually
Annual Report 2022-23 140

Schedule - 16 (Continued)
Notes to Accounts
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
` 8,290,000 (000’s) details of which are as under:
a) 10 years, 30,000 nos. of 8.15% Unsecured, Subordinated, Fully paid up, Listed, Redeemable Non-Convertible
Debentures (NCDs) having face value of ` 100 thousand each, issued on February 20, 2023 for cash at
par under NCD Series 2022-23/1 with a call option after a period of 5 years from the date of issue (“NCD
Series 2022-23/2”)
b) 10 years, 800 nos. of 7.72% Unsecured, Subordinated, Fully paid up, Listed, Redeemable Non-Convertible
Debentures (NCDs) having face value of ` 1,000 thousand each, issued on September 19, 2022 for cash
at par under NCD Series 2022-23/1 with a call option after a period of 5 years from the date of issue (“NCD
Series 2022-23/1”)
c) 10 years, 3,750 nos. of 7.10% Unsecured, Subordinated, Fully paid up, Listed, Redeemable Non-Convertible
Debentures (NCDs) having face value of ` 1,000 thousand each, issued on November 9, 2021 for cash at
par under NCD Series 2021-22/1 with a call option after a period of 5 years from the date of issue (“NCD
Series 2021-22/1”)
d) 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, issued on September 18, 2018 for cash at
par under NCD Series 2018-19/1 with a call option after a period of 5 years from the date of issue (“NCD
Series 2018-19/1”)
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, 2023 is ` 356,468 thousand. Thus, the Company is not required
to create any additional reserves during the year.
34. The Board of Directors in its meeting held on March 02, 2023, has approved the payment of an interim dividend
of ` 3.50 per equity share of ` 10 each (Previous Year ` 3.25 per equity share of ` 10 each) and accordingly an
amount of ` 2,494,730 thousand (Previous Year ` 2,316,535 thousand) was paid to the shareholders.
35. (i) The Company periodically reviews all its long-term contracts to assess for any material foreseeable losses.
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, 2023, the company did not have any outstanding long-term derivative contracts.
36. 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 Effective 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 effective.
37. 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
Annual Report 2022-23 141

Schedule - 16 (Continued)
Notes to Accounts
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.

38. Ind AS Implementation

Pursuant to notification of Indian Accounting Standards (Ind AS) by the Ministry of Corporate Affairs (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 effect 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 effective 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 diagnostic analysis of Ind AS 117 for the key portfolio
segments of the Company.
For the said diagnostic analysis, the Company has selected a broad mix of products representing varied product
features from its existing product mix in order to comprehensively evaluate the implications. The diagnostic
activity is currently underway.
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.

Signature to the Notes to Accounts

For and on behalf of the Board of Directors
Keki M Mistry Renu S. Karnad Oliver Martin Willmes Clemens Matthias Muth
Chairman Non-Executive Director Non-Executive Director Non-Executive Director
(DIN: 00008886) (DIN: 00008064) (DIN: 08876420) (DIN: 07824451)
Bernhard Steinruecke Mehernosh B. Kapadia Arvind Mahajan Ameet Hariani
Independent Director Independent Director Independent Director Independent Director
(DIN: 01122939) (DIN: 00046612) (DIN: 07553144) (DIN: 00087866)
Sanjib Chaudhuri Vinay Sanghi Rajgopal Thirumalai Ritesh Kumar
Independent Director Independent Director Independent Director Managing Director & CEO
(DIN: 09565962) (DIN: 00309085) (DIN: 02253615) (DIN: 02213019)
Anuj Tyagi Samir H. Shah Vyoma Manek
Deputy Managing Director Executive Director & CFO Company Secretary & Chief Compliance Officer
(DIN: 07505313) (DIN: 08114828 ) (Membership No.: ACS 20384)
Mumbai
Dated: April 27, 2023
Annual Report 2022-23 142

Schedule - 16 (Continued)
Notes to Accounts
Annexure 1
Segmental Breakup of the Balance Sheet as at March 31, 2023
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.
(` ‘000)
Particulars Fire Marine Miscellaneous Unallocated Total

Claims Outstanding 3,209,525 1,726,026 76,488,129 — 81,423,680

(Refer note 2(h))
(2,753,846) (794,823) (66,278,769) — (69,827,438)
Reserve for Unexpired Risk 4,704,752 450,966 48,839,039 — 5,3994,757
(4,053,941) (370,027) (41,111,997) — (45,535,965)
Premium Received in Advance 4,999 18,164 9,639,678 — 9,662,841
(1,512) (8,850) (8,674,892) — (8,685,254)
Outstanding Premium 152,427 125 13,070,938 — 13,223,490
(72,994) (1,050) (16,343,972) — (16,418,016)
(Previous year’s figures are in brackets)
SEGMENT REPORTING FOR THE YEAR ENDED March 31, 2023
Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty * Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

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

Profit 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
Annual Report 2022-23

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

Notes to Accounts
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
Schedule - 16 (Continued)

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 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 - D)

Premium Deficiency — — — — — — — — — — — — — — — — — — —

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 Profit/(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

* Includes - 1. Directors’ and officers’ liability

2. Mutual fund assets protection

SCHEDULE - A to Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Liability Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liabilities Accident Crop

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 (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)
unexpired risks

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
143
SEGMENT REPORTING FOR THE PERIOD ENDED March 31, 2023 (Continued)
SCHEDULE - B to Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

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 (0) 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
Annual Report 2022-23

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)
Notes to Accounts
Net Claims paid 1,134,784 1,242,375 364 15,225,285 13,382,197 1,843,088 89,269 5 (0) 76,392 299,593 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)
Schedule - 16 (Continued)

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 Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

COMMISSION PAID [NET]

Commission paid direct 1,730,505 260,509 2,266 4,146,140 3,663,419 482,720 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) (2,543,037) (165,480) (17,563,133)

Net commision paid/(received) (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) (2,385,183)
144
SEGMENT REPORTING FOR THE PERIOD ENDED March 31, 2023 (Continued)
SCHEDULE - D to Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
Employees’ remuneration and welfare benefits (Refer note 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
10 of Schedule 16)
Annual Report 2022-23

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
Notes to Accounts
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 15,735 117,713 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
Schedule - 16 (Continued)

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 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
Office 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/(Profit) 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
145
SEGMENT REPORTING FOR THE YEAR ENDED March 31, 2022
Annexure 1 ( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty * Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

Premium Earned (Net) (Schedule - A) 2,843,510 1,215,001 562 25,584,143 14,630,542 10,953,601 143,620 6,627 698 236,160 444,152 129 4,285,753 26,410,824 103,209 592,524 5,980,111 939,450 68,786,473

Profit on Sale of Investments 85,094 12,701 126 824,959 144,698 680,261 3,974 211 170 5,780 9,710 1,061 111,314 315,747 6,947 9,906 67,216 22,910 1,477,827

Interest, Rent and Dividend (Net of Amortisation) 511,366 76,324 758 4,957,510 869,549 4,087,962 23,881 1,268 1,021 34,737 58,352 6,377 668,929 1,897,453 41,745 59,528 403,927 137,675 8,880,852
Annual Report 2022-23

Investment Income from Pool 40,886 — — — — — — — — — — — — — — — — — 40,886

Other Income 892 386 — 8,124 4,646 3,478 46 2 — 75 139 — 1,361 8,386 33 188 1,899 298 21,829
Notes to Accounts
Total Segmental Revenue 3,481,749 1,304,412 1,447 31,374,737 15,649,434 15,725,302 171,521 8,107 1,890 276,752 512,354 7,567 5,067,356 28,632,410 151,933 662,146 6,453,152 1,100,334 79,207,867

Claims Incurred (Net) (Schedule - B) 1,780,148 1,143,147 137 19,102,047 11,157,610 7,944,437 70,794 1,275 161 74,368 175,813 (20,724) 1,561,812 28,357,842 49,729 136,424 4,555,593 822,017 57,810,582
Schedule - 16 (Continued)

Commission (Net) (Schedule - C) (1,277,634) 172,344 (6,107) 193,865 2,532,960 (2,339,095) 19,584 (1,362) 1,741 (6,871) (143,567) (4,645) (566,198) 228,144 102,609 (75,263) (1,354,469) (52,686) (2,770,516)

Operating Expenses Related to Insurance Business 2,106,511 228,029 27,912 5,017,203 2,172,981 2,844,224 23,672 5,044 207 121,083 268,097 25,650 846,963 6,138,079 103,156 397,656 3,894,344 221,188 19,424,797
(Schedule - D)

Premium Deficiency — — — — — — — — — — — — — — — — — — —

Total Segmental Expenditure 2,609,025 1,543,520 21,943 24,313,115 15,863,551 8,449,565 114,050 4,956 2,109 188,581 300,343 281 1,842,578 34,724,064 255,494 458,816 7,095,467 990,518 74,464,862

Segmental Profit/(Loss) 872,724 (239,108) (20,495) 7,061,622 (214,116) 7,275,737 57,470 3,151 (219) 88,171 212,010 7,286 3,224,779 (6,091,654) (103,561) 203,330 (642,315) 109,816 4,743,005

Exceptional Item (Refer note 27 of Schedule 16) — — — — — — — — — — — — — — — — — — —

Segmental Profit/(Loss) (after exceptional item) 872,724 (239,108) (20,495) 7,061,622 (214,116) 7,275,737 57,470 3,151 (219) 88,171 212,010 7,286 3,224,779 (6,091,654) (103,561) 203,330 (642,315) 109,816 4,743,005

* Includes - 1. Directors’ and officers’ liability

2. Mutual fund assets protection

SCHEDULE - A to Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

PREMIUM EARNED [NET]

Premium from direct business written-net of GST 13,303,548 1,537,004 197,443 35,489,978 15,370,918 20,119,060 167,450 34,979 1,461 835,100 1,835,923 181,441 5,987,875 43,418,660 729,689 2,572,166 27,119,738 1,563,050 134,975,508

Add: Premium on Re-insurance accepted 1,685,528 75,992 — — — — — 700 — 21,401 66,787 — 3,249 — — 240,717 — 1,559 2,095,934

Less: Premium on Re-insurance ceded (11,884,311) (352,903) (196,583) (9,870,131) (801,449) (9,068,682) (23,847) (29,052) (943) (617,555) (1,463,867) (181,278) (2,624,325) (14,654,266) (69,918) (2,166,340) (21,029,278) (838,071) (66,002,667)

Net Premium 3,104,766 1,260,094 860 25,619,847 14,569,469 11,050,378 143,603 6,628 517 238,947 438,843 163 3,366,800 28,764,394 659,771 646,544 6,090,460 726,537 71,068,775

Add/(Less): Adjustment for changes in reserve for (261,256) (45,093) (298) (35,704) 61,073 (96,776) 17 (1) 181 (2,787) 5,309 (34) 918,954 (2,353,570) (556,562) (54,020) (110,349) 212,913 (2,282,301)
unexpired risks

Total Premium Earned 2,843,510 1,215,001 562 25,584,143 14,630,542 10,953,601 143,620 6,627 698 236,160 444,152 129 4,285,753 26,410,824 103,209 592,524 5,980,111 939,450 68,786,473
146
SEGMENT REPORTING FOR THE PERIOD ENDED March 31, 2022 (Continued)
SCHEDULE - B to Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

CLAIMS INCURRED [NET]

Claims paid direct 4,141,614 1,240,916 37,735 15,507,185 11,204,364 4,302,821 91,448 327 11,902 89,790 739,342 2,270 1,948,057 38,822,826 23,424 584,485 16,290,247 960,895 80,492,461
Annual Report 2022-23

Add: Claims on Re-insurance accepted 450,650 54,379 (0) (0) (0) (0) (0) (0) (0) (0) 16,389 (4,605) 2,331 (0) (0) 3,183 (0) 11 522,338

Less: Re-insurance ceded (3,517,787) (529,933) (37,474) (4,304,871) (756,894) (3,547,977) (4,573) (125) (11,649) (19,168) (428,575) (2,316) (565,195) (9,132,290) (1,521) (513,140) (12,618,514) (293,640) (31,980,770)
Notes to Accounts
Net Claims paid 1,074,476 765,363 261 11,202,314 10,447,470 754,844 86,875 202 253 70,622 327,156 (4,651) 1,385,193 29,690,536 21,903 74,528 3,671,734 667,265 49,034,029

Add: Claims Outstanding at the end 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

Less: Claims Outstanding at the beginning of the year (2,048,174) (408,478) (8,684) (43,253,033) (2,452,449) (40,800,584) (234,886) (11,244) (12,317) (311,521) (606,722) (86,863) (2,272,400) (6,423,038) (30,447) (387,622) (4,268,080) (687,376) (61,050,884)
Schedule - 16 (Continued)

Total Claims Incurred 1,780,148 1,143,147 137 19,102,047 11,157,610 7,944,437 70,794 1,275 161 74,368 175,813 (20,724) 1,561,812 28,357,842 49,729 136,424 4,555,593 822,017 57,810,584

SCHEDULE - C to Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

COMMISSION PAID [NET]

Commission paid direct 1,294,565 187,224 2,124 2,867,593 2,645,281 222,312 23,741 2,068 1,096 99,581 135,452 5,964 834,186 5,421,296 109,455 333,715 62,921 67,041 11,448,022

Add: Commission paid on Re-insurance accepted 153,929 8,618 (0) (0) (0) (0) (0) 109 (0) 2,927 6,138 (0) (0) (0) (0) 36,823 (0) 16 208,559

Less: Commission received on Re-insurance ceded (2,726,127) (23,497) (8,231) (2,673,727) (112,320) (2,561,407) (4,158) (3,539) 646 (109,378) (285,157) (10,609) (1,400,384) (5,193,152) (6,846) (445,801) (1,417,391) (119,744) (14,427,096)

Net commision paid/(received) (1,277,634) 172,344 (6,107) 193,865 2,532,960 (2,339,095) 19,584 (1,362) 1,741 (6,871) (143,567) (4,645) (566,198) 228,144 102,609 (75,263) (1,354,469) (52,686) (2,770,515)
147
SEGMENT REPORTING FOR THE PERIOD ENDED March 31, 2022 (Continued)
SCHEDULE - D to Annexure 1
( ` ‘000)

Fire Marine Marine- Motor Motor-OD Motor-TP Workmen’s Public Product Other Engineering Aviation Personal Health Home Specialty Weather/ Others Total
Cargo Hull Compensation Liability Liability Liabilities Accident Crop

OPERATING EXPENSES RELATED TO INSURANCE BUSINESS

Employees’ remuneration and welfare benefits 725,740 78,561 9,616 1,728,539 748,640 979,899 8,156 1,738 71 41,716 92,366 8,837 291,798 2,114,706 35,540 137,001 1,320,867 76,204 6,671,455
Annual Report 2022-23

Travel, conveyance and vehicle running expenses 26,628 2,882 353 63,421 27,468 35,953 299 64 3 1,531 3,389 324 10,706 77,590 1,304 5,027 48,464 2,796 244,781

Training expenses 22,108 2,393 293 52,656 22,805 29,850 248 53 2 1,271 2,814 269 8,889 64,419 1,083 4,173 40,237 2,321 203,229
Notes to Accounts

Rents, rates and taxes 47,176 5,107 625 112,363 48,665 63,698 530 113 5 2,712 6,004 574 18,968 137,465 2,310 8,906 85,862 4,954 433,674

Repairs 23,072 2,497 306 54,951 23,800 31,152 259 55 2 1,326 2,936 281 9,276 67,228 1,130 4,355 41,991 2,423 212,089

Printing and stationery 13,692 1,482 181 32,611 14,124 18,487 154 33 1 787 1,743 167 5,505 39,897 671 2,585 24,920 1,438 125,867
Schedule - 16 (Continued)

Communication 11,135 1,205 148 26,522 11,487 15,035 125 27 1 640 1,417 136 4,477 32,447 545 2,102 20,267 1,169 102,363

Legal and professional charges 521,670 56,471 6,912 1,242,493 538,131 704,362 5,862 1,249 51 29,986 66,393 6,352 209,747 1,520,074 25,546 98,478 949,454 54,776 4,795,515

Auditors’ fees, expenses etc

(a) as auditors 707 77 9 1,684 729 955 8 2 0 41 90 9 284 2,060 35 133 1,287 74 6,500

(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 407 44 5 969 420 550 5 1 — 23 52 5 164 1,186 20 77 741 43 3,742

Advertisement and publicity 508,914 55,090 6,743 1,212,111 524,972 687,138 5,719 1,219 50 29,253 64,770 6,197 204,618 1,482,904 24,922 96,070 926,237 53,437 4,678,252

Interest and bank charges 43,291 4,686 574 103,109 44,657 58,452 486 104 4 2,488 5,510 527 17,406 126,144 2,120 8,172 139,228 4,546 458,397

Others:

Electricity expenses 8,874 961 118 21,135 9,154 11,981 100 21 1 510 1,129 108 3,568 25,857 435 1,675 16,150 932 81,573

Office expenses 4,015 435 53 9,562 4,141 5,421 45 10 — 231 511 49 1,614 11,698 197 758 7,307 422 36,905

Miscellaneous expenses 7,596 822 101 18,092 7,836 10,256 85 18 1 437 967 92 3,054 22,134 372 1,434 13,825 798 69,829

Information Technology expenses 77,198 8,357 1,023 183,866 79,633 104,233 868 185 8 4,437 9,825 940 31,039 224,943 3,780 14,573 140,502 8,106 709,648

Postage and courier 5,411 586 72 12,888 5,582 7,306 61 13 1 311 689 66 2,176 15,767 265 1,021 9,848 568 49,741

Loss/(Profit) on sale of assets (net) (77) (8) (1) (183) (79) (104) (1) (0) (0) (4) (10) (1) (31) (223) (4) (14) (140) (8) (705)

Depreciation 58,954 6,382 781 140,414 60,814 79,600 663 141 6 3,389 7,503 718 23,704 171,784 2,887 11,129 107,298 6,190 541,942

Total Operating Expenses 2,106,511 228,029 27,912 5,017,203 2,172,981 2,844,224 23,672 5,044 207 121,083 268,097 25,650 846,963 6,138,079 103,156 397,656 3,894,344 221,188 19,424,797
148
Annexure -2
Ratios for Non-Life Companies
Sr. Performance Ratio As on March 31, 2023 As on March 31, 2022
No. Fire Marine Miscellaneous Total Fire Marine Miscellaneous Total
1 Gross premium growth rate (refer note 1a and 1b) 28.54% 26.76% 22.61% 23.25% 13.21% 16.50% 9.32% 9.78%
Gross Premium for Current period / Gross Premium for Previous period
2 Gross Premium to shareholders’ fund ratio NA NA NA 4.60 NA NA NA 4.20
Annual Report 2022-23

Gross Premium for Current period / (Paid up Capital plus Free Reserves)
3 Growth rate of shareholders’ funds NA NA NA 12.58% NA NA NA 9.74%
Shareholders’ funds as at the current balance sheet date / Shareholders’ funds
Notes to Accounts
at the previous balance sheet date
4 Net retention ratio (refer note 1a and 1b) 17.76% 73.70% 56.80% 52.63% 20.71% 69.65% 55.46% 51.85%
Schedule - 16 (Continued)

Net Premium / Gross Premium

5 Net commission ratio (refer note 1a and 1b) -57.94% 14.16% -0.80% -2.69% -41.15% 13.18% -2.49% -3.90%
Net Commission / Net Premium
6 Expenses of Management to gross direct Premium ratio 25.15% 26.03% 22.56% 22.87% 25.57% 25.67% 22.53% 22.87%
Operating Expenses + Gross Commission/ Gross Premium
7 Expenses of Management to Net written Premium ratio 127.52% 34.18% 39.60% 42.84% 109.54% 35.31% 40.52% 43.44%
Operating Expenses + Gross Commission/ Net Premium
8 Net Incurred Claims to Net Earned Premium 58.44% 136.43% 79.52% 79.94% 62.60% 94.05% 84.80% 84.04%
Net incurred Claim / Net earned premium
9 Combined ratio 76.70% 169.07% 102.89% 103.29% 89.30% 127.53% 107.89% 107.48%
Net incurred Claim, Net Commission plus Operating Expense / Net Premium +
Net earned premium
10 Technical reserves to net Premium ratio 2.35 1.30 1.50 1.52 2.19 0.92 1.61 1.62
Reserve for Unexpired Risks plus Deficiency Reserve plus Reserve for
Outstanding Claims / Net Premium
11 Underwriting balance ratio 0.19 -0.71 -0.05 -0.06 0.08 -0.29 -0.09 -0.08
Underwriting Profit / Net Premium
12 Operating profit ratio 45.18% -61.26% 8.51% 8.37% 30.69% -21.36% 6.38% 6.90%
Underwriting Profit plus Investment Income / Net Premium
13 Liquid assets to liabilities ratio NA NA NA 0.23 NA NA NA 0.26
Liquid Assets of the Insurer / Policyholders’ Liabilities
14 Net earnings ratio NA NA NA 7.35% NA NA NA 7.04%
Profit after Tax / Net Premium
15 Return on net worth NA NA NA 18.05% NA NA NA 15.57%
Profit After Tax / Net Worth
16 Available Solvency Margin (ASM) to Required Solvency Margin (RSM) NA NA NA 1.81 NA NA NA 1.64
ASM / RSM
17 Gross NPA ratio* NA NA NA 0.99% NA NA NA 1.30%
Gross NPA / Gross Investment
Net NPA ratio* NA NA NA 0.00% NA NA NA 0.01%
Net NPA / Net Investment
*Pertains to Non - Performing Investments
149
Annexure -2
Ratios for Non-Life Companies (Continued)
Notes:
1a. Miscellaneous Breakup for the year ended March 31, 2023
Sr. No. Particulars Miscellaneous
Motor Workmens Public Product Engineering Aviation Personal Health Others Total
Motor-OD Motor-TP Motor Total Compensation Liability Liability Accident Insurance Other Home Specialty Weather/ Others Miscellenous
Liability Crop
Annual Report 2022-23

1 Gross premium growth rate 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%
Gross Premium for Current period / Gross Premium for Previous period Notes to Accounts
2 Net retention ratio 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%
Net Premium / Gross Premium

3 Net commission ratio 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%
Net Commission / Net Premium
Schedule - 16 (Continued)

1b. Miscellaneous Breakup for the year ended March 31, 2022
Sr. No. Particulars Miscellaneous
Motor Workmens Public Product Engineering Aviation Personal Health Others Total
Motor-OD Motor-TP Motor Total Compensation Liability Liability Accident Insurance Other Home Specialty Weather/ Others Miscellenous
Liability Crop
1 Gross premium growth rate 2.14% 5.81% 4.18% 1.03% 18.78% -85.06% 5.03% 48.80% 10.89% 16.04% 2.59% 223.76% 21.71% 5.40% -16.55% 9.32%
Gross Premium for Current period / Gross Premium for Previous period

2 Net retention ratio 94.79% 54.92% 72.19% 85.76% 18.57% 35.46% 23.06% 0.09% 56.20% 66.25% 27.90% 90.42% 22.99% 22.46% 46.44% 55.46%
Net Premium / Gross Premium

3 Net commission ratio 17.39% -21.17% 0.76% 13.64% -20.54% 336.15% -32.71% -2869.14% -16.82% 0.79% -2.88% 15.55% -11.64% -22.24% -7.25% -2.49%
Net Commission / Net Premium

2. Gross Premium represents Gross Direct Premium

3. Net Premium represents Gross Direct Premium including Premium accepted on reinsurance less reinsurance ceded
4. Underwriting Profit represents Segmental Profit / (Loss) excluding Investment Income
5. Liquid Assets represent Cash and Cash Equivalents and Short Term Investments.
150
Annual Report 2022-23 151

Schedule - 16 (Continued)
Notes to Accounts
Summary of Financial Statements
Annexure -3
Sr. Particulars 2022-23 2021-22 2020-21 2019-20 2018-19
No. ( ` ‘000) ( ` ‘000) ( ` ‘000) ( ` ‘000) ( ` ‘000)
OPERATING RESULTS
1 Gross Written Premium 168,731,374 137,071,444 124,439,338 97,600,965 87,218,003
2 Net Premium Income 88,808,383 71,068,776 65,042,858 48,668,660 43,727,874
3 Income from Investments (net) 11,237,098 10,358,679 9,540,196 7,318,655 5,613,146
4 Other Income 107,365 62,715 118,832 78,665 104,959
5 Total Income 100,152,846 81,490,171 74,701,886 56,065,980 49,445,980
6 Commission (net) (2,385,182) (2,770,514) (1,983,344) (2,119,040) (1,525,955)
7 Operating Expenses 23,122,720 19,424,800 19,868,937 14,809,749 11,313,294
8 Premium Deficiency — — — — —
9 Net Incurred Claims 64,229,533 57,810,582 48,520,486 35,241,187 29,091,815
10 Change in Unexpired Risk Reserve 8,458,791 2,282,301 987,052 4,165,145 5,627,767
11 Operating Profit/(Loss) 6,726,984 4,743,002 7,308,755 3,968,939 4,939,059
NON-OPERATING RESULTS
12 Total Income under shareholder’s account 1,957,469 1,934,694 608,935 620,710 (266,762)
13 Profit/(Loss) before tax 8,684,452 6,677,695 7,917,692 4,589,649 4,672,297
14 Provision for tax 2,157,859 1,676,379 2,001,182 1,320,231 842,419
15 Profit/(Loss) after tax 6,526,593 5,001,316 5,916,510 3,269,418 3,829,877
MISCELLANEOUS
16 Policyholders’ Account :
Total Funds 180,404,772 146,765,923 136,900,703 115,988,644 72,068,296
Total Investments (Refer note 2 (p) and 10 of 180,404,772 146,765,923 136,900,703 115,988,644 72,068,296
schedule 16)
Yield on Investments 7.1% 7.4% 7.3% 8.1% 8.2%
17 Shareholders’ Account :
Total Funds 36,159,558 32,118,923 29,268,562 25,429,010 19,823,885
Total Investments (Refer note 2 (p) and 10 of 42,011,314 37,204,597 29,528,835 19,780,184 18,971,760
schedule 16)
Yield on Investments 7.1% 7.4% 7.3% 8.1% 8.2%
18 Paid up equity capital 7,127,800 7,127,800 7,115,649 6,058,421 6,054,221
19 Net worth 36,159,558 32,118,923 29,268,562 25,429,010 19,823,885
20 Total Assets 36,159,558 32,118,923 29,268,562 25,429,010 19,823,885
21 Yield on Total Investments 7.1% 7.4% 7.3% 8.1% 8.2%
22 Earnings per Share (Basic) (`) 9.16 7.02 8.32 5.32 6.33
23 Book Value per Share (`) 50.73 45.06 41.13 41.97 32.74
24 Total Dividend 2,494,730 2,316,535 2,134,695 — 1,362,200
25 Dividend per Share (`) 3.50 3.25 3.00 — 2.25
Annual Report 2022-23 152

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 7-12 13-18 19-24 25-30 31-36 37-120 More
months months months months months months months than 120
Months
Claims settled but — — — — — — — — —
not paid to the (—) (—) (—) (—) (—) (—) (—) (—) (—)
policyholders/insured’s
due to any reasons
except under litigation
from the insured/
policyholders
Sum due to the — — — — — — — — —
insured/policyholders (—) (—) (—) (—) (—) (—) (—) (—) (—)
on maturity or
otherwise
Any excess collection 46,381 — 7,773 12,209 15,437 1,304 2,360 7,298 —
of the premium/tax (36,601) (—) (27,320) (204) (2,153) (1,541) (1,600) (3,686) (98)
or any other charges
which is refundable
to the policyholders
either as terms of
conditions of the policy
or as per law or as
may be directed by
the Authority but not
refunded so far
Cheques issued but 289,915 — 18,586 21,848 14,098 15,069 17,132 190,953 12,230
not encashed by the (300,863) (—) (30,543) (20,932) (21,456) (19,020) (21,543) (179,242) (8,127)
policyholder/insured
(refer note below)
TOTAL 336,296 — 26,359 34,057 29,535 16,373 19,492 198,251 12,230
(337,464) (—) (57,863) (21,136) (23,609) (20,561) (23,143) (182,928) (8,225)
(Previous year’s figures are in brackets)
Notes:
1. The Policyholder due includes ` 97,518 thousand (Previous year ` 102,728 thousand) pertains to MACT
cases.
2. The Policyholder due includes amount of ` 2,200 thousand (Previous year ` 9,741 thousand) pertains to
cheques reissued but not encashed by the policyholder/insured.
Pursuant to Master Circular on unclaimed amount of Policy holder dues issued by IRDAI on July 25, 2017 the
Company has considered the unclaimed amount which are payable to Policyholders remaining unclaimed
beyond six months from the settlement date or due date whichever is earlier. Accordingly there are no
additions in the unclaimed amount of Policyholder dues in the category of 0-6 months.
Annual Report 2022-23 153

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
(` ‘000)
Particulars For the year ended March 31, 2023 For the year ended March 31, 2022

Policy Dues Income Accrued Policy Dues Income Accrued

Opening Balance 284,107 43,572 264,090 44,772

Add : Amount transferred to unclaimed fund 130,918 — 87,273 —
Add : Cheques issued out of the unclaimed 2,330 — 4,908 —
amount but not encashed by the policyholders
(to be included only when the cheques are stale)
Add: Investment Income on unclaimed Fund — 11,695 — 7,682
Less: Amount of claims paid during the year 119,432 1,211 59,313 3,423
Less: Amount transferred to SCWF (net of claims 12,423 5,561 12,851 5,415
paid in respect of amounts transferred earlier)
Closing Balance of Unclaimed Amount Fund 285,500 48,495 284,107 43,616
“Unclaimed amount of policyholders (Investment)” ` 189,070 thousand (Previous year ` 188,201 thousand)
and “Income on Unclaimed Amount of Policyholders (Investment)” ` 48,583 thousand (Previous year ` 43,616
thousand) are disclosed under Schedule 12 – Advances and Other Assets.
Annual Report 2022-23 154

Management Report

In accordance with Part IV of Schedule B of the Insurance “Outstanding Premiums”, “Interest, Dividends and
Regulatory and Development Authority (Preparation of Rents outstanding”, “Interest, Dividends and Rents
Financial Statements and Auditor’s Report of Insurance accruing but not due”, “Amounts due from other
Companies) Regulations 2002, the Management submits persons or Bodies carrying on insurance business”,
the following Report: “Sundry Debtors”, “Bills Receivable”, “Cash” and
1. We confirm the validity of Certificate of Registration the several items specified under “Other Accounts”
granted by the Insurance Regulatory and Development except debt securities which are stated at cost /
Authority of India to transact general insurance amortised cost.
business. 7. The Company is exposed to a variety of risks
2. To the best of our knowledge and belief, all the associated with general insurance business such
material dues payable to the statutory authorities as quality of risks undertaken, fluctuations in value
have been duly paid. of assets and higher expenses in the initial years of
operation. The Company monitors these risks closely
3. We confirm that the shareholding pattern and the and effective remedial action is taken wherever
transfer of shares during the year ended March deemed necessary.
31, 2023 are in accordance with the statutory or
regulatory requirements. The Company has, through an appropriate
reinsurance program kept its risk exposure at a level
4. We declare that funds of holders of policies issued commensurate with its capacity.
in India have not been directly or indirectly invested
outside India. 8. The Company does not have operations outside India.

5. We confirm that the Company has maintained the 9. a. For ageing analysis of Gross Claims outstanding
required solvency margins laid down by Insurance (excluding provision for IBNR / IBNER and claims
Regulatory and Development Authority of India. relating to inward re-insurance from terrorism
pool) during the preceding five years, please
6. We certify that the all assets of the Company have refer Annexure 1.
been reviewed on the date of the Balance Sheet
and to the best of our knowledge and belief the b. For average claims settlement time during the
assets set forth in the Balance Sheet are shown preceding five years, please refer Annexure 2.
in the aggregate at amounts not exceeding their 10. Details of payments to individuals, firms, Companies
realizable or market value under the several headings and organizations in which directors are interested
– “Loans”, “Investments”, “Agents balances”, during the year ended on March 31, 2023:
Sr. Name of the Director Entity in which Director is interested Interested As Payment during
No. the year
(` ‘000)
1 Keki M. Mistry HDFC Limited Vice Chairman and CEO 1,921,976
HDFC Life Insurance Company Limited Director 35,105
Tata Consultancy Services Limited Director 120,611
Torrent Power Limited Director 1,436
2 Renu Sud Karnad HDFC Limited Managing Director 1,921,976
HDFC Bank Nominee Director 2,424,538
HDFC Life Insurance Company Limited Director 35,105
3 Oliver Martin Willmes ERGO International AG Chairman of the Board 1,346,212
of Management
4 Vijay Sanghi Suraj Sanghi Service Centre Partner 106
5 Ameet P. Hariani Mahindra Logistics Limited Independent Non- 132
Executive Director
6 Bernhard Steinruecke Zodiac Clothing Limited Director 637
7 Ritesh Kumar Insurance Information Bureau of India Member 1,352
Insurance Institute of India Member 843
Annual Report 2022-23 155

Management Report (Continued)

11. We certify that all debt securities excluding Additional to maintain optimum liquidity. Investments are
Tier I Bonds and non -convertible preference shares managed in consonance with the investment policy
are considered as ‘held to maturity’ and accordingly laid down by the board from time to time and are
stated at historical cost subject to amortisation within the investment regulation and guidelines
of premium or accretion of discount on constant of IRDAI. The Company has carried out periodic
yield to maturity basis to the extent of policyholders review of the investment portfolio and where found
funds in the Revenue Accounts and to the extent of necessary, has made provision for diminution in value
shareholders funds in the Profit and Loss Account of investments or written them off.
over the period of maturity/holding. Money market
13. The Management of HDFC ERGO General Insurance
instruments like Commercial Papers, Certificate
Company Limited certifies that:
of Deposits, Treasury Bills and TREPS are stated
at historical cost subject to accretion of discount The financial statements have been prepared in
on constant yield to maturity basis. Government accordance with the applicable provisions of the
Securities traded under Reverse repurchase (reverse Insurance Regulatory and Development Authority
repo) are recorded at historical cost. (Preparation of Financial Statements and Auditor’s
Report of Insurance Companies) Regulations,
All mutual fund investments are valued at net asset
2002, the Insurance Act, 1938 as amended by
value as at Balance Sheet date.
Insurance Laws (Amendment) Act, 2015, the
Equity shares actively traded as at the Balance Insurance Regulatory and Development Authority
Sheet date are stated at fair value, being the Act, 1999, circulars/notifications issued by IRDAI
last quoted closing price on the National Stock from time to time (including Circular No. IRDA/F&A/
Exchange (NSE) being selected as Primary exchange CIR/CPM/056/03/2016 dated April 04, 2016 and
as required by IRDAI circular number IRDA/F&I/ IRDA/F&A/CIR/CPM/010/01/2017 dated January
INV/CIR/213/10/2013 dated October 30, 2013. 12, 2017), the Accounting Standards (AS) specified
However, in case of any stock not being listed on NSE, under Section 133 of the Companies Act, 2013,
the same is valued based on the last quoted closing read together with Rule 7 of Companies (Accounts)
price on Bombay Stock Exchange (BSE). Unlisted Rule 2014 dated March 31, 2014 and Companies
equity shares are measured at historical cost. (Accounting Standards) amendment Rules 2016
dated March 30, 2016 to the extent applicable and
Additional Tier I Bond Investments are fair valued
the relevant provisions of the Companies Act, 2013,
at market yield rates published by rating agency
and disclosures have been made, wherever the same
registered with the Securities and Exchange Board
is required. There is no material departure from the
of India (SEBI).
said standards, principles and policies.
In accordance with the Regulations, any unrealized
i. The Company has adopted accounting policies
gains/losses arising due to change in fair value of
and applied them consistently and made
mutual fund investments, listed equity shares and
judgments and estimates that are reasonable
Additional Tier I Bonds are accounted in “Fair Value
and prudent, so as to give a true and fair view of
Change Account” and carried forward in the Balance
the state of affairs of the Company as at March
Sheet and is not available for distribution.
31, 2023 and of the operating profit for the year
12. The Company has adopted a prudent investment ended on that date.
policy which is reviewed every half year with
ii. The Company has taken proper and sufficient
emphasis on optimizing return with minimum risk.
care for the maintenance of adequate accounting
Emphasis was towards low risk investments such
records in accordance with the applicable
as Government securities, rated debt instruments
provisions of the Insurance Act,
and liquid and Money Market instruments in order
Annual Report 2022-23 156

Management Report (Continued)

1938, (4 of 1938) as amended by Insurance iv. The Company’s internal audit is conducted by
Laws (Amendment) Act, 2015 / Companies Act, an in-house audit team and appointed audit
1956, (1 of 1956)/ the Companies Act, 2013, firms. The scope of work of internal audit is
for safeguarding the assets of the Company and commensurate with the size and nature of
for preventing and detecting fraud and other the Company’s business. The management
irregularities. has ensured that an internal audit system
commensurate with the size and nature of
iii. The financial statements of the Company have
business exists and is operating effectively.
been prepared on a going concern basis.

Signatures to Management Report

For and on behalf of the Board of Directors
Keki M Mistry Renu S. Karnad Oliver Martin Willmes Clemens Matthias Muth
Chairman Non-Executive Director Non-Executive Director Non-Executive Director
(DIN: 00008886) (DIN: 00008064) (DIN: 08876420) (DIN: 07824451)
Bernhard Steinruecke Mehernosh B. Kapadia Arvind Mahajan Ameet Hariani
Independent Director Independent Director Independent Director Independent Director
(DIN: 01122939) (DIN: 00046612) (DIN: 07553144) (DIN: 00087866)
Sanjib Chaudhuri Vinay Sanghi Rajgopal Thirumalai Ritesh Kumar
Independent Director Independent Director Independent Director Managing Director & CEO
(DIN: 09565962) (DIN: 00309085) (DIN: 02253615) (DIN: 02213019)
Anuj Tyagi Samir H. Shah Vyoma Manek
Deputy Managing Director Executive Director & CFO Company Secretary & Chief Compliance Officer
(DIN: 07505313) (DIN: 08114828 ) (Membership No.: ACS 20384)

Mumbai,
Dated: April 27, 2023
Annexure 1
Details of ageing analysis of Gross Claims outstanding
Outstanding As on 31.03.2023 (F. Y. 2022-23)
(` ‘000)
Period Fire Marine Marine Motor OD Motor TP Workemens Public liability Product Liability Other Liabilities
Cargo Hull Compensation
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
Annual Report 2022-23

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
31days 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
31days 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
Annexure to Management Report

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

Outstanding As on 31.03.2022 (F. Y. 2021-22)

(` ‘000)
Period Fire Marine Marine Motor OD Motor TP Workemens Public liability Product Liability Other Liabilities
Cargo Hull Compensation
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
31days 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 3 332,318 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
31days 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
157
Outstanding As on 31.03.2021 (F. Y. 2020-21)
(` ‘000)
Period Fire Marine Marine Motor OD Motor TP Workemens Public liability Product Liability Other Liabilities
Cargo Hull Compensation
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
31days 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
Annual Report 2022-23

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
31days 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
Annexure to Management Report

5 years and above — 101,482 2 412,514 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

Outstanding As on 31.03.2020 (F. Y. 2019-20)

(` ‘000)
Period Fire Marine Marine Motor OD Motor TP Workemens Public liability Product Liability Other Liabilities
(Continued)

Cargo Hull Compensation

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
31days 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
31days 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
158
Outstanding As on 31.03.2019 (F. Y. 2018-19)
. (` ‘000)
Period Fire Marine Marine Motor OD Motor TP Workemens Public liability Product Liability Other Liabilities
Cargo Hull Compensation
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
0-30 days 74 170,527 517 177,521 3 885 10,775 576,290 961 453,687 161 35,973 — — — — 2 12,283
31days to 6 months 119 1,381,692 249 215,635 7 714,442 5,277 632,100 3,560 2,235,030 162 52,299 — — — — 30 53,705
6 months to 1 year 95 915,490 18 60,181 2 58,085 633 88,054 3,146 2,228,407 142 21,843 5 2,075 — 107 17 20,988
Annual Report 2022-23

1 year to 5 years 24 4,538,649 38 197,149 3 17,664 110 25,085 14,724 10,263,020 61 17,930 2 507 — 800 52 205,200
5 years and above 4 157,108 — 14,279 1 5,527 2 1,698 3,858 2,025,014 2 455 — 400 1 64,221 2 19,146
Total 316 7,163,466 822 664,766 16 796,604 16,797 1,323,226 26,249 17,205,158 528 1,28,501 7 2,982 1 65,127 103 311,322

(` ‘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 174 80,958 — 21,431 666 169,808 3,090 206,970 4 1,448 22 10,000 240 3,838 379 80,501 17,068 2,002,120
31days to 6 months 96 242,855 3 12,617 520 152,862 886 122,312 2 195 32 20,073 66,713 103,670 196 184,743 77,852 6,124,229
6 months to 1 year 60 279,900 5 30,109 4 6,973 28 24,372 — — 40 23,387 1,448 5,634 21 10,919 5,664 3,776,524
1 year to 5 years 29 163,605 18 244,205 — 524 4 6,116 — — 56 217,518 527 64,695 9 250,150 15,657 16,212,818
Annexure to Management Report

5 years and above 5 89,597 2 342,545 — — 1 1,491 — — 42 365,515 125 725,014 — 265 4,045 3,812,276
Total 364 856,915 28 650,908 1,190 330,167 4,009 361,261 6 1,643 192 636,493 69,053 902,851 605 526,579 120,286 31,927,968
(Continued)
159
Annexure - 2
Details of Average Claims Settlement Time
Line of Business F.Y 2022-23* F.Y 2021-22* F.Y 2020-21* F.Y 2019-20 F.Y 2018-19
No. of Claims Average Settlement No. of Claims Average Settlement No. of Claims Average Settlement No. of Claims Average Settlement No. of Claims Average
Time (Days) Time (Days) Time (Days) Time (Days) Settlement Time
(Days)
Fire 2,076 97 1,666 113 1,853 75 1,762 4 1,925 87
Annual Report 2022-23

Marine Cargo 19,332 25 11,891 17 11,103 12 12,471 5 15,068 18

Marine Hull 1 1,922 4 263 8 461 9 4 6 448
Motor OD 520,468 5 435,626 6 356,087 17 487,550 2 412,047 15
Motor TP 8,909 1,024 5,680 974 4,030 901 3,308 29 6,885 611
Workemens Compensation 584 208 362 209 314 198 564 2 330 183
Public liability 1 119 1 72 2 23 4 5 — —
Product Liability — — — — — — — — — —
Other Liabilities 17 633 7 362 6 175 19 26 19 171
Engineering 18,036 9 29,702 7 43,585 3 50,330 1 27,669 7
Annexure to Management Report

Aviation — — 1 786 1 426 — — 3 353

Personal Accident 7,368 34 9,137 9 7,635 28 12,107 3 10,460 21
Health 789,164 7 662,826 6 425,183 13 197,022 5 1,52,051 12
Home 331 45 279 35 172 18 31 3 33 44
(Continued)

Specialty 3,822 5 14 375 42 163 14 2 10 518

Weather/Crop 3,535,297 4 2,519,765 1 1,410,985 3 703,193 1 1,228,191 3
Others 24,121 10 20,830 17 26,550 14 27,917 6 12,112 9
Total 4,929,527 — 3,697,791 — 2,287,556 — 1,496,301 — 1,866,809 —

*Date of intimation of claims is considered for computation of ‘Average Settlement Time’ basis Authority’s mail dated March 26, 2021.
160
Annual Report 2022-23 161

OUR PRODUCTS

RETAIL PRODUCTS

Motor Health Travel

Insurance Insurance Insurance

Home Personal
Insurance Accident

RURAL PRODUCTS

Cattle Weather Crop

Insurance Insurance Insurance

HDFC ERGO
Farm Yield
Insurance Policy

COMMERCIAL PRODUCTS

Engineering Property Accidental &

Insurance Insurance Health Insurance

• Erection All Risks Insurance • Standard Fire and Special • Sarv Suraksha Plus
• Contractor’s All Risk Perils Policy • my: Optima Secure
Insurance • Consequential Loss (Fire) • Optima Restore
• Advance Loss of Profit Insurance • HDFC ERGO Group Health
• Contractor’s Plant & • Industrial All Risks Policy Insurance
Machinery Insurance • Business Suraksha Classik • Travel Insurance
• Machinery Breakdown – Laghu Udyam • my:health Koti Suraksha
Insurance • HDFC ERGO Business • my:health Medisure Super
• Electronic Equipment Secure - Sookshma Udyam Top Up Insurance
Insurance • HDFC ERGO Business
• Boiler and Pressure Plant Secure - Laghu Udyam
Insurance
Annual Report 2022-23 162

COMMERCIAL PRODUCTS

Liability
Insurance

CASUALTY LINES FINANCIAL LINES SPECIALTY LINES

• Product Liability • Directors and Officers Liability • Trade Credit Insurance
• Public Liability • Venture Capital Asset Policy (Commercial)
• Public Liability Act Protection Policy
• Errors and Omission (Tech) • Public Offering of Securities
• Commercial General Insurance
Liability • Employment Practices Liability
• Employee Compensation • Multimedia Liability Insurance
Insurance • Commercial Crime Insurance
• Professional Indemnity • Cyber Insurance
• Financial Institution
Professional Indemnity Policy

Marine Cargo Miscellaneous Innovative

Products Products Covers

• Marine Specific Policy • Payment Protection • HDFC Ergo Cyber Sachet Insurance
• Marine Open Policy Package • e@Secure
• Sales Turnover Policy • Contractual Liability Insurance
• Business Kisht Suraksha
• Mosquito Disease Protection Policy
– Group
• TravelX
• my: Health Comprehensive
Suraksha – Group
• Object Insurance
• CHOMP

Regulatory
Products

HEALTH PROPERTY INSURANCE

• Arogya Sanjeevani Policy, HDFC ERGO • HDFC ERGO - Bharat Griha Raksha
• Arogya Sanjeevani Policy, HDFC ERGO • HDFC ERGO - Bharat Laghu Udyam Suraksha
(Group) • HDFC ERGO - Bharat Sookshma Udyam
• Saral Suraksha Bima, HDFC ERGO Suraksha
• Corona Kavach Policy, HDFC ERGO • HDFC ERGO - Bharat Griha Raksha Plus
• Corona Kavach Policy, HDFC ERGO • HDFC ERGO - Bharat Griha Raksha Plus - Long
(Group) Term
Annual Report 2022-23 163

GLOSSARY

Sr. No. Terms Description

1 Accretion Incremental growth over a period of time.

2 Actuary A person skilled in determining the present effects of future contingent events or in
finance modelling and risk analysis in different 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 off 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 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.

12 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.

13 EPS Earning Per Share (EPS) is arrived at by dividing Net Profit After Tax by the weighted
average number of shares.

14 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.

15 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.

16 Gross Written Premium Gross Written Premium is the sum of gross direct premium and the reinsurance
(GWP) premium accepted.

17 Incurred But Not Reported A reserve created by insurer and certified by an Actuary to cover the estimated cost of
(IBNR) losses that might have incurred but not yet reported.

18 Incurred But Not Enough Losses that might have incurred but have not yet been enough reported.
Reported (IBNER)

19 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.

20 Incurred Claims Ratio Proportion of incurred claims to premiums earned during a period.
Annual Report 2022-23 164

Sr. No. Terms Description

21 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.

22 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.

23 Loss on sale Loss on sale of assets when an asset is sold below its book value.

24 Net Premiums Earned Net premium written adjusted for the change in unexpired risks reserve.

25 Net Premiums Written Gross written premium less reinsurance premium ceded.

26 Net Worth Paid up share capital (+/-) reserves/ accumulated losses (-) preliminary
expenses.

27 Operating Expenses Expenses for carrying out insurance / reinsurance business.

28 Operating Profit or Loss Surplus/ Deficit from carrying out insurance business activities i.e. profit before tax
excluding investment income and other income.

29 Policy The legal document issued by an Insurance Company to a policyholder which outlines
the terms and conditions of the insurance.

30 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.

31 Premium Deficiency Premium deficiency is recognised as the sum of expected claim costs,
related expenses and maintenance cost exceeds related reserve for
unexpired risks.

32 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.

33 Retention The amount of risk retained by the insurer on its own account.

34 Solvency Margin A ratio of Available Solvency Margin (ASM)/ Required Solvency Margin (RSM) (calculated
as per IRDAI Guidelines).

35 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.

36 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.

37 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.

38 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.
Annual Report 2022-23 165

AWARDS

THE ECONOMIC ICAI AWARDS

TIMES BEST FOR EXCELLENCE TISS LEAP VAULT
ORGANISATION IN FINANCIAL CLO AWARDS
FOR WOMEN REPORTING TISS Leap Vault
The Economic Times Institute of Chartered
Accountants of India

BEST CYBER BEST HEALTHCARE

INNOVATIVE CSR INSURANCE AWARD SERVICE PROVIDER
PROJECT FOR FOR CYBER SACHET (INSURANCE)
GAON MERA ICC Healthcare
Insurenext Awards and
UBS Forums Summit 2023, organised by Excellence Awards
Banking Frontiers

BEST CSR MOST PREFERRED GEOSPATIAL

INITIATIVE WORKPLACES APPLICATION
ET BFSI
2022-23 BFSI EXCELLENCE
Excellence Awards Team Marksmen Geospatial World

PROMINENT IN DIGITAL BEST INITIATIVES

INSURANCE INNOVATION’
AWARD FOR CYBER SWIFT AND FOR THREAT
SACHET PRODUCT PROMPT INSURER MANAGEMENT-
‘BFSI Tech Innovation The Economic Times INSURANCE
Awards 2023’, organised Insurance Summit Quantic India Cyber Security
by Elets Technomedia and Awards Excellence Awards 2022
Annual Report 2022-23 166

RECOGNIZED FOR
THE ECONOMIC
VIDEO CONTENT USING ADEPT
TIMES EMPLOYEE
MARKETING CAMPAIGN TECHNOLOGY IN
EXCELLENCE AWARDS
OF THE YEAR - THE CUSTOMER
ET Edge
#SAWAALJORAKHEY ENGAGEMENT
KHAYAL - THE INITIATIVES
MOTHER’S DAY 11th Global Customer
Engagement Awards,
CAMPAIGN FILM, 2021 organized by ACEF

CONSUMER INSIGHT
OF THE YEAR -
PRODUCT
#SAWAALJORAKHEY
INNOVATOR OF
KHAYAL - THE
THE YEAR- CYBER
MOTHER’S DAY
INSURANCE AN AWARD
CAMPAIGN, 2021
FOR PIHU
PRODUCT 10th FINNOVITI
INNOVATOR OF THE EXCELLENCE IN Awards, organized by
YEAR (HEALTH)- CLAIMS SERVICE OF Banking Frontiers
OPTIMA SECURE THE YEAR: HEALTH
BFSI Leadership Awards2002

BFSI PRODUCT
INNOVATION OF THE
YEAR: CYBER SACHET

VIRTUAL PRODUCT A CERTIFICATE OF

LAUNCH: OPTIMA APPRECIATION FOR
THE ECONOMIC SECURE THE ‘MERI POLICY
TIMES FUTURE-READY 2nd edition of The Great Indian BFSI MERE HAATH’
ORGANISATION Marketing Awards, organized by CAMPAIGN
BFSI Digital Stallions Forum
The Economic Times 7th National Review
Conference on PMFBY
Annual Report 2022-23 167
HDFC ERGO General Insurance Company Limited

Registered & Corporate Office: 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.

Trade Logo displayed above belongs to HDFC Ltd and ERGO International AG and used by the Company under license.
CIN: U66030MH2007PLC177117. IRDAI Reg. No. 146.

Phone E-mail Website

+91 22 6638 3600 care@hdfcergo.com www.hdfcergo.com