HDFC Standard Life Insurance Company Ltd expects a first premium income of Rs 300 crore (Rs 3 billion) from individual policies, even as it plans to raise its capital base by Rs 75-80 crore (Rs 750-800 million) in the fiscal 2003-04.

"We have registered a premium income of Rs 37 crore (Rs 370 million) in the first quarter ended June 2003 of the current year and expect it to touch Rs 300 crore in FY04," HDFC Standard Life managing director Deepak Satwalekar told newspersons in Mumbai on Monday after launching the gratuity plan, a group insurance product.

The company generated premium from new business of Rs 132 crore (Rs 1.32 billion) in 2002-03, registering a growth of 260 per cent.

Referring to the capital base, he said currently it stood at Rs 218 crore (Rs 2.18 billion) and the insurance entity planned to hike it by Rs 75-80 crore in FY04.

On the gratuity plan, Satwalekar said it was their first unit-linked product and would offer five fund options namely liquid, secure, defensive, balanced and growth.

The company would not target those entities, which have taken this plan from Life Insurance Corporation of India, as the exit load was high, he said adding, but there were a whole host of corporates having their own trust to manage gratuity plans and these would be targetted.

The minimum employees required would be 25 and there would be no exit load after two years under this plan.

HDFC Standard Life also has a group term insurance plan as Microsoft and five companies of Godrej group have opted for the same, he said.

The insurance entity's group business grew in 2002-03 to cumulatively cover over 22,000 lives for sum assured of over Rs 2,000 crore (Rs 20 billion).