Tata-AIG Life Insurance today announced its foray into micro-insurance with the launch of three products. It also opened five micro insurance sales offices (MISO) at Kodad and Chitoor in Andhra Pradesh, Joanpur in Uttar Pradesh, Jhalawar in Rajasthan and Kannur in Kerala. Trevor Bull, managing director, said, "We believe rural India holds tremendous potential for growth and is hugely untapped in terms of life insurance. With the launch of these products, we have become the first company to foray in the micro insurance segment."
He said the initiative will enable the company to expand its product suite and offer insurance services to a larger cross section of society. The private sector life insurer has simplified its products, distribution processes and operations to be able to offer protection to every socio-economic segment in urban and rural areas. "The company already has 400 trained women agents from the chosen regions besides a tie-up with 50 NGOs in its rural business and hopes to increase agents to 2,000 for micro-insurance.
"Women agents will earn Rs 600 to Rs 800 per month," said Joydeep K Roy, chief distribution officer - alternate channels, SMD and micro insurance. The company plans to cover one lakh people in the first full year and is targeting a premium income of Rs 1 crore per month. The three products launched today are Navkalyan Yojana, a five-year micro insurance protection plan to provide financial protection to the policyholder's family besides an accidental death benefit rider.
In the second plan, Sampoorn Bima Yojana, the policyholder pays premium for 10 years and gets a cover for 15 years. Upon survival till maturity, the policy returns 100 per cent of the premium paid by the policyholder during the term of coverage. The third plan Ayushman Yojana is a single-premium, 10-year micro insurance protection plan with the benefit of payment at the beginning of the policy term.
The unique feature of the policy is that the policyholder gets back his premium with 25 per cent addition on survival to the end of the policy term. The product information brochures, application forms, training material as well as policy holder contracts will be made available in nine vernacular languages and the processing requirements will also be simplified.