Bajaj Allianz Life targeted the low-income market with the launch of a micro insurance product that allows customers to choose between fixed and flexible loan tenure coverage , an exclusive feature of the plan is that the policy term ranges from as less as 6 months to 120 months ,with option of single life and joint life coverage.
The product, named “Group Sampoorna Suraksha Kavach”, aimed at lower income groups, as well as those living in remote rural areas.
“This policy, a traditional Micro Group Insurance Term Plan, will provide coverage to various types of micro loans given by Micro Financial Institutions (MFI), Small Finance banks , Self Help Groups ( SHG) & Financial Institutions to their customers, along with providing life insurance cover,” said by Bajaj Allianz Yogesh Gupta , Executive Vice-President & Chief Financial Inclusion Officer , Institutional Business , Bajaj Allianz Life.
“We have set a target of selling a minimum of 2 Cr policies during the current FY 17-18 ,” he added.
On the benefits of the product, Mr Gupta said the micro loan business in India will continue to have steady growth, our new plan with exclusive product features will surely be a game changer in the way loans are currently covered , as it comes with right payment term options of SA from minimum of Rs 1,000 to maximum of Rs 200,000 with flexibility in coverage options .
One of the key benefits of this policy is that it allows flexibility to choose between fixed and flexible loan tenure coverage . I hope this features will open gates for launch of new type of loan offering in the mass market . The modes of premium payment available, both regular & single premium payment options, will increase our penetration , he said .
“Bajaj Allianz Life has attained a leadership position in the Micro Insurance industry and surely our new product will be instrumental in maintaining our leadership position, spreading the product benefits to the people and cushioning them with prompt claim payments & use of technology .”