Birla Sun Life Insurance Company Ltd. (BSLI) has launched two microinsurance products aimed at the rural masses and the lower income urban communities in India. The organisation is a joint venture between The Aditya Birla Group, one of the largest business houses in India with a turnover close to Rs.49,440 crores (USD 12 billion) and Sun Life Financial Inc. of Canada, a leading international financial services organisation, with total assets under management of CDN 435 billion (USD 415 billion). The two plans are called Bima Suraksha Super and Bima Dhan Sanchay. The former is a term insurance plan and the latter a term with return of premium insurance plan, offering an additional guarantee of return of premium on maturity. Both Plans offer 3 options of 5, 10 and 15 years for policy tenure with regular premium paying period. The minimum sum assured is Rs.5000 (USD 124) and maximum is Rs.50000 (USD 1,240). Both policies have features designed to facilitate uptake amongst underprivileged communities, such as no medical examination requirement and self-declaration by life insured as proof of age.
BSLI has overcome the distribution issues associated with servicing the Indian rural market by building up a strong network of indirect, as well as direct, sales channels. As well as their own 48 branches, BSLI has penetration through 8 Aditya Birla Group units and 97 NGOs, for example, the Dhan Foundation, MYRADA, Pradan, and Prayas.
This network has been essential for BSLI to successfully target a certain portion of their products at less-developed rural markets, as required by Indian law. Since inception in 2001 the company estimates it has reached 6,839 villages in 128 districts across 15 states in the country. It hopes to sell 60,000 of the new policies in the initial rollout.
Amy Rennison, Microcapital writer
Additional Resources
‘Sun Life to offer Low-Cost India Plan’
http://www.canada.com/nationalpost/financialpost/story.html?id=0fafe80f-3a18-40cc-94f6-c4520b2fe5b2&k=59001
‘Birla Sun Life Insurance launches Micro-insurance Plans to NGO’s’
http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_Media/BSLI_News/upload/BSIL/Micro-insurancePlanstoNGOs.html
Birla Sun Life Insurance increases rural penetration
http://www.indianrayon.com/media/press_releases/200511nov/bsli_rural_penetrarion.htm
Similar Posts:
- MICROCAPITAL BRIEF: Universal Insurance Launches Mobile App, Referral Platform in Nigeria
- MICROCAPITAL BRIEF: ADB, FinDev Canada to Partner on Investments in Market Development; Women’s Empowerment; Climate Change Adaptation, Mitigation in Asia, Pacific
- MICROCAPITAL BRIEF: Svatantra of India Paying Navi Group $179m for Microfinance Subsidiary Chaitanya
- MICROCAPITAL BRIEF: David Grimaud Named CEO of Palladium Group’s Bamboo Capital Partners
- MICROCAPITAL BRIEF: Oikocredit Loans MyCredit $2.6m for SME Financing in Kenya
