SKS Microfinance, a microfinance organization based in Andhra Pradesh (India), recently announced its partnership with life insurance company Bajaj Allianz to extend its microinsurance project, ‘Swayam Shakti Suraksha,’ to cover the husbands of SKS members.

SKS currently provides microinsurance for its members, but has decided to extend this service to members’ husbands. SKS COO Mr. Rao said in a recent press release that “introducing this scheme to members’ spouses will further strengthen a sense of financial personal security amongst our members.” Kamesh Goyal, CEO of Bajaj Allianz, adds that the decision make its services available to husbands of members is a response to a great demand his company and SKS have felt in the last year.

The project will be introduced in phases, the details of which have not yet been disclosed. Currently, Swayam Shakti Suraksha is serving approximately 4, 000 spouses in ten urban branches of SKS in Andhra Pradesh. The project will expand to 19 states in the near future. ”In the coming days, we will be launching the product across 90 new branches in Kurnool and Vijaywada in Andhra Pradesh, Bhopal in Madhya Pradesh, Kochi in Kerala and Jaipur in Rajasthan,” SKS Microfinance Retail Insurance Vice-President Sandeep Ralhan said [1].

Premium payments for the plan are USD 0.4 per week, and USD 100 is assured under the policy. Furthermore, the policy offers accidental disability and death benefits. The minimum term of policy is five years [2].

SKS Microfinance is a non-bank finance company (NBFC) providing financial services for the poor. SKS was founded in 1997 and is based in Andhra Pradesh, India. According to the Mix Market, the microfinance clearinghouse, SKS has a gross loan portfolio of USD 278, 710, 715, and 3, 520, 826 active borrowers. As of March 31, 2009, SKS had total assets of USD 596, 162, 206, a debt to equity ratio of 3.57, an ROA of 3.68%, and an ROE of 18.72% [3]. For MicroCapital coverage of SKS’ microinsurance scheme, click here.

Bajaj Allianz Life Insurance Company Limited is a an Indian insurance company and a joint venture between Allianz AG, a life insurance company, and Bajaj Auto, a 2- and 3-wheeler manufacturer. Bajaja Allianz began operations in 2001 and currently has 850 branches nationwide. As of 2007, the company had total assets of USD 1, 341, 543, 892 [4]. For more information on Bajaj Allianz’s financial performance, click here.

By: Diya Chopra, Research Associate

Bibliography:

[1] New Kerala

http://www.newkerala.com/nkfullnews-1-113017.html

[2] Microfinance Focus

http://www.microfinancefocus.com/news/2009/09/16/sks-microfinance-bajaj-allianz-to-provide-microinsurance-to-spouses-now/

[3] Mix Market

http://www.mixmarket.org/mfi/sks

[4] Bajaj Allianz Life Insurance Co. Ltd.

http://www.bajajallianzlife.co.in/admin/brochures/annualreport.pdf