M Saraswathy Moneycontrol News
Amit Verma is a 35-year-old private cab driver. Since he does not have a regular income, he was unable to pay regular premiums for an insurance policy. However, now private life insurer IndiaFirst Life Insurance has launched a micro insurance product that will enable individuals to buy policies with a 'pay as you much you can' premium concept.
Here, it is a single premium product with minimum investment of Rs 500 and maximum of Rs 15,000 per transaction. Called the IndiaFirst Life CSC 'Insurance Khata' Plan, the insurance cover is ten times of the premium and policy term is 5, 7 and 10 years.
Unlike other products that have a fixed premium to be paid regularly, this product offers the facility of instant payments that can be made via-online model. Further, there is scope to buy multiple policies of Insurance Khata to enhance cover.
The IndiaFirst Life CSC 'Insurance Khata' Plan, will be leveraging the network of 200,000 Common Service Centres (CSC), across the country.
RM Vishakha, MD and CEO, IndiaFirst Life Insurance said, “ This product is designed for long term savings along with the life insurance benefit, making it a win-win proposition for the customers. The simple and easy to understand model makes this product mis-selling resilient”.
Insurance Khata has been conceived as an instrument designed especially for the under-served social sections. The plan considers the probability of seasonal income and provides individuals with the flexibility to pay premium in parts, as and when possible.
Taking into account possibilities of monetary limitations of the target segment, the plan is designed to return the paid premium amount at the end of the term, while ensuring life insurance coverage, during the term.
Individuals with seasonal businesses like private car, members of the farming community or freelance professionals are some of the target segments for the product.
Dinesh K Tyagi, CEO, CSC e-Governance Services India, said that through the Common Service Centres spread across India, they enable access to various e-services to citizens through an extensive service delivery infrastructure.
He added that their association with IndiaFirst Life goes back to 2014, and believed that with them will optimally harness the potential our footprint offers. IndiaFirst Life was the first insurer to launch a product exclusively for the CSC channel.
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