Mobikwik on November 21 launched facility of providing digital insurance products on its app and said it is targeting 1.5 million policies by the end of the current financial year.
MobiKwik users will be able to choose and purchase from a range of life insurance and general insurance products. An insurance of Rs 1 lakh can be purchased for as low as Rs 20. These will be sachet sized products that will cater to emerging affluent and mass customer base across the country.
In the first phase, MobiKwik has rolled out accidental insurance for the users. It will be partnering with leading insurance companies to offer the extensive range of products to its users.
"The insurance penetration in India is close to 3% of the GDP and there is a huge potential ready to be tapped, more so with the exponential increase in the adoption of smartphones and penetration of the internet. This presents a vast opportunity for digital Insurance to the mass market which has been ignored by banks, distributors and even online companies in web comparison owing to either high distribution cost or low penetration of computers in the country," said Upasana Taku, co-founder and director, MobiKwik.
Rival Paytm also announced a strategic partnership with leading insurance firm Life Insurance Corporation of India (LIC) on November 20.