Tata AIG Life Insurance Company has struck one of the largest single life insurance deals in the country covering 17,226 employees of the GE Group of Companies in India for a total sum assured of Rs 1,865 crore (Rs 18.65 billion).

This is reportedly the largest policy taken by Corporate India in terms of covering maximum number of lives and greatest sum assured.

The company's press communique stated that under the arrangement, the group term insurance will cover GE employees across its 21 group companies operating in India.

The last large deal struck by Tata AIG covered 15,930 employees of Wipro Ltd for a total sum assured of Rs 876 crore (Rs 8.76 billion).

Insurance company officials stated that the cover extended to GE employees would be the largest cover extended by a private player, and probably even compared to LIC.

LIC had last fiscal sold a group insurance policy to Infosys Technologies covering the 13,000 employees for a sum assured of Rs 1,300 crore (Rs 13 billion).

Under the agreement signed, Tata AIG will provide group term life cover to GE employees under a graded sum assured scheme, whereby the individual sum assured is based on the grade of the employee in the company.

This is different from LIC's coverage of Infosys, where has been reported that each employee enjoys coverage to the tune of Rs 10 lakh (Rs 1 million).

Insurance companies are tapping large-sized corporate accounts as this offers higher premium income with little of the hassles of marketing and premium collection.

This has become a very competitive market with term insurance becoming a commodity item. Business is often given to the insurance company offering the lowest quote.

The advantage of offering group term insurance cover is that the insured employee does not need to undergo any prior medical examination.

Said Tata AIG Life managing director Ian Watts: "We would like to establish our participation in human resource initiative by Corporate India. Employee care is a time-tested mantra to ensure employee loyalty."

One of the best way to do this is through group life insurance cover as it secures the future of dependents of employees, he added.

Tata AIG Life has extended coverage to over 100 group corporate policies in India.