The life insurance cover is being provided through Bajaj Allianz Swayam Shakti Suraksha, a low premium micro insurance product launched by SKS Microfinance in association with Bajaj Allianz Life Insurance Company in April 2008.
This insurance product has been a real success with our members who are now able to get insurance benefit by paying very a low premium.
With its distribution network of more than 3.6 million members in rural India across 18 states, SKS Microfinance will play a major role in promoting such offerings, which will result in greater financial inclusion, Suresh Gurumani, chief executive officer, SKS Microfinance said.
Bajaj Allianz Swayam Shakti Suraksha has about 50 per cent penetration among SKS Microfinance members and the product will be made available to its members in New Delhi, Bihar and Maharashtra in the coming months.
The product has helped take the benefits of insurance to rural India at a very rapid pace. We are overwhelmed with the success of this product, said Kamesh Goyal, CEO of Bajaj Allianz.
The five-year policy is initially financed by SKS Microfinance by depositing Rs 500 in the beneficiary's account as an interest free loan to help the member pay the initial premium. The low insurance product allows a member to get an insurance cover of at least Rs 5,000.
The policy covers the member for Rs 10,000 in case of an accidental death and the member can obtain loans under the scheme up to 85 per cent of the surrender value.
The claims related to the insurance product are settled at the SKS weekly centre meeting where the members nominee receives the claim amount within seven days of submission of the claim.
The guaranteed surrender value is 70 per cent of the net premium paid subject to applicable surrender penalty.