The Hindu Business Line : Birla Sun Life to hike capital

BIRLA Sun Life Insurance plans to infuse another Rs 50-60 crore capital by February next year. The company's existing paid up capital stands at Rs 350 crore.

"The fresh infusion of about Rs 50-60 crore could take place around February 2005, depending on the growth of business," Ms Anjana Grewal, Vice-President, Marketing & Communication, Birla Sun Life, said.

Earlier this month, the company had put in fresh capital of Rs 35 crore raising the paid up equity to Rs 350 crore.

Till date, Birla Sun life has covered 6,75,000 lives since its inception with the total sum assured reaching Rs 20,900 crore.

Ms Grewal said that company was trying to vastly expand the delivery mechanism and products for the rural areas. Among the products under consideration is a life insurance cover for the rural middle class with monthly earnings of Rs 1000-1,500 and a simple unit-linked product.

The company already has a low-cost insurance product — Bima Kavach Yojana — aimed at the rural poor. The premiums under the policy are Rs 50, Rs 100 and Rs 200 per annum with the sum assured being 10 times the premium.

The new product for the rural middle class would not only have a higher sum assured but would also offer a few riders with it.