The Hindu Business Line : ICICI plans composite micro cover

ICICI Prudential Life Insurance and ICICI Lombard are working together on a composite micro-insurance product, according to Mr Tarun Chugh, Head, Group, Rural and Alliance, ICICI Prudential.

The recent guidelines on micro-insurance have prompted the two companies to come together.

Mr Chugh said: "The focus will be on simplicity and the product will offer a basic life, health and personal accident cover. It will be offered in areas that have basic healthcare infrastructure".

The number of policies issued by ICICI Prudential in the rural and social sector since inception has touched 5 lakh. While this is believed to be the highest among private life insurance companies, what is significant is that 60 per cent of the rural business comes from its agency force.

Key focus area

Mr Chugh said that distribution was a key focus area in the rural business.

"Our strategy is to have different distribution models, specific to States as well as our partnerships. The bulk of the premium comes from the agency force because the agents based in the metros and small towns travel to the rural areas," he said. Of the 5-lakh policies, around 3 lakh were issued between April 2005 and February 2006. In terms of premium, the company has raked in Rs 16 crore in the fiscal ended December 2005.

IRDA norms require private companies to fulfil certain minimum obligations in the rural and social sectors Mr Chugh said that the company's business has exceeded the minimum obligations and is now focusing on growing its rural business.