Now you can go to the nearby mobile shop to recharge your phone and come back with a life insurance policy. Telecom services provider Telenor is offering free life insurance cover for its customers in partnership with Shriram Life Insurance.

“With this, Telenor will create a differentiation in financial services just like we have done with our affordable mobile service,” Vivek Sood, Chief Executive Officer, Telenor India, said at the launch of the scheme here on Wednesday.

While the premium costs will be borne by Telenor, Shriram Life Insurance will underwrite the risk and settle the claims, Shriram Life’s CEO Manoj Jain said.

Telenor has only prepaid customers. It also prefers to not to disclose the premium amount. It says business gain in the form of new customers might balance the cost of premium.

Validity of the cover

The validity of the cover is for one year, but will get extended if the customer prefers — he will have to buy additional talk-time by recharging every month. The cover stays as long as one recharges. The life insurance cover ranges from ₹10,000 to ₹50,000, depending on the amount recharged.

The insurance protection will be up to 100 times the value of recharge with an upper cap of ₹50,000.

Telenor, which has 47 million customers in six circles in India, is also expecting the new scheme to drive expansion of its customer base. “However, we actually want to build a relationship with the customer in the most useful manner for them,” Sood said.

The Chairman of Insurance Regulatory and Development Authority of India, T S Vijayan, who formally launched the scheme, said micro insurance was relevant and the low premium life and accident insurance schemes launched by the government had created lot of awareness about insurance.

Related Topics
comment COMMENT NOW