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IndiaFirst Life Insurance (IndiaFirst Life) has launched an unique micro-insurance plan ‘insurance khata’ targeted at those in the informal sector and agricultural labourers with seasonal incomes.
This micro-insurance plan will be distributed exclusively through the 2.4 lakh common service centres (CSC) across the country, R.M.Vishakha, Managing Director & CEO, IndiaFirst Life said at a launch event here.
Alphons Kannanthanam, Minister of state for Electronics & IT, was present on the occasion.
Flexible premium
The novelty of this new micro-insurance plan, which has been primarily designed for distribution across CSC, is that it provides individuals with the flexibility to pay premium in parts, as and when possible.
“At an individual platform with an entry level minimum premium of Rs 500, this is the first of its kind product in the industry and not just with us”, Vishaka told Business Line here.
Taking into account possibilities of monetary limitations of the target segment, the plan is designed to return the paid premium amount at the end of the term, while ensuring life insurance coverage, during the term.
“It is not a high margin product for us. We have kept the cost of servicing as a bare minimum”, Vishakha said.
In industry parlance what IndiaFirst Life has launched is a recurring single premium term with return of premium (TROP).
“For customers, it is a plan where you can keep on increasing the sum insured you had paid and keep on getting back the premium you paid as and when they mature. We offer 3 options — 5,7 and 10 years tenors and 5,7 and 10 times of premium paid as sum assured”, Vishakha said.
srivats.kr@thehindu.co.in
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