Bajaj Allianz has planned to launch an innovative micro-insurance product in association with regional rural banks and self-help groups.
The purpose of the launch is to lend a hand for social cause especially beneficial in the case of a calamity. Speaking about the importance of the product, Bajaj Allianz General Insurance Managing Director and Chief Executive Officer Tapan Singhel on Sunday said, “Insurance protection is vital for the most vulnerable sections of the society as they require financial support than anybody else in case of an accident. We have developed a low cost micro insurance product which can be bundled with any of the bank’s products like account holders or borrowers.”
Any bank opening new accounts or providing micro loan credits under the personal or business loan segment can roll this product for their customers. The policy will provide insurance cover concerning accidental loss to account holders including accidental death, accidental permanent total disability, loss of one limb or eye, funeral expenses, education grant to children and hospital expenses available at a premium below Rs 200 per member. This will be an annual cover to be renewed every year.
“It has been observed that only five to six percent people go for health insurance policies among the ones who can afford. This product would help in managing the health insurance schemes which are usually overlooked by mass but has a prime importance in an individual’s life,” Singhel added.
Singhel pointed out on the downfall of automobile industry which has declined from 20 to 11 percent between April to June this year. He said, “The slowdown has certainly affected the general insurance sector and I do not feel that the scenario would improve within one or two year’s span. Both growth and slowdown pave way for penetration.”
Bajaj Allianz has recently launched a Tablet wherein customer service is improving. The insurance company grabs a share of Rs 500 crore general insurance in Jharkhand which is just 10 percent to its national penetration achievement. “We have offices in over 1100 towns involving places from almost all the zones of India,” said Singhel.