Canara, HSBC, OBC Life Insurance launch Smart Sanchay Plan

A joint venture between two of country's public sector banks, Canara Bank and Oriental Bank of Commerce; and HSBC Insurance (Asia Pacific) Holdings, has launched a traditional group protection-cum-savings product under the name Smart Sanchay Plan.

Smart Sanchay Plan is designed for deposit account holders of the distributor banks and is tailor-made for the company’s bancassurance model of distribution. The plan is available to all new depositors who can opt for this product after opening an account, as well as to existing customers who simply need to enrol.

The product provides life cover and accident protection along with fixed returns. The maturity benefit is fixed and is equivalent to the premiums invested at 4% (current savings rate of interest). The premium is deducted directly from the bank account of the account holder.

Mario Perez, director (Sales, Marketing & Products) at Canara HSBC Oriental Bank of Commerce Life Insurance Company, said, "The product is designed for the mass market, which will help the company increase insurance penetration in this segment. The key constituent of this plan is the ease of enrolment which is as simple as opening a bank account. There is no lengthy documentation or medicals required to get started on your life protection.”

Key features of Canara HSBC Oriental Bank of Commerce Life Insurance Smart Sanchay Plan include a limited pay product with premium payment term of 5 years and policy term of 10 years. On the tax front the policyholder will get tax benefits under Section 80C and Section 10(10D), as per the Income Tax Act.