Bajaj Allianz to launch micro-insurance scheme

In an attempt to diversify its operations, Bajaj Allianz Life Insurance Company Limited plans to launch a micro-insurance scheme for the rural sector of Gujarat and Maharashtra during financial year 2007-08.

The insurance company has already test-marketed the product in Maharashtra, Rajasthan and Kerala.

Bajaj Allianz Life Insurance feels that Gujarat has a huge potential for micro-insurance with thousands of villages to cater to, along with the needy fishermen on the 1,600 km long coastline. Amit Kumar Roy, chief manager-north west, expects to issue around 20 lakh policies in the first year.

"The policy, 'Samraksha', will provide an insurance coverage between Rs 5,000 and Rs 10,000 at an annual premium for as low as Rs 50-100," said Roy, adding that the policy would also cover to health insurance at an extra premium of Rs 30 per annum.

The insurance company is in talks with at least 18 NGOs in the state to tap their network of villages. While Roy is hopeful of tying up with at least five NGOs for the scheme.

"This is a scheme aimed at providing insurance cover those with irregular, seasonal earning like grassroot labourers, farmers and fishermen. We have support of the law-makers as the government also wants to promote micro-insurance," said Roy.

Bajaj Allianz Life Insurance will offer the scheme in Maharashtra as well.

Meanwhile, Roy expects to touch 3 million policies of its life insurance cover and 4.8 million policy holders for the 2006-07. Roy also added that the company is looking to offer health insurance schemes with 3-5 years maturity period by the next financial year.

Recently, Bajaj Auto and Allianz entered into a joint-venture 'Bajaj Allianz Financial Distributors Ltd.' to provide other consumer financial products like mutual funds, credit cards, home loans, personal loans and other products.