Aviva targets one million rural customers

Aviva Life Insurance India (ALII), in partnership with Basix, a micro finance institution, is targeting to bring one million members of micro finance institutions in the country under 'Credit Plus' insurance cover by 2010. Credit Plus was introduced three years back and at present 1.5 lakh out of the existing 2.5 lakh customers of Basix have been covered under the plan.

ALII, a joint venture of Dabur and Aviva Plc of UK, launched an enhanced version of Credit Plus, a group credit-cum-life protection plan for rural people in the age group of 18-55 years, here on Friday. The low cost insurance plan is especially designed for Basix, which is working with 1.74 lakh poor households in 27 districts spread across seven states in the country.

"With Basix, we have been able to develop products that are suitable to the rural customers," ALII managing director, Stuart Purdy, said.

Purdy said that so far Aviva received a premium amount of Rs 1.2 crore and had settled 307 claims involving payment of Rs 40 lakh. With the enhanced version of Credit Plus, he was expecting the premium amount to touch Rs 2 crore this year.

Basix chief executive officer, Vijay Mahajan, said that the sum assured under Credit Plus would amount to 1.5 times of the loan amount sanctioned by the micro finance institution. In the case any customer died before the repayment of the loan taken, Basix would deduct the pending loan amount and pay the balance of the sum insured to the beneficiary of the deceased customer.

He said that the average size of the loan sanctioned by Basix to any individual was Rs 10,000 and the sum assured would be Rs 15,000. The premium charge for the insurance cover was Rs 39.80 for Rs 10,000. Basix interest rates ranged from 12 to 18 per cent.