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'Insurance Khata' - The First-ever Micro-Insurance Plan by IndiaFirst Life

Rohit Sapra Rohit Sapra 29 November 2017

‘Insurance Khata’ is a unique micro-insurance plan from IndiaFirst Life Insurance. It is targeted at those in the informal sector and at agricultural labourers with seasonal incomes.

IndiaFirst Life Insurance

Reportedly, R. M. Vishakha, Managing Director & CEO, IndiaFirst Life said, “We are happy to introduce Insurance Khata, illustrating our commitment to bring personal risk protection to all sections of the society. This product is designed for long-term savings along with the life insurance benefit, making it a win-win proposition for the customers.” at a launch event. Minister of state for Electronics & IT, Alphons Kannanthanam, was present on the occasion.

The uniqueness of this new micro-insurance plan is that it provides individuals with the flexibility to pay the premium in parts, as and when possible, which has been primarily designed for distribution across CSC. Vishaka said “The simple and easy to understand model makes this product mis-selling resilient. This micro-insurance plan will be distributed exclusively through the 2.4 lakh common service centres (CSC) across the country. 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. It is not a high margin product for us. We have kept the cost of servicing as a bare minimum.”

The plan is designed to provide life insurance coverage during the term. It also takes into consideration the financial limitations of the target segment and returns the paid premium amount at the end of the term. In industry jargon 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. This plan offers 3 options - 5, 7 and 10 years tenure and 5, 7 and 10 times of premium paid as sum assured.

This product is an economical offering with ‘value for money’ to the customers through integration of seamless technology process at the back-end by IndiaFirst Life Insurance.

"Through the Common Service Centres spread across India, we continue to enable access to various e-services to citizens through an extensive service delivery infrastructure. Our association with IndiaFirst Life goes back to 2014, whom we believe, will optimally harness the potential our footprint offers." said, Dr. Dinesh K Tyagi, CEO, CSC e-Governance Services India Limited.

Rohit Sapra
Written by Rohit Sapra
Rohit Sapra, a licentiate, and currently an SME, is a seasoned insurance professional with previous work experience from Kotak and Birla Sun Life Insurance.