SBI Life launches 'Grameen Shakti', group micro insurance plan for economically under-privileged in Tamil Nadu
26th November 2008
After successful launch of its micro insurance product 'Grameen Shakti' in Orissa and West Bengal, SBI Life Insurance, India's 2nd largest private life insurer has extended the product to the economically underprivileged in the state of Tamil Nadu.
Grameen Shakti is a dual-benefit life insurance which provides Protection with maturity benefit at affordable rates to Self Help Group. It offers to the "Family" of the group member "Protection" & it offers to the "Group member" Survival Benefit. The premium can be paid yearly throughout the entire term of the policy. For a 5 year term the premium payable is Rs 601 per annum (inclusive of service tax) for a Sum Assured of Rs 50,000. On death of the Group member, the nominee receives the Sum Assured while on maturity the Group member receives 50 % of the premium paid for a 5 year term (less Service Tax).
This micro insurance product will be marketed through State Bank of India's wide-spread branch network in Tamil Nadu. SBI Life aims to reach out to the under-privileged segment through Self-Help Groups (SHGs) in the region.
To deepen the life insurance penetration in India, the company plans to launch micro insurance products across the rural markets through State Bank branches, which has the largest distribution network in India. SBI Life has been the frontrunner in meeting its regulatory and rural obligations of providing insurance cover to fellow citizens in rural India.
Mr. U. S. Roy, MD & CEO, SBI Life, said: "Our foray into micro insurance in Tamil Nadu, signifies our commitment to reach out and provide insurance protection to the most vulnerable and economically weaker sections in the state. We are confident that State Bank's extensive network would enable us to reach out these segments in Tamil Nadu"