Aiming to extend its coverage in rural India, Aviva Life Insurance on Wednesday launched a low-premium insurance product for customers of BASiX, an entity engaged in micro finance activities as well as other livelihood support services in the country.
The product, Grameen Suraksha, offers a villager sum assured of at least Rs 25,000 after five years with a premium ranging as low as Rs 575 per annum for two years, according to the company's announcement in Prague.
Aviva India Managing Director Bert Paterson said, "With the launch of Grammen Suraksha, we hope to increase our reach and provide the benefits of life insurance to maximum number of people in the rural and social sector." Under the plan, the policy holder is required to pay premium for a period of just two years and then avail the term benefit for 5-10 years.
In case, the policyholder is unable to pay the second annual premium, the plan will still offer a full cover for 18 months or 48 moths from the due date of unpaid premium of 5-10 years.
Aviva, a joint venture between UK-based Aviva Plc and Dabur, has covered close to 9,00,000 lives in the social sector so far in association with Basix and other microinsurance organisations, Bert said.
Basix provides livelihood support services in the field of finance and institutional development in 10 states, including Delhi, Tamil Nadu, Andhra Pradesh, Madya Pradesh and Rajasthan.