RURAL MARETING

INSURANCE SECTOR
Submitted

By

Sarvesh Singh(049)
Suresh Neela(035)

Flow of Presentation
I. Insurance Sector Background
II. Industry Snapshot
III. Insurance Repository
IV. Insurance Sector Rural
V. Rural Scenario for Life Assurance
VI. Opportunities, Challenges, Constraints
VII. Strategies for Rapid Penetration
VIII.Micro Finance /Micro Insurance
IX. Drivers for Rural Insurance Development

Flow of Presentation
X. Case Examples
DLF Pramerica Life Insurance
Tata AIG Life Insurance
New India Assurance Company
Max Life Insurance
ICICI Prudential Insurance
Life Insurance Corporation
Bharti AXA Life Insurance
Rural Postal Insurance
HDFC Standard Life Insurance

Insurance Sector - Background

Started in 1818 in Calcutta with Oriental Life Insurance Company
Governed by The Insurance Act, 1938 and IRDA Act, 1999
Since 1999, the government opened up the insurance sector by allowing
private companies to solicit insurance and also allowed FDI up to 26%

The largest life-insurance company in India is Life Insurance Corporation

of India

FDI limit increased to 49% from 26% in the year 2014

State
Insurers

General
Insurers

Life Insurers

Life Insurance
Corporation of
India (LIC)

General
Insurance
Corporation of
India (GIC)

The Oriental
Insurance Co.
Ltd.

The New India

Assurance Co.
Ltd.

National
Insurance Co.
Ltd.

United India
Insurance Co.
Ltd.

GIC Rural Insurance

Industry Snapshot
Growth in life insurance premiums

Market share
LIC is still the market leader, with 72.7% share in
FY13

Industry Snapshot
Non-life insurance market
Motor insurance has 43.2% share in FY13.

Industry Structure
Indian Insurance is a US$72
billion industry 2012
Only two million people are
covered under Mediclaim
In USA about 75% of the
total population are covered
under
some
insurance
scheme

Market Potential
Huge market largely untapped- Rural & Urban
As high as 70% of population is not touched by insurance

Increase in standard of living, disposable income, literacy,

insurance awareness throws open huge opportunities on
insurance

High growth in Automobile sector

Huge strides in Health Care opening up
Huge Health Insurance potential

Insurance Repository
IRDA launched 'Insurance Repository' services in India 16th Sep-2013
It enables policy holders to buy and keep insurance policies in dematerialized
or electronic form

All insurance policies in a single account called electronic insurance account

(eIA).

IRDA has issued licenses to 5 entities to act as Insurance Repository

1. NSDL Database Management Limited

2. Central Insurance Repository Limited ( CIRL )

3. SHCIL Projects Limited

4. Karvy Insurance repository Limited

5.CAMS Repository Services Limited

Rural Market
Rural market the backbone of Indian economy
Characterized by
Illiteracy, Poverty, Lack of insurance awareness, Lack of saving habits for long term
needs

Low income households and microenterprises can benefit from credit, savings, and
insurance services

(World Bank, World Development Report 2000)

Access to Financial Markets is important for poor people

Rural India- Insurance

Rural India has enormous business potential for Insurance services
70% people live in rural

Rural households contribute to 45% of the total household income of the country
Savings to income percentage in rural is at 30%, which is even higher than urban

Critical Success Factor

More sales happen on trust and familiarity with the agent than on a structured
administration of Financial Planning tools

Rural Scenario for Life Assurance

Due to planned development, the rate of change in rural India is frenetic.
Significant increase in literacy rate
Increase in rural income
Modernization in agri sector
Development in rural industries

Perceptible development in infrastructure

The life style is evolving due to increasing urban orientation
Expanding media giving opportunity to insurers to educate the rural customer

Rural Insurance Types

Weather Insurance
Rainfall Insurance

Crop Insurance
Plantation
Farmer Package Policy

Pump set
Cattle Insurance
Note: http://www.insuringindia.com/ (Indian ecommerce site, which enables its users to compare
and buy almost all insurance products, from all life and non-life insurers in India)

Opportunities
Deregulation & Liberalisation
Amendments to Market Committee (APMC) Act; facilitation for contract farming
Increased investments Agri Export Zones, Cold Chains, Warehouses,

Infrastructure
Financial incentives & subsidies
Variety of players and increasing activity agri. input companies, tractor
manufacturers, trading companies, exporters, processors
Different business models being experimented with (ITCs e-choupal, Tata
Chemicals Kisan Kendras, HLLs Project Shakti; NDDB & Godrej also active in
rural markets)

Opportunities
About 135 million households do not own a savings account
Rate of financial inclusion is twice as bad in rural areas

Growing per capita and disposable income

Rising financial awareness
Peoples search for secure instruments.

Expanding media, which creates market

Challenges..
Scattered over a wide dissection of
geographical landscape

Ever-changing Socio-cultural and

linguistic landscape

High cost of distribution of low

priced rural insurance policies

Traditional rural psyche to invest in

gold and real estate

Low literacy levels

Poor Infrastructure
Poor judicial, legal and enforcement
systems

Income is seasonal
Myths about companies offering
investment products

Constraints
Awareness & Education

-Difficult procedures

- about Risk exposure

-Ivory tower approach

- about insurance products

-Inappropriate / inadequate distribution strategies

Affordability
-Very little money left after satisfying basic needs
-Uneconomical premium

Accessibility
-Complex policies

Confidence and trust on insurance as a

concept and on insurers

Right distribution channel mix

Rural Customers Behaviour on Saving &

Insurance
Rural saving habits are oriented towards

fulfilling specific objectives, such as

celebrating a wedding, purchase of a land,
cattle or other farm assets, and building a
general corpus

Preference is for long term saving on a

secured basis.

Purely covering the life risk is perceived as an

avoidable expense

Rural people have faith in Govt./formal

institutions like banks, LIC etc. for their savings

In villages an incident of cheating by a private

finance or forestation company reaches to all the

inhabitants.

Seldom occurrence of such incidents had strong

adverse impact on rural masses for investing in

other private finance/insurance companies.

Strategies for Rapid Penetration of

Insurance Products in Rural Markets
Segment rural India
Regionalization of the product needs
Effective distribution channel planning
Tie-ups with NGOs, Self Help Groups are common to target the rural
masses

Rural Communication
sponsoring the local festivals and fairs (melas), creating visibility around
haats and mandis, road-shows, hoardings, wall paintings etc.

Improvement in servicing

Segment Rural India

Do not lump Rural India under a single canvas.
Segment the rural market on the basis of urban orientation (urban contacts,
proximity to urban centers), socio-economic development etc. as
Developed villages
Developing villages
Underdeveloped villages

Developed Villages
Villages near to mega cities, state capitals and areas of green revolution
Sizeable working force engaged in non agricultural industrial employment adjoining
to major towns

Population is generally educated up to school level and beyond

Avg income level high, ranging from Rs.20K-200K per annum.

Fairly Good knowledge of financial investment and insurance opportunities. Insurers

have great opportunity here to excel

Developing Villages
Where green revolution has

shown higher income level (Rs.30K50K)

taken deeper roots

Awareness of insurance products

Local infrastructure developed

good.

well

Several villages covered by

rural development schemes have

Insurers can quickly accelerate the

level with some focused efforts

Primitive/Underdeveloped Villages
Villages that have not joined

Focal points for micro credit

schemes, SHGs

the mainstream growth due to the

reasons such as in-accessibility,
awareness
extreme level of poverty and other Low
products
socio-economic reasons.

Thinly inhabited

for

With the help of

insurance

NGOs the
insurance level can be ramped up
quickly.

Product Needs of Rural India

Strong bias in favor of long term saving products in rural market.
Endowment policies (fixed sum assured at the end of definite period) as
well as standard money back policies are highly popular.

In the year 2012, 93% policies fall in this category.

The average sum assured under an endowment policy was Rs.66,000.

Product Needs of Rural India.

Rural thinking - on the line of receiving a tangible return on any investment made

A pure term insurance plan where premium is utilized solely towards covering
risk is perceived as unavoidable expense

This is more to do with lack of awareness building and absence of insurance

intermediaries that can market pure term policies requiring payments of small
amounts of premium.

SBI Life successfully sold term plans through RRBs

Product Needs of Rural India

Term insurance schemes can be popularized
The cover is made available without much paperwork
Through a network of institutions that are active in providing rural credit

Insurance companies can design a simple plan offering life cover to customers
who have taken any loan facility from the banking system so as to guarantee
repayment of outstanding loan amount to the lender in the event of death of
the borrower

Needs to provide flexibility to rural policy holders in the matter of periodicity

& quantum premium payments

Product Needs of Rural India

The premium payments dates should be linked to the period when the farm produce is
sold and cash flow is generated

Need to build flexibility for the premium interruptions to take place due to crop failure or
other genuine reasons

An important emerging requirement in the rural market is the life insurance policies that
combine healthcare benefits

Insurance companies in the life and non life segments that come up with credible and
convenient policies that cater to this need can expect large sales volumes

Effective Distribution Channel Planning

Effective insurance marketing depend on the effectiveness of distribution channel
employed

Various delivery systems in rural market include individual agents (barefoot),

Primary co-operative societies, regional rural banks, post offices, and NGOs

Individual agents have been the most effective medium in selling life products
But finding the right type of candidates and in good number for rural markets and
arranging insurance training is a difficult task. AP Govt. has been helping insurers

Effective Distribution Channel Planning

Life insurer in rural regions need to have effective systems to keep watch on the
performance of these agents

An early difficulty in completing proposal documents- the possibility of lack of age

proof

Insurer has to find spot solutions - Age certified by village headman

The growing involvement of rural institutions such as Gramin banks and cooperative banks to take up insurance distribution as a fee-based activity is also
helping insurance companies to find innovative channels

Micro Finance
Protection of low-income people against specific perils in exchange for
regular monetary payments (premiums) proportionate to the likelihood and
cost of the risk involved.

As a division of micro finance, Micro Insurance is a term used for

insurance having lower premium or coverage amount.

Opportunities of Micro Insurance

Growing per capita and disposable income

Rising financial awareness

Infrastructure growth
Changing social and cultural patterns
Decline in unequal distribution of wealth

Improving standard of life

Key Parameters for Penetration

Outreach
Transactional cost

Persistency
Underwriting
Support of government & regulatories

Micro Insurance Strategy

Utility/Smart
cards

Empowerme
nt & control

Innovative
Technology

Bundling
financial
products

Sound
regulatory
environment

Credible
data sources

Life
insurance/G
eneral
Insurance

MIS & data

warehousing

Govt. Initiatives & Regulations

Govt. Initiatives through PSUs 3 pronged strategy
Targeting the wealthy with regular individual policies.

Group policies to those who could not afford individual policies

Subsidized policies for the extremely poor

Pvt. Companies to achieve a min. of 15% of business from the rural sector
after five years of operations

Micro Insurance Models

Direct marketing by the insurance companies

Partner-agent model

Community based model

Service provider model

Note : Using the right combination of the models could be the key success factor for an organization

Drivers of Rural Insurance Development

Supply side
Products specific to the needs of the rural populace

Priced keeping income patterns in mind eg. 2 crop cycles = semi-annual

premiums payment facility preferred
Low buying capacity = insurance with a lower minimum face value

Low level of education = simplified products would be preferable

Case Examples:
DLF Pramerica Life Insurance

DLF Pramerica Life Insurance

DLF Pramerica Life Insurance Company Limited is a joint venture between DLF Limited,
the country's largest real estate developer and Prudential International Insurance
Holdings Limited.
Organizes a unique Tatkaal Baithaks, a unique insurance awareness initiative targeted at
the under served rural markets in the country.
Aim is to reach out to a large base of rural customers to educate them about life
insurance.
In the first phase, it will touch approximately 10 lakh customers in 93 villages
across Bihar, Orissa and eastern Uttar Pradesh.

Tata AIG Life

2001 To 2012

2012 On wards

Tata AIG Life Rural Film

Tata AIA Life

Tata AIG Life - First insurance company to launch Micro
Insurance.
Full Range of Products and dedicated Offices.

Adopts a tailor made rural communication strategy to reach out to

the rural community

Tata AIA Life

The company has tied up with various NGOs, Rural Agents and
Community Groups.

Creation of growing number of employment opportunities for rural

population and enabling them to be the supplementary income earner in
their households.

Tata AIA Life

Rural communication strategy used to reach out to the rural community.

Micro Insurance (MI) products as well as five Micro Insurance Sales

Offices (MISO) across the country.

The MI products have been tailor made to suit the requirements of the rural
population.

Special emphasis on product simplicity and ease of documentation.

Tata AIA : Sumangal Bima Yojana

Policy Term : 15 years
Premium Paying term : 10 years
Coverage Limits :

Minimum Death Benefit (Sum Assured): Rs.5,000/ Maximum Death Benefit (Sum Assured): Rs.30,000/
Premium payment frequency : Monthly, quarterly, half yearly & yearly
Survival Benefit: We shall pay you the survival benefits as below, if you have paid all due
premiums.

Policy Anniversary Year end Guaranteed Pay outs

6th
10% of (Total Policy Premium)
9th
20% of (Total Policy Premium)
12th
30% of (Total Policy Premium)

Tata AIA : Navkalyan Bima Yojana

Policy Term : 5 years
Coverage Limits :

Minimum Death Benefit (Sum Assured): Rs.5,000/

Maximum Death Benefit (Sum Assured): Rs.50,000/ Premium payment frequency : Monthly, quarterly, half yearly & yearly
Death Benefit : Sum assured to the policyholders nominee
Maturity benefit : None

Tax Benefits and Age Eligibility

Premiums paid under this plan are eligible for tax benefits as per the Income Tax Act, 1961
and are subject to any amendments made therein from time to time.
Anyone between ages 18 and 60 can apply for this policy.

Tata AIA : Ayushman Yojana

Policy Term : 10 years
Coverage Limits

Minimum Death Benefit (Sum Assured): Rs.5,000/ Maximum Death Benefit (Sum Assured): Rs.50,000/ Death Benefit : Sum assured to the policyholders nominee
Maturity benefit : On survival, 125% of the single premium paid.

Tax Benefits and Age Eligibility

Premiums paid under this plan are eligible for tax benefits to the extent of 20% of Sum

Assured as per the Income Tax Act, 1961 and are subject to amendments made therein from
time to time.
Anyone between ages 18 and 60 can apply for this policy.

Tata AIA : Sampoorn Bima Yojana

Policy Term : 15 years
Coverage Limits

Minimum Death Benefit (Sum Assured): Rs.5,000/ Maximum Death Benefit (Sum Assured): Rs.50,000/ Premium payment frequency : Monthly, quarterly, half yearly & yearly
Death Benefit : Sum assured is paid to the policyholders nominee
Maturity benefit : At the end of the 15 years, all the premiums paid will be returned to the
policyholder.

Tax Benefits and Age Eligibility

Premiums paid under this plan are eligible for tax benefits as per the Income Tax Act, 1961 and are
subject to any amendments made therein from time to time.
Anyone between ages 18 and 60 can apply for this policy.

Tata AIA MISOs

Micro Insurance Sales Offices
To make further inroads on insurance awareness and distribution in rural India

Telangana - Kodad
Andhra Pradesh - Chitoor
Uttar Pradesh - Joanpur
Rajasthan - Jhalawar
Kerala - Kannur

Tata AIA
Syndicate

Syndicate Bank

Bank offer its customers

insurance products by Tata AIG Life

group

Cater to the economically weaker sections of the

society for a nominal premium

Individuals will be eligible for a life insurance cover up

to Rs.25,000.

Promotions for TATA AIA Life

Specially trained rural team considering the demographics of the rural population
Product information brochures, application forms, training material as well as
policy holder contracts made available in nine vernacular languages

Tied up with NGOs, Rural Agents and Community groups

Special films aimed at increasing awareness of the importance of insurance in the
rural community

Promotions for TATA AIA Life

Awareness program is reinforced with the
help of existing M-Offices (Mobile Vans)

Paintings and Posters depicting &

spreading the desired message across
the villages.

Contribution from Rural business today

has reached a landmark size of 23% of
Tata AIG Lifes monthly sale

TATA AIA Life- Cattle Insurance Program

Company cattle insurance program in Visakhapatnam, Andhra Pradesh which was a case study by itself - was well appreciated by World Bank.
Was a discussion forum topic at the World Bank Workshop on "Access to
Insurance for the Poor."

TATA AIA Life- Using technology to prevent

fraud

New India Assurance Company Ltd.

The New India Assurance Company Ltd.

Cattle Insurance
Poultry Insurance Scheme
Dog Insurance Scheme
Silk Worm Insurance Scheme
Agricultural Pump sets Insurance
Scheme
Animal Driven Cart Insurance
Lift Irrigation Insurance
Horticulture / Plantation Insurance

NIA: Cattle Insurance

Cows and Buffaloes, Bullocks (Bulls) and Male Buffaloes.

Market value of the animal.

The indemnity is limited to 75% of Sum Insured in case of a
PTD claim.

The basic premium rate per annum is 4%.

BCG Matrix for NIA

Star

- Cattle and
Livestock

Cash cow
Tractors
Insurance

??
Well
Insurance

Dog
Horticulture,
Crops,
Floriculture
Insurance
Policies

Max Life Insurance

Max Life Insurance

One of the few insurance companies in India to have separate rural division
It follows a unique hub and spoke model
It has 8 area offices which work as hubs
23 branch offices function as the spoke
It has 2500 agents working exclusively for rural markets
They have designed specific product and appointed gram sahayaks across various districts
in India
Easy Term product provides term insurance for Rs10,000 for a sum of Rs100

Max Life Insurance

Max is tying up with district cooperative banks & NBFC to market its products
Tied up with Andhra bank and Triveni Khushali bazaar to penetrate into rural market
They had made a special policy for rurals according to it a villager have to pay Rs.99 per
month for a life insurance

This new channel of selling Insurance products is known as Bancassurance

While designing products for rural market Max takes into account important factors like
children education, daughters marriage and flexible premium payment options

All communication are in local language and the process and procedures are simplified

Max Life -Aapke Sachche Advisor

Max Vijay A Product for Rural Market

Available in three variants
Rajat, Swarn, and Heera with varying sum assured

Premium is highly flexible

No fixed date
No fixed amount
Can surrender after 3 years and can start withdrawing money

Minimum premium is Rs10

Max Vijay
Plans started with tailor-made micro-insurance policies for smaller towns such as Max Vijay for
which a pilot project implemented in Agra and then moved on to more remote areas

Now have about 139 offices in rural places - what they call emerging market offices
Established a third-party relationship with Indian Oil Corporation to use their Kisan Seva
Kendras for selling policies space rented in 300 such stations

Max Vijay is available in three premium payment options Max Vijay Rajat, Max Vijay Swarna
and Max Vijay Heera

Max Vijay
COST CUTTING
The policy won the Golden Peacock Award for Innovation in 2008

Designed to be easily affordable Based on cost cutting, rather than high margins
Tied up with IBM to minimize the cost of underwriting and servicing of Max Vijay
Its strategy is to achieve high volumes
The policy can also be topped up at any time for as low as Rs20
Tied-up with Grameen banks for distribution - utilizing their extensive rural network

Max Vijay

ICICI Prudential Insurance

ICICI Prudential
JV between ICICI Bank (74%) & Prudential plc (26%)
Capital Base of Rs. 37.72 Billion
Largest private sector insurance company & second largest after LIC
Amongst the 1st private sector insurance companies to begin operations in
December 2000 after receiving approval from IRDA
Strong workforce of 30,000
No. of policy holders exceeds 6.5 million
The only private life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings

ICICI Prudential

Products

Anmol Nivesh
Minimum Premium of Rs. 100 per month
Partial Withdrawal Facility

Sarv Jana Suraksha

First micro-insurance product
Premium of Rs. 50 per month

Distribution

Over 1100 Offices in rural India

Over 45000 local trained advisors

ICICI Prudential

Marketing

Rural Marketing Fairs

Street Plays
Road Shows, Activity Vans & Wall
Paintings

Other
Initiatives

Local language sales literature

E-governance kiosks for payment
Overcame the infrastructure barrier in the
rural offices

ICICI Prudential - MICROINSURANCE

Profitable Business Model

Life Insurance Corporation (LIC)

LIC
Population less
than 5,000

LIC defines rural as:

Population density
of less than 400
persons per sq.km.
(i.e., 1,000 per
sq.mile)

More than 25%

of the male
working population
is engaged in
agricultural
pursuits.

LIC
Janashree Bima Yojana
Life Insurance protection to the rural and urban poor persons below
poverty line

Shiksha Sahayog Yojana

Scholarship scheme for the children of members of Janashree Bima
Yojana

Aam Aadmi Bima Yojana

Prestigious scheme of the Central Government

LIC: Jansree Bima Yojana

The objective of the scheme is to provide life insurance protection to the rural and
urban poor persons below poverty line and marginally above the poverty line.

Eligibility

Persons between 18 years and 60 years of age.

In addition to persons below the poverty line, even persons marginally above the
poverty line may be covered.
The groups will be identified and notified by LIC in consultation with the Nodal
Agency.
Minimum Members of the group would be 25.

LIC: Shiksha Sahayog Yojana

This is a scholarship scheme launched on 31.12.2001 for the benefit of children of
members of Janashree Bima Yojana.

ELIGIBILITY:
Students studying in ix to xii standards, whose parents are covered under Janashree Bima
Yojana.If a student fails and is detained in the same standard, he will not be eligible for
scholarship for the next year in the same standard.
BENEFIT:
Scholarship of Rs 300/- per quarter per child will be paid for maximum period of 4 years.
The benefit is restricted to two children per member(family) only.
PREMIUM:
No premium is charged for the scholarship

LIC: Aam Admi Bima Yojana

In a rural landless household, when everyday living is a struggle, it is difficult to face
life with a smile. And it becomes even more difficult when the future of your family
is uncertain.

ELIGIBILITY
The member should be aged between I 8 and 59 years
The member should be the head of the family or one earning member in the family
of rural landless household.

LIC: Other Products

2 microinsurance products
Jeevan Madhur and

Jeevan Mangal

Premiums as low as Rs15

LIC
Nodal Agency
Nodal Agency will mean Panchayats, NGOs, Self-Help Groups or any other
institutionalized arrangements.

The Nodal Agency will act for and on behalf of the insured members in all matters
relating to the Scheme

LIC: Distribution
Individual Agents
Corporate partner COMAT Technologies
Started in Karnataka & Haryana
Comat is an Indian social enterprise specializing in the delivery of information based
services to rural citizens in India.

COMATs Rural Business Centers equipped with professional and trained employees

LIC: Varishta Bima Yogana

Varishta Bima is targeted at senior citizen over the age of 55 years
Offers an assured return of nine per cent till the death of the policyholder in
terms of an immediate pension plan

The scheme attracted over 34,000 subscribers in 2 months as against the targeted
figure of one lakh per annum

LIC: Varishta Bima Yogana A Rural Failure

Only 30% per cent of policies sold under Varishta Pension Bima Yojana launched by the prime
minister, have come from rural India
The aim was to make it 50 per cent in both the markets

REASONS
The target group had not been effectively tapped
Rural masses are not "pension-minded
Prefer investing in fixed deposits of cooperative banks, "as they like to see their bank balances"
15-year lock-in period for investment, Most have preference for short-term investments of not
more than three to five years
Minimum investment has been capped at Rs.33,335, a sum the rural poor people may not have
in liquid funds
The removal of the upper age cap had little impact on overall sales

Bharti AXA Life Insurance

Bharti AXA Life Insurance

Joint venture between Bharti and AXA, world leader in financial protection and
wealth management

74% stake from Bharti and 26% stake of AXA

Over 8000 employees across over 12 states in the country

Vision: To become the preferred life insurance company in India

Bharti AXA Life Insurance: ServSuraksha

First customers of ServSuraksha include around 500 farmers across 50 villages like
Barundi, Fatehpura, Gobindpura, Jogi Majra, Malakpur and Rasulpur around the Ludhiana
region

Articulates the brand promise of helping diverse categories of Indian consumers Be Life
Confident

A single premium, non-participating policy

Offers death benefit amounting to 25 times the single premium or assured maturity benefit
of 110% of the premium paid on survival

Policy term is five years

Does not require medical underwriting and offer a free-look option

Bharti AXA Life Insurance: Tapping Rural Sector in Uttar

Pradesh
Ties up with Confederation of NGOs of Rural India (CNRI)- UP Chapter to
provide customized rural insurance solutions for rural Uttar Pradesh
CNRI- UP Chapter and Bharti AXA GI to collaborate to increase insurance
awareness in Rural Uttar Pradesh

Bharti AXA Life Insurance: Tapping Rural Sector in Uttar

Pradesh
Livelihood Protection Plan 1
Offers unique covers to sustain the livelihood of customers and their families, with an extended coverage
in case of death or permanent disability of the insured.
Also provides childrens education fund as well as marriage fund for girl children
Ration allowance, provided to families of the insured on a monthly basis as well as the livestock
allowance
Livelihood Protection Plan 2
Offers additional covers like hospitalization expenses of the insured as well as a daily allowance in case of
accidental hospitalization
Offers protection in case of damage or loss of household contents

Rural Postal Insurance

Rural Postal Insurance: Foundation

It is the initiative of Govt. of India
In India in June 9th 2006 this scheme was launched to reach in the deep
villages.

Worlds largest postal services having reach to 89% of the rural area in the
India, to tell the rural people the importance of the insurance and making
their life insure.

Rural Postal Insurance: Scheme

Rural Postal Life Insurance(RPLI) bonus for the most popular scheme
Endowment Assurance (E. A.) stands enhanced from Rs. 50 to Rs. 55 for
every Rs. 1000 of sum assured.

The increase is going to benefit insurants majorly. As an insurant who is

having an E. A. policy of Rs. One lakh, will now be vested with a bonus of
Rs. 5500 a year (as against Rs. 5000 earlier), and if the policy term exceeds
ten years, it will be vested of Rs. 5200 for other E. A policies.

Rural Postal Insurance: Scheme

This enhancement of bonus makes Rural PLI more attractive an option as
compared to traditional insurers who cover the life risk of individual
insurants under Endowment Assurance Scheme.

Whereas the traditional insurers give bonus in a range of Rs. 45 to Rs. 50 for
every Rs. 1000 of sum assured, the customers of Rural PLI get a better
return.

Rural Postal Insurance: Scheme

The premium of Rural PLI is collected through the counters of the massive
network of more than 1,55,000 Post Offices, thus keeping the
operational cost of Rural PLI low as compared to other insurance
companies.

Rural PLI passes on the benefits of low cost of operation to the customers
in the form of higher bonus rates and lower premium rates.

HDFC Standard Life Insurance

HDFC Rural Insurance

HDFC life insurance company is looking forward to providing service for
rural areas. The main aim of the company is providing insurance in maximum
strength with lower cost.

Their promotions using radio jingles targets rural customers.

HDFC SLI Radio Jingle

One of the Radio Jingle they use extensively, says

Na sir jhuka hai kabhi, aur na jhukaayeinge kabhi Hum

aapke aatmasamman ko utna hi beshakeemti maante hain jitna
aapki zindagi ko. Jo apne dum pe kare sach mein zindagi hai
wahi, HDFC standard life Insurance sar uthha ke jiyo
Underlined text - Rhythmic

HDFC Gramin Mitra Yojana

Availability

Plan that is easily available for 18 to 50 years aged of people.

Affordability

The plan is worth Rs.500 by adding 50% to original investment in

3 years. The guaranteed maturity benefits Rs.750 and also death
benefit of Rs.5000 in case of insurers death within the policy term.
The Rs.500 is the single premium for the policy.

HDFC Gramin Suraksha Bima policy

This policy helps to provide an accident insurance at an affordable cost
Targeted for Micro Finance Institutions, Non Government Organisations,
Government Sponsored Organisations and such affinity groups / institutions
in rural and social sectors.

HDFC ERGO Cattle Insurance

HDFC ERGO offers Cattle Insurance Policy for protection of Indian rural people from
financial loss due to death of their cattle, which is one of the most valued possessions of
the rural community.

The Policy covers the persons having cows, bullocks or buffaloes of either sex certified as
being in sound and perfect health and free from injury or disease by a veterinary doctor /
surgeon and who are Members (in groups) of Micro Finance Institutions, Non
Government Organisations, Government Sponsored Organisations and such affinity
groups / institutions in rural and social sector.

HDFC ERGO Cattle Insurance

Scope of Cover:

Death of cattle:
Covers the cattle insured whilst within a geographical area specified in the policy schedule, in
case of loss of life accident or diseases contracted or surgical operation.

The policy also covers death of cattle which are the subject matter of insurance occurring
outside the said geographical area in the event of drought, epidemics and other natural
calamities.

Optional Benefits
Permanent Disability Cover: Covers the risk of permanent and total disablement of cattle.

HDFC Sheep and Goat Insurance

Sheep and Goat Insurance provides indemnity to indegenous cross-bred and exotic

sheep and goat Animals against death of sheep and goats due to accident Including
Fire, Lightning, Flood, Cyclone, Famine, Earthquake, landslide, Strike, Riot or
diseases contracted or occurring during the period of
insurance.

This Policy is available to persons having Sheep and Goats of either sex certified as

being in sound and perfect health and free from injury or disease by a veterinary doctor
/ surgeon and who are Members (in groups) of Micro Finance Institutions, Non
Government Organisations, Government Sponsored Organisations and such affinity
groups / institutions in rural and social sector.

HDFC Sheep and Goat Insurance

Scope of Cover:

Death of sheep and goats:

Covers the sheep and goat insured whilst within a geographical area specified in the
policy schedule, in case of loss of life accident or diseases contracted or surgical
operation.

The policy also covers death of sheep and goat which are the subject matter of
insurance occurring outside the said geographical area in the event of drought,
epidemics and other natural calamities.

HDFC Rainfall Index Insurance

In India, farming communities suffer high losses year after year due to weather

vagaries.
Lack of irrigation facilities and non-availability of modern farming techniques,
further compound this problem.
This impairs access to rural credit as well. Farmers find they are unable and to
some extent unwilling to pay interest on their crop loans in a drought year and
seek to reschedule principal repayments.
Weather risk also affects the input providers by increasing the volatility in their
business volumes and consequently affecting the profits of the business.

HDFC Rainfall Index Insurance

HDFC ERGO offers a comprehensive Rainfall Index Insurance Policy which is a
mechanism for providing effective risk management aid to those individuals and
institutions likely to be impacted by adverse rainfall incidence at an affordable cost.

This Policy is available to farming communities having farm incomes from

cultivable area and who may get adversely affected on account of a Rainfall
Deficit.
They should be Members (in groups) of Micro Finance Institutions, Non
Government Organisations, Government Sponsored Organisations and such
affinity groups / institutions in rural and social sector.

HDFC Rainfall Index Insurance

Scope of Cover:

Diminished agricultural output/yield: Covers the diminished agricultural

output/yield resulting from a shortfall in the anticipated normal rainfall
within a specific geographical location and specified time period.

References
http://en.wikipedia.org/wiki/Insurance_in_India
http://www.insuringindia.com/rural-insurance/Rural-insurance-

home.aspx?ProductId=weather
http://www.tataaia.com/
http://www.moneylife.in/article/syndicate-bank-tata-aig-life-to-offer-groupinsurance-solution-to-housing-loan-customers/19514.html
http://www.licindia.in/
http://www.business-standard.com/article/finance/new-york-life-to-exit-maxindia-jv-112041300071_1.html