Targeting people under the below poverty line, Tata AIA life launched Navkalyan Yojna, a micro life insurance solution on 29 Dec 2014.
TATA AIA Life’s latest product has a lock-in period of five years and offers assured returns between Rs 10,000 and Rs 50,000. The people buying the policy have been offered a flexible payment plan as the premium can be paid on an annual, semi-annual or quarterly basis. The entry age to the Navkalyan Yojna insurance scheme has been fixed between 18 years and 60 years.
Launching the scheme, Ravi Vishwanath, Deputy CEO of Tata AIA Life, said "The launch of Navkalyan Yojana will further strengthen our commitment to deepen life insurance penetration in the country and 'make Good happen' to economically vulnerable members of the society.”
To market the product, the company plans to utilize its strong network of licensed Micro Insurance agents comprising non-governmental organisations (NGOs), micro finance institutions (MFIs) and self-help groups.
“We are confident that our association with various NGOs, MFIs and Self-Help groups will enable us to reach out to these members across the length and breadth of India," Vishwanath added further.
The salient feature of the product is the low annual premium of Rs 116, which will give a guaranteed return of Rs 10,000 at the time of maturity.