Bajaj Allianz Life Insurance and SKS Microfinance have joined hands to launch a group insurance product for micro-finance organisations.
The product, called Swayam Shakti Suraksha, offers protection and investment with flexibility and is designed on the lines of a standard endowment policy, a press release issued in Mumbai on Tuesday stated.
Designed specially for members of SKS Microfinance, which is distributing the product, it allows the beneficiary to make premium payments as low as Rs 45 per month.
The sum assured is flexible and can begin with as low as Rs 2,500 and offers additional accidental disability and death benefits, the release said.
The minimum policy term is five years and members have the option to obtain loans under the scheme up to 85 per cent of the surrender value.
"Swayam Shakti Suraksha is designed specifically for the poor and keeps in mind the needs of our members. The product will create a sense of financial security amongst our members," SKS' CEO and Founder Vikram Akula said.
Bajaj Allianz Life Insurance's CEO and Regional CEO of Allianz Kamesh Goyal said, "With this partnership, we will overcome our biggest challenge of being able to extend our product and services economically to micro-insurance customers, who pay premiums of less than Rs 50 per month."
Over two million members of SKS Microfinance will benefit from the product. Beginning with 100 branches in Andhra Pradesh, Karnataka and Orissa, the product will be rolled-out from all SKS Microfinance branches located across 15 states in the next six months, the release said.