Over 1 Million SKS Microfinance Members get Insurance Cover
Feb '2009

Small premium helps financial inclusion through insurance

  •  Low premium, Ease of purchase and servicing, cover from day one.
  • Product designed for the poor along with Bajaj Allianz Life Insurance.
  •  Currently available to SKS members across Andhra Pradesh, Karnataka, Orissa, Rajasthan, Uttar Pradesh, Madhya Pradesh and West Bengal. 
  • To cover SKS members in Delhi, Bihar and Maharashtra soon.

Hyderabad, February 10, 2009:  SKS Microfinance, India's largest and world's fastest growing Microfinance Company has extended life insurance cover to one million poor women across Andhra Pradesh, Karnataka, Orissa, Rajasthan, Uttar Pradesh, Madhya Pradesh and West Bengal through its low-premium micro-insurance product Bajaj Allianz Swayam Shakti Suraksha. The product was launched in April 2008 jointly with Bajaj Allianz.  

Commenting on the success, Mr.Suresh Gurumani, CEO, SKS Microfinance said, "This insurance product has been a real success with our members who are able to get insurance benefit by paying very low premiums at their doorsteps.  SKS Microfinance with its distribution network of over 3.6 million members in rural India across 18 states will play a major role in promoting such offerings which will result in greater financial inclusion."
Bajaj Allianz Swayam Shakti Suraksha which has had 50 percent penetration across SKS members, will be made available across its member base in Delhi, Bihar and Maharashtra in the coming months. 

"Bajaj Allianz Swayam Shakti Suraksha has helped take the benefits of insurance to rural India at a very rapid pace.  We are overwhelmed with the success of this product," said Mr. Kamesh Goyal, Bajal Allianz.
The five-year policy is initially financed by SKS by depositing Rs 500 in the beneficiary's account as an interest free loan to help the member pay the initial premium. Swayam Shakti Suraksha allows a member to get an insurance cover of a minimum of Rs.5,000/-. The policy covers the member for Rs.10,000/- in case of accidental death and obtain loans under the scheme up to 85 per cent of the surrender value.
The claims are settled at the SKS weekly center meeting where the member's nominee receives the claim amount within 7 days of submission of the claim. The guaranteed surrender value is 70% of the net premium paid subject to applicable surrender penalty.