New India Assurance introduces combination product for lower income groups

Country's largest general insurance company New India Assurance has said that it has tailored a combination product for lower income groups. The product will have combination of life cover, health insurance and accident cover among others.

Addressing an industry summit organised by the IMC in Mubai, New India Assurance Chairman-cum-MD, Mr. G Srinivasan said, “We are launching a product for the lower income population, like domestic helps, with an annual premium of Rs 800. This plan will offer life cover of Rs 1 lac to the family in case of death, critical illness and other hospitalisation expenses under Rs 20,000-30,000. The plan also offers accident cover."

This plan has been launched on pilot basis and will be rolled out in the retail market soon, Mr. Srinivasan added.

IRDA Chairman, Mr. T S Vijayan was also present in the summit, and he appreciated the initiative taken by the state-owned general insurer. “Combination products are the key. This is the way to go forward. However, as regulator we also have to look at it as to whether these products are lessening the problems or not," he said.

Insurance in the country was a major challenge, especially in the non-life sector, he added.

Furthermore, Mr. Vijayan said, “Since last three years, the non-life sector has grown by 20%, and is growing by 15% so far this year. About 25% people are covered under non-life, of which only 14% to15% are covered under health insurance, mostly because government is paying for it and the 60%-70% are under motor insurance cover."

Source: http://www.insuringindia.com