HDFC Life forays into micro insurance; targets micro finance institutions

HDFC Life Group Jeevan Suraksha & HDFC Life Group Credit Suraksha aim to financially protect Employees/Members of Micro Finance Institutions, Co-operatives and other homogenous groups at a nominal cost

Mumbai, 06 November, 2016:  HDFC Life, India’s leading private Life insurer has announced its foray into the micro insurance category, with the launch of two distinct group insurance offerings – HDFC Life Group Jeevan Suraksha and HDFC life Group Credit Suraksha. Group Credit Suraksha provides insurance protection against outstanding loan liability in the event of untimely demise of the insured member, while Group Jeevan Suraksha provides insurance cover against untimely death.

Further enhancing its products and offerings portfolio, HDFC Life’s entry into the micro insurance space also comes at a time when India is still vastly underinsured. Micro insurance is a critical risk management tool when speaking of overall financial inclusion. More so, for those who belong to the low income groups or are a large part of the informal sector may need it most due to exposure to vulnerabilities or affordability of good quality healthcare and no formal insurance cover.

On the occasion of the launch Sujoy Manna, ‎VP-Products at HDFC Life said, “There is a significant potential in the micro insurance space and we are committed to align with the government’s vision of a financially inclusive country. We will leverage our multi-channel distribution network and learning from our past successes while foraying into new product categories, drive penetration for our micro insurance offerings in India.” “By partnering with micro finance institutions, we will tap the financially underinsured sections across India and cooperatives that form a large part of the unorganised sector. With growth in micro credit in India we believe that the demand for these products will improve as an efficient tool to manage financial risk,” Sujoy Manna added.

HDFC Life Group Jeevan Suraksha and HDFC Life Group Credit  Suraksha are micro insurance products which address the needs of the Employees of Micro Finance Institutions, Co-operatives and Members / Employees of other homogenous groups to provide financial security at a nominal cost in the event of unfortunate death of a Member / Employee.  

Group Credit Suraksha offers insurance protection against loan liabilities for up to Rs 2 lakhs, with a flexibility to choose between level or decreasing cover. The cover can be availed on a joint life basis as well, with a 5% discount on premium of the younger life assured, with an additional life cover during the moratorium period for customers who have opted for a home, education or any other mortgage loan.

Group Jeevan Suraksha is a pure insurance term plan that provides financial protection to the family in case of the untimely death of the insured. One of the key benefits of this policy is that it allows flexibility to choose between fixed and varying assured sum Assured at a nominal cost.