India: Tata AIA Life partners CSC to boost life insurance penetration in rural areas

| 18 Apr 2022

Tata AIA Life Insurance has partnered Common Services Centers (CSC) - a government agency under the Ministry of Electronics and IT - for the last mile for distribution of life insurance.

Through this partnership, Tata AIA Life can access CSC’s network of over 400,000 village-level entrepreneurs for the distribution of life insurance plans.

Tata AIA Life is expected to increase its reach to about 95% of gram panchayats (village councils), making life insurance accessible to remote areas of India.

Using CSC’s network, Tata AIA Life will be able to offer its POS Smart Income Plus plan that provides the dual advantage of a life cover combined with savings. Besides offering guaranteed payouts of 120% of the annualised premium under the regular income benefit option, the plan also gives life cover to help protect loved ones.

Under this plan, policyholders can opt for a sum assured up to IDR2,497,000 (US$32,726). By paying premiums for seven years, a customer can enjoy a life cover for 15 years. Women policyholders enjoy a higher benefit from the plan. In case of emergency, consumers can avail of a loan against the policy.

Venky Iyer, Chief Distribution Officer, Tata AIA Life Insurance, said, “At present, life insurance penetration stands at 8-10% across the rural population in India. Our constant endeavour is to make life insurance available to every Indian household, and this alliance will further strengthen our distribution efforts by helping millions of customers in the remotest corners of the country through technology leverage and product innovation."

Dr Dinesh Kumar Tyagi, Managing Director, CSC e-Governance Services India, said, "Through our partnership with Tata AIA Insurance, we have added new products like Tata AIA Life POS Smart Income Plus plan, endowment and income plans to our existing catalogue. With the disruption caused by the Covid pandemic, be it in income, health, or businesses, there has been a greater sensitivity among citizens for insurance. Citizens in urban as well as semi-urban and rural areas can now access these insurance services at their nearest CSC and secure their as well as their families future."

Through the partnership, the level of insurance awareness can be raised and the protection gap in rural areas narrowed, according to Mint.