Bhubaneswar,Dec 09 (odisha.in) SBI and its insurance arm SBI Life on December 8 launched it's maiden micro insurance product –"Grameen Shakti" for members of Self Help Groups (SHG) banking with SBI in Orissa.
Prafulla Chandra Ghadai ,Orissa Minister for Finance inaugurated the Grameen Shakti, the micro insurance product at Itipur village on the bank of historic river Daya in the outskirts of Bhubaneswar at an impressive meeting attended by over 2500 Women SHGs from all over the state.
The launching ceremony was graced by among others Dr.Mona Sharmaa, Commissioner-Cum-Secretary, Women and Child Development Department,Orissam Udaya Shankar Roy Managing Director and CEO, SBI Life, Anup Banaerji, Deputy Managing Direcetor SBI, M.N.Rao, Chief General manager SBI, Bhubaneswar Circle.
Grameen Shakti aims at providing insurance cover of Rs.25,000 to economically weaker sections of the society through an affordable premium of Rs.301 per annum, said Udaya Shankar Roy, MD and CEO, SBI Life.
The product is a pure term insurance product with provision for 50 per cent return of premium on maturity, he said adding that the term of the policy shall be for five years .
"It is an unique product and provides the family members protection and survival benefits to the policy holders of the SHG", he said.
Talking to newsmen, Roy announcing SBI life's entry into micro insurance with launching of Grameen Shakti, in Orissa being the pilot state in the Country ,said on the death of the Group member, the nominee would receive the sum assured.
He exuded that SBI's extensive net work would enable SBI life to offer protection to the segment that would benefit significantly from the policy.
Stating that the micro insurance products will be marketed through SBI's baranch net wrok in the state of Orissa, Roy said that SBI life took the initiative to launch the products in Orissa as it has one of the largest base of the economically weaker population particularly in the rural areas.
More importantly, SBI life would get 1.30 lakh SBI credit linked SHG's out of the total 3 lakh registered SHG;s in the state , he said informing that at one go, it would cover record 13 lakh Life .
"We have a target of covering at least 2 lakh live insurance of the SHG's within next one and half months.", he said.
Responding to a suggestion of Orissa Finance Minister to increase the sum assured upto Rs.50,000 , the SBI life MD , Roy assured that it would be well taken care of considering the insurance penetration trend .
Stating that the first life insurer in the country to receive the highest financial strength rating of AAA from CRISIL for the superior financial security, Roy said, SBI life is the
Largest private life insurer in the country with 89.9 lakh lives insured during 2006-07 Financial year.
Highlighting the key milestones during last fiscal, he said while new Business premium grew by 210 per cent to Rs.2,566 crores and ranked 3 amongst the private insurer in terms of new business premium income, the net profit of SBI life Insurance had risen by 88 per cent.