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Royal Sundaram and Basix launch new Rural Specific Insurance Products

13 March, 2006

Royal Sundaram Alliance Insurance Company and BASIX today announced further initiatives for the rural sector across the country. The successful partnership that began in October 2002 offers insurance services at the doorstep of rural households.

The first insurance service began with the pilot launch of 'Livestock Insurance' at Srikakulam in Andhra Pradesh. The reach under livestock insurance has since crossed 19000 in 2006.

Among the new initiatives on the anvil is ''Micro Enterprise Shield'' (assets insurance), a cover exclusively designed to take care of rural enterprises. It provides cover against loss of assets/stock of rural entrepreneurs due to Fire, Flood, Riots, Strikes & Malicious Damage. It can also be extended to cover Burglary and has the scope to cover machinery breakage if necessary.

'Gramin Arogya Raksha' a unique health insurance scheme recently launched, has been very successful in terms of reach as well spread across the country with insured size crossing 1 lakh. The favourable result experienced on this scheme has enabled Royal Sundaram to enhance the product further.

Speaking on the occasion, Antony Jacob, Managing Director, Royal Sundaram Alliance Insurance Company described the partnership as a strategic move towards increasing the penetration of general insurance in rural sector. He stated, "Royal Sundaram has realised that there is a requirement to introduce tailor-made insurance products to address the specific needs of the rural markets. Micro Finance Institutions such as BASIX have a strong network and distribution capability and hence are successful as distribution partners in rural areas for our products."

According to NV Ramana, Managing Director, BASIX, "BASIX is engaged in the promotion of livelihoods for the poor. We recognise that the vulnerability of the poorer households to various risks is higher. In order to promote sustainable livelihoods, BASIX has partnered with Insurance Companies to develop and distribute risk management products covering the lives and livelihoods of its customers. BASIX has had a successful partnership with Royal Sundaram in providing health and livestock insurance to its customers. A significant aspect of these products has been their simplicity in features and processes that are desirable for the rural market. We are now taking this effort forward with Royal Sundaram by extending these benefits to SHG women and introducing the micro-enterprise cover for rural non-farm enterprises."