RURAL MARKETING INSURANCE

Submitted to
Dr. Sanjeev Prashar
Submitted

by
Suresh Neela
Sarvesh
Singh

Table of Contents

Insurance Sector Background

Industry Snapshot

Insurance Repository

Insurance Sector Rural

Rural Scenario for Life Assurance

Challenges, Opportunities, Problems, Constraints

Strategies for Rapid Penetration

Micro Finance

Drivers for Rural Insurance Development

Case Examples

DLF Pramerica Life Insurance

Tata AIG Life Insurance

New India Assurance Company

Max Life Insurance

ICICI Prudential Insurance

Life Insurance Corporation

Bharti AXA Life Insurance

Rural Postal Insurance

HDFC Standard Life Insurance

Insurance Sector - Background

Started in 1818 in Calcutta with Oriental Life Insurance Company

Governed by the Insurance Act, 1938 and IRDA Act, 1999

Since 1999, the government opened up the insurance sector by allowing private
companies to solicit insurance and also allowed FDI up to 26%

The largest life-insurance company in India is Life Insurance Corporation of India

FDI limit increased to 49% from 26% in the year 2014

Huge market largely untapped- Rural & Urban

As high as 70% of population is not touched by insurance

Increase in standard of living, disposable income, literacy, insurance awareness throws

open huge opportunities on insurance

High growth in Automobile sector

Huge strides in Health Care opening up

Huge Health Insurance potential

Insurance Repository

IRDA launched 'Insurance Repository' services in India 16th Sep-2013

It enables policy holders to buy and keep insurance policies in dematerialized or

electronic form

All insurance policies in a single account called electronic insurance account (eIA).

IRDA has issued licenses to 5 entities to act as Insurance Repository

1. NSDL Database Management Limited
2.Central Insurance Repository Limited ( CIRL )
3. SHCIL Projects Limited
4. Karvy Insurance repository Limited
5.CAMS Repository Services Limited

Rural Market

Rural market the backbone of Indian economy

It is Characterized by

Illiteracy, Poverty, Lack of insurance awareness, Lack of saving habits for long
term needs

Low income households and microenterprises can benefit from credit, savings,
and insurance services

(World Bank, World Development Report 2000)

Access to Financial Markets is important for poor people

Rural India- Insurance

Rural India has enormous business potential for Insurance services

70% people live in rural

Rural households contribute to 45% of the total household income of the country

Savings to income percentage in rural is at 30%, which is even higher than urban

Critical Success Factor

More sales happen on trust and familiarity with the agent than on a structured
administration of Financial Planning tools

Rural Scenario for Life Assurance

Due to planned development, the rate of change in rural India is frenetic.

Significant increase in literacy rate

Increase in rural income

Modernization in agri sector

Development in rural industries

Perceptible development in infrastructure

The life style is evolving due to increasing urban orientation

Expanding media giving opportunity to insurers to educate the rural customer

Rural Insurance Types

Weather Insurance

Rainfall Insurance

Crop Insurance

Plantation

Farmer Package Policy

Pump set

Cattle Insurance

Opportunities

Deregulation & Liberalisation

Amendments to Market Committee (APMC) Act; facilitation for contract farming

Increased investments Agri Export Zones, Cold Chains, Warehouses, Infrastructure

Financial incentives & subsidies

Variety of players and increasing activity agri. input companies, tractor manufacturers,
trading companies, exporters, processors

Different business models being experimented with (ITCs e-choupal, Tata Chemicals
Kisan Kendras, HLLs Project Shakti; NDDB & Godrej also active in rural markets)

About 135 million households do not own a savings account

Rate of financial inclusion is twice as bad in rural areas

Growing per capita and disposable income

Rising financial awareness

Peoples search for secure instruments.

Expanding media, which creates market

Challenges

Scattered over a wide dissection of geographical landscape

Ever-changing Socio-cultural and linguistic landscape

High cost of distribution of low priced rural insurance policies

Traditional rural psyche to invest in gold and real estate

Low literacy levels

Poor Infrastructure

Poor judicial, legal and enforcement systems

Income is seasonal

Myths about companies offering investment products

Constraints

Awareness & Education

- About Risk exposure
- About insurance products

Affordability
- Very little money left after satisfying basic needs
-Uneconomical premium

Accessibility
-Complex policies
-Difficult procedures
-Ivory tower approach
-Inappropriate / inadequate distribution strategies

Confidence and trust on insurance as a concept and on insurers

Right distribution channel mix

Rural Customers Behaviour on Saving & Insurance

Rural saving habits are oriented towards fulfilling specific objectives, such as celebrating
a wedding, purchase of a land, cattle or other farm assets, and building a general corpus

Preference is for long term saving on a secured basis.

Purely covering the life risk is perceived as an avoidable expense

Rural people have faith in Govt./formal institutions like banks, LIC etc. for their savings

In villages an incident of cheating by a private finance or forestation company reaches to

all the inhabitants.

Seldom occurrence of such incidents had strong adverse impact on rural masses for
investing in other private finance/insurance companies.

Strategies for Rapid Penetration of Insurance Products in Rural

Markets

Segment rural India

Regionalization of the product needs

Effective distribution channel planning

-

Tie-ups with NGOs, Self Help Groups are common to target the rural masses

Rural Communication
-

Sponsoring the local festivals and fairs (melas), creating visibility around haats
and mandis, road-shows, hoardings, wall paintings etc.

Improvement in servicing

Segment Rural India

Do not lump Rural India under a single canvas.

Segment the rural market on the basis of urban orientation (urban contacts, proximity to
urban centers), socio-economic development etc. as

Developed villages

Developing villages

Underdeveloped villages

Developed Villages

Villages near to mega cities, state capitals and areas of green revolution

Sizeable working force engaged in nonagricultural industrial employment adjoining to

major towns

Population is generally educated up to school level and beyond

Avg income level high, ranging from Rs.20K-200K per annum.

Fairly Good knowledge of financial investment and insurance opportunities. Insurers

have great opportunity here to excel

Developing Villages

Where green revolution has taken deeper roots

Local infrastructure developed well

Several villages covered by rural development schemes have shown higher income level
(Rs.30K-50K)

Awareness of insurance products good.

Insurers can quickly accelerate the level with some focused efforts

Primitive/Underdeveloped Villages

Villages that have not joined the mainstream growth due to the reasons such as inaccessibility, extreme level of poverty and other socio-economic reasons.

Thinly inhabited

Focal points for micro credit schemes, SHGs

Low awareness for insurance products

With the help of NGOs the insurance level can be ramped up quickly.

Product Needs of Rural India

Strong bias in favor of long term saving products in rural market.

Endowment policies (fixed sum assured at the end of definite period) as well as standard
money back policies are highly popular.

In the year 2012, 93% policies fall in this category.

The average sum assured under an endowment policy was Rs.66,000.

Rural thinking - on the line of receiving a tangible return on any investment made

A pure term insurance plan where premium is utilized solely towards covering risk is
perceived as unavoidable expense

This is more to do with lack of awareness building and absence of insurance

intermediaries that can market pure term policies requiring payments of small amounts of
premium.

SBI Life successfully sold term plans through RRBs

Term insurance schemes can be popularized

The cover is made available without much paperwork

Through a network of institutions that are active in providing rural credit

Insurance companies can design a simple plan offering life cover to customers who have
taken any loan facility from the banking system so as to guarantee repayment of
outstanding loan amount to the lender in the event of death of the borrower

Needs to provide flexibility to rural policy holders in the matter of periodicity & quantum
premium payments

Need to build flexibility for the premium interruptions to take place due to crop failure or
other genuine reasons

An important emerging requirement in the rural market is the life insurance policies that
combine healthcare benefits

Insurance companies in the life and non-life segments that come up with credible and
convenient policies that cater to this need can expect large sales volumes

Effective Distribution Channel Planning

Effective insurance marketing depend on the effectiveness of distribution channel

employed

Various delivery systems in rural market include individual agents (barefoot), Primary
co-operative societies, regional rural banks, post offices, and NGOs

Individual agents have been the most effective medium in selling life products

But finding the right type of candidates and in good number for rural markets and
arranging insurance training is a difficult task. AP Govt. has been helping insurers

Life insurer in rural regions need to have effective systems to keep watch on the
performance of these agents

An early difficulty in completing proposal documents- the possibility of lack of age proof

Insurer has to find spot solutions - Age certified by village headman

The growing involvement of rural institutions such as Gramin banks and co-operative
banks to take up insurance distribution as a fee-based activity is also helping insurance
companies to find innovative channels

Micro Finance

Protection of low-income people against specific perils in exchange for regular monetary
payments (premiums) proportionate to the likelihood and cost of the risk involved.

As a division of micro finance, Micro Insurance is a term used for insurance having lower
premium or coverage amount.

Opportunities of Micro Insurance

Growing per capita and disposable income

Rising financial awareness

Infrastructure growth

Changing social and cultural patterns

Decline in unequal distribution of wealth

Improving standard of life

Key Parameters for Penetration

Outreach

Transactional cost

Persistency

Underwriting

Support of government & regulators

Micro Insurance Strategy

Govt. Initiatives through PSUs 3 pronged strategy

Targeting the wealthy with regular individual policies.
Group policies to those who could not afford individual policies
Subsidized policies for the extremely poor

Pvt. Companies to achieve a min. of 15% of business from the rural sector after five years
of operations

Micro Insurance Models

Direct marketing by the insurance companies

Partner-agent model

Community based model

Service provider model

Note : Using the right combination of the models could be the key success factor for an
organization

Drivers of Rural Insurance Development

Supply side
Products specific to the needs of the rural populace
Priced keeping income patterns in mind eg. 2 crop cycles = semi-annual premiums payment
facility preferred
Low buying capacity = insurance with a lower minimum face value
Low level of education = simplified products would be preferable

Case Examples:
1. DLF Pramerica Life Insurance

DLF Pramerica Life Insurance Company Limited is a joint venture between DLF
Limited, the country's largest real estate developer and Prudential International
Insurance Holdings Limited.

Organizes a unique Tatkaal Baithaks, a unique insurance awareness initiative targeted

at the under served rural markets in the country.

Aim is to reach out to a large base of rural customers to educate them

about life insurance.

In the first phase, it will touch approximately 10 lakh customers in 93

villages across Bihar, Orissa and eastern Uttar Pradesh.

2.

Tata AIA Life

Tata AIG Life - First insurance company to launch Micro Insurance.

Tata AIG Life is renamed into Tata AIA Life in the year 2012

Full Range of Products and dedicated Offices.

Adopts a tailor made rural communication strategy to reach out to the rural community

The company has tied up with various NGOs, Rural Agents and Community Groups.

Creation of growing number of employment opportunities for rural population and

enabling them to be the supplementary income earner in their households.

Rural communication strategy used to reach out to the rural community. Micro Insurance
(MI) products as well as five Micro Insurance Sales Offices (MISO) across the country.

The MI products have been tailor made to suit the requirements of the rural population.

Special emphasis on product simplicity and ease of documentation.

Tata AIA : Sumangal Bima Yojana

Policy Term : 15 years

Premium Paying term : 10 years

Coverage Limits :

Minimum Death Benefit (Sum Assured): Rs.5,000/-

Maximum Death Benefit (Sum Assured): Rs.30,000/

Premium payment frequency : Monthly, quarterly, half yearly & yearly

Survival Benefit: We shall pay you the survival benefits as below, if you have
paid all due premiums.
Policy Anniversary Year end Guaranteed Pay outs

6th

10% of (Total Policy Premium)

9th

20% of (Total Policy Premium)

12th

30% of (Total Policy Premium)

Tata AIA : Navkalyan Bima Yojana

Policy Term : 5 years

Coverage Limits :

Minimum Death Benefit (Sum Assured): Rs.5,000/

Maximum Death Benefit (Sum Assured): Rs.50,000/-

Premium payment frequency : Monthly, quarterly, half yearly & yearly

Death Benefit : Sum assured to the policyholders nominee

Maturity benefit : None

Tax Benefits and Age Eligibility

Premiums paid under this plan are eligible for tax benefits as per the
Income Tax Act, 1961 and are subject to any amendments made therein
from time to time.

Anyone between ages 18 and 60 can apply for this policy.

Tata AIA : Ayushman Yojana

Policy Term : 10 years

Coverage Limits

Minimum Death Benefit (Sum Assured): Rs.5,000/-

Maximum Death Benefit (Sum Assured): Rs.50,000/-

Death benefit : Sum assured to the policyholders nominee

Maturity benefit: On survival, 125% of the single premium paid.

Tax Benefits and Age Eligibility

Premiums paid under this plan are eligible for tax benefits to the extent of 20% of
Sum Assured as per the Income Tax Act, 1961 and are subject to amendments
made therein from time to time.

Anyone between ages 18 and 60 can apply for this policy.

Tata AIA : Sampoorn Bima Yojana

Policy Term : 15 years

Coverage Limits

Minimum Death Benefit (Sum Assured): Rs.5,000/-

Maximum Death Benefit (Sum Assured): Rs.50,000/-

Premium payment frequency : Monthly, quarterly, half yearly & yearly

Death Benefit : Sum assured is paid to the policyholders nominee

Maturity benefit: At the end of the 15 years, all the premiums paid will be
returned to the policyholder.

Tax Benefits and Age Eligibility

Premiums paid under this plan are eligible for tax benefits as per the
Income Tax Act, 1961 and are subject to any amendments made therein
from time to time.

Tata AIA MISOs

Micro Insurance Sales Offices

To make further inroads on insurance awareness and distribution in rural India

Anyone between ages 18 and 60 can apply for this policy.

Telangana - Kodad

Andhra Pradesh - Chitoor

Uttar Pradesh - Joanpur

Rajasthan - Jhalawar

Kerala - KannuR

Tata AIA tie up with Syndicate Bank

Syndicate Bank offer its customers group insurance products by Tata AIG Life

Cater to the economically weaker sections of the society for a nominal premium

Individuals will be eligible for a life insurance cover up to Rs.25,000.

Promotions for TATA AIA Life

Specially trained rural team considering the demographics of the rural population

Product information brochures, application forms, training material as well as

policy holder contracts made available in nine vernacular languages

Tied up with NGOs, Rural Agents and Community groups

Special films aimed at increasing awareness of the importance of insurance in the

rural community

Awareness program is reinforced with the help of existing M-Offices (Mobile

Vans)

Paintings and Posters depicting & spreading the desired message across the
villages.

Contribution from Rural business today has reached a landmark size of 23% of
Tata AIG Lifes monthly sale.

TATA AIA Life- Cattle Insurance Program

Companys cattle insurance program in Visakhapatnam, Andhra Pradesh - which

was a case study by itself - was well appreciated by World Bank.

Was a discussion forum topic at the World Bank Workshop on "Access to

Insurance for the Poor."

3. The New India Assurance Company Ltd.

Different Insurance Services for Rural

Cattle Insurance

Poultry Insurance Scheme

Dog Insurance Scheme

Silk Worm Insurance Scheme

Agricultural Pump sets Insurance Scheme

Animal Driven Cart Insurance

Lift Irrigation Insurance

Horticulture / Plantation Insurance

NIA: Cattle Insurance

Cows and Buffaloes, Bullocks (Bulls) and Male Buffaloes.

Market value of the animal.

The indemnity is limited to 75% of Sum Insured in case of a PTD claim.

The basic premium rate per annum is 4%.

BCG Matrix for NIA

Star

Cattle and Livestock

??

- Well Insurance

Cash cow - Tractors Insurance

Dog

4.

Horticulture, Crops, Floriculture Insurance Policies

Max Life Insurance

One of the few insurance companies in India to have separate rural division

It follows a unique hub and spoke model

It has 8 area offices which work as hubs

23 branch offices function as the spoke

It has 2500 agents working exclusively for rural markets

They have designed specific product and appointed gram sahayaks across various
districts in India

Easy Term product provides term insurance for Rs10,000 for a sum of Rs100
Max is tying up with district cooperative banks & NBFC to market its products

Tied up with Andhra bank and Triveni Khushali bazaar to penetrate into rural market

They had made a special policy for rural according to it a villager have to pay Rs.99
per month for a life insurance

This new channel of selling Insurance products is known as Bancassurance

While designing products for rural market, Max takes into account important factors
like children education, daughters marriage and flexible premium payment options

All communication are in local language and the process and procedures are
simplified

Max Vijay A Product for Rural Market

Available in three variants

Rajat, Swarn, and Heera with varying sum assured

Premium is highly flexible

No fixed date

No fixed amount

Can surrender after 3 years and can start withdrawing money

Minimum premium is Rs10

Plans started with tailor-made micro-insurance policies for smaller towns such as
Max Vijay for which a pilot project implemented in Agra and then moved on to
more remote areas

Now have about 139 offices in rural places - what they call emerging market offices

Established a third-party relationship with Indian Oil Corporation to use their Kisan
Seva Kendras for selling policies space rented in 300 such stations

Max Vijay is available in three premium payment options Max Vijay Rajat, Max
Vijay Swarna and Max Vijay Heera

The policy won the Golden Peacock Award for Innovation in 2008

Designed to be easily affordable Based on cost cutting, rather than high margins

Tied up with IBM to minimize the cost of underwriting and servicing of Max Vijay

Its strategy is to achieve high volumes

The policy can also be topped up at any time for as low as Rs20

Tied-up with Grameen banks for distribution - utilizing their extensive rural network

5.

ICICI Prudential Insurance

JV between ICICI Bank (74%) & Prudential plc (26%)

Capital Base of Rs. 37.72 Billion

Largest private sector insurance company & second largest after LIC

Amongst the 1st private sector insurance companies to begin operations in December
2000 after receiving approval from IRDA

Strong workforce of 30,000

No. of policy holders exceeds 6.5 million

The only private life insurer in India to receive a National Insurer Financial Strength
rating of AAA (Ind) from Fitch ratings

Products

Anmol Nivesh

Minimum Premium of Rs. 100 per month

Partial Withdrawal Facility

Sarv Jana Suraksha

First micro-insurance product

Premium of Rs. 50 per month

Distribution

Over 1100 Offices in rural India

Over 45000 local trained advisors

Marketing

Rural Marketing Fairs

Street Plays

Road Shows, Activity Vans & Wall Paintings

Other Initiatives

6.

Local language sales literature

E-governance kiosks for payment

Overcame the infrastructure barrier in the rural offices

Life Insurance Corporation (LIC)

LIC definition of rural:

Population less than 5,000

More than 25% of the male working population is engaged in agricultural pursuits.

Population density of less than 400 persons per sq.km. (i.e., 1,000 per sq.mile)

LIC: Jansree Bima Yojana

Objective of the scheme is to provide life insurance protection to the rural and urban
poor persons below poverty line and marginally above the poverty line.

Eligibility

Persons between 18 years and 60 years of age.

In addition to persons below the poverty line, even persons marginally above
the poverty line may be covered.

The groups will be identified and notified by LIC in consultation with the
Nodal Agency.

Minimum Members of the group would be 25.

LIC: Shiksha Sahayog Yojana

This is a scholarship scheme launched on 31.12.2001 for the benefit of children of

members of Janashree Bima Yojana.

Eligibility

Students studying in ix to xii standards, whose parents are covered under

Janashree Bima Yojana.

If a student fails and is detained in the same standard, he will not be eligible
for scholarship for the next year in the same standard.

Benefit

Scholarship of Rs 300/- per quarter per child will be paid for maximum period
of 4 years.

The benefit is restricted to two children per member(family) only.

Premium

No premium is charged for the scholarship

LIC: Aam Admi Bima Yojana

In a rural landless household, when everyday living is a struggle, it is difficult

to face life with a smile. And it becomes even more difficult when the future
of your family is uncertain.

Eligibility

The member should be aged between I 8 and 59 years

The member should be the head of the family or one earning member in the
family of rural landless household.

LIC: Other Products

2 micro insurance products

Jeevan Madhur and

Jeevan Mangal

Premiums as low as Rs15

Nodal Agency

Nodal Agency means Panchayats, NGOs, Self-Help Groups or any other

institutionalized arrangements.

The Nodal Agency will act for and on behalf of the insured members in all

matters relating to the Scheme

LIC: Distribution

Individual Agents

Corporate partner COMAT Technologies

Started in Karnataka & Haryana

Comat is an Indian social enterprise specializing in the delivery of information

based services to rural citizens in India.

COMATs Rural Business Centers equipped with professional and trained

employees

LIC: Varishta Bima Yogana

Varishta Bima is targeted at senior citizen over the age of 55 years

Offers an assured return of nine per cent till the death of the policyholder in terms of
an immediate pension plan

The scheme attracted over 34,000 subscribers in 2 months as against the targeted
figure of one lakh per annum

LIC: Varishta Bima Yogana A Rural Failure

Only 30% per cent of policies sold under Varishta Pension Bima Yojana
launched by the prime minister, have come from rural India

The aim was to make it 50 per cent in both the markets

Reasons

The target group had not been effectively tapped

Rural masses are not "pension-minded

Prefer investing in fixed deposits of cooperative banks, "as they like to see
their bank balances"

15-year lock-in period for investment, Most have preference for short-term
investments of not more than three to five years

Minimum investment has been capped at Rs.33,335, a sum the rural poor
people may not have in liquid funds

7.

The removal of the upper age cap had little impact on overall sales

Bharti AXA Life Insurance

Joint venture between Bharti and AXA, world leader in financial protection
and wealth management

74% stake from Bharti and 26% stake of AXA

Over 8000 employees across over 12 states in the country

To become the preferred life insurance company in India

Vision:
Bharti AXA Life Insurance: ServSuraksha

First customers of ServSuraksha include around 500 farmers across 50

villages like Barundi, Fatehpura, Gobindpura, Jogi Majra, Malakpur and
Rasulpur around the Ludhiana region

Articulates the brand promise of helping diverse categories of Indian

consumers Be Life Confident

A single premium, non-participating policy

Offers death benefit amounting to 25 times the single premium or assured

maturity benefit of 110% of the premium paid on survival

Policy term is five years

Does not require medical underwriting and offer a free-look option

Bharti AXA Life Insurance: Tapping Rural Sector in Uttar Pradesh

Ties up with Confederation of NGOs of Rural India (CNRI)- UP Chapter to

provide customized rural insurance solutions for rural Uttar Pradesh

CNRI- UP Chapter and Bharti AXA GI to collaborate to increase insurance

awareness in Rural Uttar Pradesh

Livelihood Protection Plan 1

Offers unique covers to sustain the livelihood of customers and their families,
with an extended coverage in case of death or permanent disability of the
insured.

Also provides childrens education fund as well as marriage fund for girl
children

Ration allowance, provided to families of the insured on a monthly basis as

well as the livestock allowance

Livelihood Protection Plan 2

Offers additional covers like hospitalization expenses of the insured as well as

a daily allowance in case of accidental hospitalization

8.

Offers protection in case of damage or loss of household contents

Rural Postal Insurance

It is the initiative of Govt. of India

In India in June 9th 2006 this scheme was launched to reach in the deep villages.

Worlds largest postal services having reach to 89% of the rural area in the India, to
tell the rural people the importance of the insurance and making their life insure
Rural Postal Insurance: Scheme

Rural Postal Life Insurance(RPLI) bonus for the most popular scheme
Endowment Assurance (E. A.) stands enhanced from Rs. 50 to Rs. 55 for
every Rs. 1000 of sum assured.

The increase is going to benefit insurant majorly. As an insurant who is having

an E. A. policy of Rs. One lakh, will now be vested with a bonus of Rs. 5500 a
year (as against Rs. 5000 earlier), and if the policy term exceeds ten years, it
will be vested of Rs. 5200 for other E. A policies.

This enhancement of bonus makes Rural PLI more attractive an option as

compared to traditional insurers who cover the life risk of individual insurants
under Endowment Assurance Scheme.

Whereas the traditional insurers give bonus in a range of Rs. 45 to Rs. 50 for
every Rs. 1000 of sum assured, the customers of Rural PLI get a better return.

The premium of Rural PLI is collected through the counters of the massive
network of more than 1,55,000 Post Offices, thus keeping the operational cost
of Rural PLI low as compared to other insurance companies.

Rural PLI passes on the benefits of low cost of operation to the customers in
the form of higher bonus rates and lower premium rates.

9. HDFC Standard Life Insurance

HDFC Rural Insurance

HDFC Life Insurance Company is looking forward to providing service for

rural areas. The main aim of the company is providing insurance in maximum
strength with lower cost.

Their promotions using radio jingles targets rural customers.

HDFC SLI Radio Jingle

One of the Radio Jingle they use extensively, says

Na sir jhuka hai kabhi, aur na jhukaayeinge kabhi hum aapke aatmasamman ko
utna hi beshakeemti maante hain jitna aapki zindagi ko. Jo apne dum pe kare sach
mein zindagi hai wahi, HDFC standard life Insurance sar uthha ke jiyo

HDFC Gramin Mitra Yojana

Availability

Plan is easily available for 18 to 50 years aged of people.

Affordability

The plan is worth Rs.500 by adding 50% to original investment in 3 years.

The guaranteed maturity benefits Rs.750 and also death benefit of Rs.5000 in
case of insurers death within the policy term.

Rs.500 is the single premium for the policy.

HDFC Gramin Suraksha Bima policy

This policy helps to provide an accident insurance at an affordable cost

Targeted for Micro Finance Institutions, Non-Government Organisations,

Government Sponsored Organisations and such affinity groups / institutions in
rural and social sectors.

HDFC ERGO Cattle Insurance

HDFC ERGO offers Cattle Insurance Policy is for protection of Indian rural
people from financial loss due to death of their cattle, which is one of the most
valued possessions of the rural community.

The policy covers the persons having cows, bullocks or buffaloes of either sex
certified as being in sound and perfect health and free from injury or disease
by a veterinary doctor / surgeon and who are Members (in groups) of Micro
Finance Institutions, Non-Government Organisations, Government Sponsored
Organisations and such affinity groups / institutions in rural and social sector.

Scope of Cover:

Death of cattle

Covers the cattle insured whilst within a geographical area specified in the
policy schedule, in case of loss of life accident or diseases contracted or
surgical operation.

The policy also covers death of cattle which are the subject matter of
insurance occurring outside the said geographical area in the event of drought,
epidemics and other natural calamities.

Optional Benefits

Permanent Disability Cover: Covers the risk of permanent and total

disablement of cattle.

HDFC Sheep and Goat Insurance

Sheep and Goat Insurance provides indemnity to indigenous cross-bred and

exotic sheep and goat Animals against death of sheep and goats due to
accident Including Fire, Lightning, Flood, Cyclone, Famine, Earthquake,

landslide, Strike, Riot or diseases contracted or occurring during the period of

insurance.

This Policy is available to persons having Sheep and Goats of either sex
certified as being in sound and perfect health and free from injury or disease
by a veterinary doctor / surgeon and who are Members (in groups) of Micro
Finance Institutions, Non-Government Organisations, Government Sponsored
Organisations and such affinity groups / institutions in rural and social sector.

Scope of Cover:

Death of sheep and goats

Covers the sheep and goat insured whilst within a geographical area specified
in the policy schedule, in case of loss of life accident or diseases contracted or
surgical operation.

The policy also covers death of sheep and goat which are the subject matter of
insurance occurring outside the said geographical area in the event of drought,
epidemics and other natural calamities.

HDFC Rainfall Index Insurance

In India, farming communities suffer high losses year after year due to weather
vagaries.

Lack of irrigation facilities and non-availability of modern farming techniques,

further compound this problem.

This impairs access to rural credit as well. Farmers find they are unable and to some
extent unwilling to pay interest on their crop loans in a drought year and seek to
reschedule principal repayments.

Weather risk also affects the input providers by increasing the volatility in their
business volumes and consequently affecting the profits of the business.

Policy Benefits

HDFC ERGO offers a comprehensive Rainfall Index Insurance Policy which is a

mechanism for providing effective risk management aid to those individuals and
institutions likely to be impacted by adverse rainfall incidence at an affordable cost.

This Policy is available to farming communities having farm incomes from cultivable
area and who may get adversely affected on account of a Rainfall Deficit.

They should be Members (in groups) of Micro Finance Institutions, Non-Government

Organisations, Government Sponsored Organisations and such affinity groups /
institutions in rural and social sector.

Scope of Cover:

Diminished agricultural output/yield: Covers the diminished agricultural output/yield

resulting from a shortfall in the anticipated normal rainfall within a specific
geographical location and specified time period.

10. References

http://en.wikipedia.org/wiki/Insurance_in_India

http://www.insuringindia.com/rural-insurance/Rural-insurance-home.aspx?
ProductId=weather

http://www.tataaia.com/

http://www.moneylife.in/article/syndicate-bank-tata-aig-life-to-offer-groupinsurance-solution-to-housing-loan-customers/19514.html

http://www.licindia.in/

http://www.business-standard.com/article/finance/new-york-life-to-exitmax-india-jv-112041300071_1.html

http://www.iciciprulife.com/public/default.htm

http://newindia.co.in/index.aspx

https://www.bharti-axalife.com/