NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, February 28, 2018

Amit Verma is a 35-year-old private cab driver. Since he does not have a regular income, he was unable to pay regular premiums for an insurance policy. However, now private life insurer IndiaFirst Life Insurance has launched a micro insurance product that will enable individuals to buy policies with a ‘pay as you much you can’ premium concept.

Here, it is a single premium product with minimum investment of Rs 500 and maximum of Rs 15,000 per transaction. Called the IndiaFirst Life CSC ‘Insurance Khata’ Plan, the insurance cover is ten times of the premium and policy term is 5, 7 and 10 years.

Unlike other products that have a fixed premium to be paid regularly, this product offers the facility of instant payments that can be made via-online model. Further, there is scope to buy multiple policies of Insurance Khata to enhance cover.

Photo courtesy of Pabak Sarkar.