Among the private sector insurers, who started their activities during 2000-2001, aviva life insurance . Co had launched an exclusive
plan for rural areas called Gram Suraksha. The test marketing results of the Plan in Andhra Pradesh
were reportedly encouraging and
the company hopes to market the plan
through institutions. The law priced policy offers life cover and money back
benefits . For broad basing its rural
portfolio , Aviva life had opened offices
at Faridkot, Nagpur, Nashik and Udaipur, in September 2003, Aviva had
also launched customized products
called Amar Suraksha and Jana Suraksha .
The term former is a term insurance cover the with return of the
premium provision on survival
of the selected term., The latter
is a fixed term policy available for terms
of five years and ten years respectively
for the sums assured of Rs. 25,000 or Rs. 50,000 as the case may be. Aviva is confident of utilized
the extensive rural network of its Indian partner , Dabur. This was
followed by the launch of the Sankat
harn Policy by IFFCO-tokio , General insurance Company
for farmers, Gramin Bima Yojana, a plan of Kotak mahindra Old Mutual insurance co. Is a plan designed to suit the needs
of the rural populace. This single
premium endowment plan provides for payments
on death or maturity whichever is
earlier . The plan has a fixed term of 15 years .
The policy can
be surrendered by at any times and the
surrender at any the time and the surrender value varies
from 90% tp 230% upon the period by for which the policy has remained in the books of the insurer. ICICI
Prudential had also launched different
types of the policies like
ICICI Pru Mitra an endowment type of the plan and ICICI plus Pru
Suraksha a regular premium plan to meet
the varying needs of the rural populace.
HDFC Standard Life markets certain
specialized life insurance products for the rural market.
Development insurance plan., A group
insurance product is being offered by
the HDFC Standard life to the rural markets
through NGO;s and Bima Bachat Yojana, is another product meany by the rural consumption .
The Birla Sun Life , Bimla Kavach Yojana is a single
premium insurance policy specially designed
for the rural under privileged. The private insurance companies until
the end of the fiscal 2002-2003 could not be make by any perceptible
penetration into the rural areas and as
the end of the fiscal 200-03, the
combined rural life insurance
coverage by LIC and private
players was around 27% leaving
behind a substantial
populations to be covered. Both for the public sector and the private insurance companies, distributing
products in rural areas poses certain
problems . As a agricultural
income is presently tax-free in
India, in the rural areas tax sops offer
no attractions and , as a
such the marketing is more individual need -based. Many of the agents
for advisors, do not find it profitable
to visit the rural areas or
distributing limited products, .
To overcome this situations,
companies are adopting new strategies, . Some companies resort to mass compaigns by addressing the villagers with the help of the local village head or
the Sarpanch . Alternatively, some of
the companies tie up with banks
having wide rural networks for distributing insurance products, through the Bancassurance route. Some companies enter into tie-up with NGO’s and social
organizations facilities. Agencies to offer product in the rural
areas. Some of the companies are also drawing are also drawing on the concept of Rural Career Agents or Advisors, which has
been pioneered by LIC, in spite of difficulties, unlike in the past
fiscals, at the end of the financial year 2003-04, all life insurers had completed
their rural and social sector obligations, In the connection a suggestions, of Apparao
Machiraju merits examinations.....