INDIAN PSU INSURERS ENTER MICRO TERRITORY

Life Insurance Co of India, New India, United India, Oriental Insurance and National Insurance — the five state-owned insurers — are linking to offer micro insurance products to the poor. Using non-government organisations to help in distribution, the five companies have met with 20 NGOs and 40 micro-finance institutions in an attempt to put together a national micro-insurance operation. Although the actual insurance offered will depend on the non-life insurer involved, the general concept will entail a package of life and non-life protection, with the life part of the policy offering compensation of between Rp5,000 and Rp30,000 in case of death. The non-life protection will include one or more of property (including livestock, cattle and plantation), weather, health and personal accident. The NGOs would be empowered to act as insurance agents and to collect premiums.