L&T Insurance company has recently partnered with SEWA, the Self-Employed Women’s Association, to make VimoSEWA, a national insurance cooperative, its first microinsurance agent. The insurance company has partnered with VimoSEWA to increase its reach across both urban and rural India. Insurance premiums are in the range of $1-$15 depending on the product, which cover illness, loss of wages, and death and disability. L&T Insurance hopes to reach 200,000 customers over the next two years. VimoSEWA, the national insurance cooperative promoted by SEWA, is all set to be the first micro insurance agent of L&T Insurance with the two entering into a strategic tie up on Thursday.
SEWA, a trade union of poor and self-employed women workers in India, currently has around 13 lakh self-employed women under its umbrella. This partnership is specially designed to cater to the diverse needs of women workers of the informal economy and their families.
“We have partnered with VimoSEWA because of their commitment towards women from the informal economy and low income sections residing across rural and semi urban areas. We believe that rural India has great potential for growth and have launched four classes of micro insurance products for this market,” Joydeep Roy, CEO and Wholetime Director, L&T Insurance.
“The premiums for these products is as low as Rs 50 per annum to Rs 730 per annum. Currently, we have about 800 points of presence across rural India and we are planning to strengthen this base. L&T Insurance is growing at 50 per cent year-on-year growth and its NPA’s (non performing assets) are at its lowest,” he further said.
The micro finance products will offer a bouquet of insurance covers against illness, loss of wages, death and disability and will soon add cattle and fire insurance to their offerings.
Moreover, L&T Insurance has developed a dedicated web-based platform which enables these agents to issue micro insurance policies on the spot through channels across remote locations in the country. The agents will provide on the spot policy insurance using a unique “vernacular proposal form”.
“We are always on the lookout for affordable and appropriate insurance cover which offers financial protection for our women workers. Looking at furthering their partnership, we would also be foraying into taking this partnership to other sectors like rural housing, consumer education and setting up a micro insurance school with L&T Insurance,” said Mirai Chaterjee, Director, Social Security, SEWA.
Under the aegis of the tie-up exhaustive micro insurance product and process training will be provided to the agents specified from VimoSEWA and they will have to undergo 25 hours of mandatory training at Ahmedabad.
L&T Insurance plans to bring states like Gujarat, Rajasthan, Madhya Pradesh, Delhi and Bihar under its expansion plans and reach out to two lakh customers in two years through its various insurance offerings.