Life Insurance Corporation (LIC), an insurance company owned by the Indian government, recently launched Jeevan Deep, its third microinsurance policy offering. This policy offers death and maturity benefits while allowing for lumpsum, monthly, quarterly, half-yearly or yearly premium payments. The plan offers coverage ranging between INR 5,000 (USD 94) and INR 30,000 (USD 566). [1]
Bangladeshi mobile phone operator Robi Axiata Limited recently launched life insurance coverage for its subscribers that are between 18 and 60 years of age. Robi is a joint venture of Axiata Group Berhad of Malaysia and the Nippon Telegraph and Telephone service “Do Communications Over Mobile Network” Incorporated of Japan. The coverage is free for subscribers that use minimum monthly airtime of BDT 250 (USD 3). The policy can be renewed every month with a maximum coverage of BDT 50,000 (USD 601). The launch instigated a total of 80,000 enrolments in the past two months and now reportedly enrolls 4,000 daily. [2]
LIC, which reportedly holds a market share of 74 percent, offers insurance policies reaching approximately 310 million customers. As of 2011, it reports total assets of INR 13.2 trillion (USD 247 billion). Robi Axiata Limited, formerly known as Telekom Malaysia (Bangladesh), reached 23 million subscribers in 2011 with revenue growth of 15 percent to BDT 9.6 billion (USD 1.15 billion).
By Sarah Benali, Research Associate
About Life Insurance Corporation (LIC)
Life Insurance Corporation (LIC) was formed by the Indian Parliament in 1956 and is fully owned by the government of India. Its insurance offerings include various microinsurance products. Headquartered in Mumbai, LIC has 2,048 branches and reports total assets of INR 13.2 trillion (USD 247 billion) as of 2011. According to a 2012 article from Indian Broadcast Network (IBN) Live, LIC holds a market share of 74 percent. LIC provides three microinsurance policies; JeevanMadhur, Jeevan Deep and JeevanMangal. JeevanMadhur and Jeevan Deep offer individuals aged 18 to 60 a package of savings services with accident and disability benefits. The product provides coverage of INR 5,000 to INR 30,000 (USD 94 to USD 563) for annual premiums ranging from INR 25 to INR 250 (USD 0.47 to USD 4.69). The term of the policy ranges between 5 and 15 years. JeevanMangal provides coverage ranging from INR 10,000 to INR 50,000 (USD 188 to USD 938). The term ranges from 10 to 15 years, and the premium ranges as low as INR 15 (USD 0.28).
About Robi Axiata Limited
Robi Axiata Limited (Robi), a mobile telecommunications service provider that started operations in Bangladesh in 1997, reached 23 million subscribers during 2011. Formerly known as Aktel, it was officially renamed Robi Axiata Limited on March 28, 2010. It is a joint venture of Axiata Group Berhad of Malaysia and Nippon Telegraph and Telephone “Do Communications Over Mobile Network” (NTT DOCOMO) Incorporated of Japan. Axiata Group Berhad currently holds a 70-percent stake in Robi while NTT DOCOMO INC holds the remaining 30 percent. As of 2011, Axiata Group Berhad reports total assets of MYR 40.6 million (USD 13.2 million). As of the same period, NTT DOCOMO INC reports total assets of JPY 6.79 trillion (USD 87.4 billion).
Sources and Additional Resources
[1] IBN Live: “LIC launches new micro insurance policy,” September, 2012, http://ibnlive.in.com/news/lic-launches-new-micro-insurance-policy/287600-60-121.html
[2] RobiAxiata Limited Press Release: “Free Life Insurance Service for Robi Prepaid Subscribers”, September, 2012, http://www.robi.com.bd/index.php/page/view/108
MicroCapital Universe Profile: Life Insurance Corporation https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Life+Insurance+Corporation
MicroCapital Universe Profile: Robi Axiata Limited https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Robi+Axiata+Limited
Similar Posts:
- MICROCAPITAL BRIEF: IDB Invest Lending $30m to Atlantic Bank in Support of MSMEs in Belize, with a Focus on Women-owned Firms
- MICROFINANCE PAPER WRAP-UP: “Mobile Money, Interoperability and Financial Inclusion;” by Markus K Brunnermeier et al; published by National Bureau of Economic Research (NBER)
- MICROCAPITAL BRIEF: Universal Insurance Launches Mobile App, Referral Platform in Nigeria
- MICROCAPITAL BRIEF: ABI to Leverage $69m from EIB to Boost SME, Mid-cap Financing in West Africa – Focusing on Women, Youth
- MICROCAPITAL BRIEF: First City Monument Bank of Nigeria Offers Asset Financing Starting at $600
