Tata AIA partners with CSC to boost insurance penetration in rural India

With the partnership, Tata AIA will be able to expand its reach to around 95% of the gram panchayats, to create in-road Insurance Access to remote areas of India.

Using its network, CSC will offer the Tata AIA Life POS Smart Income Plus plan that offers the dual benefit of life cover combined with savings. Apart from offering a guaranteed payout of 120% of the annual premium under the Regular Income Benefit option, the plan also offers a life cover to help protect the loved ones.

Under this scheme, Tata AIA said that a person can go up to the sum insured 24,97,000. Customers can enjoy life cover for 15 years by paying premium for 7 years. Women policyholders get more benefits from the scheme. In case of emergency, consumers have the option of taking a loan against the policy.

The deal is part of Tata AIA’s business growth strategy to expand its distribution network in smaller cities and rural India and contribute to the industry’s efforts towards increasing life insurance penetration in the country.

Venky Iyer, Chief Distribution Officer and Head of Marketing, Tata AIA Life Insurance, said, “Currently, the penetration of life insurance among the rural population in India is 8-10%. Our constant endeavor is to make life insurance available to every Indian household, and This alliance will further strengthen our distribution efforts by helping millions of customers in the remotest corners of the country through technology leverage and product innovation.”

Iyer said, “With the help of CSC’s technology-enabled distribution network spread across the country, we aim to play the role of change agent and meet the security and savings needs of rural India through best-in-class products and services.”

Dr. Dinesh Kumar Tyagi, Managing Director, CSC e-Governance Services India said, “Through our partnership with Tata AIA Insurance, we have added new products to our existing catalog like Tata AIA Life POS Smart Income Plus Plan, Endowment and Income Plan. Citizens have been more sensitive to insurance due to the disruption caused by the COVID pandemic, be it in income, health or occupations. Citizens of urban as well as semi-urban and rural areas are now able to access these insurance services. You can use it at your home. Secure the future of the nearest CSC and them as well as their families.”

Further, in the agreement, Licensed Village-Level Entrepreneurs (VLEs) solicit Tata AIA Life’s insurance products from the customers who come to the CSC for their services. If the consumer decides to buy the solution, they can pay the premium to the VLE by cash, check or other electronic transfer mode like e-wallet. On receiving the premium, the VLE logs into the Digital Seva Portal with personal login credentials. The CSC redirects the VLE to the Tata AIA Life platform and completes the application form and KYC process. After payment notification through Payment API, payment receipt gets generated. VLEs download the PDF receipt, print it and hand it over to the customer.

Through the tie-up, both will be able to promote insurance awareness and financial inclusion, enabling the community to participate in purchasing insurance schemes for financial security and leading to a collective social transformation.