When Sunita, an employee with a city based call center fractured her arm as she fell from her two-wheeler in a road accident, she was worried about how the accident would impact her finances. She had not purchased insurance. And she is not alone. At $76 billion, India has the second largest insurance gap in the world, which is the difference between insurance cover availed and the actual cost of recovering from a catastrophic event. It is no wonder than that most Indians are paying for losses out of their own pockets.
Enter bite size insurance
Not only this, the predominant insurance product, life insurance only covers close to 25 percent of our population. With high premiums, fixed recurring payment cycles and a one size fits all approach traditional insurance products pose a pressing need to evolve to be more accessible. And this is where micro insurance comes in. Just as sachets, in the FMCG industry, heralded penetration into untapped TierII and TierIII markets making products more affordable and increasing their reach to one and all, so does sachet insurance, or bite size insurance as it is called, hopes to. A relatively new entrant in the insurance industry, it is yet to chart its course, but several products are being introduced as per the needs of the consumer. All you need to do is choose a product as per your risk profile and live your life by your rules. Not only are they pocket friendly, but also offer high sum insured.
Protection at nominal rates
For instance, had Sunita opted for the Fracture cover available on Finserv MARKETS, her condition would have been more manageable. The cover, a kind of sachet insurance, provides for loss of income in such situations for a nominal annual premium thus making you feel financially secure. Given that most of us spend two to four hours a day in the daily commute to our workplace especially if we tend to live in metros, it is important that we take into account road accidents and the damage they can incur.
Accident hospitalization with a road ambulance cover of upto Rs 25, 000 ensures that the injured promptly reaches the hospital in time. The micro insurance also takes care of the hospitalization expenses for a nominal sum of less than Rs 600 a year. One can also opt for an accident coverage of 15 lakhs for an even cheaper annual premium. And just in case, you are a travel buff, you can opt for the outstation accident cover to get medical attention in a new city with both ambulance and hospital expenses covered. Not only this, the sachet insurance also reimburses travel expenses for a family member of the policyholder by economy class transportation by the most common mode of transport to reach that place. Income protection and peace of mind never came in such affordable rates.
Something for everyone
And if you ever wondered who would pay off your loan if you were to ever be involved in and impacted by an accident? Loan Protector Insurance on Finserv MARKETS is the answer to your worries. This bite size insurance covers your outstanding loan amount up to the sum insured, in case of Death or Permanent Total Disability due to an accident. Not only this, it also covers your EMI payments in case of Permanent Partial Disability, be it a personal loan, a home loan or any other loan upto 1 lakh at less than Rs 400 per year.
You need not worry about your child’s education as well. With a sum insured of upto Rs 10 lakh, adequate financial cover is given for your child to pursue his/her dreams and continue education uninterrupted. Last but not the least, if you are an avid adventure junkie, Micro insurance especially designed for adventure enthusiasts, on Finserv MARKETS not only covers the hospitalization costs but expenses for transportation of the insured by airplane or helicopter from the place of accident to the nearest hospital. The lower of actual expenses incurred or the amount mentioned in the top-up insurance will be reimbursed.
With technology being the game changer of the future, insurance too can’t remain untouched. In a market such as India, bite size insurance has a lot of ground to cover. It is an example of dynamic insurance solutions based on user behaviour and can help transform insurance into a deeply customized and personalized service in the coming years.
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!