AFTER SUCCESSFUL launch of its micro insurance product ‘Grameen Shakti’ in Orissa and West Bengal, SBI Life Insurance, India’s second largest private life insurer has extended the product to the economically underprivileged in the state of Tamil Nadu.

Grameen Shakti is a dual-benefit life insurance, which provides protection with maturity benefit at affordable rates to the self-help groups. It offers to the family of the group member protection and it offers to the group member survival benefit. The premium can be paid yearly throughout the entire term of the policy. For a five-year term, the premium payable is Rs 601 per annum (inclusive of service tax) for a sum assured of Rs 50,000. On death of the group member, the nominee receives the sum assured while on maturity the group member receives 50 per cent of the premium paid for a five-year term (less service tax).

This micro insurance product will be marketed through State Bank of India’s wide-spread branch network in Tamil Nadu. SBI Life Insurance aims to reach out to the under-privileged segment through self-help groups (SHGs) in the region.

To deepen the life insurance penetration in India, the company plans to launch micro insurance products across the rural markets through State Bank branches, which has the largest distribution network in India. SBI Life Insurance has been the front-runner in meeting its regulatory and rural obligations of providing insurance cover to fellow citizens in rural India.

US Roy, managing director and chief executive officer, SBI Life Insurance, said, “Our foray into micro insurance in Tamil Nadu signifies our commitment to reach out and provide insurance protection to the most vulnerable and economically weaker sections in the state. We are confident that State Bank’s extensive network would enable us to reach out to these segments in Tamil Nadu.”

SBI Life Insurance’s recent milestones:

Bagged the coveted personal finance award-Outlook Money NDTV Profit ’best Life Insurer 2008’.

Ranked among global top three in terms of number of Million Dollar Round Table (MDRT) members.

CRISIL has reaffirmed its highest financial rating AAA/Stable to SBI Life Insurance. In 2007, SBI Life Insurance became the first life insurer in India to receive this rating from CRISIL, country’s leading rating agency.

Recently ICRA, has assigned iAAA rating indicating highest claims paying ability to SBI Life Insurnace.

Retains ISO 9001:2000 certificate for superior claim settlement process.

About SBI Life Insurance Co Ltd:

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74 per cent of the total capital and BNP Paribas Assurance the remaining 26 per cent. SBI Life Insurance has an authorised capital of Rs 2,000 crore and a paid up capital of Rs 1,000 crores. State Bank of India enjoys the largest banking franchise in India.

Alongwith its seven associate banks, State Bank Group has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world. BNP Paribas is the first largest French company and ranks fifth in the banking industry worldwide, first bank in Euro Zone as per Global 2000 Forbes’ 2008. It is sixth most valuable international banking brand as per Brand Finance 2008.

BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the world’s top 10 group of banks by market value and part of Europe top three banking companies, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France and a worldwide leader in creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the bancassurance and partnership model.

SBI Life Insurance’s mission is to emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency.

SBI Life Insurance has a unique multi-distribution model encompassing vibrant Bancassurance, Agency and Group Corporate channels of distribution.

The company extensively leverages the SBI Group relationship as a platform for cross-selling insurance products alongwith its numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country, thus ensuring true financial inclusion. Agency Channel, comprising of the most productive force of over 40,000 insurance advisors, offers door to door insurance solutions to customers.