Aviva Life unveils group life insurance for rural poor

Hyderabad: Aviva Life Insurance, a joint venture between Dabur and CGU (a subsidiary of Aviva plc, Britain's largest insurance group), has launched a group life insurance product named CreditPlus targeted at the rural poor.

Aviva Life also announced the first sale and tie-up with Basix, a micro-finance institution that provides credit for agriculture and non-farm rural economic activities in 25 districts spread across the Indian states of Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, Orissa, and Jharkhand.

Says Aviva Life CEO Stuart Purdy: “Under the scheme, the micro-finance institution becomes the 'master policyholder'.“ The company expects to tap at least 2,500 rural folks in six months, and CreditPlus has initially been launched in Ramayanpet and Suryapet towns of Andhra Pradesh.

CreditPlus provides death cover on a group basis, and in the event of death families of Basix borrowers will receive some financial payment and the outstanding loan will also be cleared. Explaining the strategy, Purdy says Aviva will soon move on to distribution of savings products in rural areas.