Birla Sun expects online payers to double

Birla Sun Life Insurance, which was the first life insurance company in India to enable purchase of insurance policies through its website, is expecting the number of its policyholders using the internet to pay their insurance premium to double this financial year.

The company's website was launched in 2006 to test if insurance could be sold online in the country, and since then the company has seen more online activity for paying premiums than attracting new policy takers through the internet.

The company's 15 per cent premiums now comes through the internet with around 15,000 policy holders using the internet service.

However, the percentage of new insurance policy holders signing up through the internet still remains close to only two per cent for the company.

"Most people in India still prefer the personal touch from the company's side, when it comes to buying life insurance policies," said Vikram Mehmi, president and CEO, Birla Sun Life Insurance.

The company offers products such as Birla Sun Life Flexi SecureLife Retirement Plan (without life cover) and Birla Sun Life Single Premium Bond for online purchase and intends to place only simple products online. Other players in the online life insurance segment include Bajaj Allianz, ICICI Prudential and Tata AIG Life.

Mehmi added the company was receiving 40 per cent of its revenues from its new products. Birla Sun Life Insurance now has close to 18 products in its stable and has just launched the Gold-Plus plan, which has a minimum premium of Rs 10,000 for a duration of three years and takes investment in seven fund options in varying proportions depending on an individual's risk appetite.

In Gujarat, the company clocked a premium of Rs 53 crores for the year ended March 2007. It has developed a network of 3,000 advisors in the state.

The company recorded 1.2 million life insurance policies across the country in March 2007, and expects a further one million policies to be added in the coming few months.