Royal Sundaram, BASIX launch rural products

General insurer, Royal Sundaram Alliance Insurance Company Limited and BASIX, a livelihood promotion institution, have announced the launch of rural-specific insurance products.

Addressing the media, N V Ramana, managing director of BASIX, said, "We are launching Micro Enterprise Shield, which will basically provide cover to rural enterprises. So loss of stocks or assets of rural entrepreneurs due to flood, riots, strikes or malicious damage will be taken care of. It can also be extended to cover burglary or machinery breakage, when required."

Royal Sundaram has been working with BASIX since 2002 when it started offering livestock insurance. The total number of livestock covered as on February 28, 2006, is 19,852 with claims settled being 478.

Through the tie-up with BASIX, Royal Sundaram has also been offering a health insurance scheme called Gramin Arogya Raksha. As on February 28, 2006, 1,11,603 people obtained health cover under this scheme. The company will now be providing this product to self-help groups (SHGs) too.

"We are looking at covering one lakh SHG members across the country and 40,000 in Andhra Pradesh through this scheme, in the coming financial year," Ramana said.

According to Antony Jacob, managing director, Royal Sundaram Alliance Insurance Company Limited, the company is looking at doing a total business of Rs 450 crore this year, up from Rs 330 crore in the last financial year. With regard to capital infusion, Jacob said it may not be required till they do a business of Rs 600 crore.