SKS Microfinance Pvt Ltd is planning to introduce a composite insurance product, which would cover life, health and livestock of its customers. The leading micro finance company has initiated talks with couple of biggies in the insurance industry for the purpose.
According to M R Rao, chief operating officer of the company, “we have approached a lot of companies. Some have already given their quotation and others are yet to give their response. So we are still evaluating the proposal. However, SKS Microfinance will be tying up with one entity which will help us provide cover for life, health and livestock for our customers. That entity will have a back end arrangement with other player to facilitate this process. For instance, if we tie up with a life company that entity will have arrangement with a non life insurance player to offer us the non life benefits and vice versa.”
The micro finance company has already introduced a health insurance scheme on a pilot basis in Karnataka and it would be extended to other states. “The pilot project is being done at Gulbargah district in Karnataka and very soon we will be reaching the 10,000 policies mark. The product was introduced in association with ICICI Lombard in April this year. Once the pilot is completed the whole scheme would be reviewed for the launch, he said. “The health insurance scheme is slightly complicated because there needs to be a proper and sound network of hospitals and we should be able to offer cashless trasansactions for the benefit of the customers. After the pilot is done we will launch the scheme in one more place in Karnataka and then probably roll it out to other states wherever we are operating,” he added.
Talking about the other plans for the company, he said, as of last year SKS had 6,00,000 women customers and by the end of the current year it should touch 15,00,000 customers.
Last year, the company had 270 branches and by March 2008 it should reach over 550 branches. “We are expanding in all the 13 states. And our investment in branch expansion would be anywhere between Rs 1 lakh-Rs 1.5 lakh per branch,” Rao said.