Insurance Policy For Rs 20? Mobikwik, Max Bupa Launch Satchet-Sized Insurance Products For India
Do you know how we have shampoo bottles for a price above Rs.100 but also have an alternative of a little shampoo-sachet worth not more than Rs.5, for those who cannot afford to buy the bottles? The Mobile payments service provider MobiKwik is on the verge of introducing the similar ‘shampoo-sachet’ concept to the insurance sector.
To achieve this, MobiKwik has partnered with health insurer Max Bupa to offer multiple medical insurance products at super affordable prices. Some premiums come at a value of as low as Rs. 20 so that they can reach to the masses.
The ‘Shampoo-Sachets’ Have Amazing Deals on Them
MobiKwik believes that even though there are multiple insurance products to choose from in the country, majority of people cannot avail them due to their high prices. Insurers have products for individuals who have monthly income of Rs 40,000 and above.
The whole idea behind this concept in the medical insurance sector is to make it extremely affordable and instantly available to the people. Now that MobiKwik and Max Bupa have partnered, the latter can use the former’s platform to launch many of its medical insurance plans, which give amazing cover plans at extraordinarily minimal prices.
- MobiKwik has launched a HospiCash plan, with an annual premium of Rs 135 that provides daily cash allowance of Rs 500 for up to 30 days during the hospital stay, along with an inbuilt accident insurance cover of Rs 1 lakh.
- There are higher variants of the same programme too, of Rs 225 and Rs 400 annual premiums that shall provide cash allowance of Rs 1,000 and Rs 2,000 per day, respectively.
- Mobikwik features a product offering cover against fire from gas leakage, with a premium of just Rs 25 per month, providing an insurance cover of Rs 2 lakh.
- The accident cover comes for Rs 20, Rs 60 and Rs 100, at an annual premium returning of Rs 1 lakh, Rs 3 lakh and Rs 5 lakh, respectively.
- Life insurance covers, on the other hand come for an annual premium of Rs 148, ensuring a return of Rs 1 lakh.
MobiKwik Is not New to the Insurance Sector: The Future
More than two decades ago, P&G introduced the concept of shampoo sachets in India, to enable price-sensitive customers to experience their products at a cost of Rs 1 and Rs 2 per sachet. Getting inspired from the same model, Mobikwik aims on bringing the similar experience to a larger mass of people engaged in the medical insurance sector.
Mobikwik isn’t new to the insurance sector. In fact, they entered it six months back and are already selling 90,000-100,000 policies every month. As per now, they’re under a group platform but will soon apply for a corporate agency licence with the insurance regulator.
Max Bupa believes that with the help of their bite sized insurance products, they’re expecting to attract newer customers for health insurance, Mobikwik plans to acquire one million customers over the next three-four years.
The share of insurance premiums in India’s GDP increased marginally to 3.69% in FY18 from 3.49% a year ago, so that is clearly a good sign for the two.