New India Assurance Company Limited plans to come up with simple, micro insurance products such as health, cattle and householders cover, that will be targeted at 60 crore customers who hold Jan Dhan Yojana bank accounts.
The offerings of insurance products through Jan Dhan Yojana bank accounts provides the insurance companies an opportunity to penetrate into the untapped rural Indian market.
The government insurance schemes like Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY) provides insurance covers across accidental and life segment to the Jan Dhan Yojana account holders. This has commenced overall financial inclusion of rural India under insurance.
The National Health Protection Scheme, announced in the union budget, to provide Rs5lakh cover per year per family for secondary and tertiary care hospitalization aims to cover 10cr families. This would result insurance companies to provide volume coverage. However, the expected lower levels of premium to be funded by government coupled with underwriting of high risk policies is likely to hamper the earnings of the insurance companies.
The stock of New India Assurance Company Ltd is trading at a price of Rs670.30, down by 2.38% or Rs16.35, on BSE at 9.37 am.