Looking to offer differentiated content to its users, Airtel has launched a new prepaid plan worth Rs 249 which will come bundled with a life insurance cover of Rs 4 lakh.
The telecom player has partnered with HDFC Life Insurance to offer the service. The prepaid plan will also offer 2GB data, unlimited calls to any network and 100 SMS/day. The recharge is valid for 28 days and policy cover will be active till the next recharge.
However, a user needs to enrol for insurance after the first recharge through SMS to My Airtel App or through a retailer. The insurance renews automatically for subsequent recharges, the company said in a statement.
As per Irdai, the insurance penetration in India is less than 4% of the population while smartphones will account for 38% of all the networked devices by 2022 -- 829 million, compared to 26% in 2017 -- 404.1 million (Source: Cisco VNI), according to the statement of Airtel.
Airtel's new offering will give insurance protection at under Rs 9 per day. The partnership of both firms will leverage their respective digital platforms and Airtel's distribution reach to make it simple for millions of uninsured and underinsured Indians with a mobile phone to get a life cover every time they recharge their mobile phones.
The policy will be available to all customers aged between 18-54 years and requires no paperwork or a medical examination. The customer is only required to give a declaration of good health and the policy will be instantaneously delivered digitally. A physical copy of the insurance can be provided on request.
Adarsh Nair, chief product officer, Bharti Airtel, said, "Insurance adoption is abysmally low in India, including in urban areas. Price, access and convenience of payments are barriers to adoption. With this innovation, Airtel is removing those barriers for providing basic insurance to a very large set of India's population and making the process extremely simple – just recharge your phone and you are insured. " As of December 31, 2018, Airtel's mobile services customer base in India was around 284 million.
This is the first among many financial services being planned by the company with an aim to retain its users and attract more given a fierce battle in the telecom sector. On March 3, DNA Money had reported that Airtel plans to offer financial & educational services through its mobile app with differentiated content.
DAILING STRONG GROWTH AHEAD
- 829 mn – total number of smartphones expected by 2022
- 404.1 mn – total number of smartphones in 2017
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