Buying insurance from your 'paanwallah'

MUMBAI: Insurance policies appear set to share shelf space with bathing soaps and hair oil at your neighbourhood kirana store and paanwallah.

Max New York Life Insurance has launched Max Vijay, a product that would be sold in a DVD-like pack to the grocery store or the retail chain.

The owner of the store will get it at a discount to the enrolment price, which could be anywhere between Rs 1,000 and Rs 25,000 depending on the plan opted for, and with a sum assured ranging up to Rs 1 lakh.

The store selling the policy will collect the identity proof and other relevant documents from the buyer.

The subsequent premiums can be paid at any store, which has a Max Vijay hand-held device.

One can pay as low as Rs 10 and as high as Rs 2,500 a day, whenever he has a surplus. In turn, he would get a statement akin to an ATM receipt for the payment made.  

Analjit Singh, chairman of Max New York Life Insurance, said, “It is like a mobile recharge - one goes to a store and buys a prepaid card. Similarly, you pay the first instalment.”

“Max Vijay is for people like construction workers and daily wage earners who have lumpy income and are not sure when they will actually be able to pay the subsequent premium,” he added.

All very well-intentioned. But, one would have to ask for an annual account statement from the company since the receipt provided at the time of payment would wash out after a few months.