Pramerica to target DLF home buyers

NEW DELHI: DLF Pramerica Life Insurance, a joint venture between Delhi-based real estate developer DLF and financial services firm Prudential Financial, plans to offer targeted services to the developer’s customers, including home loan insurance.

The life insurer expects the product to be ready by early next year. Kapil Mehta, chief executive, told DNA Money, “When someone takes a home loan, that loan is what we can protect with life insurance. Let’s say, if there is an early death, then you do not get ownership of the home. But if you have insurance, then the company pays the outstanding amount.”

“We are definitely thinking of products on that front,” he added. The JV, in which DLF holds a 74% stake, would invest Rs 1,000 crore over the next 5-6 years on the product. The company is capitalised at Rs 110 crore.

The company added that if the foreign direct investment limit in insurance is raised to 49%, then Prudential would up its stake.

Mehta said the company has a soft launch a month ago. “Our operations are live now… we have two branches in Delhi and we are in the process of setting up branches in different parts, most of them in the north,” he added.

DLF, he said, has sold 200 policies so far. It has two products in its portfolio now, and plans to launch five more in the next 6 months.

“Early next year, we will be more aggressive to offer services, now we are making sure we have basis and platform on base,” Mehta said.

The firm is looking at premiums of Rs 10,000-20,000 per policy.
vivek_s@dnaindia.net