Airtel Payments Bank and Bharti AXA Life Insurance have joined hands to offer a point of sale or POS life insurance policy called Bharti AXA Life POS Saral Jeevan Bima Yojana. The move is aimed at trying to cover a vast section of the population that doesn’t enjoy insurance cover and Airtel might leverage its extensive reach to make this business a win-win proposition for all. To start with, the companies will keep the policy terms simple with just two options for sum insured, Rs 3 lakh and Rs 5 lakh. This amount may be enhanced in the future to offer polices of up to Rs 25 lakh.
Airtel is the first payments bank started in India. This new tie up between Airtel Payments Bank and Bharti AXA Life Insurance will exploit the extensive network that it already has around the country. Those desirous of insuring their lives need to be between 18 and 55 years of age and under the Bharti AXA Life POS Saral Jeevan Bima Yojana, there will be no need to undergo a medical examination. The premiums will be kept at affordable rates. There will be other options as well, such as choosing the policy term, how the policy holder wishes to make the payment and even choose a double payout in the event of accident death.
Airtel Payments Bank already operates 25,000 retail outlets and this number may be lifted to 60,000 in a short period. The company says a ‘quick, simple, secure and paperless process’ will be used to ensure customers have a smooth experience in obtaining a policy under the Bharti AXA Life POS Saral Jeevan Bima Yojana.
It has to be mentioned that Airtel Payments Bank already has been offering insurance policies under the government-sponsored Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and these policies were also being issued through Bharti AXA Life Insurance only.
The promoters of Airtel and Bharti AXA Life Insurance are the same, the Mittals with diverse businesses, from telecom to retail and for the insurance business, AXA is the other partner with 49% stake. This current tie-up to offer Bharti AXA Life POS Saral Jeevan Bima Yojana life insurance policies is part of the steps Airtel would want to take to expand its business beyond telecommunications where it has been taking a hit from deep-pocketed rival Reliance Jio. Airtel’s fortunes and profitability have been on the decline ever since Jio came into the scene as a disruptor offering ridiculously low tariffs for data use.