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To meet mandatory rural sector norm -- Birla Sun Life turns to promoter group

Kohinoor Mandal

KOLKATA, Aug. 21

IN order to meet the compulsory norm of five per cent business in the rural sector, Birla Sun Life Insurance Company, the 74:26 joint venture between the A.V. Birla group and Canada's Sun Life Insurance, will sell its products to the huge workforce of Hi ndalco's unit in Renukoot.

Mr S.K. Mitra, Director, admitted that the one-lakh-strong workforce of the A.V. Birla group is a potential customer of its insurance products. ``At present, we do not have the necessary network to reach out to all employees as they are spread out all ov er the country, but the Renukoot workforce will certainly be used during this year to meet the compulsory norms,'' Mr Mitra told Business Line.

The company is contemplating launching a group insurance policy. Recently, it struck a deal with the Canadian High Commission for a group insurance. ``But it was more of a single transaction. We will soon bring the group policy but it will have different options and it will in no way be similar to the existing products. Our group employees also want a group policy package,'' he said.

In the next two weeks, Birla Sun Life will launch the term products. Moreover, it is also thinking of launching a single premium product. Regarding this product, he said that assured high returns had caused problems in the Western markets. ``Ours is like ly to be different. We will add different flavours,'' he said.

In September, the company will open new offices in Kolkata, Chennai and Bangalore and thereafter in Hyderabad and other cities. Birla Sun Life is aiming at 25,000-30,000 policies during this financial year.

Birla Sun Life Insurance started its operations on March 19 this year. By March 31, it was able to sell 300 policies. Currently, it has three products -- Flexi Save Plus Endowment Plan, Flexi Life Line (whole life policy), and Flexi Cash Flow Money Back Plan.

``Our existing products are highly flexible. All the three have three investment options along with three riders. Moreover, the policy holder can pay his premium at any time of the year,'' Mr Mitra added.

Regarding the business scenario, he said it would keep on changing as more and more players entered the market. ``We will be pro-active both in customer services and product planning. Moreover, we will have to adjust and modify further as time progresses ,'' he added.

Birla Sun Life Insurance is the first company to have its agency network appointed as per the process prescribed by IRDA. ``Our existing 500 agents are all brand-new in this profession. They have been carefully chosen, they have undergone training and ha ve also passed the electronic examination system. We call them advisors and their number will be increased to 5,000 during the next three to four years,'' Mr Mitra said.