IndiaFirst Life Insurance Partners With Spice Money For Insurance Khata Product

Money & Banking
K.R.Srivats

New Delhi | Updated on

November 23, 2019

Published on

November 23, 2019

IndiaFirst Life Insurance has entered into a strategic and technical partnership with Spice Money, a tech-led financial services provider, for distribution and marketing of ‘insurance khata’ through the latter’s platform, which has nearly three lakh customer service points, mainly in semi-urban and rural India.

‘Insurance Khata’ is basically a micro-insurance plan targeted at the informal sector and agricultural labourers with seasonal incomes. It is a product that will enable a customer to create and increase protection cover while also having certain amount of return of premium. It enables consumers to actually putting the money when they have it rather than committing to premium payments when they don’t have committed flow of income

Speaking to BusinessLine on the tie-up, RM Vishakha, Managing Director & CEO, IndiaFirst Life said “We are tying up with Spice Money to offer Khata products to their customer segments. This is just a starting point. Once we iron out operational issues, we will see what more we can do with Spice Money as our technical partner. With sandbox regulations that IRDAI has rolled out, we will be able to pilot more products and solutions together with the technical partner”.

Dilip Modi, Chairman, Spice Money said that Khata is a concept that Spice Money’s 40 million customer base easily connect with.

“We make it frictionless for them and that is what excites them and us. We have been looking out for partners in the micro financial services space and our discussions with Vishakha and team got us to a product that we were looking for—micro insurance Khata product that provides lot of flexibility. We were looking for a fit and found one in IndiaFirst. We believe that through the network we will be able to grow the penetration of insurance into semi-urban and rural India. We are looking forward to work closely to deepen IndiaFirst product reach in semi-urban and rural India”, he said.

Modi also said that going forward Spice Money would like to have a corporate agency licence from IRDAI and has applied for the same. In the current arrangement with IndiaFirst, Spice Money’s distributors will work as Point of Sale agents for distribution and payment collection for ‘insurance khata’.

Published on November 23, 2019

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