Bhubaneswar, Dec 9: The SBI and its insurance arm SBI Life has launched a micro insurance product named ''Grameen Shakti'' for the members of Self Help Groups banking with SBI in a bid to provide social security to the weaker sections of people.
SBI Life Managing Director and CEO U S Roy told newsmen here last night that a pilot project has been launched for the first time in Orissa and if succeeded will be extended to rest of the country.
Mr Roy said the product aims at providing insurance cover of Rs 25,000 to economically weaker sections of the society through an affordable premium of Rs 301 per annum.
The term of the policy would be for five years and provides the family members of policy holders protection and survival benefits.
The product, Mr Roy said, would be marketed through more than 400 rural and semi urban branches of the bank and targetted to cover at least three lakh people by the end of January next.
Mr Roy said Orissa was choosen for launching the products as the the bank has a net work of more than 500 brnaches of which 418 were in rural and semi urban areas.
Out of the total three lakh SHGs operating in the state 1,30,000 were bankinng with SBI which could give a clear view of the project.
He said the SBI life was the third largest private sector Insurance company in the country after ICICI and Bajaj Allianz and registered 81 per cent growth over its last year business.
It was the first company in the country to get CRISIL AAA rating.
Earlier, inaugurating the launch of the product at a function at Itipur on the outskirts of the capital city, state Finance Minister P C Ghadhei urged the SBI authorities to increase the amount of sum assured from Rs 25,000 to 50,000.
He also called for strengthening the SGH movement for empowerment of women.