SBI Life to launch group credit protection products

Mumbai, Aug 20 (UNI) In a bid to exploit the huge potential for credit insurance in India, SBI Life Insurance, the insurance wing of country's largest public owned bank State Bank of India (SBI), today announced the launch of group credit protection products.

The company will soon launch products like Dhanarasksha Plus Products, which will provide cover to the borrowers to the extent of the loan availed of subject to a minimum of Rs 10,000 cover.

In an interaction with mediapersons, U S Roy, CEO of SBI Life said ''The liberal non-medical limits and low-cost make Dhanaraksha Plus a convenient and affordable product available in the market.'' Credit Insurance covers the payment of monthly installments that the borrower is justifiably unable to pay in the event of unforeseen circumstrances impacting his steady source of income, he added.

The new schemes will have provisions such as reduction of term cover for the borrower of variety of loans like home, vehicle and personal loans through a group insurance policy with the lending institution.

According to SBI life, the total valuation during its inception was 1.2 billion US Dollars, which has currently reached upto USD 4.5 billion.

During the FY-07, the company had registered a total new business premimum income of Rs 3,000 crore in which Home loan protection products alone contributed to more than Rs 225 crore. SBI Life also plans to grow the credit life business by more than cent percent.

UNI