Despite making great progression recent years, India still has many areas which suffer from severe underdevelopment and there are many millions of poor who have no insurance cover whatsoever.  This move then can only be good news for these women and their families.

The scheme will operate in a number of Indian provinces including Andhra Pradesh, Orissa, Karnataka, West Bengal, Rajasthan, Uttar Pradesh and Madhya Pradesh.

SKS Microfinance said that its members were overjoyed with this new life insurance extension, which has allowed many women their first opportunity to enter the insurance market.

“This insurance product has been a real success with our members who are now able to get insurance benefit by paying very a low premium. With its distribution network of more than 3.6 million members in rural India across 18 states, SKS Microfinance will play a major role in promoting such offerings, which will result in greater financial inclusion.” Said Suresh Gurumani from SKS.

Gurumani’s joy was also echoed by a leading figure in partner company Bajaj Allianz Life.

“The product has helped take the benefits of insurance to rural India at a very rapid pace. We are overwhelmed with the success of this product,” said Kamesh Goyal, Bajaj’s CEO.

The policies will cover the women for five years and as an added bonus SKS are offering an interest-free loan of 500 Rupees to pay the initial fees.  The life insurance covers the women for at least 5000 Rupees and is worth 10,000 Rupees in case of an accidental death.

Women and life insurance: closer to home

The under representation of women in India in the life insurance market is not surprising considering that the country is still in a state of ongoing development but even in Britain sales to women lag behind men.

Research compiled by AXA last year found that despite changing roles of women within the family and workplace, many hadn’t arranged for adequate life insurance cover.  Because in many families the women is now the main breadwinner, in the event of a death, their can be drastic consequences for the family as a whole.

"We have seen a significant shift in the role of women since the 1970s; however this shift has not been replicated in women's attitudes towards protection cover. The 'noughties' is an era in which women have greater control than ever before over their lives and their finances but they are still failing to recognise their own financial and lifestyle developments in their protection cover.” Said Ian Mallon, from AXA Protection.

“Unlike during the 1970's, women becoming ill and unable to work now could have significant financial implications for the whole family.” He added.