Digit Insurance Ties up with Karur Vysya Bank to Offer Specialised Covers to SMEs

Digit Insurance has partnered with Karur Vysya Bank (KVB) to offer tailor-made products to the small and medium enterprises (SMEs), as told by Kamesh Goyal, Chairman of the insurance company.

Goyal believed that KVB was the right fit for them. “The bank is investing in the digital path by giving loans through the app to SMEs. We wanted to focus on this particular segment more where the opportunities are big. If an SME wants insurance, they will be able to do it on a real-time basis,” he says.

This tie-up is the Digit Insurance’s first Bancassurance tie-up. Bancassurance can be understood as an arrangement that allows banking institutions to sell insurance products and services. One bank can tie up with three non-life insurers, three life-insurers, and three stand-alone insurers.

In the first phase, the insurance plans will cover, apart from the regular coverage features available in the market, business interruption and loss with a fixed benefit. As told by Goyal, health insurance may also be added at a later stage.

Goyal informed that the average sum insured for small business owners will be Rs. 10 Lakh approximately and ticket size of Rs. 2,000-Rs. 3,000.

To simplify the purchase process and offer quick claim settlement, claims will be settled within 14 days where other players take 2-3 months for the same, he shared.

Through the tie-up, the insurance company strategises to enhance customer base taking help from KVB in the matter of new demographics and customer segments that the bank offers. This is KVB’s first tie-up which is intended to serve the SME segment.

The tie-up will allow the insurance companies to cater to the requirements of SMEs, as informed by the CEO PR and MD of KVB, Seshadri.

With a gross premium of Rs. 460.03 Crore in the June quarter, Digit Insurance had 338.83% year on growth as per the IRDAI (Insurance Regulatory and Development Authority of India) data.

Digit Insurance is less than two years old and had a market share of 1.11% until July.