| During the last decade, several new and innovative | | | | telecom companies like Bharat Sanchar Nigam Limited |
| channels have evolved for marketing Insurance | | | | (BSNL) to sell their non-life insurance policies, where |
| products across the world apart from the usual | | | | the premiums are low and can be clubbed with the |
| practice of selling through Insurance agents and India | | | | rentals of the phone bills. An illustration is given below: |
| is no exception. As a matter of fact, there are three | | | | A personal Mediclaim policy of 50,000 in National |
| main channels of Insurance selling, namely Direct | | | | insurance company along with service tax of 12.24% |
| channels (Agents, telesales etc.), Indirect channels | | | | will cost around Rs. 800 and a rental of a mobile |
| (bundled with product, bundled with other financial | | | | phone may be taken as Rs. 399/month. Now, if this |
| services) and Partner channels (Bancassurance, | | | | is collected in four quarterly premium, then the |
| corporates etc.) Partner channels like Bancassurance | | | | customer has to pay an excess amount of Rs. 200 |
| is a very popular practice in Latin American and | | | | during any four months of a year and the total |
| European countries where almost 70-80% of their | | | | phone bill during those months may be Rs. 599, which |
| total Insurance businesses are being generated by | | | | a customer would not mind to pay knowing that he |
| these kinds of channels. In India also there has been | | | | she is covered with a medical insurance policy of Rs. |
| a good inclination towards the alternate channels of | | | | 50,000. |
| insurance selling adopted by the other countries in the | | | | If we put our eye balls accross the the trends of |
| world which could bring a remarkable growth in urban | | | | Indian insurance industry, it becomes quite |
| Insurance market in the country. | | | | transparent that most of the companies are trying to |
| Indian insurance industry is going through a great | | | | leverage the equity of their already established |
| boom now with more and more foreign insurance | | | | businesses to the new insurance business, for |
| companies tying up with Indian banks to sell insurance | | | | example Bharti-AXA, Bajaj-Allianz, Reliance, |
| in the country. The private insurance companies are | | | | TATA-AIG etc. are doing nothing but, capitalizing their |
| giving a tough fight to the public sector companies | | | | equity form their respective parent business to the |
| like LIC and GIC (with its four subsidiaries). Private | | | | new insurance business. |
| Companies are developing more and more innovative | | | | Similarly, the banks like ICICI, HDFC, SBI are also |
| channels to penetrate the market and public sector | | | | trying to use their established credibility from banking |
| companies are losing their growth in market share. | | | | into insurance. |
| Though in terms of product innovativeness, public | | | | Public sector telecom companies like BSNL, MTNL etc. |
| sector companies are not lagging behind, still the | | | | are having the largest customer base in the country, |
| increase in the market share of these companies are | | | | even in the rural market and its a known fact that |
| not at par with the total industry's market share. | | | | the rural people save one third of their income on an |
| One of the feasible options for new marketing | | | | average, irrespective of their earning level. |
| channel for the public sector insurance companies | | | | So a joint venture would probably put both the |
| may be, is to have a Joint Venture with public sector | | | | parties in a win-win situation in the business. |