Edelweiss Tokio rolls
out Wealth Plus Ulip
Private life insurer Edelweiss Tokio
Life has launched a unit-linked
insurance plan (Ulip) targetted at
digitally-savvy individuals who do
not rely greatly on distributors for
their investment decisions. Launched
in associated with Policybazaar, the
product does not levy any premium
allocation or policy administration
charges. It also contributes additional
Paytm, ICICI Bank tie up to
launch digital credit account
P
units on every premium paid by
the customer. These additional
allocations start at 1 per cent for the
first five years, rising subsequently to
3 per cent, 5 per cent and 7 per cent
every five years. As per the company,
the rationale is to get policyholders
to stay invested over the long term.
Bajaj Allianz unveils
cyber insurance cover
Bajaj Allianz General Insurance has
come up with a cyber liability cover
for individuals that insures against
risks like identity theft, malware
attack, IT theft loss, phishing,
e-mail spoofing, cyber extortion,
and cyber stalking. Termed Cyber
Safe Insurance Policy, it will cover
financial losses and legal costs related
to identity theft, IT theft loss as
also restoration cost of retrieving or
reinstalling data damaged by entry
of Malware. It also provides coverage
for expenses incurred on counselling
services treatment, claim for damages
against third party for privacy and
data breach, cyber extortion loss, and
transportation expenses for attending
court summons. The minimum sum
aytm has partnered with ICICI Bank to launch ‘Paytm-ICICI Bank
Postpaid’, a digital credit account to provide digital credit instantly to
customers. This account can be activated online instantly and a customer
does not need to visit a branch. There is also no transaction, administration
or hidden fee. The app can be used to avail interest free credit for up to 45
days. So it actually is in essence a virtual credit card. The credit limit ranges
from `3,000 to `10,000 and can be extended to `20,000 depending on the
payment history of the customer.
The app is available 24X7 and works using big data-based algorithm by ICICI
Bank to make a real time credit assessment of the customer. The algorithm
will use a combination of financial and digital behaviour of the customer
including credit bureau check, purchase patterns, frequency of purchase to
ascertain the credit-worthiness of a customer within seconds, and decide on
his credit limit. “If you are going to Paytm and making a purchase, you will have
various options of payment—wallet, debit card, credit card or so on. This will
give you a ‘buy now, pay later’ option. We will give a credit line, using which a
customer can purchase goods through Paytm,” says Anup Bagchi, Executive
Director, ICICI Bank.
Once the credit limit is set up for a customer, a consolidated bill is generated
on the first day of the next month, which has to be paid by the 15th day of the
same month. Customers can use their Paytm Wallet, debit card or internet
banking of any bank to repay their dues. In the beginning, this product will be
offered only to the ICICI Bank customers who use the Paytm app. Later it will
also be extended to non-ICICI bank users.
Such short-term loans for small amounts are in demand, but banks do not
offer any product in this space. It will come in handy for those who are new to
loans and do not have a credit history to tide over short-term cash requirements.
Like credit cards, a customer has to make sure that he pays back the money
within the stipulated period, beyond which he would have to pay interest at the
rate of 3 per cent per month, same as that in the case of credit cards. Says Vijay
Shekhar Sharma, Founder & CEO - Paytm, “it’s common for us to ask a trusted
friend for money for frequent expenses and promise to pay later. We believe
our customers are sincere with their payments and Paytm post-paid will play a
major role in helping them pay for their daily expenses on time.”
www.outlookmoney.com December 2017 Outlook Money
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