Digital payments giant Paytm is all set to venture into the insurance segment by offering life insurance worth Rs 5 lakh to its merchants.
A major private life insurance company will offer the cover to its merchants, who accept payments via Paytm.
According to the brand’s official communiqué, this facility will help in strengthening the loyalty of the merchant partners and will also help in boosting the usage of digital payments.
“The merchants could insure their families and their staff as well through the product. The company is offering a sum insured of up to Rs 5 lakh but if the beneficiaries intend to extend the cover or increase the sum assured they can do it at a nominal charge,” said Paytm.
According to Kiran Vasireddy, Chief Operating Officer, Paytm, the partners are an internal part of the brand’s family and to support them Paytm is offering cashless life insurance to them and their staff members. Paytm will provide the much needed financial security to the merchants and their family members.
In February, One 97 Communications, which owns the brand Paytm, has set up two insurance subsidiaries and has also applied for a licence from Insurance Regulatory and Development Authority (IRDA) in a bid offer insurance products. It already holds a corporate agency licence from the insurance regulator.
