Digit Insurance has partnered with online lending firm ZestMoney to reach customers with no credit history and help them access loans and insurance.
The partnership will allow ZestMoney customers to choose an optional insurance policy as part of the loan application process, a statement from the firms said. The insurance policy covers permanent total disability, accidental death, permanent partial disability, and hospitalisation due to critical illness.
“We look at various ways to be a part of a customer’s journey in building their socio-economic status and to protect them during their times of need,” said Jasleen Kohli, chief distribution officer, Digit Insurance. “Partnering with ZestMoney is like partnering with a kindred spirit as we both look to disrupt the fintech space. Our aim with this partnership is to enable customers to buy what they want, without the need to worry in times of an unfortunate circumstance. This will further boost the customer’s capacity and confidence to purchase online.”
Data from the Reserve Bank of India showed that less than 20 million people actively use credit cards in the country – which translates to less than 5% of the adult population.
Digit Insurance, which is backed by global financial conglomerate Fairfax, recently announced that it has exceeded 2.8 million customers and 35,000 claims in 2018-2019, with premiums of over INR12 billion (US$172 million).