SBI Life Insurance introduces ‘Keyman Insurance’

Company release, March 14, 2005

New Delhi

SBI Life Insurance Company, a joint venture between State Bank of India and Cardif SA of France, today announced the launch of ‘Keyman Insurance’. The policy provides protection to key members who are major contributors to a company’s growth and its profits and whose absence may affect the business.

The main objective of Keyman Insurance is to protect the company’s interest by reducing financial consequences due to death of a ‘Keyman’. It also helps to increase loyalty amongst key employees in the organisation.

A ‘Keyman’ can be any member or staff with specialist skills or particular responsibilities or somebody who contributes substantially to the profits of the company and whose loss would affect those profits. The Chairman, CEO’s, MD’s, Directors, key management person, key sales person, key project manager, etc. could be the keymen of an organisation.

Mr. S. Krishnamurthy, MD and CEO, SBI Life Insurance said, “Business organizations have been a very crucial area for life insurance companies. In today’s market, it’s not only necessary to protect the interests of one’s family but it is also important that business houses are protected, especially when it is dependent on key performing employees. Keyman Insurance is designed specifically to protect business interests, finances of the company. Our policy takes care of such risks and provides protection to the business in an event of the key employee’s death during the tenure in the company. ”

Keyman Insurance is available in two plans, `Sudarshan’, a Saving-cum-Protection Plan and `Shield’, a Pure Protection Plan. Sudarshan offers two options i.e. Plan A with flat sum assured and Plan B with Increasing Sum Assured at 5% per annum. Shield also offers two options i.e. Increasing sum assured at 5% per annum and with a level cover option.

The product is available through both bancassurance and agency channels. Premium can be made regularly in yearly, half yearly and quarterly mode. Single premium payment facility is also available. The policy also offers attractive rebates on High Sum Assured, gender and premium payment modes. It is also available with 15 days free look period.

The maximum Sum Assured under Keyman Insurance for a corporate is based on the average net profit / the average gross profit of the company. A multiple of the individual’s remuneration / compensation package is also considered.

About SBI Life Insurance Co. Ltd.:

SBI Life Insurance Company is a joint venture between State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 crores with a paid up capital of Rs 175 crores. SBI owns 74% of the total capital and Cardif the remaining 26%.

SBI Life Insurance pioneered to usher Bancassurance in India. The company hopes to extensively utilize the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans, personal loans and credit cards. SBI’s access to over 100 million accounts provides a vibrant base to build insurance selling across every region and economic strata in the country.

For more information, please contact:

P. Ranjan Vaid / Divya Khurana

Ogilvy Public Relations Worldwide, New Delhi

Office: +91-11-51344657

E-mail: ranjan.vaid@ogilvy.com