Sachet insurance is a non-comprehensive plan, which focusses on specific need. It with a low premium and lower cover. Small-ticket insurance cover or sachet insurance policies
have targeted coverage duration, and specific sum assured. This makes the premiums more affordable.
Low-premium - the selling point
The selling point of sachet policies is the low premium.
Ola: In April, 2019 Ola introduced in-trip insurance programme. Under the programme, the user will have to pay Re 1, and the company will provide an insurance cover of up to Rs 5 lakh.
IRCTC: Indian Railways Catering and Tourism Corporation offers you an insurance cover of up to Rs 10 lakh at a near-zero premium of 49 paise. Passengers have an option of opting the 'Travel Insurance' while booking train tickets through IRCTC website. If you exercise the option while booking your train, the travel insurance will be applicable for all passengers booked under one PNR.
Toffee Insurance has partnered with companies such as Apollo Munich Health Insurance, HDFC Ergo, ICICI Prudential, India First, Tata AIG and Religare Health Insurance to repackage their products and curate tailor-made policies. The premiums for Toffee Insurance’s backpack policy are linked to the value of the bag. For a bag value up to Rs 2,000, you pay a premium of Rs 25, whereas for a bag value between Rs 5,000 and Rs 10,000, you pay a premium of Rs 100.
Pradhan Mantri Suraksha Bima Yojana: Premium starts at Re one as a monthly basis or Rs 12 per annum. Rs two lakh insurance cover is given for death and permanent total disability. While Rs one lakh cover is provided for partial permanent disability.
Caution one must take while opting for sachet/bite-sized insurance policies
Just like regular insurance policies, one must exercise caution while opting for sachet policies. Read the fine print closely to figure out the exclusions in these policies.