Leading private insurance company, Max New York Life has launched an insurance policy for

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the financially under-privileged people in the country.

The company is planning to sell the new policy called `Max Vijay' to one crore people, accounting for 10 per cent of the addresseable market.

Top company officials said it is for the first time in the country that an insurance policy has been targetted at under-privileged people.

The new policy differs with the conventional policies as people can buy a policy for as low as Rs 1,000 with sum assured five times the premium paid.

The policy can be purchased over the counter and will not lapse even if a premium is not paid on time and one can pay Rs 10 per day by way of premium.

Speaking to reporters here today, Rajesh Sud, deputy managing director of Max New York Life said the company will invest 95 per cent of the premium received from selling these policies in government securities while five per cent will be invested in equities.

He said the company will be investing about Rs 500 crore in the new venture and has entered into a 10 year contract for technology with IBM worth USD 430 million.

IBM will provide technology solutions to the company and also supply it with handheld terminals which will be used to give receipts for the premium paid on the spot.

The policy will be sold through telecom companies, retail stores, microfinance institutions and NGOs, he added.