"We are the first private life insurer to get the green signal from the authorities to enter the EDLI market. Similarly, our unit-linked policy will also be different from others," says SBI Life managing director R Krishnamurthy.

All these years, the Life Insurance Corporation (LIC) was the sole provider of the EDLI policy. Factories with more than 50 employees have had to provide life insurance cover for a value of Rs 60,000 or for a sum equivalent to the workers' annual salary. "Now, many companies want to offer life coverage for a higher amount," says Krishnamurthy.

Corporates will now invite bids from LIC and other life insurers offering EDLI schemes and the lowest will win the mandate. About the company's proposed unit-linked policy, Krishnamurthy says the policyholder will not get to choose the investment option. "It is difficult for a layperson to understand the nuances of various options - growth, safe etc."

Krishnamurthy is gung-ho about SBI Life's pension scheme for Kisan credit cardholders with State Bank of India (SBI). "SBI has the highest number of Kisan credit cardholders, and we have designed a pension scheme for them."

Under the Kisan credit card scheme, farmers are allowed to draw 20 per cent of their credit limit towards other consumption expenses. And they draw this amount to meet their family commitments. With its pension scheme, SBI Life is attracting the farmers to save towards future pension.

"We offer a guaranteed return of 4 per cent on the corpus up to year 2010, apart from the annual bonus. There is also a life cover of Rs 1 lakh built into the scheme," says Krishnamurthy. Though the pension scheme offers flexibility to the farmers in terms of contribution, SBI Life takes care that the life cover exists without any break.

With the average investment yield hovering around 9.75 per cent, he says the company is careful in offering guaranteed returns to the policyholders. "We will offer a mix of guarantee and bonus as returns to the policyholders."

According to him, the challenge in bancassurance is making bank employees to sell the policies. "Today, what is happening is that banks hand over their customers' list to an insurance agent. This is not bancassurance," he says. "Selling insurance policies through banks is a really cost-effective mechanism and life insurers can really offer insurance covers for a cheap rate."

The company is planning to spend around Rs 12 crore this year in promotions.