Reliance General Insurance introduces 'Insurance Gift Card': Should you get one?


Reliance General Insurance has announced the launch of an ‘Insurance Gift Card‘. It is a prepaid card that will work like a regular gift voucher that can be used to buy a health insurance policy from Reliance General Insurance as a gift for someone during the upcoming festive season.

Rakesh Jain, CEO, Reliance General Insurance said, “The Insurance gift card with a validity of 6 months, can be used to buy any health insurance policy instantly online on the Reliance General Insurance portal. The gift card will work like any gift voucher that can be redeemed and utilized as an additional payment mode for making premium payment.”

It is a coupon/voucher that lowers the premium of health insurance at the time of health insurance purchase, says Naval Goel, CEO & Founder of PolicyX.com.

Here is a look at you can use the gift card.

Product framework

As per the Reliance General Insurance press release issued on September 23, 2020, “The product has been chosen as one of the few ideal and innovative offerings under the Insurance Regulatory and Development Authority of India (IRDAI) sandbox guidelines. The product is specially designed keeping in mind the gifting scenario in India during the festive season and is super easy to buy and gift.”

How it works

This gift card can only be used on buying Reliance General Insurance policies, i.e., you cannot gift insurance policies of other general insurers using the gift card.

This ‘Insurance Gift Card’ is available in denominations of Rs 500 and Rs 1,000 and can be bought instantly from the reliancegeneral.co.in website, as per the release.

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As soon as you buy the ‘Gift Card’ online, you will receive the voucher on your email along with instructions to redeem the voucher. You can then share that card electronically with the person you are gifting it and the bearer can buy a health insurance policy.

Jain said, “A Rs 1,000 gift card allows you to pay up to Rs 1,000 when you apply the voucher code in the payment section while making the premium payment and only balance payment to be done by the customer with any other payment mode. For example: Rs 5,000 is the premium value, we can redeem Rs 1,000 and rest Rs 4,000 can be used for any other payment mode.”

“If the reliance health policy premium for an individual is Rs 6500 then at the time of buying policy, you can use the reliance insurance gift card (let say Rs 500). Now, in this case, the premium payable will be Rs 6000 only,” Goel said.

As per the release, the gift card is available at a discounted rate of 10 per cent for bearer of card or self for any personal lines of Insurance products. The transactions will be completely digital. The usage period of the gift card will be six months from the date of purchase and is refundable if unused.

Should you buy

Mrin Agarwal, Founder Director, Finsafe said, “The insurance gift card looks like a useful way to give a meaningful gift (of health insurance) to one’s family or friends. However, keep in mind that the gift card cannot be used to renew an existing policy and can only be used to buy a new policy. While purchasing a gift card, choose the issuing insurance company based on the product suite, features and claims ratio of the insurance company.”

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