Insurance aggregator CoverSure has launched a prepaid gift card that can be used exclusively for purchasing or renewing insurance policies. The company said it is an attempt to bring first-time buyers, particularly Gen Z, into the insurance fold.
The card, available on the CoverSure app, can be loaded with any amount between ₹100 and ₹10,000, the ceiling set by the Reserve Bank of India for prepaid instruments. It can be used across all insurance categories — health, life, and motor, and for both new purchases and existing policy renewals.
Founder and CEO Saurabh Vijayvergia, said the product is designed around a gap that the industry has long ignored. “Insurance does not have any ambassadors… whoever has insurance, has it for himself. He doesn’t even talk with his family,” he said.
India’s insurance penetration numbers bear that out. Only 80 lakh people in the country hold term insurance, and roughly five to six crore are covered under health insurance. Vijayvergia points to policy persistency, not awareness or access, as the core problem. “[Roughly] 50 to 60 per cent of the insurances that people buy does not exist after five years,” he said.
The workaround
Since insurance cannot legally be gifted directly due to insurable interest regulations, CoverSure has structured the product as a prepaid card instrument. “Insurance per se cannot be gifted… but can I just give you a simple prepaid card as a gift which can only be used on insurance?” Vijayvergia said.
The company launched the card days before Raksha Bandhan to coincide with India’s festive season. Vijayvergia said requests have already crossed thousands, with interest coming from corporates, self-help groups, and industry associations.
CoverSure currently works with 23 insurance partners including HDFC Life, ICICI Prudential Life, HDFC Ergo, Care Health, and Aditya Birla. The platform already serves several lakh families, with thousands joining daily, according to the company.