SBI Insurance

SBI Insurance represents a massive ecosystem protecting millions of Indian families. It is not a single entityl, but is a powerhouse combination of SBI Life Insurance Company Ltd and SBI General Insurance Company Ltd. They also offer specialised covers through SBI Card and distribution via SBI Securities. 

From protecting your life to insuring your car, SBI covers almost every financial risk. Their products span SBI health insurance, motor, travel, and government-backed schemes. Regulated by IRDAI, these entities combine sovereign-grade trust with modern digital efficiency. You likely bank with the State Bank of India (SBI) for its safety. But does that trust translate to their insurance products?

Read on to know about the entire SBI insurance landscape to help you choose the right option. 

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SBI Insurance Overview

Understanding the structure of SBI’s insurance arm is crucial for policyholders. You are not buying insurance directly from the bank teller. You are buying from specialized subsidiaries where the bank is a promoter.

The ecosystem is divided into distinct operational entities. SBI Life handles mortality and investment risks. SBI General handles assets and health risks. SBI Card provides complimentary covers often ignored by users.

Here is a comprehensive outlook:

Many customers confuse the bank with the insurer. If you have a dispute regarding a claim, your branch manager has limited power. You must escalate through the specific insurance company’s grievance redressal officer (GRO), not the banking ombudsman.

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Types of Insurance by SBI

The product suite here is exhaustive. SBI aims to increase ‘wallet share’ by covering every aspect of a customer’s lifecycle.

They categorise their offerings based on the nature of the risk. SBI Life focuses on human life value and long-term wealth. SBI General focuses on indemnity, paying for losses as they happen.

Broad Classification of SBI Offerings

• Life Protection: Pure risk covers ensuring family safety after death.
• Health & Wellness: Indemnity plans for hospitalization and critical illness.
• Asset Protection: Covers for vehicles, homes, and businesses.
• Lifestyle Protection: Travel insurance and cyber safety covers.
• Credit Protection: Insurance against loan defaults due to death or disability.

Insurance Companies Owned and Powered by SBI

It is vital to know who underwrites your policy. SBI Life Insurance Company Ltd is a publicly listed giant. It is one of India’s largest private life insurers. They are known for high claim settlement ratios and wide reach.

• SBI General Insurance Company Ltd is the non-life arm. They have aggressively expanded into retail health and motor segments.
• SBI Card acts as a unique provider. They offer complimentary insurance on premium cards.
• SBI Securities acts as a corporate agent. They distribute products, sometimes even from other insurers, offering an open architecture.

Expert Note: When buying through SBI Securities or the YONO app, check the underwriter name. While it is usually an SBI group company, they occasionally cross-sell products from other partners for specific niche needs.

SBI Life Insurance

SBI Life Insurance is the flagship carrier for long-term financial planning. They manage assets worth trillions, signaling immense stability.

Their portfolio is a mix of traditional plans and market-linked products. They cater to risk-averse savers and aggressive investors alike. The focus has recently shifted towards high-protection term plans.

Product Categories at a Glance

Also Read: Life Insurance

SBI Term Insurance Plans

These are the bread and butter of financial safety. SBI term insurance plans like ‘eShield Next’ are top-tier, designed to replace your income if you aren’t around. They offer high coverage at low premiums because there is no investment component; you pay purely for risk cover.

Key Product: SBI Life – eShield Next

• Entry Age: 18 years to 65 years.
• Maximum Maturity Age: Up to 85 years (Whole Life option available up to 100 years).
• Minimum Sum Assured: ₹50,00,000 (₹50 Lakhs).
• Maximum Sum Assured: No Limit (Subject to underwriting and income proof).
• Premium Payment Term: Regular, Limited (pay for 5/10/15 years), or Single Premium.

Comparison of eShield Next Variants

Here is how a simple comparison among the eShield variants will look like:

Premium Benchmarks (Approx. for Non-Smoker, 30 Year Old Male) for eShield is as follows:

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SBI Savings and Endowment Plans

These plans appeal to conservative investors who prioritize capital safety over high returns. They offer guaranteed returns or bonuses, making them ideal for specific goals like a daughter’s marriage or a down payment on a house.

Key Product: SBI Life – Smart Platina Assure

• Plan Type: Non-linked, Non-participating (Guaranteed Returns).
• Policy Term: 12 years or 15 years.
• Premium Payment Term: 6 years or 7 years (Limited Pay).
• Minimum Premium: ₹50,000 per annum.
• Maximum Premium: No Limit.
• Guaranteed Additions: 5.00% to 5.50% per annum added to the accumulated fund at the end of each year.

Here is an illustration of returns: 

If you pay ₹1 Lakh/year for 7 years (Total ₹7 Lakhs) for a 15-year term:

• You stop paying after Year 7.
• The money grows with guaranteed additions.
• Maturity Value: Approx. ₹13.5 Lakhs to ₹14 Lakhs (tax-free u/s 10(10D)).

SBI ULIP Plans

Unit Linked Insurance Plans (ULIPs) combine insurance with stock market investments. SBI Life ULIPs have evolved significantly, now offering low fund management charges (FMC) capped at 1.35%. They are the most tax-efficient way to invest in debt and equity combined.

Key Product: SBI Life – eWealth Insurance

• Entry Age: 18 to 50 years.
• Minimum Premium: ₹24,000 per annum (Monthly mode available: ₹2,000).
• Sum Assured: Higher of 10 times the Annual Premium or Fund Value.
• Lock-in Period: 5 Years (Mandatory by IRDAI).
• Fund Options: Equity Fund, Bond Fund, Balanced Fund, Money Market Fund.

Charges Breakdown is as below:

SBI Child Insurance Plans

These are designed to fund education milestones. The critical feature here is the Premium Waiver Benefit (PWB). If the parent (proposer) passes away, the insurer pays all future premiums. The policy continues, and the child gets the maturity amount as planned.

Key Product: SBI Life – Smart Champ Insurance

• Entry Age (Child): 0 to 13 years.
• Entry Age (Parent): 21 to 50 years.
• Sum Assured: Minimum ₹1,00,000; Maximum ₹1 Crore.
• Payout Structure: Instead of a lump sum, it pays “Smart Benefits” in four equal installments when the child turns 18, 19, 20, and 21.
• Emergency Payout: Immediate payment of Sum Assured if the parent dies during the term, plus waiver of future premiums.

SBI Retirement and Pension Plans

With no social security in India, these plans are vital. SBI offers both deferred annuity (build corpus now, get pension later) and immediate annuity (pay lump sum, get pension now).

Key Product: SBI Life – Saral Pension

• Type: Standard Immediate Annuity Plan.
• Minimum Purchase Price: ₹1,00,000 (or amount required to generate min annuity).
• Entry Age: 40 years to 80 years.
• Annuity Modes: Monthly, Quarterly, Half-yearly, Yearly.
• Joint Life Option: Covers spouse. If the primary pensioner dies, the spouse continues to receive 100% of the pension.

Annuity Rate Example (Approx. for ₹10 Lakh Purchase) is as follows:

SBI Micro-Insurance and Social Security Products

These are low-ticket policies for the masses, ensuring financial inclusion. They are often simple, over-the-counter products requiring no medical examination.

Key Product: SBI Life – Grameen Bima

• Target Audience: Rural population and low-income groups.
• Premium: Single Premium only. Ranges from roughly ₹300 to ₹2,000 (one-time).
• Sum Assured: Fixed amounts usually between ₹10,000 to ₹50,000.
• Term: 5 years.
• Documentation: Simplified KYC (Aadhaar/Voter ID).

Critical Insight: SBI Life’s “Smart Care” rider allows you to withdraw your term insurance claim amount while you are alive if diagnosed with a terminal illness. This is a liquidity lifesaver that standard policies often miss.

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SBI General Insurance

SBI General Insurance handles the ‘living risks’. From a dented car to a heart surgery, they cover the bills. They have digitised heavily. Most retail policies can be bought instantly without physical paperwork. Their health and motor portfolios are their strongest growth drivers.

SBI Health Insurance

SBI health insurance has moved beyond basic hospitalization covers. Their flagship product, ‘Arogya Supreme’, is designed to compete with premium private players. It offers comprehensive protection ranging from minor procedures to major surgeries, with sum insured options that cater to Tier-1 city medical costs.

Key Product: Arogya Supreme

• Sum Insured Options: Starts from ₹1 Lakh and goes up to ₹5 Crores.
• Entry Age: 18 years to 65 years (Proposer). Coverage available for children from 91 days.
• Policy Tenure: 1, 2, or 3 years (Discounts available for multi-year tenure).
• Waiting Periods:
  • Initial Waiting Period: 30 days (except accidents).
  • Specific Diseases: 24 months (e.g., Cataract, Hernia, Stones).
  • Pre-Existing Diseases (PED): 48 months (can be reduced to 24 months with riders).

Coverage & Premium Benchmarks (Family Floater: 2 Adults + 1 Child)

Insight: The ‘Cumulative Bonus’ in Arogya Supreme is aggressive. It increases your Sum Insured by 50% for every claim-free year, up to a maximum of 100%. If you buy a ₹10 Lakh policy and don’t claim for 2 years, your cover becomes ₹20 Lakhs at no extra cost.

SBI Motor Insurance

SBI motor insurance is distinct because it combines aggressive pricing with the trust of a PSU. While Third-Party (TP) rates are fixed by the IRDAI, SBI General offers competitive Own Damage (OD) premiums. They use a ‘risk-based’ pricing model, meaning your age, profession, and car model heavily influence the premium.

Key Product: Private Car Package Policy (Comprehensive)

• Third-Party Cover: Mandatory. Covers unlimited liability for death/injury of third party and up to ₹7.5 Lakhs for property damage.
• Own Damage Cover: Covers theft, fire, accidents, and natural calamities.
• Insured Declared Value (IDV): The current market value of your car. This is the max amount paid in case of theft.
  • New Car: 95% of Ex-showroom price.
  • 1 Year Old: 80% of Ex-showroom price.
  • 5 Years Old: 50% of Ex-showroom price.

Add-On Covers & Costs is explained below:

Tip: If you drive less than 10,000 km a year, opt for the ‘Pay As You Drive’ add-on. It is not a separate policy but a feature you can toggle. It can slash your Own Damage premium by up to 25% compared to a standard policy, provided you submit odometer readings via their app.

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SBI Travel Insurance

Travel plans from SBI General are mandatory for visa approvals in many countries (like the Schengen area). They are designed to handle the astronomical costs of healthcare abroad, where a single day in an ICU can cost $5,000+.

Key Product: SBI General Global Travel Insurance

• Coverage Area: Worldwide (Including/Excluding USA & Canada options available).
• Medical Expenses Cover: $50,000 to $500,000.
• Trip Cancellation: Reimburses non-refundable flight/hotel costs if the trip is cancelled due to illness or death in the family.
• Baggage Loss: Pays up to $500 or $1,000 for checked-in baggage lost by the airline.

Specific Plan: Student Travel Insurance
Designed for Indian students going abroad for higher education.

• Study Interruption: Reimburses tuition fees if the student is hospitalised for over 1 month or a compassionate visit is required.
• Sponsor Protection: If the sponsor (parent) passes away, the insurer pays the remaining tuition fees to the university.
• Bail Bond: Covers legal expenses and bail amount if the student is arrested for a bailable offense abroad.

Premium Estimates (Single Trip – 15 Days) is represented below: 

Critical Data: Most travel policies, including SBI’s, have a ‘Deductible’ (usually equivalent to ₹4,200 or ₹8,400). This means for a ₹42,000 claim, the company pays ₹33,600, and you bear ₹8,400. Always check the deductible amount in the policy wordings before buying; a cheaper policy often hides a higher deductible.

SBI Home and Property Insurance

Your home is likely your biggest asset, yet less than 1% of Indian homes are insured. SBI General offers the “Long Term Home Insurance” policy, which is specifically designed for house owners. You can cover the building structure for up to 30 years and the contents (furniture, electronics) for up to 5 years.

There are mainly two types of coverage:

• Structure Insurance: Covers the physical building (walls, roof, foundation). The Sum Insured is calculated based on the Reinstatement Value (Cost of Construction), not the market value of the property. Land cost is never covered.
• Content Insurance: Covers belongings inside the house. This is calculated on a Market Value basis (depreciation applies).

Home insurance is surprisingly affordable. It costs a fraction of what you pay for car insurance.

What is Covered vs. What is Not

Always opt for the “Reinstatement Value” clause for the structure. If your 10-year-old house collapses due to an earthquake, this clause ensures the insurer pays the cost to rebuild a new house at today’s material and labor rates, rather than paying you the depreciated value of the old building.

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SBI Business and Commercial Insurance

Small and Medium Enterprises (SMEs) are the backbone of the Indian economy, yet they are the most under-insured segment. SBI General Insurance offers a suite of commercial products designed to protect balance sheets from external shocks. These aren’t just for factories; they cater to shops, offices, warehouses, and startups.

The portfolio is divided into property damage, transit risks, and legal liabilities.

1. SME Package Insurance

This is a comprehensive ‘umbrella’ policy. Instead of buying ten different policies, a business owner can bundle them into one contract. It is highly customisable—you pick only the sections relevant to your trade.

Key Sections Available:

• Fire & Allied Perils: Covers the building and stock against fire, lightning, and implosion.
• Burglary & Housebreaking: Covers theft of stock/cash (requires signs of forced entry).
• Money Insurance: Covers cash in transit (bank to office) and cash in safe.
• Machinery Breakdown: Covers repair costs for internal mechanical/electrical failures.
• Electronic Equipment: Covers laptops, servers, and medical equipment.

Coverage Limits & Eligibility

• Target Audience: Traders, Offices, Hotels, Small Manufacturing units.
• Sum Insured: Based on the “Reinstatement Value” (Cost to replace new) for fixed assets and “Market Value” for stocks.
• Minimum Premium: Policies can start as low as ₹2,500 per annum for small shops.

2. Bharat Sookshma & Laghu Udyam Suraksha

These are standardized products mandated by IRDAI to simplify fire insurance for smaller businesses. SBI General has adopted these to offer quick settlements without complex underwriting.

Comparison of Standard Fire Policies

The waiver of the “Underinsurance Clause” in the Sookshma policy is a massive benefit. Previously, if your factory was worth ₹1 Cr but you insured it for ₹50 Lakhs, the insurer would deduct 50% from every claim. Now, for claims up to ₹5 Cr, SBI pays the full assessed loss up to the Sum Insured.

3. Marine Cargo Insurance

For businesses involved in logistics, import, or export, this is non-negotiable. It covers goods while they are in transit by road, rail, sea, or air.

There are two types of policy:

• Specific Policy: Covers a single consignment (e.g., one truckload from Mumbai to Delhi).
• Open Policy: Covers all transits during the year. You declare the turnover, and certificates are issued automatically.

Coverage Clauses (Institute Cargo Clauses – ICC)

• ICC (A): “All Risk” cover. Covers almost everything (breakage, theft, water damage) unless specifically excluded.
• ICC (B): Basic cover. Covers fire, collision, overturning, and entry of sea/river water.
• ICC (C): Restricted cover. Only covers major accidents like fire or derailment.

4. Commercial General Liability (CGL) & Workmen’s Compensation

If a customer slips in your shop or a worker gets injured on your machine, the legal costs can bankrupt a small firm.

• Workmen’s Compensation (WC): Mandatory by law for manufacturing units. It pays the statutory compensation to employees for workplace injuries or death.
  • Premium Factor: Depends on the risk class of the industry (e.g., a chemical factory pays higher rates than an IT office).
• Public Liability: Covers legal liability to third parties for bodily injury or property damage caused by your business operations.
• Directors & Officers (D&O) Liability: Protects senior management from personal liability arising from decisions made in their official capacity (crucial for funded startups).

5. Cyber Defence Insurance

With the rise of ransomware attacks, SBI General has introduced Cyber Defence Insurance for businesses.

What it Covers:

• First Party Costs: Cost of IT forensics to find the breach, data restoration, and business interruption losses.
• Third Party Liability: Legal costs if customers sue you for leaking their data.
• Regulatory Fines: Covers penalties imposed by data protection authorities (where insurable by law).

The “Agreed Bank Clause” is vital for any business with a loan. If you have taken a Cash Credit (CC) limit or Term Loan from SBI, you must endorse this clause on your insurance policy. In case of a major fire claim, SBI General will pay the claim amount directly to your loan account at SBI Bank to settle your debt first, protecting your credit score.

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SBI Credit Card Insurance

This is a hidden gem in the SBI Insurance portfolio. Most premium SBI Card holders have complimentary insurance.

It typically includes Air Accident Liability and Credit Shield. Credit Shield waives your outstanding bill if you pass away.

Eligibility and Activation:

• Card Type: Available on Prime, Elite, and Aurum cards.
• Activation: You must have used the card for a purchase in the last 90 days.
• Ticket Purchase: For air accident cover, the flight ticket must be bought using the SBI card.

Coverage Limits by Card Variant

Not all cards are created equal. The insurance payout depends entirely on the tier of the card you hold. Here is a simple comparison among the major options:

User Warning: The complimentary Air Accident cover on SBI Cards is not automatic. If you buy the ticket with a different card or UPI, the cover is void. Always use the specific credit card for booking travel to activate the policy.

Term Insurance Plans by SBI

Let’s dive deeper into SBI term insurance plans. The ‘SBI Life – eShield Next’ is the market leader here. It comes in three variants: Level, Increasing, and Future-Proofing. The ‘Future-Proofing’ option allows you to increase cover on marriage or childbirth without a medical test.

Why Choose SBI Term Plans?

There are many reasons for why the SBI term plans stand out among others:

• Sovereign Trust: Backed by SBI, the risk of insolvency is near zero.
• Claim Settlement Ratio (CSR): Consistently above 96-97% for individual claims.
• Riders: Comprehensive accidental death and disability riders available.

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Government Insurance Schemes by SBI

SBI is the largest implementer of social security schemes. These are subsidised by the government. They provide a safety net for the economically weaker sections. However, anyone with an SBI account can enroll.

Major Government Schemes

PMJJBY and PMSBY premiums are auto-debited in May. If your account lacks funds on that specific day, the policy lapses immediately. There is no grace period. Ensure you keep ₹500 in your savings account every May.

Corporate and Group Insurance by SBI

SBI provides bulk insurance to companies. This includes Group Term Life and Group Health Insurance. Employees get coverage starting from day one. Pre-existing diseases are usually covered immediately, unlike retail plans.

Benefits for Employers

• Tax Benefits: Premiums paid are treated as business expenses.
• Retention: Acts as a strong employee retention tool.
• Customisation: Coverage can be tailored to budget.

Key Features & benefits of SBI Insurance

Why should you choose SBI Insurance over private competitors? The biggest factor is “Trust capital.” In a sector where a claim rejection can destroy a family, SBI’s reputation matters.

Key features include:

• Wide Reach: Serviceable across 22,000+ SBI branches.
• Digital Integration: Seamless management via the YONO app.
• High Solvency Ratio: Both SBI Life and General maintain margins well above IRDAI mandates.
• Fair Pricing: Premiums are competitive, leveraging their massive customer base to lower costs.

Ways to Buy SBI Insurance

SBI has democratised access. You don’t need to visit a branch to get your insurance plan. Purchase Channels include:

1. YONO App: The fastest method. Pre-filled data makes buying take 2 minutes.
2. Official Websites: Buy directly from sbilife.co.in or sbigeneral.in.
3. Bank Branch: Walk into any SBI branch and ask the relationship manager.
4. SBI Securities: For demat account holders.
5. Agents: Traditional advisors for personalized guidance.

Cost Saving Hack: Buying SBI term insurance or health plans online directly (via website or YONO) is often 5-10% cheaper. You bypass the agent’s commission, and the insurer passes this benefit to you.

SBI Insurance Claim Process

A policy is only as good as its claim process. SBI has simplified this so much for the users:

Steps for Life Insurance Claims

1. Intimation: Notify via branch or email immediately.
2. Documentation: Submit death certificate and policy bond.
3. Processing: SBI Life verifies details (usually takes 7-15 days).
4. Settlement: Money transferred to the nominee’s account.

Steps for Health/Motor Claims (SBI General)

1. Cashless: Show the health card at the network hospital. TPA handles the rest.
2. Reimbursement: Pay first, then submit bills within 15 days of discharge.
3. Motor: Call the toll-free number from the accident spot. Do not move the car if major damage occurred until inspection.

Conclusion

SBI Insurance is not just about policies; it is about peace of mind. Whether it is SBI Life insurance company ltd securing your family’s future or SBI General protecting your health, the group offers robust solutions.

SBI’s products are competitively priced and backed by solid claim settlement records. For the existing SBI banking customer, the integration with YONO makes management effortless. However, always compare specific plan features like room rent capping and waiting periods against the market before signing up.

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