Financial Safety Net Products: In order to ensure a financial safety net for its customers, Arohan offers life, general and health insurance products that are issued and underwritten by certain Insurance Companies with whom the Company has entered into tie-ups. Group Term Life Insurance: With insurance coverage equal to the loan amount of the customer, in the unfortunate event of the death of the policyholder, this insurance allows the nominee to receive a sum insured under the policy minus the amount outstanding under the loan agreement at the time of death of insured. This ensures that the nominee is not burdened with the fulfilment of the outstanding loan amount. To safeguard the customer’s family in such an unfortunate event, it is a useful product for Arohan’s customers. Health Insurance: Under Health Insurance options, Arohan’s customers are offered Hospicash and Mediclaim Insurance. Customers opting for Hospicash product are entitled to receive a hospital cash benefit, in the form of cash compensation against wage loss for each continuous and completed period of 24 hours of hospitalisation at any registered hospital due to sickness, for a maximum of 30 days per annum in a non-ICU bed (or for a maximum of 20 days per annum in an ICU bed). In the event of accidental death, the nominee receives an additional amount of INR 1,00,000 / INR 2,00,000. Customers opting for Mediclaim Insurance product are on-boarded to a family floater policy for hospitalization related costs, with a coverage of upto INR 50,000. Additionally, there is a daily Hospicash benefit of INR 500 and Personal Accident cover for Borrower & Co-Borrower of INR 1,00,000 each. General Insurance: Under General Insurance options, Arohan provides the Dwelling Insurance Cover for Saral customers and Shopkeeper Insurance for MEL customers Dwelling Insurance provides protection to ‘Kuccha’ and ‘Pucca’ houses against several types of natural calamities and damages. The coverage is valid for two years up to a sum assured of INR 25,000. Shopkeeper Insurance provides insurance cover for physical loss or damage to, or destruction of, insured property (stock and structure) located in shopkeeper’s premises. Depending on the product variant, cover for stock is upto INR 150,000 and for structure, it is upto INR 125,000. There is a burglary cover as well, of upto INR 2,75,000 and accidental death cover for Shopkeeper of INR 2,00,000. 2. Non-Financial Products Arohan goes beyond financial solutions, offering customers access to a diverse array of utility products from reputable brands, available through both cash transactions and flexible financing options. These products are carefully selected to enrich the lives and livelihoods of customers and their families, enhancing their overall quality of life. Among the range of non-financial offerings are home and kitchen appliances, cutting-edge electronics, reliable consumer durables, and even bicycles, catering to various needs and preferences. Each product is chosen with the customer’s well-being in mind, ensuring it adds tangible value to their daily lives. Moreover, Arohan has established multiple models for sourcing and delivering these non-financial products, aligned to individual partnerships with third-party vendors. This adaptable approach ensures efficient procurement and seamless delivery, enhancing the overall customer experience and reinforcing Arohan’s commitment to holistic empowerment. The models are listed below: • Stockist Model: Through this model, an agent of the Business Partner (“Stockist”) takes the responsibility of handing over the product to Arohan’s customers at the point of demand generation. • Last-Mile Delivery Model: Through this model, large consumer durables, and small home and kitchen appliance orders are delivered directly to the customer’s doorstep at no extra charge. • Mela Model: Through this model, small home and kitchen appliance orders are delivered in bulk to an assigned spot, like a fair gathering, near relevant branches associated with the customers on an assigned date and time. Strategic outlook Over recent years, Arohan has significantly enhanced the functionality of its ApnaBazaar platform, introducing a host of new features aimed at streamlining processes and enhancing user experience. These advancements include automated retrieval of customers’ KYC documents and seamless eSignature integration, simplifying the order placement process and expediting loan application approvals. Furthermore, the platform now boasts autoauthentication methods such as OTP-based delivery confirmation for non-financial products, ensuring swift and secure transactions. Arohan has further optimized the platform by implementing end-to-end system-based policy validations, fostering alignment between policies and processes across primary and secondary loan products. This harmonization enhances operational efficiency and ensures a seamless experience for both customers and internal stakeholders. Management Discussion & Analysis Annual Report 2023-24 | 38
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