Indian Oil Corp. Ltd. last month launched a promotion to provide personal accident insurance to purchasers of its Servo brand motor oils.
The campaign, which began in the state of West Bengaland is now spreading to other areas, offers a one-year policy carrying Rupee 100,000 (U.S. $2,082) of coverage for each 20-liter purchase. By making repeated purchases, customers can accumulate maximum coverage of Rupee 1 million.
The company expects the offer to be popular with truck drivers, as well as mechanics and others.
Employers carry collision insurance covering damage to vehicles, explained M.C. Sachdeva, executive director for the Marketing Division of Indian Oils Eastern Region. But the industry is not organized, so the individuals do not have insurance for themselves.
The policies are provided by nationally-owned United India Insurance Co., one of Indias largest insurance providers. United India charges Indian Oil a discounted rate of Rupee 46 (U.S. $0.96) per policy, Sachdeva said. Products included in the promotion are Servo Super MG 20W-40, Servo Pride 30 and Servo Pride 40.
Indian Oil officials said the campaign was the first of its kind in India but that other companies, such as BP, have since begun similar promotions. They added that it has been popular enough that Indian Oil will likely repeat the offer periodically.
This is a social issue so we feel it is a good thing no matter who is doing it, Sachdeva said.