Financial Daily from THE HINDU group of publications
Friday, Feb 18, 2005
Financial Daily from THE HINDU group of publications Friday, Feb 18, 2005 |
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Money & Banking
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Alliances & Joint Ventures United India in bancassurance pact with Canara Bank Our Bureau
Mr V. P. Shetty (left), CMD, Canara Bank, and Mr M. K. Garg, CMD, United India Insurance Co Ltd, at a function in Bangalore on Thursday. - - G. R. N. Somashekar
Bangalore , Feb. 17 PUBLIC sector non-life insurer United India Insurance Co Ltd (UIICL) has tied up with Canara Bank as part of its bancassurance arrangement. The memorandum of understanding was signed by the UIICL Chairman and Managing Director, Mr M.K. Garg, and the Canara Bank CMD, Mr V.P. Shetty. The arrangement would allow UIICL to dispense its products through all Canara Bank branches. It would also allow customers to pay their premiums directly through the bank for policy renewals. The arrangement is also intended to expand the rural reach of UIICL. Briefing reporters, Mr Garg said the tie-up would enhance general insurance premium income by another Rs 70 crore. UIICL has so far tied up with 37 banks. It now has a corporate agency force of about 100 agents, which, Mr Garg said, included large automobile companies, including Hyundai Motors India Ltd. He said discussions were under way with Tata Motors as well for the purpose. UIICL's business target for the year is Rs 3,000 crore, of which bancassurance alone is expected to contribute about Rs 300 crore, Mr Garg said. According to Mr Shetty, Canara Bank would earn at least Rs 2 crore by way of commissions from its bancassurance. For the next year, the bank hopes to earn Rs 16 crore from its bancassurance arrangements in both non-life and life. The bank was well on its way to achieving its business target of Rs 1,55,000 crore for the fiscal year, he said. Till January-end, the bank had achieved a business of Rs 1,51,000 crore.
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