The Hindu Business Line : Low penetration in non-life insurance sector: Chaturvedi

Bancassurance tie-up: (From left) Mr K.C. Chakrabarty, CMD, Punjab National Bank; Mr G.C. Chaturvedi, Additional Secretary, Ministry of Finance; and Mr M. Ramadoss, CMD, Oriental Insurance Company, at the launch in the Capital on Thursday.

Our Bureau

New Delhi, May 14 The Government on Thursday said that penetration in the non-life insurance sector was low despite the market opening up and various bancassurance tie-ups in place.

“The penetration of non-life insurance as a per cent of GDP is 0.5 per cent. It has now increased to 0.6 per cent. But we would want this to grow to 3-4 per cent of the GDP,” said Mr G.C. Chaturvedi, Additional Secretary, Ministry of Finance.

He was speaking at the launch of a bancassurance tie-up between Punjab National Bank and Oriental Insurance.

Through this arrangement, PNB will be able to sell Oriental Insurance products through a network of 4,600 offices. Mr K.C. Chakraborty, CMD, PNB, asked Oriental Insurance to bring out products in micro insurance which the bank could sell in rural and semi-urban areas.

“My focus is not just to earn fees from premium income. But a long-term vision of achieving financial inclusion. I want PNB to offer all the services under one roof,” said Mr Chakraborty.

The revenue model will be based on referrals under which PNB will earn income fees every year for insurance products sold through its branches.

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