New Delhi, May 4
ORIENTAL Insurance Co is expecting that its distribution tie-up with the Department of Posts would help garner an additional premium income of about Rs 100 crore during the current financial year,the Chairman and Managing Director, Oriental Insurance, Mr M. Ramadoss, said at a function to announce that the insurer's marketing tie-up with the Department of Posts has become operational in Delhi.
Oriental hopes that the distribution of policies through the Delhi post offices would itself give an additional premium income of Rs 10-12 crore.
To start with, 12 Head Post Offices in the Capital would market the policies of the company. The scheme would be extended later to other post offices and to neighbouring Noida and Faridabad, Mr Ramadoss said.
He said that the deal would turn out to be an ideal win-win situation for both Oriental Insurance and the postal department that would have an additional revenue stream.
Oriental Insurance had signed an MoU with the Department of Posts in January 2004 for sale of its products through the postal network. The individual products such as personal accident, mediclaim would be sold through post offices. "The post offices will not be selling complicated products," Mr Ramadoss said.
The scheme has already become operational in 15 states in a phased manner.