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Old private sector lender City Union Bank and standalone health insurer Aditya Birla Health Insurance Co Ltd (ABHICL), the health insurance subsidiary of Aditya Birla Capital Ltd, have announced a bancassurance partnership for the distribution of health insurance products of the latter through the former’s network of branches across the country.
This is the third health insurance tie-up for CUB as it has entered into such bancassurance pacts with Star Health and Alliance Insurance as also Care Health (formerly known as Religare Health Insurance Co).
“Consumers’ preferences are changing and the people’s mindset towards health insurance is also changing in the country. The pandemic has made people understand the importance of health insurance. There are a lot of innovations in health products due to the competition as also differentiated services being offered. To ensure that the customers of CUB are getting access to a range of best possible products and servicing, we have entered into the tie-up with Aditya Birla Health Insurance,” said N Kamakoti, MD & CEO of CUB.
Under the deal, ABHICL’s suite of health insurance plans will be made available to more than 4.4 million customers of CUB across 727+ branches in 153 districts of the country.
CUB garnered ₹4-5 crore revenue in FY22 through its health insurance tie-ups and its alliance with ABHICL is expected to bring incremental fee-based income for the bank.
“The tie-up with institutions like CUB will help us reach the deepest areas in the country. This alliance will help expand our reach in the southern market, which is a strong region for the health insurance sector,” said Mayank Bathwal, CEO, Aditya Birla Health Insurance.
Some of ABHICL’s innovative health plans that will be accessible for CUB customers include Day 1 cover for asthma, high blood pressure, high cholesterol, diabetes; wellness coaching on nutrition and fitness; counselling on mental health; incentivised wellness benefits of up to 100% Health Returns and chronic management program, among others.
While ABHICL has a vast network of more than 10,000 hospitals across the country, the Southern region accounts for one-third of the network of hospitals at about 3500. In Tamil Nadu, its network has 1000 hospitals.
Pact with Royal Sundaram
City Union Bank has also signed up a bancassurance tie-up with general insurer Royal Sundaram General Insurance Co Ltd. This deal will enable the customers of the Bank to access general insurance products of Royal Sundaram across its Branches.
Royal Sundaram’s general insurance products bouquet include health, motor, personal accident, and travel, as well as home insurances in retail and insurance against fire, marine, industrial and other risks under commercial lines.
“Being a reputed player in the market with a fair, transparent and customer-centric approach with a highly recommended product suite, we welcome Royal Sundaram into the City Union Bank’s network. It brings us one step closer to becoming a one-stop shop (point) for all the financial needs of our customers. It’s a big leap for us and we will certainly be able to fulfil the Non-Life Insurance needs of our customers,” said N Kamakodi.
In the last couple of weeks, CUB entered into bancassurance tie-ups with Shriram General Insurance and Tata AIA Life Insurance.
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