Vijaya Bank announced its corporate agency tie-up with general insurer United India Insurance Company for distribution of non-life insurance products, here on Monday.

The bank will now distribute general insurance policies through its over 1,200 branches. "Our loan book is over Rs 51,000 crore, of which at least Rs 30,000 crore have asset backing, that gives us enough scope for in-house business," said Mr H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank.

The bank also has a tie-up with LIC of India for life insurance products, and Mr Kamath announced that in the one-and-a-half months when the life insurance policy distribution was operationalised, Vijaya Bank sold over 3,700 policies mobilising premium of about Rs 12 crore. "With significant regional penetration and over 8 million customers, we hope to leverage and garner as much life insurance business as possible," he said. However, he declined to provide the financial targets that the bank has set for its staff. "Since this is the first year in bancassurance, we learn the ropes this year, and would also engage in the process of creating capabilities. We do have a modest target in mind," he added, pointing out that currently bancassurance was available only in select centres.

"Currently, we are on a roll-out model. We sell life insurance policies in 8-10 centres now, and plan to gradually take it to other centres in a calibrated way," said Mr Kamath.

Speaking at the event, Mr B. Krishnamurthy, General Manager Bancassurance, United India Insurance Co, said that there were plans to conduct interface meetings with clients at over 1,400 outlets with Vijaya Bank’s customers.

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