[sbinews] SBI to sell New India Assurance products
- From: "Rajendra PAI" <rspai.IT@xxxxxxxxxxxxxx>
- To: <sbinews@xxxxxxxxxxxxx>
- Date: Wed, 22 Oct 2003 11:09:49 +0530
SBI to sell New India Assurance products
TIMES NEWS NETWORK[ TUESDAY, OCTOBER 21, 2003 11:41:00 PM ]=20
MUMBAI: State Bank of India =AF the country's largest bank, has decided to =
get into the non-life insurance through the corporate agency route. =
Dropping plans to set up a non-life insurance company of its own, the bank =
has signed up with the country's largest non-life insurer New India =
Assurance for distribution of its products across the country.=20
A memorandum of understanding (MoU) to this effect was signed by representa=
tives of the two companies on Monday. The agreement was signed by Lakshman =
Raja, general manager cross-selling SBI on behalf of the bank and AV =
Purushothaman, director and general manager New India Assurance.=20
Most of the large financial institutions have made a composite entry into =
the insurance business. ICICI Bank, Housing Development Finance Corporation=
, Tatas and Bajaj have promoted life as well as non-life ventures. SBI had =
earlier kept its options for the non-life business open and had decided to =
start out with life insurance. Having acquired a corporate agency the =
company is unlikely to promote a non-life company of its own.=20
As per the Insurance Regulatory and Development Authority (IRDA), a bank =
can sell insurance products of only one life company and one non-life =
company. SBI already sells insurance products of SBI Life.=20
As far as non-life is concerned LIC sells exclusively products of New =
India Assurance. There is, however, no limit on the number of banks with =
whom New India can have a tie up. The insurer has already tied up with =
Punjab National Bank (PNB).=20
The distribution model will be that of a corporate agency where SBI =
officials will actively sell insurance products of New India. The roll-out =
will be in a phased manner.SBI has already identified officials across the =
country who have been trained to sell non-life insurance. These executives =
will now be given additional training to sell non-life insurance. "Since =
they have already undergone the necessary training for selling life =
insurance they will require to undergo only 50 hours of training to sell =
non-life insurance," said Mr Purushothaman.=20
The MoU comes four months after SBI purchased one of the largest group =
insurance policies in the country from New India. The policy covered all =
the home loan and auto loan customers of SBI against personal accident to =
the extent of loan outstanding. New India has been negotiating with SBI to =
provide fire insurance cover to the mortgaged property that is with the =
bank.=20
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