Calcutta, March 8: Allahabad Bank has entered into a corporate agency tie-up with National Insurance Company (NIC) for direct selling of non-life or general insurance products through the bank’s branches. A memorandum of understanding (MoU) was signed today by NIC chairman H.S. Wadhwa and Allahabad Bank chairman B Samal. The bank already has a tie-up with ICICI-Prudential Life Insurance for the distribution of life insurance products under referral arrangements. “We plan to leverage the potential of the bank’s network of 2000 branches across the country and a customer base of around 2 crore,” Samal said. “Allahabad Bank has an insurable credit portfolio of around Rs 10,000 crore and we expect to earn a premium income of more than Rs 8 crore within one year.”
Samal said the bancassurance (non-life) partnership with NIC will help the bank to provide a range of financial solutions.
Speaking on NIC’s growth during the year, Wadhwa says, “In the current financial year, NIC has achieved a growth rate of 22 per cent as against 11 per cent last year.”
NIC plans to have a growth momentum of 22 per cent in its premium volume during the current year over last year’s figures of Rs 2365 crore. The insurance company has also entered into an agreement with Reliance to provide insurance cover for one lakh mobile handsets for a period of three years for a premium of Rs 50 crore.
With a view to extending its consumer reach, particularly in rural areas, NIC is planning to tie up with banks and other institutional agencies. “We are also in the process of recruiting 2500 professional agents for 20 offices across the country,” said Wadhwa.