Oriental Insurance Company Ltd (OICL) will take the help of banks’ business correspondents to sell its insurance products in the state.
“The move will help provide accident insurance cover of Rs 1 lakh to people (who do not have bank account) under Pradhan Mantri Jan Dhan Yojana, with which OICL is associated for the job,” OICL chairman-cum-managing director A.K. Saxena said on Friday.
Under Pradhan Mantri Jan Dhan Yojana, residents will be provided zero-balance bank accounts with RuPay debit card, in addition to accident insurance cover of Rs 1 lakh. Besides, account holders could also get bank overdraft facility of Rs 5,000 six months after opening an account.
“In order to provide banking and insurance products to all, OICL has decided to take the help of business correspondents and Bima Mitras of banks. They will work as our agents and sell our insurance products in far-flung areas. For this, the company would give the agents some commission,” Saxena said.
Notably, Small Industries Development Bank of India (SIDBI) which released a report — Banking Correspondent (BC) Model in Bihar - Constraints and Way Forward — on Thursday in Patna, said just 30-40 per cent of 8,966 business correspondents in the state are currently operational.
Saxena was talking to reporters after its review meeting. General managers A.K. Mittal, K. Rama Devi and chief regional manager, Bihar and Jharkhand, Mahendra Kumar and others were present.
Saxena said there was a need to create awareness about the benefits and significance of insurance cover among people and change their mindset about general insurance.
In reply to a query on disasters like floods, landslide and irregular monsoon taking a heavy toll on human lives, the CMD said: “Nowadays, we have been witnessing major devastations caused by floods, landslides, earthquakes, irregular monsoon etc. People in Bihar must get insurance for their houses and cattle. It would cost them around Rs 100 to Rs 200 as premium but may prove beneficial in the event of a natural calamity. They will not have to depend upon government compensation.”
The insurance company sold 1.17 crore policies in 2013-14, seven lakh of them in Bihar, Saxena said adding premium receipts have gone up from a meagre Rs 58 crore in 1973 to Rs 7,282 crore in 2013-14.
