Vijaya Bank has signed a MoU with United India Insurance to distribute the latter’s general insurance products. In March, the bank signed a similar agreement with Life Insurance Corporation of India (LIC).
According to HS Upendra Kamath, chairman and managing director of Vijaya Bank, with more than 8 million customers spread across several segments, a loan book of Rs 51,000 crore, of which at least Rs 30,000 crore is backed by assets, and a pan-India presence of more than 1,200 core banking solution (CBS)-networked branches, there is a tremendous scope for insurance business for the bank in-house, in the life and non-life front.
“One alternative that organisations like us have is to start our own insurance company, whether it is life or non-life. We have chosen to tread the known path of bancassurance, so that we can save precious capital,” Kamath said.
In the past one month since Vijaya Bank started marketing LIC products, it has sold 3,717 LIC policies and collected a premium of Rs 12 crore.
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Referring to plans for marketing United Insurance products, Kamath said the bank has a modest target, but now, the focus is on learning the basics of the insurance business and creating capacity and well-equipped resources to market insurance products effectively. Initially, the focus will be on metros, which will be extended to other regions gradually.
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