Chennai: Chennai-based non-life insurer Cholamandalam MS General Insurance Company Limited has appointed IndusInd Bank Limited as its corporate agent. 

Under the agreement IndusInd Bank would sell to its customers insurance policies of Cholamandalam MS General.

According to M Anandan, managing director, Cholamandalam MS General, the company hopes to earn a minimum premium of Rs250 crore over a period of three years out of this tie up.

Officials say 70 per cent of the insurance business procured by IndusInd Bank will be of motor insurance and the rest a mix of health, travel, corporate and other policies.

During the first phase IndusInd Bank will enable 150 of its 172 branches to sell the insurance products.

The insurance company would train the bank officials in the insurance subject so that they get the agency licence.

In addition the insurer will place one of its employees in each of the bank branches to facilitate closing a sale.

According to Bhaskar Ghose, managing director & CEO, IndusInd Bank, group marketing company IndusInd Marketing and Financial Services Limited would also distribute the insurance products through its 600 outlets.

He said the bank would open eight more branches this year which would also sell the insurance products thereby increasing its fee based income.

Apart from its existing products, Cholamandalam MS General would launch custom designed products for the bank customers, said S S Gopalarathnam, president-Operations.

Meanwhile the company is smoothly coasting towards it target of Rs4 crore business from the Japanese and Korean companies based in India.

A separate strategic business unit (SBU) under the independent charge of Yu Kitai, wholetime director is working towards that goal.

There are more than 400 Japanese and Korean companies operating in India, said Kitai.
Nearly 50 per cent of their insurance premium is with the four government owned non life insurers.

The other non life insurer targeting the same segment is the New Delhi based Iffco Tokyo General Insurance Company Limited.

According to Kitai, Cholamandalam MS General is the lead insurer for companies like Hyundai Motor India, LG Electronics, Panasonic, Toyota Kirloskar and others.

Kitai said much of the company''''s success with the Japanese and Korean companies is due to the risk management services offered by group outfit Chola MS Risk Services Limited.

During the first seven months of the current fiscal Cholamandalam MS General has posted a gross premium income of Rs.315 crore.

According to officials the company is set to achieve the targeted Rs.600 crore premium income this fiscal.