Rajasthan in talks for insurance foray
17 June 2002
of Rajasthan (BoR) is close to concluding its deal with
either Tata AIG Life Insurance Company or Birla Sun Life
Insurance Company, as part of its plan to venture into
the life insurance segment, it is learnt.
Talks with both the companies are said to be in an advanced stage.
The bank will strike a deal with one of these life insurance
providers by next month, say BoR officials. "We were in talks
with almost all life insurance providers in India, including LIC.
Now we have short-listed Tata AIG and Birla Sun Life, and the
final partner will be selected within a month."
As per the current plan,
BoR will act as a corporate agent of the selected company and will
sell life insurance products of the same through the bankís
counters once the bancassurnace concept comes into effect. It is
expected that the Insurance Amendment Bill will be passed by the
government in the monsoon session of the parliament. Last week,
the bank had tied up with Bajaj Allianz to sell its general
insurance products through its counters.
A BoR official says
initially the bank will launch the insurance products in its
selected branches in Rajasthan and then, depending on the
feedback, it will be extended to other branches.
BoR is one the leading banks in Rajasthan with a strong rural
penetration. Industry observers say at present all life insurance
providers are in the process of finalising plans to tap Indiaís
rural market. A lionís share of LICís new business comes from
rural and semi-rural markets.
In a country of 1 billion
people, bancassurnace is one of the profitable
and cost-effective options for private sector life insurance
providers to tap the huge market, the observers say.
of reports on Bank of Rajasthan