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Bank
of Rajasthan, Birla Sun ink pact for life insurance distribution
Our Banking
Bureau
9 October 2002
Mumbai:
Bank
of Rajasthan (BoR), one of the leading private sector
banks having a large network of branches in India, has
formally announced its tie-up with Birla Sun Life Insurance,
a major player in the Indian life insurance market, for
distributing its life insurance products.
In
this direction, a memorandum of understanding was signed
on 8 October 2002 between BoR managing director K M Bhattacharya
and Birla Sun Life CEO Nani Javeri in the presence of
BoR chairman Pravin Kumar Tayal.
BoR
will facilitate distribution of life insurance products
of Birla Sun Life through its strong network of more than
400 national offices. It will also be able to leverage
the Birla brand effectively in Rajasthan where its presence
is the strongest. BoR has also entered the general insurance
business with a strategic alliance with Bajaj Allianz.
Says
Tayal: “We are constantly looking at ways to reinvent
and grow in order to maximise benefits for our loyal clientele.
Bancassurance is an efficient way for insurance companies
to sell insurance products to customers. We will make
available a gamut of insurance products to address the
credit protection and long-term savings needs of our customers.”
Says
Javeri: “Among the life insurance companies, we have
played a leading role in creating relationships through
the banking channel. To enlarge our reach and services,
we are pursuing a multi-channel distribution strategy
of which this alliance is a major step. This is in line
with the international trend in the marketing of financial
services.
“The
proportion of life insurance and pensions sold through
the bancassurance distribution channel in Europe is currently
at a level of 30 per cent. We are sure this strategic
tie-up will give us an opportunity to tap the huge customer
base that BoR has in Rajasthan through its 200 branches
in the state and key branches across India.
“We
will provide innovative customised products with efficient
service through the bank’s network, which will prove
to be a value addition to the customers. This is a significant
tie-up as it will also enable us to penetrate into semi-urban
and rural areas of Rajasthan apart from the other parts
of the country, including urban areas.”
 With
the opening of the insurance sector, the Insurance Regulatory
Development Authority (IRDA) has provided guidelines for
private insurance companies to distribute products through
corporate agents. Subject to IRDA approvals, BoR will
become a corporate agent for Birla Sun Life.
List of reports on Bank
of Rajasthan
List
of reports on Birla Sun Life Insurance
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