Bank of Rajasthan in talks for insurance foray
17 June 2002
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 banks 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 Indias rural market. A lions share of LICs 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.