IDBI Bank, Bajaj Allianz tie up to offer unemployment cover
By Chennai: | 26 Feb 2003
Chennai: IDBI Bank has tied up with Bajaj Allianz General Insurance to offer unemployment insurance cover along with its housing loans.
“In case our customer loses employment, up to three instalments (of the housing loan) will be covered. In the first year, IDBI Bank is absorbing the cost of insurance. Subsequently, the product can be extended to the period with which the customer is comfortable,“ says Kumar Subramanian, head (operations and retail assets), IDBI Bank. “Unemployment insurance is novel in India.“
IDBI Bank believes that bundling unemployment insurance with a housing loan might spark an increase in the customers' risk appetite, and thereby a larger borrowing, adds Subramanian. “The insurance package comes along with the bank's new scheme that allows customers to avail themselves of housing loans up to 110 per cent of the property value as against the traditional market practice of disbursing a maximum loan amount of 85-90 per cent of the property value.“
A company says the 'innovation' in the scheme is the additional 10 per cent that will be given as a personal loan to customers towards any purchase of durables. The bank is holding an exhibition in Chennai between 7 and 9 March 2003, wherein builders and durable manufacturers will be invited.
