Oriental Insurance is looking at earning a gross premium of Rs 100 crore from

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its bancassurance tie- up with the Punjab National Bank (PNB) in the present financial year. Through the tie-up, Oriental Insurance is also looking at spreading its business to the untapped markets where it does not have physical presence.

All the products offered by Oriental Insurance will be sold from PNB branches and will be made available to PNB customers. Under this agreement, PNB’s customers would be able to avail Oriental Insurance products at competitive rates.

M Ramadoss, chairman and managing director, Oriental Insurance said, “We are hoping to do good business from this agreement. PNB has a strong presence in North India, we will defiantly benefit.” With this tie-up, Oriental Insurance will make use of PNB’s over 3.8 crore customers spread across 4,600 branch offices.

For the service, PNB will get a fee that would vary from product to product, KC Chakrabarty, chairman and managing director, PNB, said.

“Our aim is to make all financial services available to our customers under one roof in PNB branches. This tie-up will be mutually beneficial,” Chakrabarty said. PNB also has a bancassurance tie-up with Life Insurance Corp of India. As per the Insurance Regulatory and Development Authority rules, a bank can act as a bancassurance partner for one life insurance company and one general insurance company.

Apart from PNB, Oriental Insurance has bancassurance tie-up with Oriental Bank of Commerce and Canara Bank. In the year 2008-09, Oriental earned a gross premium of Rs 10-15 crore from these bancassurance tie-ups.

Oriental Insurance has more than 1,018 branches across the country. In the financial year 2009, Oriental Insurance registered a 4 per cent growth over financial year 2008 and earned gross premium of over Rs 3,960 crore.

shrutiverma

@mydigitalfc.com