Birla Sun Life Insurance Company has entered into a strategic alliance with Dewan Housing Finance Corporation (DHFL) for the distribution of the company's insurance products.
Birla Sun Life will offer mortgage-protection insurance products to Dewan Housing. The latter has formed a subsidiary company -- DHFL Insurance Services -- for the purpose.
"We will provide value to Dewan Housing customers through risk coverage for their loans, as well as a channel for additional savings," said Birla Sun Life director Vijay Singh.
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"The tie-up will provide life insurance cover for anyone or any loan that needs to be protected by risk cover," he added.
To enlarge its reach and service its customer widely, Birla Sun Life is pursuing a multiple-channel strategy and this alliance is a step in that direction.
Singh said Dewan Housing, with its network of 38 branches and over 100 customer-care centres in 10 states, "will help us expand our distribution reach".
Dewan Housing managing director Kapil Wadhawan compared housing loans with insurance policies as the insurance premiums are spread over a number of years and require a long-term relationship with the customer.
He added that DHFL's foray into the insurance sector would add one more facet to the housing finance company's basket of services.
Presently, Dewan Housing, apart from offering housing loans, offers home improvement loans, home extension loans, NRI loans and home mortgage loans.
Till yesterday, Birla Sun Life has sold 1,500 policies with sum assured in the range of Rs 2-3 lakh most of which were endowment and money-back policies.