SIB unveils low-premium life product

South Indian Bank Ltd (SIB) on Wednesday launched SIB Suraksha, a life insurance product designed for its customers by ICICI Prudential Insurance Company Ltd.

This is part of the corporate agency tie-up that SIB had entered into with ICICI Prudential Life Insurance in May 2002 and is the first specific bancassurance product launched by the later so far.

SIB chairman and chief executive officer A Sethumadhavan said: "Under the scheme, the premium for a life insurance cover of Rs 1 lakh comes to around Rs 215 for a person in the age group of 18-35 years. The comparable premium for a product offering a life cover of Rs 1 lakh in the normal course works out to Rs 815." Under SIB Suraksha, which is a one-year renewable group term insurance product, life insurance cover is also available up to the age of 55 years by paying a higher premium, he added.

At a function held here, the master policy of SIB Suraksha was handed over to the bank's executive director V A Joseph by Shikha Sharma, managing director of ICICI Prulife.

Emphasising that ICICI Prudential's relationship with SIB has been mutually rewarding ever since the said tie-up in May 2002, Shikha Sharma said it has helped in generation of volumes, enlarging penetration and increasing the reach of both the organisations.

As of December 31, 2003, ICICI Prudential had issued over 5,50,000 policies with a sum assured exceeding Rs 13,000 crore and a premium income of over Rs 1,000 crore. The company has a network of nearly 29,000 advisors as well as 11 bancassurance tie-ups, she added.