Allianz inks deal with UP corporation

The Pradeshiya Industrial Corporation UP (PICUP), the premier industrial finance body, wholly owned by the UP government, has forayed into general insurance.

The organisation has signed an MoU with Bajaj Allianz General Insurance Company. With this, PICUP plans to increase its non-fund income. From PICUP, General Manager (finance) Devendra Singh and Bajaj Allianz Zonal Manager Tapan Singhal signed the MoU.

Deepak Singhal, managing director of PICUP, said with the signing of the MoU, PICUP would act as an insurance agent of Bajaj Allianz and insure the industrial units financed by it and other units in private and public sector. He said the insurance company will also impart "Corporate Agent" training to the staff of PICUP for acting as insurance advisors.

The Commission to the PICUP will range between 5 -16 per cent as determined by the Insurance Regulatory and Development Authority.

Singhal added that the main target of the PICUP would be to cover self finance and units in public sector.

He said with the fast changing market scenario, PSU industrial finance units would need to diversify, in order to stay afloat in the competitive world. "For this, we have to increase our non fund income," added Singhal.

The present size of general insurance is estimated to be Rs 18,000 crore, of which private players account for nearly 25 per cent, while the rest is with the four subsidiaries of the PSU General Insurance Corporation of India.

PICUP, by the end of February last, recovered Rs 64 crore of outstanding loans.

The PSU is concentrating on the "one time settlement' of the outstanding loan from the chronic defaulters".