ING Vysya in pact with Madras Fertilizers

Focussing on developing alternative channels of distribution, Bangalore-based ING Vysya Life Insurance, has entered into a distribution alliance with Chennai-based Madras Fertilizers Ltd (MFL). ING Vysya Life Insurance will be launching its unit link product in December 2004.

Addressing a press conference Frank Koster, managing director and CEO, ING Vysya Life said, "The company will develop the alternative channels of distribution placing thrust on the rural markets. Entering into an agreement with MFL is one such initiative."

The results of a study conducted by ING and FICCI supported by Foundation for Research, Training and Education in Insurance showed that there was large untapped potential in the rural areas and the awareness among people about savings linked insurance products was high.

The company earned a premium income of Rs 88 crore and the total sum assured was Rs 2,626 crore.

ING Vysya alternative distribution channel has contributed 17 per cent of the total income and has a agency force of 8,000 agents. Its rural portfolio accounts for less than three per cent of this premium income today.

Sukumar N Oommen, chairman and managing director, MFL said that the company has 6,500 dealers, over 100 field staff and cover more than 1 lakh farmers. It has strong presence in the four southern states.

At present, 10 MFL officers have been trained for selling the new endowment policy called 'Safal Jeevan' designed for the rural customers.

More officers will soon be trained to sell these products, he added. MFL had also tied-up with Chennai-based Royal Sundaram Alliance Insurance Company to sell general insurance products to farmers.

Talking about MFL's divestment Oommen said that the new government has put on hold the divestment measures of the company.