Nainital Bank to sell NICL policies

Bank has branches in UP, Uttaranchal, Haryana, Delhi

Nainital Bank Ltd will distribute general insurance products of National Insurance Company Ltd (NICL) through its branches in Uttar Pradesh, Uttaranchal, Haryana and New Delhi.

A memorandum of understanding (MoU) was signed between VK Varma, chairman and chief executive officer of Nainital Bank, and SBL Gour, regional manager of NICL, in the presence of Uttaranchal Chief Secretary R S Tolia. This is the first such alliance in Uttaranchal.

The tie-up also known as "bancassurance" was aimed at providing value-added services to the customers of Nainital Bank, an associate of Bank of Baroda, said DK Burman, NICL assistant general manager.

"The bank along with our company as well as customers will be benefited to a large extent through this new alliance," Burman remarked.

National Insurance is the fastest growing general insurance company in the public sector with a premium base of Rs 3,500 crore. The tie-up would help us grow faster during the current financial year because of to the estimated risk cover to be provided to assets financed by the bank, Burman said. It would further help us in fulfilling our goal to become the number one general insurance company in India, he added.

The company had earlier entered into a similar tie-up with Indian Overseas Bank, Vijaya Bank and Allahabad Bank and several other financial institutions and automobile majors like Maruti and Hero Honda.

Later Varma said the tie-up was a new avenue of value-addition for both Nainital Bank and National Insurance and expressed hope that the bank would continue to provide such service to its customers in future.

Speaking on the occasion, Tolia expressed the hope that it would help the two companies to achieve their respective targets in the coming year.

Inviting insurance companies to invest in the hydroelectricity projects in the state, Tolia said all the projects were in running condition.

"We might be having problems regarding the decrease in the discharge level of some rivers due to less snowfall. But the projects are running," Tolia said.

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Exploring new avenues

• National Insurance is the fastest growing public sector general insurer and currently the second largest in India with a premium base of Rs 3,500 crore
• The pact known as bancassurance is aimed at providing value-added services to the customers of the bank
• The tie-up will help both the companies grow faster during the current financial year