National Insurance to tie up with rural banks

National Insurance Company Ltd is targeting rural banks to expand its business in Uttaranchal and Western Uttar Pradesh and looking at business worth Rs 4 crore through bank assurance this year.

In a new tie-up, the National Insurance entered into an MOU with Ganga-Yamuna Gramin Bank to provide its insurance products in Uttaranchal.

This is the fifth MOU it has signed in recent months.

Last year, National Insurance Ltd had entered into a similar tie up with the Alaknanda Bank, a regional bank with a base in Uttaranchal.

"Through these two tie-ups, we have almost covered the entire regions," VK Chhabra, chief regional manager, said.

Besides Alkananda and Ganga-Yamuna Gramin Bank, the company had also entered into agreements with Nainital Bank, Nainital-Almora Khastriya Bank and Kisan Gramin Bank earlier. There are more tie-ups in the pipeline.

"We are likely to sign some more similar agreements in future," Chhabra said. However, he did not name any specific bank. By virtue of its alliance with Ganga-Yamuna Gramin Bank, National Insurance is looking at business worth Rs 20 lakh in the current financial year.

Last year, the company earned a business of Rs 2 crore through bank assurance. The total business of the company in the region is worth Rs 100 crore.

"Through these tie-ups, our bank partners would target their customers and accordingly offer them various products," Chhabra said.

"Customers would be benefited as they get much cheaper products," he said.

Insurance of cattle, shops, farms etc are on the top of the bank's agenda.