SBI arm to insure tractors in MP

To expand its market, SBILIFE, a subsidiary of the State Bank of India, has launched a scheme to insure tractors in Madhya Pradesh.

"With the tractor market in the state booming, we plan to register 2,000 policies a year," S Krishnamurthy, SBILIFE managing director and chief executive officer, told Business Standard.

Madhya Pradesh, according to Nabard, has more than 200,000 tractors and the number is rising at the rate of 8 per cent. "More than 400 tractors are sold in MP every month. We aim at covering around 50-60 per cent of these sales," he said.

Remarking that the performance of the Bhopal circle was the best, he said: "We have covered over 100,000 lives in the state in the last three year."

Krishnamurthy said the company would also reach out to self-help groups in the state to cover the rural population. "We plan to cover around 5,000 self-help groups in the state this year," Krishnamurthy said.

He said the company would enter into tie-ups with more banks to sell its insurance products. "We have tied up with the Union Bank of India and the United Bank of India and are in discussions with few more banks to sell our products at their counter," he said.

The company would also launch a new product in August, Krishnamurthy said.

"A unit-linked plan is on the anvil. We are likely to launch it in August," he said.