UBI to sell Tata AIG child cover

United Bank of India (UBI) today launched a child insurance plan, United Child Solutions in association with Tata AIG Life Insurance Company Ltd which is the strategic partner of the bank for its life insurance venture.

The policy is specially designed only for the customers of the Kolkata based bank.

"We are indeed happy to offer this product which would enable our customers in building a secure financial foundation for their children," said PK Gupta, chairman and managing director of UBI.

The policy would have three variants namely Educare 18, maturing at the age of 18 to provide for the graduation expenses; Educare 21, maturing at the age of 21 for the post graduate expenses; and Career Builder, which would mature at various ages between 18-27 to take care of the expenses during critical milestones like from child's graduation to his first house.

"Our immediate target for the insurance business is Rs 100 crore and our officers are being specially trained for the purpose," the CMD added.

He also added that with the increasing competition the interest margins would shrink further and hence its imperative for the bank to increase its non-interest income.

Presently the insurance business of the bank covers 14,000 policies through 1,100 branches with business of Rs 25 crore.

Speaking on occasion with the media, Joydeep Roy, chief distribution manager, Tata AIG Life Insurance Company Ltd said, the company is working on similar exclusive policies in the areas of health and pensions schemes for the customers of UBI.

"The launch of United Solutions is the first among the many services that we aim to exclusively offer through our alliance with the UBI and we ar4e looking at products in the area of health and pensions also," he added.