The Hindu : SBI Life launches pension plan

Online edition of India's National Newspaper
Thursday, Mar 06, 2003

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Business

SBI Life launches pension plan

NEW DELHI MARCH 5. SBI Life today launched a pension plan and flagged off bancassurance operations in the northern region for selling insurance and pension products through select SBI branches.

The 74:26 joint venture between State Bank of India and French insurer Cardif SA, also plans to launch a group pension scheme soon and another rural health insurance plan in three months, SBI Life Insurance CEO, R. Krishnamurthy, told reporters here.

SBI Life intends to leverage the 80 million customer base and its 10,000 strong branch network of its parent bank to extend bancassurance operations by this month end, he said.

The company has so far sold 3.68 lakh policies with a total sum assured of Rs. 3,220 crores and a premium income of Rs. 76 crores since inception. This fiscal, the company earned a premium income of Rs. 64 crores. SBI Life started operations with a capital of Rs. 250 crores last fiscal.

Stressing on pension plan, Mr. Krishnamurthy said the Lifelong Pension policy would enable policyholders to get life cover for up to the age of 65 and offer a 4 per cent assured return plus the dividends and bonuses from time to time.

The company also obtained the Insurance Regulatory and Development Authority's permission to launch a group pension plan targeted at State governments, public sector enterprise, private companies and municipal corporations. He said the company would launch a health insurance policy for which it had asked Administrative Staff College to do a feasibility study.

Private life insurance companies would soon seek interest subsidy for launching a pension policy with a high assured return of 9 per cent as announced for Life Insurance Corporation by the Union Finance Minister, Jaswant Singh, in the budget.

Private insurers would discuss the issue first at the general council under Insurance Regulatory and Development Authority this month and then take up the matter with the Government, SBI Life CEO, R. Krishnamurthy, said after a product launch here. — PTI

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