The Hindu : SBI Life's group insurance plans for States

Online edition of India's National Newspaper
Friday, Mar 28, 2003

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Business

SBI Life's group insurance plans for States

By Our Staff Correspondent

KOLKATA. MARCH 27. SBI Life is negotiating with a number of State governments and municipal bodies to offer tailor made group insurance plans covering pension and gratuity benefits to their employees.

R. Krishnamurthy, Managing Director and CEO of SBI Life, the life insurance arm of State Bank of India, has confirmed that discussions were on with Karnataka which had recently invited expression of interests from interested parties in managing its pension portfolio.

Though not confirmed by Mr. Krishnamurthy, the insurance company is also attaching maximum importance to Andhra Pradesh where it had already sold group insurance for 83,000 police personnel. Overall both States together contribute a major portion of the company's total premium of Rs. 70 crores (against Rs. 3,800 crore sum assured) in 2002-03. The number of policies sold reached to 4.5 lakhs, "highest among the new players in terms of lives covered.''

Talking to newspersons following the launch of Bancassurance — the retailing of select insurance products and services through the branches of SBI, its associate banks and others — Mr. Krishnamurthy said four gramin banks of Karnataka (Gulbarga and Vidharbha districts) and Andhra Pradesh were proved to be major subscribers of SBI Life products. Overall 20 gramin banks have so far tied up with the bank. A total of 284 branches including 211 of SBI and the rest of associate banks were retailing insurance against home loans, group insurance to deposit holders, endowment policy and the newly launched pension scheme under Bancassurance. Of the associate banks State Bank of Patiala and State Bank of Hyderabad were the front runners in retailing SBI Life products.

This apart the bank is co-branding its products with the private sector Sundaram Home Finance. United Bank of India has also shown preliminary interest towards retailing, subject to approval of the board.

Asked whether the company would expand its product basket from the existing 12 schemes, Mr. Krishnamurthy said no large scale expansion was planned. "We are stressing on the qualitative aspect in terms of both product portfolio and appointment of agents.''

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