India Post Payments Bank (IPPB) announced its 5-year bancassurance partnership with private life insurer, Bajaj Allianz. Through the partnership, life insurance products by Bajaj Allianz will be offered by IPPB and customers can pay for the life insurance policies through their IPPB accounts.
IPPB wishes to spread awareness about the importance of life insurance and the tie-up with Bajaj Allianz will give a push to IPPB’s idea. The insurance plans will initially be made available in 3,250 IPPB branches and gradually in 1.55 lakh post offices throughout the country including those in rural regions.
Customers of IPPB who are looking for life insurance solutions will have access to a whole lot of life insurance plans such as comprehensive life insurance plans, accelerated critical illness benefit, accidental permanent total disability benefit, accidental permanent partial disability benefit, etc., offered by Bajaj Allianz Life Insurance Co. Ltd.
IPPB was launched by PM Narendra Modi on September 1 in New Delhi and has around 9 lakh customers across India. The Department of Posts believes that financial literacy and financial inclusion is an important factor that will help a country progress. The partnership between IPPB and Bajaj Allianz, that was finalised with the Corporate Agency Agreement signed on September 18, will help the department move closer to achieving its goal.
As per the insurance regulations, an Indian bank is permitted to sell products of three life insurers, non-life insurers, and standalone health insurance insurers. Though IPPB cannot sell insurance products directly, it can receive a commission for selling third-party products.
Since Bajaj Allianz has well-designed digital mechanisms to offer products, it will help IPPB carryout paperless sales.
Source: Times of India
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