The two have also developed a new product called Mahindra Loan Suraksha, which will protect loans of MMFSLs customers in case of death.
Outlining the rationale while signing the agreement, OM Kotak Mahindra Lifes managing director Shivaji Dam said, "The corporate agency tie-up with MMFSL is in line with of our strategy to build through segment-based marketing. In addition, it will also provide us with a platform to cater to the rural population where MMFSL has a very strong presence."
Added Mr Dam, "MMFSL has a very large portfolio of truck and tractor financing and this segment has a potential to contribute up to 10 per cent of OMKMLs business in five years time." OMKML currently has customised insurance products for segments like non-smokers and women, and K-Bond (insurance with mutual funds).
Also speaking at the event, MMFSL managing director Ramesh Iyer said, "We are present in over 180 locations across the country with a customer base of 1,40,000 people. This initiative will enable us to earn fee-based income."
The company has already got an approval from the Insurance Regulatory Development Authority (Irda) for becoming a corporate agent and has trained 50 of its employees for the foray in insurance market in 7 centers. It plans to train all of its 700 employees in the due course of time. It also expects at least 60-70 per cent of the customers to opt for this co-branded product.