SBI Life To Distribute Group Insurance Cover Via RRBs

Mumbai, September 25: | Updated: Sep 26 2002, 05:30am hrs
SBI Life Insurance Company has decided extend its reach by selling its group-insurance products through regional rural banks (RRB), sponsored by its parent company, State Bank of India (SBI), and SBI associated banks.

SBI Life, a 74:26 joint venture between SBI and Cardiff SA, a leading insurer in France, is at present offering the product through four RRBs in Uttar Pradesh, Andhra Pradesh and Karnataka.

The company has plans to roll out the product to all SBI-sponsored RRBs by the end of the year, sources said.

This is part of our constant endeavour to increase our client base, sources close to the development said, adding: However, this also depends upon interests on RRBs part.

As per the scheme of product, RRBs will act as administrators and will get an fee for this service.

SBI and its associate banks sponsor 44 RRBs across the country.

SBI sponsors 30 RRBs with a vast network of around 2,350 branches, constituting 16 per cent of total RRB branches.

About 91 per cent branches of SBI sponsored RRBs - 2,126 of total 2349 branches - are located in remote rural areas.

The group insurance product is devised to cater the rural customers.

As per the scheme of product, group cover of Rs 50,000 and Rs one lakh will be offered at a premium of Rs 250 and Rs 500 per annum respectively.

Customers will get a free-of-cost accident cover along with this scheme.

The minimum and maximum age to avail of the product is 20 and 60 respectively.

SBI Life, also offers this group insurance cover for farmers through SBIs special agricultural banking branches, sources said.