City Union Bank (CUB), an old private sector lender, has formed bancassurance partnerships with the following insurers:
i. Aditya Birla Health Insurance Co Ltd (ABHICL)
ii.Bajaj Allianz Life Insurance Company Limited (Bajaj Allianz Life)
iii. Royal Sundaram General Insurance Co Ltd (Royal Sundaram)
- CUB formed this partnership to provide its customers with health, life, and general insurance options.
The Open Architecture of the Insurance Regulatory and Development Authority of India (IRDAI) has permitted banks to have tie-ups with three companies each for general insurance, life insurance and health insurance.
Note – CUB has tie-up with eight insurers – three each in life [LIC, Tata AIA and Bajaj Alliance] and health [Star Health, Aditya Birla and Care Insurance] and two in general insurance [Shriram General and Royal Sundaram].
CUB & Aditya Birla Health Ink Bancassurance Pact
CUB and Aditya Birla Health Insurance Co Ltd (ABHICL), the health insurance arm of Aditya Birla Capital Ltd, have established a bancassurance partnership for the distribution of health insurance products of ABHICL through CUB’s network of branches in India.
- This is CUB’s third partnership in the health insurance sector after signing similar bancassurance partnerships with Star Health & Allied Insurance Co., Ltd. and & Care Health Insurance (formerly known as Religare Health Insurance Co.).
- This is ABHICL’s 14th arrangement with a bank for the bancassurance partnership.
i. According to the pact, more than 4.4 million CUB customers will have access to ABHICL’s range of health insurance plans across 727 branches in 153 Indian districts.
- During the Financial Year 2021–2022 (FY22), CUB’s health insurance partnerships generated Rs. 4-5 crore revenue.
ii.Some of ABHICL’s innovative health plans that will be available to CUB clients include: Day 1 coverage for asthma, high blood pressure, high cholesterol, and diabetes; wellness coaching on nutrition and fitness; mental health counselling; incentivized wellness benefits of up to 100% Health Returns; and a chronic management programme, among others.
iii. CEO of Aditya Birla Health Insurance Co Ltd (ABHICL) – Mayank Bathwal
CUB Forms Strategic Partnership with Bajaj Allianz Life Insurance
CUB and Bajaj Allianz Life Insurance Company Limited (Bajaj Allianz Life), a private life insurer, have entered into a strategic partnership to offer a variety of life insurance solutions to CUB’s existing and potential clients through its 727 branches.
i. Through this partnership, customers of CUB will be able to meet their long-term financial goals by investing in Bajaj Allianz Life’s value-packed products such as term, savings, retirement, and investment solutions.
ii.The partnership will enable Bajaj Allianz Life in expanding its foothold in the southern states and beyond.
iii. CUB has also formed partnerships with two other life insurers: Life Insurance Corporation (LIC) & Tata AIA Life Insurance Co. Ltd.
iv.MD & CEO of Bajaj Allianz Life Insurance – TarunChugh
- Bajaj Allianz Life is a partnership between Bajaj Finserv Limited, one of India’s most diversified Non-Banking Financial Institution and Allianz SE, one of world’s leading asset manager and insurer headquartered in Munich, Germany.
CUB Partners Royal Sundaram General Insurance
CUB has also formed a bancassurance tie-up with general insurer Royal Sundaram General Insurance Co Ltd. (Royal Sundaram). This partnership will enable the customers of CUB to access general insurance products of Royal Sundaram across its branches
i. The range of general insurance products offered by Royal Sundaram includes coverage for health, motor, personal accidents, and travel as well as home insurances in retail and insurance against fire, marine, industrial and other risks under commercial lines.
- With this, CUB has taken a step toward being a one-stop shop (point) for all the financial needs of its customers.
ii.Recently, the CUB has signed a corporate agency agreement with Shriram General Insurance Co. Ltd., a Joint Venture (JV) between Shriram Capital Ltd. and Sanlam Limited (South Africa).
- In accordance with this arrangement, Shriram General Insurance will provide CUB’s customers with both personal lines of insurance, including motor, personal accident, home and travel, as well as commercial lines of insurance, including property, marine, and engineering insurance.
iii. MD of Royal Sundaram General Insurance Co. Ltd., – M.S. Sreedhar
About City Union Bank Ltd. (CUB):
Incorporated as ‘The Kumbakonam Bank Limited’ in 1904. The Bank’s name was changed to ‘City Union Bank Limited’ with effect from December, 1987.
MD & CEO – Dr. N. Kamakodi
Establishment – 1904
Headquarters – Kumbakonam, Tamil Nadu
Tagline – Trust and Excellence Since 1904