The newly-launched India Post Payments Bank (IPPB) has tied up with Bajaj Allianz Life Insurance to sell the latter's insurance products through their network.
Under this arrangement, IPPB will be the corporate agent for the life insurance company. According to insurance regulations, banks can sell products of three life, non-life and standalone health insurers each.
Prime Minister Narendra Modi launched the India Post Payments Bank (IPPB) on September 1, in a bid to push India’s rural population into the formal financial system. IPPB will have 650 branches and 3,250 access points across the country.
IPPB customers will get access to all the insurance products and services offered by Bajaj Allianz Life Insurance. These will include a comprehensive life insurance cover with accidental permanent total and partial disability benefit and accelerated critical illness.
IPPB offers a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments. These products, and related services are offered across multiple channels (post office counters, doorstep services and self-service channels) using the bank’s technology platform.
These products will first be available across IPPB’s network of 3,250 access points, gradually expanding to 155,000 post offices across every village, town and district in India.
Suresh Sethi, MD & CEO, IPPB said this strategic partnership will enhance customers’ understanding on how life insurance secures them against life risks and also provides them access to the products to mitigate such risks.
A long-time aspirant, Department of Posts was among the 11 entities that got the final licence in 2015 with an objective to increase financial inclusion by providing small savings accounts and payments/remittance services to migrant labourers, low-income households, small businesses and other unorganised sector entities.
Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance said, “We are confident that the strength of their network coupled with our expertise will work to increase awareness about life insurance, and help many more Indians leverage the benefits of life insurance to achieve their life goals through affordable solutions."