Date:22/01/2007 URL: http://www.thehindubusinessline.com/2007/01/22/stories/2007012202151400.htm

Back United Bank ties up with Bajaj Allianz General

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Kolkata Jan. 21 United Bank of India (UBI) today tied up with Bajaj Allianz General Insurance Co for launching a health insurance plan. The plan, named United Swasthya Suraksha Yojana, is aimed at its customers.

The arrangement with the non-life insurance company is expected to translate into good business for the bank, Mr P.K. Gupta, Chairman and Managing Director, UBI, said here today.

The tie-up for general insurance, which has been in place since February 2005, has already yielded impressive results. At the same time, it has allowed UBI's clients to access insurance cover at a relatively low cost.

Last year was virtually the first full year for the tie-up. In the first few months (April-September, 2006), there has been a 200 per cent increase in the number of policies sold. Growth in premium income is even higher.

Mr K. Goyal, CEO, Bajaj Allianz, mentioned that the agreement with UBI will help cover a large number of individuals. The company, he added, has developed sufficient in-house facilities. The plan is to support the tie-ups it has with hospitals across India.

Set to cross biz target

United Bank of India is on its way to cross its business target of Rs 55,000 crore, which it had set for 2006-07, Mr Gupta said.

The bank, which recorded a business of Rs 54,000 crore or so in end-December, expects to close the current fiscal with well over what it had set out to achieve. The figure stood at Rs 45,000 crore in March 2006.

A number of factors, including UBI's own efforts at scaling up its presence in various segments, are being seen as the drivers behind the growth, it is stated.