Financial Daily from THE HINDU group of publications
Wednesday, Mar 06, 2002
Money & Banking
SBI Life joins hands with Sundaram Fin
MUMBAI, March 5
SBI Life on Tuesday signed a memorandum of understanding with the Chennai-based Sundaram Finance Ltd for marketing insurance products.
Sundaram Finance is also the promoter of the non-life insurance venture, Royal Sundaram Alliance Insurance Company.
Mr R. Krishnamurthy, Managing Director and Chief Executive Officer, SBI Life, and Mr G.K. Raman, Managing Director, Sundaram Finance signed the MoU today.
According to Mr Krishnamurthy, "This is the first corporate agency arrangement for SBI Life. Sundaram Finance will distribute our products on an exclusive basis, while SBI Life will develop tailor-made products for customers of the various group concerns of Sundaram Finance.''
SBI Life would train the employees of Sundaram Finance and the first batch was already underway, he said.
SBI Life would look for more such corporate agency tie-ups with "reputed and reliable companies.'' According to Mr Krishnamurthy, such tie-ups were essential to supplement bancassurance, once the legislations were in place.
Mr Raman said the tie-up with SBI Life would enable the company to offer customers life insurance products in addition to its prevailing suite of products.
Besides a strong presence in retail financial services, Sundaram Finance has a customer base of nearly half a million. With an asset base of Rs 2,000 crore, the company is primarily engaged in hire purchase of trucks and other automobiles. Its 110 branches will also be used to sell products of SBI life.
"SBI Life will look to provide customers of Sundaram Finance a combination of our products designed for customers of the group. We may look at offering group insurance schemes and other similar products,'' said Mr Krishnamurthy.
SBI Life is a joint venture between SBI and Cardif SA of France. Royal Sundaram Alliance Insurance Company is a joint venture between Sundaram Finance and Royal and Sun Alliance Group of the UK.
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