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Money & Banking - General Insurance
UI move to shift a/cs to private banks opposed

Our Bureau

Kochi , July 3

The employees' unions of the public sector United India Insurance Company have opposed the management move to shift its bank accounts to the foreign banks and new generation banks in the private sector.

Alleging that the new generation banks are not giving any business and premium to the insurance company, Mr P.P. Mohanan, State General Secretary, General Insurance Officers All India Association, said United India was getting an annual premium of Rs 33 crore through "bank assurance" scheme with the nationalised banks such as SBT, Union Bank of India, Indian Bank, Andhra Bank, North Malabar Gramin Bank and South Malabar Gramin Bank. The bank is also having a similar arrangement with Federal Bank and South Indian Bank in the private sector.

As instructed by the United India Insurance head office, IndusInd Bank will get the fast collection account of the company's 28 offices in Kerala. Other banks are Standard Chartered Bank, HSBC and IDBI, he said. For the last one year, 14 branches of HDFC Bank and seven branches of Vysya Bank were doing the fast collection account of the company.

Even though the decision was to come into effect from July 1, due to opposition from various quarters the management has deferred its implementation temporarily, he said.

According to him, at present, public sector banks are dealing with the accounts of the company in the State and once it is shifted to three new generation banks, the company would lose a good share of `bancassurance' premium.

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