India Post Payments Bank and Bajaj Allianz announced a five-year partnership to sell life insurance products on a revenue share basis.
Under the partnership, India Post Payments Bank (IPPB) will facilitate customers to pay for Bajaj Allianz life insurance products through their accounts. “Financial inclusion and financial literacy are the key requirements for any progressive nation, and I believe this partnership will enable India to move steadily in that direction,” Department of Posts Secretary A N Nanda said while announcing the partnership.
The products will be first 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.
“IPPB cannot sell insurance on its own but tie-up with the third party for offering their product. We will get a commission on the sale of third-party products. In next 50-60 days, we will also facilitate payment of postal life insurance products. There will no overlap of insurance products between Department of Posts offerings and Bajaj Allianz,” IPPB MD and CEO Suresh Sethi said.
He said that the digital product offering footprint of Bajaj Allianz is well established and this will help IPPB in facilitating sale through a paperless process.
Bajaj Allianz Life Insurance, MD and CEO Tarun Chugh said that he expects the partnership should continue forever but at the moment it has been signed for a five-year period.
“Though this partnership we will get access to rural customers through one of most credible institution of the country. Bajaj Allianz Life has dedicated teams across the board to ensure this partnership benefits IPPB, its customers, and imbibes the financial inclusion vision of the country,” Chugh said Under the partnership Bajaj Allianz Life will offer life insurance solutions, which will also include a comprehensive life insurance cover with accidental permanent total and partial disability benefit and accelerated critical illness.
Launched on September 1, the IPPB has gained around 9 lakh customers.