IndiaFirst Life goes rural, ties up with Vidharbha Kshetriya Gramin Bank, Maharashtra

IndiaFirst Life Insurance, a joint venture between two of India's largest public sector banks - Bank of Baroda and Andhra Bank along with UK's leading risk, wealth and investment company Legal & General, today announced that it has tied up with Vidharbha Kshetriya Gramin Bank- An Regional Rural Bank sponsored by Central bank of India to reach out to its customers in the hinterland of Maharashtra.

The announcement was made by Dr. P. Nandagopal, Managing Director & CEO, IndiaFirst Life Insurance.Chandan Khasnobis, Chief Actuary, IndiaFirst Life Insurance, Kamalakar Sai, Chief Distribution Officer, IndiaFirst Life Insurance and M. A. Salam, Chairman, Vidharbha Kshetriya Gramin Bank were also present at the occasion.

The insurable population of the functional area in Maharashtra is about 1 crore from which the company expects to cover nearly 1,00,000 accounts in a time frame of 3 years. Through this tie-up with Vidharbha Kshetriya Gramin Bank, IndiaFirst will reach over 100 branches across five districts.

Commenting on the occasion, Dr. Nandagopal said, "It gives me great pleasure to announce our tie-up with Vidharbha Kshetriya Gramin Bank. We believe that the rural market plays a very instrumental role in the Indian insurance sector and more particularly in our business. Thus insuring the wider populace that lives in the rural sector of the country in a long term business like ours will be a game changer in an emerging economy."

IndiaFirst is already present in Maharashtra through over 455 branches of Bank of Baroda and Andhra Bank with Maharashtra contributing approximately 12 percent of its total business.

"We are keen on spreading protection to the five districts of Maharashtra i.e Akola,Amaravati,Wasim, Buldana and Yavatmal through the Saving and Loan accounts of Vidharbha Kshetriya Gramin Bank. We want to ensure that all the account holders in the next 3 - 5 years, which will amount to over Rs. 10 crore by then, have insurance cover and are protected by us" said Mr. Salam.

Vidharbha Kshetriya Gramin Bank launched the Group Term Plan today which provides a life cover of Rs. 1 Lakh for mere 70 paise a day* (i.e., Rs. 264 /- per year). It also launched Group Credit Life Insurance to cover home loan, personal loan and educational loan for its existing and as well as new loan customers.

Dr. Nandagopal further added, "This new tie-up will help us serve our customers in rural areas in a better and effective way. While there is a mad rush by all to serve the urban populace, people in the rural areas are still a neglected lot. There is an urgent need in the country to not only taking financial services to the rural populace but also to make them financially literate for true development to take place."

IndiaFirst has also tied up with nine RRB's in the past.

It is accredited with surpassing its rural and social obligations laid down by the insurance regulators - Insurance Regulatory and Development Authority (IRDA). The company met rural obligation at 14% vis-a-vis obligation of 7% and in social obligation, they had covered 5,27589 lives against 5,000 lives ' truly taking the benefits of life insurance to the door steps of customers across the country, irrespective of their location.

IndiaFirst has also tied up with SERP (Society for elimination of Rural poverty), an autonomous society of the Department of Rural Development, Government of Maharashtra to provide cover to all members of Self Help Groups in the state of Maharashtra. This tie up is a part of its social sector obligation.