BoI-ICICI Prudential Life in loan protection insurance deal
By Our Banking Bureau | 30 Nov 2005
Mumbai: Bank of India has tied up with ICICI Prudential Life Insurance Company to provide loan protection life insurance covers to its 'Star home loan' borrowers.
BOI's retail lending especially in the home loan portfolio has recorded a growth of Rs2,644 crore a 28.69 per cent y-o-y growth and reached Rs11,859 crore (as on September 30, 2005). Incremental growth under the its Star home loans, during half year ended September 30 was 37 per cent annualised, with disbursements of Rs638 crore.
The insurance product being offered has been developed to include features like low premium rates, loans for insurance premium, higher non-medical limit, premium at discounted rate for younger borrower in joint account, avoids home loan burden on family, ease for settlement of claim, availability of tax exemption for premium and claim proceeds as per Income-tax rules etc.
The bank has specialised housing finance branches and has introduced 'retail hub-and-spoke' model for retail credit in to offer competitive service and reduce turnaround time.
The bank also has a bancassurance tie-up with ICICI Prudential through which it generated premium of Rs.12.69 crore during the half year ended September 2005..