LIC may tie up with Bank of Maharashtra

Venkatachari Jagannathan
15 November 2005

Chennai: The juggernaut may start slowly, but when it does roll, it rapidly acquires momentum. That is what seems to be at The Life Insurance Corporation of India (LIC) in the area of bancassurance.

The country's oldest, and largest, life insurer has started late tying up with banks for selling its policies. But it is going great guns in terms of roping in new partners and notching up business.

The latest news is that the Pune-based Bank of Maharashtra is likely to be LIC's new bancassurance partner. The bank is one of the few nationalised banks that does not have an insurance tie-up.

According to LIC officials, talks are on with Bank of Maharashtra and an announcement could be expected soon. According to industry sources, the bank was earlier seriously considering the tie-up with a private insurer as a partner but did a rethink.

It may be recalled that the Bank of Rajasthan did not renew its bancassurance agreement with Birla Sun Life Insurance Company Limited and instead signed up with LIC. Recently, the insurer also signed up with IndusInd Bank.