The New India Assurance Co. Ltd., India's largest Non-Life General Insurance Company and The Central Bank of India, one of the leading Nationalised commercial Banks of the country, have today signed MOU paving way for a Bancassurance tie-up between the two organisations. Under this arrangement, Central Bank of India will now distribute the non-life Insurance Products of The New India Assurance through its Branch network spread all over India. As per the Memorandum of Understanding, Central Bank of India will become the Corporate Agent of New India Assurance after completing the formalities prescribed by IRDA.

Central Bank of India is one of the largest Public Sector Banks in the country having network of 3130 branches spread over 27 States and Union Territories, of these 1622 branches have been computerized covering 88% of the total business. 417 branches of the Banks are in Metro Centres while 1295 branches are in Urban and Semi-urban Centres and 1418 branches are located in Rural Centres. The Bank has manpower of around 39000 with 25 million customer base.

During the financial year ended 31st March, 2004, the total business of Central Bank of India has crossed Rs. 80000 crores and achieved a Net Profit of Rs. 618 crores. There has been an all round growth in Bank since the introduction of C4C Concept "Centralites" for Customers". Under C4C concept, the Bank has also started cross-selling insurance products, under a tie-up with Life Insurance Corporation of India.

New India, with a Gross Domestic Premium Income of Rs. 4,040 Crores and worldwide premium income of nearly Rs. 5,000 Crores, for the financial year 2003-04 is the undisputed leader in the Indian General Insurance market. The Company has been reaffirmed 'A' (Excellent) rating for the 5th consecutive year by A.M. Best (Europe). For New India, the tie up with Central Bank of India, one of the leading commercial banks of the country with a branch network of 3130 branches spread all over the country comes as a major boost in increasing its reach. Bancassurance as a distribution channel is assuming increasing importance for both life and non-life insurers. The MOU on behalf of New India was signed by Mr. R. Beri, Chairman-cum-Managing Director and on behalf of Central Bank of India, by Dr. Dalbir Singh, Chairman and Managing Director, in the presence of the top functionaries of both the organisations.

26/05/2004
IBD & Publicity, NIA, H.O.
MUMBAI