Ing Vysya Sales Begin Through Bancassurance

ING Vysya Life Insurance Company has kicked off sales of insurance products in the country through the bancassurance channel. Even as the regulations pertaining to bancassurance have yet to be amended to facilitate sales through this route, ING Vysya has sold 20 per cent of the policies through the branches of the south-based Vysya Bank.

Yvo Metzelaar, deputy managing director & president of the insurance company said: "Agents, selected among Vysya Bank staff and sitting in the branches, have sold 20 per cent of the policies by tapping the bank's customer base". ING Vysya Life is a three-way partnership with ING Group, Vysya Bank and GMR Technologies and Industries.

Since its launch four months back, ING Vysya has exceeded expectations and targets by well over 60 per cent. "We have already exceeded sales of policies by 60 per cent and the average premium size by 65 per cent than what we had planned," said ING Vysya CEO & managing director Ton van der Star.

The tax incentive available when buying life insurance products will boost sales in the current quarter. The life insurer operates in four cities but has a reach in 10 more cities through Vysya Bank's branches.

Of the 700 agents recruited, 50 are bank employees and are selling policies to the bank customers. ING Vysya further intends to tap the 113 rural branches in Karnataka, Andhra Pradesh and Tamil Nadu for the sale of its rural product -- a 10-year endowment policy 'secure life rural endowment plan'. The product filed with the regulator, offers a sum assured of Rs 5,000 with a guaranteed addition of Rs 200 per thousand from the sixth year onwards. "On a premium of less than Rs 1,000, a person would get a benefit of Rs 10,000 in 10 years on a sum assured of Rs 5,000," said Metzelaar.