PNB Principal Insurance Company will sell its products only through banking channels. It will not have an agents' force. | |
| The four-way joint venture is yet to receive final clearance from the Insurance Regulatory and Development Authority to start business. |
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| Punjab National Bank will hold the largest stake in the venture, while the US-based Principal group, Vijaya Bank and Berger Paints will have smaller shareholdings. |
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| The insurer plans to leverage the 6,000-odd branches of Punjab National Bank (PNB) and Vijaya Bank to push products. |
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| "Ours will be a very different approach with a 100 per cent bancassurance model. We will be able to save a lot since we do not need to set up any physical network," said senior officials at the Principal group. |
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| Bancassurance is the sale of insurance products through bank branches. |
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| SBI Life had wanted to take a 100 per cent bancassurance model too but regulations did not permit it at the time when it started operations. |
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| Only about 25-30 per cent of insurance policies sold today in India are done through the bancassurance model. Said the Principal official, |
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| "Public sector bank branches are very under utilised. Little do people tap the potential that lie in them and we want to capitalise on their reach." |
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| The new insurance company which is expected to get the regulator's nod in 2-3 months time. PNB will hold the maximum stake in the company at 30 per cent while the remaining 70 per cent will be held between the other three partners. |
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| The exact shareholding pattern is yet to finalised, said sources. The four entities had entered into a memorandum of understanding back in April 2004 to roll out an insurance company. |
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