Universal Sompo launches loan secure insurance for Dena Bank

The product will safeguard the financial assets of banks and prevent accounts from becoming non-performing assets

Universal Sompo General Insurance has launched a loan secure insurance product for retail and SME (small and medium enterprises) customers of Dena Bank. The insurer has already tied up with Indian Overseas Bank, Karnataka Bank and Allahabad Bank who are its promoters, apart from Corporation Bank to sell this product to bank customers.

O N Singh, executive chairman of Universal Sompo, said 10,000 policies had already been sold in the past five months and have received good response for the product.

Ashwani Kumar, CMD of Dena Bank, said this product would safeguard financial assets of banks and prevent accounts from becoming non-performing assets (NPA). The product offers protection to the banks against an account turning into an NPA due to the borrower meeting with an accident, death or falling prey to a critical illness like cancer or heart ailment.

Universal Sompo is also in talks with other banks for a similar tie-up to offer this product.

The insurer, which achieved break-even in FY14, is targeting a total premium of Rs 750 crore for the current financial year.