Tata AIG Life & Allahabad Bank Offer Housing Loan Cover to Customers
Tata AIG Life to provide cover for existing and new housing loan clients under mortgage
reducing term insurance of Allahabad Bank
Defined non-medical limits to facilitate easy enrolment and simple underwriting: Policy
will continue even in the event of foreclosure or transfer of balance
Kolkata, July 2, 2008: Tata AIG Life Insurance Company Limited (Tata AIG Life) and
Allahabad Bank today announced launch of a plan for providing exclusive mortgage term
insurance facilities for housing loan customers of the Bank. As per the agreement, Allahabad
Bank will extend Tata AIG Life’s housing loan cover to its customers through its network of
2154 branches across India.
Tata AIG Life will offer a reducing term life insurance designed to cover mortgage loan
obligation of the insured member against death during the term of the coverage. In case of an
unfortunate event like death of the mortgage loan borrower, the insurance cover will provide
for repayment of the housing loan, thereby freeing the property for the policyholder’s family
members.
Under this plan, the customer will not be required to undergo medical tests upto defined
limits. Additionally, insurance coverage on the initial agreed loan tenure will continue in case
of foreclosure or transfer of balance.
This plan will benefit all the three constituents of this partnership – housing loan customers,
Allahabad Bank and Tata AIG Life. Allahabad Bank will avoid delinquency cases which
occur because of the untimely death of the housing loan customer. Tata AIG Life engages in
servicing a new customer base, and last but not the least, housing loan customers will have
the security of insurance to provide for the repayment of their housing loan and availability
of the house for their family in the event of their untimely death and/or permanent
disablement.
Speaking at the occasion, Mr. J.P Dua, Executive Director, Allahabad Bank said, ‘We
recognize the need to offer our customers best-in-class products and services beyond core
banking. The tie up for mortgage insurance is another step in that direction. We expect to
work closely with Tata AIG Life and expand the suite of insurance solutions for our
customers. What we are seeing is the tip of the ice-berg.’
In order to have a pan-India presence, the Bank has opened 94 new branches in 2007-08 with
the total number of branches moving up to 2154 by the end of the last financial year. The
Bank has authorisation for opening 117 new branches in select centres across the country
where it has relatively less presence.
Commenting on the alliance, Mr. Joydeep Roy, Chief Distribution Officer, Tata AIG Life said:
‘This is a win-win-win situation for all three stakeholders in this partnership. We have
designed a very competitive offering exclusively for customers of Allahabad Bank. I am
confident that this will facilitate securing the housing loan they avail of. At Tata AIG Life,
we are constantly searching for partners who have deep and resilient client relationships. In
Allahabad Bank we have found a partner to build sustainable and beneficial product and
service models for their clients.’
Tata AIG Life has embarked on a massive expansion project increasing its branch distribution
network from 80 offices to over 300 in just over one year. The insurance major has been
concurrently investing in its advisor network, increasing the strength from under 30,000
advisors to over 50,000 during the same period. The company has launched nine products
over the past year ranging from customizable ULIPs to Annuity plans.
Allahabad Bank
The Oldest joint-stock bank of the country, Allahabad Bank was founded on April 24, 1865
by a group of Europeans at Allahabad. At that juncture organized industry, trade and banking
started taking shape in India. The Bank came out with Initial Public Offer (IPO), in October
2006, of 10 crores share of face value Rs.10 each, reducing Government shareholding to
71.16%. The Bank's business crossed Rs.1,00,000 crores mark in March 2007.
Tata AIG Life Insurance Company Ltd.
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company,
formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life
combines the Tata Group’s pre-eminent leadership position in India and AIG’s global
presence as one of the world’s leading international insurance and financial services
organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG
holding the balance 26 per cent. Tata AIG Life provides insurance solutions to individuals and
corporates. Tata AIG Life Insurance Company was licensed to operate in India on February
12, 2001 and started operations on April 1, 2001.
The Tata Group
The Tata Group is one of India's largest and most respected business conglomerates, with
revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per cent of
the country's GDP, and a market capitalization of $72.2 billion as on December 6, 2007. Tata
companies together employ some 289,500 people. The Tata Group has operations in more
than 85 countries across six continents, and its companies export products and services to 80
countries.
American International Group, Inc. (AIG)
American International Group, Inc. (AIG), a world leader in insurance and financial services, is
the leading international insurance organization with operations in more than 130 countries
and jurisdictions. AIG companies serve commercial, institutional and individual customers
through the most extensive worldwide property-casualty and life insurance networks of any
insurer. In addition, AIG companies are leading providers of retirement services, financial
services and asset management around the world. AIG's common stock is listed on the New
York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.