New Delhi: In a move aimed at financial inclusion, India Post Payments Bank (IPPB) on Tuesday partnered with Bajaj Allianz Life Insurance to expand product offerings for its customers. The insurance products will first be available across IPPB’s network of 3250 access points, gradually expanding to 155,000 post offices across every village, town and district in India, said the bank in a statement.
Bajaj Allianz Life Insurance is the first life insurer to tie-up with the newly formed bank. The private insurance company also said it will ensure that the awareness on the benefits of life insurance reaches every IPPB customer.
“Financial inclusion and financial literacy are the key requirements for any progressive nation, and I believe this partnership will enable India move steadily in that direction. A partnership that brings together a government entity and a large private life insurance player together to take forward such a critical mandate showcases the dedication of the government and the brand to deliver on the vision they have for the country," A. N. Nanda, Secretary, Department of Posts, said at the launch event.
The payments bank which was launched on 1 September by Prime Minister Narendra Modi aims to provide “a wide array of simple yet value-rich life insurance products and services" by Bajaj Allianz to financially underserved customer segments – especially rural households, small and medium enterprises and women.
“As we look forward to becoming India’s most accessible bank, it is important to drive financial inclusion through financial literacy. This strategic partnership will enhance customers’ understanding on how life insurance secures them against life risks and also provide them access to the products to mitigate such risks," Suresh Sethi, managing director and chief executive officer of IPPB said.
The partnership agreement between IPPB and Bajaj Allianz is valid for a term of 5 years.
“We are confident that the strength of their network coupled with our expertise will work to increase awareness about life insurance, and help many more Indians leverage the benefits of life insurance to achieve their life goals through affordable solutions," Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance, said.
IPPB has been incorporated as a public sector company under the Department of Posts with 100% government equity and is governed by the Reserve Bank of India.
IPPB offers a range of products such as savings and current accounts, money transfer, direct benefit transfer, bill and utility payments and enterprise and merchant payments. Customers are able to access these products and related services across various channels—counter services, micro-ATM, mobile banking app, text messages and phone calls.