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Uttarakhand
Post – Aviva Life Insurance – Tie-up
(A) Introduction
Uttarakhand Post has been operating Postal Life
Insurance as a limited Insurance Services since 18.8.2003. Rural
Postal Life Insurance as a special product for the rural India was
introduced in 1996. Of late with the introduction of Unit Linked
Insurance products in the market our traditional customers are weaning
away from us. With the object of roping in our traditional customers,
desirous of a Unit Linked Schemes, a tie-up was made with Aviva
Insurance in Uttarakhand Circle as a test case. An agreement to this
effect was signed on 7.12.2007.
Aviva is World’s 5th largest Insurance Group and
the biggest Insurance Company in United Kingdom. It is 3rd
largest UK based Fund Manager and among top Ten in Europe.
(B) Main features of the
agreement
(1)
The tie-up envisages business with Uttarakhand Post under Bank assurance
stream (Post assurance in our case) with a referral modal.
(2)
Role of Post Office – The Postmaster or any other Postal
staff is only to provide the required “lead” to the Aviva Agent.
The “lead” is given by the Postal staff on the basis of his
knowledge of the paying capacity of the customer who is normally a
traditional investor of the Post Office but unsatisfied now, because
of low rate of returns of the Post Office SB Schemes and NSCs.
(3)
Role of Aviva agent : -Perusing the “lead” further to
its logical conclusion is the job of the Aviva Agent attached to that
specific Post Office. A network of 35 sale agents of Aviva are being
posted all over the state of Uttarakhand for conducting this business
exclusively through Post Offices.
(4)
Commission : - The Post Office gets the commission as a
share of the premium collected on the initial deposit as well as
future premium as trial business. The rate of commission is on the
basis of IRDA approved rates that prevail uniformly in the Industry.
(5)
Scope : - The tie-up is limited only to the Unit Linked
and Pension Product that are not being sold by India Post. The tie-up
does not cover any product that is being serviced presently by Postal
Life Insurance or Rural Postal Life Insurance.
(C)
Business profile
At
present the scheme is operating in the 4 districts of Uttarakhand. It
is expected to extend the rest of the cities in near future.
Month-wise and total income earned in the Circle so far is as
follows: -
|
Period
|
Policy
issued
|
Business
conducted
|
Commission
earned (in Lakh)
|
|
June
08 to Dec 08
|
1361
|
246.40
lakh
|
22.95
lakh
|
(D)
Business Potential
The business potential as
projected by the Aviva Insurance Co. is
as follows
: -
|
Year
|
No.
of Policies
|
Total
premium
|
Revenue
to PO
|
|
1st
|
2723
|
Rs.
4.67 Crore
|
Rs.
1.21 Crore
|
|
2nd
|
11266
|
Rs.
24.00 Cr.
|
Rs.
6.2 Cr.
|
|
3rd
|
21023
|
Rs.
53.00 Cr.
|
Rs.
13.8 Cr.
|
(E) Advantages of the
tie-up to the Department of Posts
(a)
To win back the traditional customer looking for Unit Linked
modern day Insurance products.
(b)
An attractive revenue sharing by selling a 3rd party
product at zero cost.
(c)
Exposure of our employees to the modern day Insurance Products
in partnership with a world renounced Company.
(d)
Market recognition for signing an agreement with the World’s
5th largest and UK’s No. 1 Insurance Company.
More...
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