Upcoming Bandhan Life partners with Bandhan bank insurance biz, eyes Rs 300cr premium in first year
Bandhan Life Insurance has entered into a strategic partnership with Bandhan Bank to expand its insurance business. Through this collaboration, Bandhan Life aims to leverage the extensive network of Bandhan Bank to reach a wider customer base. The partnership will likely involve cross-selling of insurance products to Bandhan Bank’s customers, offering them a broader range of financial services, including life insurance plans. This aligns with Bandhan Life’s strategy to enhance its presence in the growing insurance sector, while Bandhan Bank stands to benefit by diversifying its offerings and providing added value to its clients.
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Upcoming Bandhan Life partners with Bandhan bank insurance biz, eyes Rs 300cr premium in first year
Bandhan Life Insurance has formed a strategic partnership with Bandhan Bank to expand its life insurance business. This collaboration is focused on distributing life insurance products through Bandhan Bank’s extensive network of 1,700 branches, starting with 550 branches and aiming to cover the entire network by the end of the year. The partnership is expected to generate around ₹300 crore in new premium business in the first year, as Bandhan Life shifts its focus to offline distribution channels following its acquisition of Aegon Life earlier in 2024.
In addition, Bandhan Life plans to introduce insurance products tailored for Bandhan Bank’s microfinance customers, as well as expand its presence by establishing up to 20 offices nationwide (business-standard) (business-standard).
Life insurance firms to discuss norms on surrender value on Sept 27 meeting 2024
- On September 27, 2024, life insurance companies are meeting to discuss the implementation of revised surrender value norms that are set to take effect from October 1, 2024. These new rules, introduced by the Insurance Regulatory and Development Authority of India (IRDAI) in June, aim to improve payouts for policyholders who exit their policies prematurely. Under the updated guidelines, customers will receive a higher surrender value even after paying just one year of premiums, a significant change from the previous rules.
- However, many insurers are expected to seek a three-month extension due to the logistical challenges in revising traditional products and renegotiating terms with distributors. The industry is currently working to recalibrate existing products and integrate the changes into their systems, which may temporarily slow down new product launches.
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- Life insurance firms are set to meet on September 27, 2024, to discuss new norms regarding the surrender value of life insurance policies. The surrender value refers to the amount a policyholder receives if they decide to terminate their policy before its maturity date. Typically, surrendering a policy results in the payout of a portion of the premiums paid, often less than the total amount, and this meeting aims to address concerns and potentially revise those norms.
- The agenda for the meeting is expected to include:
- Revision of Surrender Value Guidelines: Insurance companies may consider updating the calculation of surrender values to provide fairer compensation to policyholders who exit their policies early. This could involve setting minimum guarantees or enhancing transparency in how these values are determined.
- Policyholder Rights and Benefits: Discussions may focus on how insurers can better communicate with policyholders about the implications of surrendering their policies, ensuring they are well-informed about potential losses or alternative options, like loan facilities against policies.
- Regulatory Compliance: The meeting might address compliance with any updated guidelines or regulations set forth by insurance regulators, like the Insurance Regulatory and Development Authority of India (IRDAI) or other governing bodies, which could influence changes in the surrender value norms.
- The outcome of this meeting could have a significant impact on policyholders, potentially offering more favorable conditions for those who opt to surrender their policies early, while balancing the financial sustainability of the insurers.
Bandhan Bank offers several types of insurance products, often in collaboration with leading insurance companies. These products cater to various customer needs, such as life insurance, health insurance, and general insurance. Here’s an overview of the types of insurance offered by Bandhan Bank:
Types Of Insurance ?..
| Life Insurance | |
| Health Insurance | |
| General Insurance |
1.Life Insurance
Term Life Insurance: Provides financial security to the policyholder’s family in case of the policyholder’s demise during the policy term.
Endowment Plans: A combination of life insurance and savings, where the policyholder gets a lump sum amount at maturity if they survive the policy term.
Unit-Linked Insurance Plans (ULIPs): Combines investment and insurance, where a portion of the premium goes toward life cover, and the rest is invested in market-linked funds.
Pension Plans: Help individuals save for retirement by providing regular payouts during retirement years.
Whole Life Insurance: Offers life cover for the policyholder’s entire life and ensures a payout to the family in case of death.
2.Health Insurance
Individual Health Insurance: Covers the medical expenses of the policyholder in case of hospitalization due to illness or accident.
Family Floater Health Insurance: Provides health coverage for the entire family under a single premium.
Critical Illness Insurance: Covers the treatment costs for critical illnesses like cancer, heart diseases, kidney failure, etc.
Personal Accident Insurance: Provides financial protection against accidental death or disability.
3.General Insurance
Motor Insurance: Offers coverage for damages or losses to vehicles due to accidents, theft, or natural disasters.
Home Insurance: Protects homes and their contents from risks like fire, theft, or natural calamities.
Travel Insurance: Covers unforeseen expenses during travel, such as medical emergencies, lost baggage, or trip cancellations.
Bandhan Bank partners with top insurance providers like HDFC Life, ICICI Lombard, and others to offer these insurance products to its customers. The specific insurance types and plans may vary based on partnerships and evolving product offerings.
