Oriental Bank of Commerce today entered into a MoU with Oriental Insurance Co Ltd for selling Mediclaim policies to the bank's customers through its pan-India network.
Oriental Bank Mediclaim policy is a cash-less family floater covering the members of the beneficiary's family. The policies are available for Rs. 1 lakh to Rs. 5 lakh. For a policy of Rs. 5 lakh, the premium is as low as Rs 6,705 a year.
The Memorandum of Understanding was signed by Mr. R.M. Sharma, General Manager, Oriental Bank of Commerce (OBC) and Mr. A.K.Saxena, General Manager, Oriental Insurance Co, in the presence of Mr. Nagesh Pydah, Chairman and Managing Director of the bank, and Mr. R.K. Kaul, Chairman and Managing Director of the insurance firm.
Mr Kaul noted that this policy has some features that are unique for OBC's customers. "This product will be available for all OBC customers up to the age of 79 years. Also, no medical checkup will be required."
So far, Oriental Bank was not looking at general insurance products as a source of "revenue" for the bank. However, there is now a change in its revenue model and OBC has decided to also focus attention on general insurance products for increasing its fee-based income.
"This product was a long-felt need of our customers. Oriental Bank Mediclaim policy will fill the gap in our bouquet of products and services. This should help us in our fee-based income and also in bolstering CASA. This will be a great opportunity for us to build our Current Account Savings Account (CASA) deposits," Mr Pydah said.
All Metro and urban branches of the bank have been mandated to sell minimum 250 policies in the next six months, he said. The six-month target has been pegged at 175 policies for semi-urban branches and 75 policies for rural branches.