Tamilnad Mercantile Bank signs bancassurance pacts with Chola MS General and Max Life Insurance Company

Tags: Economy/Finance

The old private sector bank Tamilnad Mercantile Bank (TMB) has entered into bancassurance partnerships with Cholamandalam MS General Insurance Company Ltd and Max Life Insurance Company to provide general insurance products and life insurance schemes respectively to TMB’s customers.

Under the agreement, Tuticorin-based TMB’s 500-plus branches will start retailing the insurance products of both companies.

Bancassurance 

 It is the selling of insurance products through banking channels. In  Bancassurance a bank enters into an agreement with an Insurance company. The Bank makes its customer database available to the Insurance companies. If the bank customer buys the insurance products then the bank will receive a commission from the Insurance companies.

Here both the bank and the Insurance companies benefit. The Insurance companies get new customers and banks earn extra income.

Regulator of Bancassurance in India 

Bancassurance sector is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).

Tamilnad Mercantile Bank (TMB)

It was set up at the Nadar Bank limited in 1921 by Nadar business community of Tamilnadu.

It was renamed as Tamilnad Mercantile Bank in 1962.

It is a Private sector bank in India.

Managing Director (MD) and Chief Executive Officer (CEO): S.Krishnan

Headquarters: Tuticorin, Tamil Nadu

Tagline of the bank: Be a Step Ahead in Life