Bank of Baroda, Max Bupa go for bancassurance tie-up

Public lender Bank of Baroda and Max Bupa, a specialist health insurer, on Saturday put in place a bancassurance corporate agency agreement.

As part of the tie-up, Max Bupa will offer its comprehensive health insurance offering to the diverse customer base of Bank of Baroda across the country, according to a release.

This arrangement comes on the back of IRDAI's new bancassurance guidelines which permit banks to tie up with multiple insurers to distribute insurance products to bolster penetration of health insurance in the country, which is currently between 5-7%.

In the initial phase, Max Bupa will provide simple and customisable product variants, with sum insured ranging from Rs 50,000 to Rs 1 crore, to 60 million customers of the bank.

Bank of Baroda Executive Director Mayank K Mehta said, "A compelling product proposition and focus on customer centricity, combined with a strong market reputation, makes Max Bupa the right partner for us to provide holistic health solutions to our diverse customer segments." Max Bupa MD and CEO Ashish Mehrotra said: "Through this partnership, we aim to double our customer base over the next 2-3 years."