PICUP forays into general insurance business

Lucknow, Feb 23 (UNI) The Pradeshik Industrial Corporation of Uttar Pradesh (PICUP) today ventured into the insurance sector by inking a deal with the Bajaj Allianz General Insurance Company Limited.

An MOU in this regard was signed here today by PICUP General Manager (Finance) Devendra Singh and Zonal Manager Bajaj Allianz Tapan Singhal in the presence of UP chief secretary R Ramani.

Later CMD PICUP Deepak Singhal and Bajaj Allianz's Tapan Singhal said as per the MOU, PICUP will enter the general insurnace business by working as a Corporate Agent for the private insurance major.

As a corporate agent PICUP will primarily provide insurance cover to those industrial organisations, which have been sanctioned loan by it. For this work PICUP will get a commission of five to 16 per cent as fixed by the Insurance Regulatory and Development Authority (IRDA), the PICUP CMD said.

The PICUP employees will be trained for this new task by the Bajaj Allianz and once the state agency secures the Corporate Agent Licence, it will formally make a plunge into the general insurance market presently valued Rs 18,000 crore.

By venturing into the insurance sector PICUP will diversify its operations generally focussed on financing industries, the CMD of the Corporation said.

Mr Singhal, apprising about the status of PICUP said the state Corporation had recovered loans worth Rs 64 crore during 2005-06 sanctioned to various industries. This was 50 per cent more than the recovery made during 2004-05, he said, adding that this had been made possible due to the One Time Settlement (OTS) mechanism of the Corporation.

The Corporation has also paved the way for savings to the tune of Rs 59 crore, by making the payment of payables due to IDBI and SIDBI also under an OTS scheme, Mr Singhal added.

UNI ARS SC PC1814