IFFCO-Toko signs MoU with coop banks

IFFCO-Toko General Insurance Company has entered into a Memorandum of Understanding with Thanjavur Central Co-operative Bank and Kumbakonam Central Co-operative Bank for providing non-life insurance cover to movable and immovable properties of nearly 8 lakh-strong customer base of the banks spread over 52 branches in the Cauvery delta districts of Thanjavur, Tiruvarur and Nagapattinam.

The MOU was signed by K. R. Subramanian, Chief Manager, IFFCO-Tokio General Insurance Company Ltd and K.Sivaji, Regional Joint Registrar of Co-operatives, Thanjavur district and D. Amaldas, Regional Joint Registrar of Tiruvarur district at the Thanjavur Central Co-operative Bank here on Tuesday.

Eleven Urban Co-operative banks operating in the delta districts also signed the MOU.

Mr Subramanian said that IFFCO-Tokio is focussing on tapping the largely unexplored rural market with specially designed products, which serve the rural population. In this effort IFFCO-Tokio is joining hands with the District and state co-operative banks in making these products available to the rural customers. As the first step of these tie ups, MOU was signed with the Tamil Nadu State Apex Co-operative Bank on August 20. Nearly two lakh premiums have been collected so far. This is now followed by the MOU signed on Tuesday at Thanjavur. This will help bankers, its customers and general public in rural area. Banks can earn additional revenue and are entering into a business other than core banking.

Mr. Sivaji said that this scheme will be slowly introduced to Primary Agriculture Co-operative Credit societies in the next phase and cover wide range of rural members. This kind of business diversification helps the banks to remain viable. Mr Amaldas said that the scheme will provide risk cover to the rural population. Antony John Peter, Special Officer of the Thanjavur Central Co-operative Bank, Krishnan, Area Manager, IFFCO and M. Gunasundar, General Manager, Kumbakonam Central Co-operative Bank participated in the function.

IFFCO-Tokio Insurance company is a joint venture promoted by Indian Farmers Fertilisers Co-operative (IFFCO) and its associates and the Tokio Marine and Nichido Fire, the largest insurance company in Japan. Indian Promoters contribution is 74 per cent while Tokio Marine has contributed 26 per cent through Group company Tokio Marine Asia Pvt Ltd.