Star Union Dai-ichi Life to commence operation by December

New Delhi, Aug 27, 2008 (Asia Pulse Data Source via COMTEX) -- BKIAF | Quote | Chart | News | PowerRating -- Star Union Dai-ichi Life Insurance, three way venture promoted by Bank of India, Union Bank of India and Dai-ichi of Japan is likely to commence its operations in the next four months.

"We have got R1 (initial regulatory clearance) approval and are in the in process of filing R2 with the IRDA. We expect to begin our operation by the end of December," Union Bank of India General Manager B L Javeri told PTI.

The company is currently putting in place IT framework and other necessary linkages, he said.

Once R2 is cleared, the insurance company will file draft offers for the products to be launched, he said.

To begin with, Star Union Dai-ichi will introduced 5-6 products including micro-insurance, term and endowment, he added.

Bank of India has a 51 per cent stake in the new company, while Dai-ichi and Union Bank hold 26 per cent and 23 per cent, respectively.

The company with focus mainly on bancassurance will have about 7,000 branches of both the banks for distributing its products.

Bank of India has been selling ICICI Prudential Life' s policies and Union Bank has been distributing HDFC Standard Life's policies. After coming into existence of Star Union Dai-ichi, both banks will become corporate agents of the new entity.

Meanwhile, the bank has forayed into wealth management business which will cater to high net worth individuals having investable surplus of Rs 10 lakh.

For this, Mumbai-based Union Bank of India has tied-up with Wealth Advisors India.

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