The existing and prospective Savings Bank (SB) account customers of State Bank of Hyderabad (SBH) will now enjoy a free personal accident insurance cover.

A cover of Rs 1 lakh would be extended to over 60 lakh existing customers and new customers against death due to accident, Ms Renu Challu, Managing Director, SBH, told newspersons here on Monday.

SBH had entered into an agreement with United India Insurance Company Ltd (UIICL) for providing insurance cover to its customers.

The approximate cost likely to be incurred by bank in the scheme is Rs 10 per account.

“Two-years back, we were rated No. 1 in SB customer service. Since then we have been specifically focussing on further improving our service. The offering of free insurance against accident is a part of it,” Ms Challu said.

The insurance cover would be offered for a period of one year from July 1, 2011, for the existing customers and one year from the date of opening of account for the new customers.

“There is no requirement to undergo any medical tests or fill forms to get coverage,” she added.

In the event of a mishap, the bank would act as a facilitator for making a claim to the insurer.

SBH was also taking other initiatives such as changing the layout of branches to provide more space to customers and making them cleaner, she added.

Steady growth

Stating that SBH was maintaining a ‘steady' growth in the recent past, Ms Challu said: “In the last three years, our operating profit and net profit has grown by 120 per cent and 109 per cent respectively.”

Referring to the agreement with UIICL, she said SBH has had a long and fruitful association with UIICL for asset insurance and a health insurance scheme.

Mr G. Srinivasan, Chairman and Managing Director, UIICL, said his company's relationship with SBH in bancassruance was very fruitful.

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