Union Bank of India has tied up with HDFC Standard Life Insurance Company Ltd to provide bank depositors an insurance cover under group policy with a target to bring in 50,000 customers under risk cover by March.

The state-owned bank, which already has a corporate agency agreement with HSLIL since December 2002 to market the latter's policies, sold 22,000 insurance policies for sum assured of Rs 225 crore (Rs 2,250 million) with aggregate premium of Rs 16 crore (Rs 160 million).

Speaking to reporters in Mumbai, UBI chairman V Leeladhar said this offering was aimed at providing quality services to depositors.

The bank has 13 lakh (1.3 million) depositors with deposit base of Rs 47,000 crore (Rs 470 billion) and it would initially provide insurance cover facility through 800 branches in metro and urban areas, Leeladhar said.    

HSLIL managing director D M Satwalekar said the private sector insurance company plans to extend insurance cover to 50,000 depositors for premium ranging between Rs 249 to Rs 1,020 per annum in the current fiscal ending March 2004.