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Bajaj-Allianz to sell insurance through SREI

Bajaj-Allianz General Insurance Co has tied up with financial services firm SREI International Finance Ltd to distribute its insurance products, a statement said on Tuesday.

Bajaj-Allianz is a joint venture between two-wheeler maker Bajaj Auto and German insurance giant Allianz AG. It started operations in May and its products include motor, property, rural, engineering and health insurance.

It is one of several companies that entered the insurance business in India after the government threw open its insurance sector to private firms in 1999 after decades of state control.

Foreign companies are allowed to hold up to 26 per cent in an Indian insurance company.

"SREI Insurance has signed a memorandum of understanding with Bajaj-Allianz General Insurance Co Ltd in order to promote and market the non-life insurance business and other related products," an SREI statement said.

SREI Insurance is a subsidiary of infrastructure finance firm SREI International Finance Ltd.

International Finance Corp, the Dutch agency Nederlandse Financierings-Maatschappji voor Ontwikkelingslanden NV and German DEG jointly hold 20 per cent of the equity in SREI International.

Earlier this year, SREI International signed a pact with HDFC Standard Life Insurance Co to distribute its life insurance products.

Total insurance penetration in India is currently around 1.93 per cent with life insurance products at 1.39 per cent and non-life at 0.54 per cent, industry officials say.

Allianz services 60 million clients in over 70 countries. Its assets under management amount to around $740 billion.

Bajaj Auto Ltd manufactures and markets two and three-wheelers and is the biggest player in the scooters segment.

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