India-based Apollo Munich Health Insurance (AMHI), a joint venture (JV) between Apollo Hospitals Group and Munich Health, has signed a bancassurance agreement with Canara Bank to sell its insurance products through bank branches across the country.

Based on the terms of the agreement, the lender will serve as a corporate agent for the health insurer and market its products to bank’s customers.

This agreement follows the Insurance Regulatory and Development Agency (IRDA) directive, allowing banks to act as license partners of insurers.

Apollo Munich Health Insurance CEO Antony Jacob was quoted by as saying this is the first tie-up by a non-bank promoted health insurer with a bank after IRDA relaxed the norms for segments beyond general and life insurance.

Jacob further added with the tie-up with Canara Bank, AMHI will expand its reach to 50 million customers of Canara Bank’s 4,200 branches.

Canara Bank chief managing director RK Dubey said, "We provide additional value to our customers by offering health insurance. The penetration of health insurance in semi-urban and rural areas is very limited."

"With 65 per cent of our branches located in such places, we hope to provide health cover to a large number of uncovered customers," Dubey told the news portal, adding that the bank expects INR100m premium by the end of next year.

Targeting Canara Bank customers, AMHI has launched two products, including Easy Health Group, with a cover up to INR2lakh ($3247) annually, to cover family members of all age groups and does not require medical tests for enrollment.

Another policy dubbed as Optima Restore offers a cover of up to INR1m ($16237), which will be restored without extra cost after it is exhausted during the tenure

Antony Jacob said, "The company also plans to introduce specific products for lifestyle diseases like diabetes and hypertension for Canara Bank customers."