The Central Bank of India has launched the TReDS Insurance Policy in collaboration with Tata AIG General Insurance Company, reported SME Street.  

The new policy aims to enhance security and confidence for micro, small and medium enterprises (MSMEs) and financiers on Trade Receivables Discounting System (TReDS) platforms. 

This move establishes the insurer as the fourth key stakeholder in the TReDS ecosystem, joining MSMEs, buyers and financiers. 

Tata AIG General Insurance head of reinsurance, credit insurance, aviation Insurance Deepak Kumar said: “We are proud to collaborate with Central Bank of India on this forward-looking solution. The TReDS Insurance Policy is a testament to our shared vision of supporting India’s MSME sector through innovation and resilience.” 

The policy provides coverage against buyer defaults including corporate and government entities to reduce credit risk in TReDS invoice financing. 

Commenting on the launch, Central Bank of India general managers Pravin Kini and Sohail Ahmad stated: ”This strategic initiative reflects our commitment to empowering MSMEs and strengthening the digital credit ecosystem. By partnering with Tata AIG, we are ensuring that our stakeholders have access to a safety net that promotes trust and accelerates growth.” 

In June this year, the Central Bank of India announced a joint venture partnership with Italian insurer Generali, aiming to strengthen latter’s brand positioning and distribution capabilities in India’s life and property-casualty insurance segments. 

The announcement followed the bank’s acquisition of a 25.18% stake in Future Generali India Life Insurance Company and a 24.91% stake in Future Generali India Insurance Company. 

The Central Bank of India, a major public sector bank founded in 1911, operates more than 4,500 branches serving over 80 million customers.