India’s Karnataka Vikas Grameena Bank (KVGB) and Life Insurance Corporation of India (LIC) have renewed their bancassurance pact.

The renewed agreement will enable the bank to sell various life insurance plans through its branch network of 636 offices.

Both parties signed a memorandum of understanding (MoU) to renew the bancassurance agreement.

Karnataka Vikas Grameena Bank chairman P. Gopi Krishna was quoted by The Hindu as saying that the bank has renewed the agreement with LIC to boost insurance penetration in rural areas.

Krishna further added that the lender is also facilitating affordable banking facilities in both urban and rural areas. The bank is serving more than eight million customers.

LIC zonal office Bangalore Regional Manager (B& AC) Sanjay Bhargav told the publication that LIC is providing new insurance plans with affordable premium. The insurer is also providing speedy claims settlement.

In January, Life Insurance Corp of India acquired a 51% stake in IDBI Bank. Subsequently, the bank started offering LIC insurance plans through its branch offices.

Founded in 1956, LIC is an Indian state-owned insurance group and investment company headquartered in Mumbai.

It has a customer base of more than 250 million and serves them through 2048 branches located across India.