Postal department seeks to form full-fledged company for life insurance business

The postal department plans to spin off the postal life insurance and rural postal life insurance operations into a separate business unit (SBU) for which it has moved a Cabinet note, Communications Minister Manoj Sinha said Wednesday. "For postal Life Insurance and rural postal life insurance, we have moved a Cabinet note. In the first phase it will involve the creation of an SBU and in the second phase a full-fledged insurance company," Sinha told reporters on the sidelines of an event to mark the second-anniversary celebration of India Post Payments Bank (IPPB).

The Minister hoped that the Cabinet approval would be received in next fortnight or so. Sinha said IPPB has rolled out 1.26 lakh access points over the last five months and over the next week or 10 days the number is expected to rise to 1.36 lakh.