After tying up with 15 banks, state-owned National Insurance Company on Friday signed a memorandum of understanding with leading NGO, HelpAge India, to distribute its products.

"HelpAge India is one of the leading non-governmental organisations with presence in 33 cities. We are aiming to leverage their network to increase our marketshare," NIC Chairman H S Wadhwa said.

The Insurance Regulatory Development Authority in October 2002 allowed NGOs to act as corporate agencies for insurance companies to channelise resources from the growth in the insurance sector, and also help the insurance companies to increase their alternate channels.

NIC already has tie-ups with all major PSU banks, state governments and auto manufacturers.

"We have signed agreements with the leading PSU banks, state governments of Haryana, Jammu and Kashmir and Uttaranchal, and auto makers like Maruti, Eicher and Bajaj Tempo," Wadhwa said.

With the tie-up with HelpAge India, NIC expects to record significant rise in premium. "The agreement with HelpAge is a major account and we are highly optimistic they are going to bring in sizeable amount of premium," he said.

HelpAge India would distribute the products through its 33 offices spread across 17 states, 50 mobile medicare units and over 3,000 rural schools.

In the first phase, HelpAge India will start distribution in nine cities -- Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Chandigarh, Jaipur and Lucknow.

The NGO would engage 13 exclusive trained personnel for the distribution, who would undergo training at NIC offices, which would be ramped up in due to course, HelpAge India director general M M Sabharwal said.