AIG, Pakistani Bank Offer Immigrant Accident Cover

By Michael Ha

NU Online News Service, Jan. 16, 4:09 p.m. EST?American International Group Inc. is teaming up with the National Bank of Pakistan to offer a free year of accidental death and dismemberment coverage to U.S. clients who use the bank to send money home to Pakistan.[@@]

Under the agreement, U.S.-based Pakistani customers who remit funds to their home country through the National Bank of Pakistan will automatically get $10,000 accidental death and dismemberment coverage at no extra cost, with the bank paying premiums on their behalf.

This new coverage is "the first program of its kind that we are making available to the remittance population," Nicolas Walsh, president and chief executive officer at AIG's American International Underwriters, said during the program's official launch this morning at the National Bank of Pakistan' New York office.

The program has the potential to reach a significant number of Pakistanis living in the United States. Currently, there are between 500,000 and 700,000 Pakistani nationals living and working in the United States, explained Rafiq Bengali, regional chief executive for the National Bank of Pakistan. And these Pakistanis, he added, together control some $250 billion in assets and remit $500 per month on average to their families and relatives back home.

Mr. Bengali--whose bank commands 10 percent of this U.S.-Pakistani remittance market, sending more than 3,000 remittances per month--said he hopes this program would trigger other banks to follow suit. "Every Pakistani living here has someone back home, parents and families," Mr. Bengali told National Underwriter.

"The United States is a fast-paced country. People do get hurt and people do get into accidents, and we are adding significant value by providing security to our customers and their beneficiaries back home," Mr. Bengali said.

He noted that Pakistani nationals in the United States are engaged in a wide variety of work, ranging from blue-collar occupations to professional jobs--including engineering, medicine and high-tech fields.

Coverage for this insurance will become available for a one-year period from the first remittance, and only a single transaction is needed to become eligible for the program. Mr. Bengali explained that the coverage is now available at the bank's branches in New York City and Washington, D.C., and he said his bank is working with AIG to bring similar programs to remittance customers in the United Kingdom and Continental Europe over the next six-to-12 months.

"Home remittances are not only important to our customers and their beneficiaries in Pakistan, but also to Pakistan's economy and foreign exchange reserves," he added. As such, the importance of helping Pakistani remitters around the world has been conveyed by top government officials in Pakistan, including President Pervez Musharraf, Mr. Bengali said.

The bank said there is no minimum requirement for an amount that must be transmitted.

Special Reports /

AIG, Pakistani Bank Offer Immigrant Accident Cover

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