The Kolkata-based lender thus become a corporate agent of the health insurer.
This arrangement would help the loss-making bank boost its fee income.
UBI reported Rs 883 crore net loss in the second quarter, which was more than double the net loss of Rs 345 crore seen in the year ago period.
UBI has been under Reserve Bank of India’s prompt corrective action directives while chief executive of the bank Ashok Kumar Pradhan expressed hope of coming out of it by March 2019.
The government is in the process of infusing Rs 2,159 crore in the bank as part of Rs 28,615 crore capital infusion to be done in about half a dozen banks.