Date:29/11/2005 URL: http://www.thehindubusinessline.com/2005/11/29/stories/2005112903050600.htm

Back Iffco-Tokio eyes Rs 750-cr premium income this year

Our Bureau

Mr Ajit Narain (left), Managing Director, Iffco-Tokio General Insurance Ltd, and Mr S. Narayanan, Executive Vice-President, at a press conference in Chennai on Monday. - - Bijoy Ghosh

Chennai , Nov. 28

IFFCO Tokio General Insurance Co Ltd expects to achieve a premium income of Rs 750 crore in the current year, 50 per cent more than last year, the company's Managing Director, Mr Ajit Narain, told newspersons here on Monday.

In the first half of the current year, the company earned a premium income of Rs 428 crore, up 92 per cent over Rs 222 crore achieved in the year-ago period.

However, in the current year, the company is facing claims of Rs 230 crore from Gujarat and Mumbai floods. Officials of the company did not want to disclose the amount of payouts, which would be obtained from reinsurance.

Mr Narain was here in connection with the launch of a new product, the `Sagar Bandhu Bima' policy. The policy will provide insurance for barges, tugs and similar small coastal vessels operating in the coastal and inland waters of India.

The company aims to cover approximately 1,000 small vessels. "Goa has around 250 vessels of this, which makes it an area of importance to Iffco Tokio," Mr Narain said.

Asked how Iffco Tokio was preparing for the de-tariffed environment (the regulator has said that tariffs might go from January 1, 2007), Mr Narain said that the company was collecting data needed to work out premium rates.