Financial Daily from THE HINDU group of publications
Friday, Oct 18, 2002
Financial Daily from THE HINDU group of publications Friday, Oct 18, 2002 |
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Money & Banking
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General Insurance HDFC Chubb goes on stream Our Bureau
Mr Deepak Parekh, Chairman, HDFC, with Mr Dean O' Hare, Chairman and CEO, The Chubb Corporation, at a function in Mumbai on Thursday.
MUMBAI, Oct. 17 HDFC Chubb General Insurance Company today announced the formal launch of its operations introducing its first product — motor insurance. HDFC Chubb will gradually roll out non-life insurance products over several categories, said Mr Deepak Parekh, Chairman of the company, at a press conference here today. These categories will be motor and home; accident and health, group accident and business travel policies and, fourth, commercial insurance. The company, set up with a capital of Rs 101 crore, is a joint venture between HDFC, which holds 74 per cent stake, and the US-based Chubb Corporation, which holds 24 per cent stake. The initial concentration will be along the personal line of business such as motor insurance and home and home contents insurance, said Mr Parekh. "These are natural extensions of HDFC's activity.'' The motor insurance product has also been introduced simultaneously in New Delhi, Bangalore and Hyderabad. Over 18 to 24 months, the company plans to have a presence in more than 20 cities, said Mr Srirang Samant, Director, HDFC Chubb, who will be heading operations at the company. In the medium-term, executive protection and financial protection policies will be launched as well. General insurance is driven by tariffs and this sets certain constraints on the kind of products one can offer, said Mr Parekh; service would be the principal differentiator from other companies. For products outside the tariff area, such as marine, liability and travel insurance, the company could introduce various features. Other products would evolve as the tariff regulations are lifted, he said. The motor insurance policy will be issued at the point of sale, at dealers' showrooms. The profit prospects for a general insurance company are very attractive, said Mr Dean O'Hare, Chairman and CEO, Chubb Corporation. "But it would take five years for profits to be truly significant,'' he added. According to him, the industry potential in India is far greater than almost any other part of Asia, including China. The general insurance industry in the country is worth Rs 11,000 crore in premium income and growing at a compound rate of 15 per cent annually, said Mr Parekh.
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