The Hindu Business Line : GIC chief heads task force on natural hazards management

GENERAL Insurance Corporation (GIC), the Ministry of Forest and Environment and individuals from various walks of life have formed a task force to understand natural hazards and its management.

Talking to Business Line, the GIC Chairman, Mr P.C. Ghosh, said that only the first meeting of the task force has been concluded and that the strategy and the roadmap was yet to be defined. This is expected to be defined by February 2004, he said. "After this meeting, a period of one year would be utilised for understanding the various aspects of nature and to put this forward to the respective agencies."

Mr Ghosh would head the task force, with representatives from the Indian Institute of Management (Ahmedabad), Institute of Disaster Studies, IGDI, IDFC, Chennai and the Ministry of Forest and Environment.

Looking at the GIC activities, he said the company, which had recently entered into life products, has signed up with Life Insurance Corporation of India for reinsurance and a memorandum of understanding has been signed with SBI Life. He said it was in talks with four more companies for the life products. He, however, said there would not be any significant impact of this on the top or bottom-line of GIC for the first two years and results are expected only during the third year.

As a sole reinsurer in the domestic reinsurance market, GIC provides reinsurance to the direct general insurance companies in the Indian market. GIC receives statutory cession of 20 per cent on each and every policy subject to certain limits, he said.

Mr Ghosh said two companies from Sri Lanka have also signed agreements with GIC for the life products and that proceedings were on for the agreement with a couple of Bangladesh firms and is expected to be finalised soon. He said other SAARC nations, especially Nepal, have evinced interest in tying up with GIC for the life products.

Giving details about the non-life products, he said GIC is spreading its wings to emerge as an effective reinsurance solutions partner for the Afro-Asian region and has started leading the reinsurance programmes of several insurance companies in SAARC countries, South East Asia, West Asia and Africa. To offer its international clientele an easy accessibility, efficient service and tailor-made reinsurance solutions, GIC has opened liaison/representative offices in London and Moscow, he added.

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