The Hindu Business Line : Tata AIG targets 45 pc growth in premium income this fiscal

TATA AIG General Insurance, the country's third-largest private insurance player, is targeting a 45 per cent increase in premium income at over Rs 500 crore this fiscal. The company, which started operations in January 2001, is expected to break even by 2005-06.

"We have budgeted a 40-45 per cent growth in premium income during this fiscal. Our premium income was at Rs 353 crore in 2003-04," the Tata AIG Managing Director, Mr Dalip Verma, said after launching a new scheme called the `Green Channel Settlement' here on Tuesday.

, Mr Verma said Tata AIG was not focussed entirely on topline growth but would focus on growth in net premium income and maintaining a balanced portfolio.

Even as the 74:26 joint venture between the Tatas and the American International Group was making operating profits, he said "We hope to break even in about two years, most likely in March-end 2006 by wiping out the entire losses."

The company has a capital base of Rs 125 crore, which is sufficient to meet Insurance Regulatory Development Authority's (IRDA) solvency norms, Mr Verma said.

The two promoters (Tatas and AIG) are committed to hike the capital "as and when required," he said.

Under the `Green Channel Settlement' scheme, vehicle accident repairs and submission of claims would be made easier for consumers. The new scheme also offers a warranty on accident repairs to all customers having Tata AIG's auto insurance.

The scheme also offers priority to Tata AIG customers at auto garages or repairs, free detailing and cleaning of customer's cars after repair.

There will be no submission or deduction towards salvage in partial losses and customers can directly pay at auto garages except for depreciation and excesses. Customers would also get a warranty on accident repairs.