The Hindu Business Line : Shriram General kick-starts operations

Chennai, July 16 Shriram General Insurance Company on Wednesday said it was ready to commence operations. The company, which recently got its licence, is kicking-off with an initial paid-up capital of Rs 105 crore. Santam, part of the Sanlam group of South Africa, will hold 26 per cent stake in the company, the rest will be held by Shriram Financial Services and Holdings Pvt Ltd.

Motor Insurance

At a press conference here today, Mr R. Thyagarajan, Chairman, Shriram group, said that the company would focus on motor insurance and consequential loss. The Shriram group’s mainstay is lending for purchase of commercial vehicles. Shriram Transport Finance Company specialises in lending for the purchase of used vehicles.

As such, the group has a large pool of customers to whom it would sell motor insurance.

He said that Shriram would “keep away from health insurance”, which in his opinion, is best left to standalone health insurance companies. Shriram would not also pursue ‘liability insurance’ seriously.

Shriram group’s life insurance company, which commenced operations in February 2006, has sold over 2.5 lakh policies. Shriram Life, in which again Sanlam is the partner, made Rs 9.5 crore of net profit in 2006-07 and Rs 5.58 crore in 2007-08.

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