Mumbai: With pick-up on auto sales and launch of small-car Nano, Tata AIG General Insurance is looking at around 10% growth in motor insurance business this fiscal.
“Motor insurance is an important part of our business. We will be looking at more aggressively into this area in the current fiscal with the aim of growing by around 10%,” Tata AIG General Insurance’s managing director Gaurav Garg said here.
Motor insurance had contributed around 25% of the company’s total premium income which stood at Rs950 crore in the last fiscal. The growth in motor insurance sector was flat last fiscal, he said.
The auto industry had suffered badly last year due to lack of retail finance amidst high interest rates. The situation, however, started looking up after the Government announced two stimulus packages in December and Januray.
Auto sales started picking up from January itself. The industry posted impressive growth in sales in April led by car market leader Maruti Suzuki and biggest two-wheeler maker Hero Honda.
Garg said that Tata AIG General Insurance might soon come out with three more add-on covers in its motor insurance basket, Auto Secure,after securing approval from the Insurance Regulatory and Development Authoirty (IRDA).
“We had applied for 11 add-on covers this year for strengthening our motor insurance portfolio. IRDA has already cleared eight of them and sought for clarifications for the remaining three. We hope to get its approval in the next one month or so,” Garg said.
Tata AIG General Insurance launched eight add-on covers recently in its motor protfolio. This includes daily allowance, depriciation reimbursement, retrun to invoice, key replacement, repair of glass, fibre, plastic & rubber parts, loss of personal belongings and emergency transport & hotel expenses among others.
Garg believes that these products would redefine the dynamics of the motor insurance business. Tata AIG General Insurance is the seventh largest motor insurer among the private players.