Iffco-Tokio eyes Rs 500 cr premium income

Iffco-Tokio General Insurance Co hopes to register a premium income collection of Rs 500 crore during 2004-05, said, N K Kedia, executive director, marketing of Iffco-Tokio General Insurance.

He said that of the total premium collection, 50 per cent is expected to come from the commercial base and 50 per cent from retail base i.e. motor insurance, household policy, property insurance and rural insurance. The exact figure for the 2004-05 fiscal would be known only after the final calculation.

Pawan Mediratta, head, Gujarat operations said, "We have collected a premium of Rs 92 crore from the state and we are targeting a premium of Rs 140 crore in the next fiscal year."

The company's priority will be on retail development in the semi-urban and rural markets since the insurance density is less than 1 per cent in India compared with 15-16 per cent in developed countries, added Kedia.

Motor insurance business has been the biggest drawer, Kedia said. "The motor insurance business grew 300 per cent in 2004-05."

The company also plans to expand the operation in Gujarat with more branches and more agents. "We are opening a branch in Vapi soon. The Rajkot branch has already started functioning. We have hired at least 250 freshers," Mediratta.

A joint venture initiative by India Farmers Fertiliser Co-operative (Iffco), Tokio Marine and Fire Insurance of Japan, Krishak Bharathi Co-operative Ltd. (Kribhco) and Indian Potash, Iffco-Tokio offers insurance cover to all farmers who buy Iffco fertilisers.

The company also implemented weather insurance scheme, named Barish Bima Yogna, to cover the farmers from the vagaries of weather. This scheme will enable farmers to insure their crops and avoid losses during shortage of rainfall.