Bharti AXA General Insurance Company is planning to infuse Rs 320 crore over the next two years. The company would focus on the number of policies to achieve its target of Rs 900 crore premium by 2012.
At present, its capital is around Rs 330 crore, which will be increased to Rs 650 crore over the next two years, said Amarnath Ananthanarayanan, chief executive officer, Bharti AXA GIC.
“Our focus will be on volume. Though profit per policy is less, overall it is a good bet and strategy for the company to increase its penetration,” he said. It would also introduce cheaper insurance on a mass scale to bring down the distribution cost.
The company had introduced a Rs 87 premium policy in Uttar Pradesh targeted at people living below the poverty line. “We have tied up with the Confederation of NGOs of Rural India - UP to cover rural population in the state. The policy will offer personal accident cover, livestock and ration allowance, education expenses, marriage and others,” Ananthanarayanan said. The company is already working with state governments of Tamil Nadu, Andhra Pradesh and Haryana and plans to bid for other state government-sponsored projects.
Currently, Micro-insurance and health and accident cover businesses account for eight per cent of the company's total premium, which it plans to increase to 20 per cent by 2012.
It is also betting big on 3G technology, which is set to be introduced soon.