Iffco Tokio eyes Rs 750 cr premium

Iffco Tokio General Insurance Company (ITGI), a joint venture promoted by the Indian Farmers Fertiliser Co-operative and its associates and Japan's Tokio Marine & Nichido Fire, is aiming for a 50 per cent growth in premium revenues during this fiscal.

The company collected a premium of Rs 501 crore during last fiscal and was targeting Rs 750 crore in the current year. As of now, it has collected Rs 650 crore, N K Kedia, executive director, ITGI, told Business Standard.

Currently, the company's market share is 4.21 per cent in the country. Of the total business, north accounts for 35 per cent while south and west contribute 12 per cent and 25 per cent respectively. Around 17 per cent is from Gujarat, according to Kedia. ITGI has a widespread network with 72 offices across the country and a few more would come up in the coming years.

During last fiscal, the company paid Rs 209 crore to farmers as claims and this year it has so far paid about Rs 300 crore. Kedia said the company had settled claims worth of Rs 8.27 lakh for a total premium of Rs 2.68 lakh under the Barish Bima Yojana (BBY) policy at a function held in Vizianagaram recently. The claims were made by 387 farmers from Vizianagaram, Guntur, Vijayawada and Karimnagar. "We were successful in settling 100 per cent claims under the BBY policy in Andhra," he said.

Currently, the company is implementing BBY in 100 districts across the country, including 4 districts in Andhra, and next fiscal it plans to add another 150 districts.

"During next fiscal, the company is aiming for a Rs1,000 crore premium collection," he added.

"Through 600 franchises, we are selling our products. We are planning to sell our products through rural co-operative societies and banks for which negotiations are on," Kedia, said. "From the last four years, the company has covered 10 crore farmers under the accident insurance scheme and this year so far we have paid claim settlements of more than Rs 300 crore to to 70,000 policy holders," he said.