Magma, National Insurance launch co-branded product

Kolkata-based retail finance company, Magma Leasing Limited, has tied up with National Insurance Company Limited, to launch a co-branded insurance product in Andhra Pradesh.

The insurance product "� Nicmagma "� has already been launched in West Bengal, Jharkhand, Orissa, Uttar Pradesh, Delhi and Punjab and will be launched in Rajasthan soon.

Addressing a press conference, Shiladitya Sinha, regional head (Andhra Pradesh), Magma Leasing, said, "We will be acting as a corporate agent for National Insurance Company, whereby we will be facilitating insurance coverage, renewal of policies and claim retrieval for assets financed by our company."

Magma provides finance for purchase of construction equipment, commercial vehicles and passenger cars.

"This will be a value-added service to our customers and will help us increase our bottomline," Sinha said. Magma will get a fee-based income for these services.

Debashish Sanyal, country head (insurance), Magma Leasing, said, "We have live contracts (contracts for which equated monthly installments are still continuing) of 60,000 assets at present."

"With this insurance product, customers who purchase assets through our financing will not have to go directly to the insurance company for claim-related issues. We will release payments of claims within 15 days of receipt of the entire set of documents from the branches," Sanyal added. Magma currently has 62 branches across 13 states in the country.

At present, Magma provides insurance services only for assets that have been financed by them. Sanyal, however, said that in future they may extend these services to people who are keen on taking only insurance services and not financial help.

Magma has insured 15,000 assets so far and has collected premium worth Rs 15 crore.

The retail financing company employs 1,100 people and is operational in 13 states at present. By the end of the next fiscal, it is looking at entering Karnataka, Tamil Nadu and Gujarat as well.

It has disbursed finances worth around Rs 1,175 crore till February 28, 2004 and is targeting to end this fiscal with Rs 1,400 crore. Andhra Pradesh will be contributing Rs 110 crore to this amount, according to Sinha.