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Interview of Mr. Dalip Verma, Managing Director,
Tata AIG General Insurance
(Date: 1st August 2006)
What type of policies are available for motor
vehicles?
Broadly there are two types of policies - Liability Only
Policy & Package Policy. Client can opt to restrict
the cover under package policy to Fire and/or Theft plus
Liability.
What categories of vehicles are covered by a motor
insurance policy?
Motor insurance includes Private Cars, Motorized Two Wheelers
and Commercial Vehicles (Goods carrying as well as vehicles
used for Passenger carrying for Hire and Reward), Miscellaneous
and Special Type of Vehicles excluding vehicles running
on rails.
What risks are covered under third party policy?
Primarily legal liabilities as per Motor Vehicles Act are
covered. The Act provides for unlimited liabilities towards
Death or Bodily Injury to a person (third party) and also
liabilities towards properties damages caused or arising
out of use of Vehicle. The third party policy can be extended
to cover Personal Accident to Owner / Driver, Named / Unnamed
Passengers, Drivers & Liability towards driver / cleaner
/ employees by payment of additional premium.
What was your profit recorded in the last ended
quarter 2005-‘06?
Tata AIG General Insurance Company Limited recorded a 11%
growth in profit after tax to Rs. 13.6 crores for the year
ending March 31st, 2006 versus Rs 12.2 crores a year ago.
The profit before tax was Rs 26.9 crores. The premium income
grew by 29% to Rs 606 crores from Rs 469 crores for the
same period.
What is your present market share?
The present market share as on 30th May’ 2006 is 3.6%
Please elaborate on your branch network
Currently, we have 37 branches in 26 cities across India
How is the premium calculated in the case of comprehensive
insurance cover?
Premium is calculated based on Place of Registration, Age
of vehicle, Cubic Capacity of engine, Insured's Declared
Value for the vehicle, (Driver Age & Continuity of Insurance-
Tata-AIG Factors) , Gross Vehicles Weight ( for Goods Carrying
vehicles) , Passenger carrying capacity (for Passenger Carrying
vehicles on Hire and Reward). The insured is also entitled
for certain discounts on premium , examples are No Claims
Bonus, if vehicle has an approved antitheft device, if the
insured is a member of an Automobile Association etc.
Can you get additional benefits by paying extra
premiums for motor vehicles?
Yes, Accessories (Electrical/Electronic or Non-Electric)
& LPG / CNG kit fitted to the vehicles can be covered.
Benefits like Personal Accident to Owner Driver, Named /
Unnamed Passengers, Drivers and liability to Driver / Cleaner/Conductor/
Employees can also be covered.
Considering the floods on 26/7 last year, how has
the company geared up for monsoons this time?
Overall in the company many measures have been taken –
Our policyholders have been advised basic safety measures
such as not starting the car if the car has been affected
by flood waters, our partner Auto Restore garages have stocked
up on essential spare parts to facilitate quick repairs,
claims notification now is enabled across Toll free, tolled
numbers and SMS . More important we now have a Claims Catastrophe
Management Plan which is an emergency response plan outlining
specific responsibilities, action plans and ensures timely
assistance and response to our policyholders in the event
of any such emergency.
What is the premium one has to pay for availing
the motor insurance?
Premium depends on category of vehicles and the factors
of ratings. For example, for a brand new private car, the
premium shall be roughly 3.5% of the value of the car and
for a brand new scooter it should be around 1.9%.
The year 2007 will witness detariffing of non life
insurance sector, what is your say on this?
A free pricing regime is one of the major pillars of a
liberalized market. The other pillar is the regulatory framework.
We are looking forward to the market being detariffed effective
1st January 2007 and also hoping that the regulator will
monitor market conduct, solvency margins to prevent unhealthy
competition resulting from a price war and will reign in
recalcitrant insurers.
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