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"Older cars would generally be insured
against third party damage, which we do not offer" - Sam Ghosh,
CEO, Bajaj Allianz Insurance.
Kindly describe the present scenario in the motor insurance
segment. How intense is the competition?
With all the public sector and private sector insurance companies
being present in the motor sector the competition is intense.
What are the factors you take into account before issuing
a motor risk cover?
The factors Bajaj Allianz considers before issuing a motor
risk is
a) Usage of the vehicle &
b) type of vehicle.
Why are private insurers increasingly becoming choosier
about underwriting motor policies?
The claims ratio is high in the motor segment.
Why are private insurers shying away from underwriting
old vehicles?
We offer comprehensive insurance for motor cars upto 7years.Older
cars would generally be insured against third party damage,
which we do not offer, thus we do not get many older cars
to be insured.
Your company, say reports, does not issue risk covers
for the Qualis, Palio, Lancer, Indica or Sumo. Why?
Some of these vehicles are used for passenger carrying purpose
and in some cases the parts are expensive and hence all of
the above mentioned cars have a high claims ratio.
By choosing to underwrite selective risks will you not
be driving away business to rivals?
Yes we would be, but we are ultimately interested in quality
business rather than quantity.
Will your company-policy of cherry-picking profitable
proposals not affect your reputation in the long run?
As a private insurance company, our focus is to be profit
oriented and in order to achieve this, we have to stay away
from certain classes of business. Ultimately all insurance
companies have to give an adequate return to shareholders,
hence premium rates have to go up if required.
Public sector banks have been insisting that their clients
insure large risks with state owned insurers only, fearing
the small net worth of private non-life insurers. Your comments
please
Large risks are reinsurance driven so it is a myth that small
insurance companies can not write large risks.
How many channels of insurance distribution do you have?
We have various channels of distribution to reach the customers,
which include:
- Manufacturers
- Motor dealers
- DSA’s
- Corporate agents
- Banks
- Finance Companies
What is your market share?
It has been just a year since we have been operational &
considering the total volumes of motor in the country our
market share currently is negligible
How many motor policies have you sold so far and what
is your target for this fiscal?
During the last financial year we have sold about 3 lakhs
of two wheeler and four wheeler policies.
Does your motor policy also cover mechanical or electrical
breakdowns in addition to physical damage to the vehicle?
The Bajaj Allianz motor policy does not cover mechanical
or electrical breakdowns. As the motor policy is a tariff
product, which all companies use, it does not cover mechanical
or electrical breakdown.
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