Thaindian News

Kolkata, March 5 (IANS) Private sector insurer Bharti AXA General Insurance is looking at an additional Rs.200 crore capital infusion this calendar year to fund its expansion plans, a top company official said here Monday.

“We expect to grow by 35 to 40 percent this calendar year, which is double the industry rate. In view of our expansion plans with special focus on the semi-urban and rural markets in the east and south, we plan to infuse Rs.200 capital this year,” the company’s chief financial officer, N.S. Kumar, told mediapersons.

The company, a joint venture between Sunil Mittal-led Bharti Enterprises Ltd holding 74 per cent equity and French global insurance group AXA with 26 per cent, has a paid up capital of
Rs.746 crore. It holds 3.5 percent of the market share in the insurance sector.

Motor insurance constitutes 70 percent of the company’s portfolio, with health accounting for 17 percent health and other commercial lines the balance 13 percent. It has sought approval from the Insurance Regulatory and Development Authority (IRDA) to foray into the travel insurance segment and applied for 10 add-on covers in the motor vehicles segment.

It also plans to introduce a zero depreciation plan for two wheelers during this calendar year. This will fully compensate a claim for a premium which is around 20 percent higher than the normal cover.

“We provide the cover for all motor vehicles except two wheelers. We have applied before the IRDA and hope to get the nod latest by June,” Kumar said.

With specifically designed insurance cover for lower income groups as well as affordable protection against common risk, the company has tied up with several NGOs and micro-finance institutions to expand its presence in the eastern market.

“Our idea is to target the tier II, III and IV cities through cost effective ways,” Kumar added.