Liberty Videocon General Insurance Company recently said it will scale up its branch count in India to 45 by 2015 and is targeting Rs 100-crore premium collection in the first year of operations.
The company, a joint venture between India’s Videocon Industries and US-based Liberty Holdings, is the latest entrant in the general insurance space. It started operations early this year and currently has eight branches.
“We shall take the branch count from the existing 8 to 22 by 2014….by then (2014 beginning), we expect regulatory approvals for our health schemes and products for shopkeepers and SMEs to be in place,” Liberty Videocon Chief Executive Roopam Asthana told reporters.
The firm, which has a branch in Ahmedabad, is hopeful of garnering Rs 100 crore premium in the first year. It aims to take the branch count to 45 in India by 2015, he said.
The company, started with an initial capital of Rs 350 crore, is the 27th general insurer in the market, offering an array of non-life products in motor and commercial segments. Videocon holds 74 percent stake in the JV and the rest is with its US partner.
“We have issued around 5,000 policies in retail (mainly motor) and 250 commercial policies (corporates) so far,” a company official said.
As the company scales up its operations and opens new branches, it would be hiring 120 people by the end of current fiscal. “We shall be hiring 120 people by this fiscal year end, taking our employee count to 400,” Asthana said.
The company has tied-up with co-operative banks in Punjab to push its products and is looking to replicate the model in Gujarat, known for its network of co-operatives.
“We have tied up with eight co-operative banks in Punjab and are looking to replicate the model in Gujarat, a market which offers us a complete bouquet of business,” Asthana said.
The general life insurance market in India is pegged at around Rs 69,000 crore as on March 2013 and is growing at 19 per cent year-on-year. As per industry estimates, medicare cost is increasing by 15-18 per cent and this will fuel demand for health products in the country.
