L&T General Insurance Company has received final approval from the insurance regulator to commence business. The company is promoted by the $9.8-billion engineering company, L&T, which controls 100% equity in the nonlife company.
The company, which will be headed by CEO Joydeep Roy, already has 100 employees on board and plans to increase its headcount to 300 by the end of the financial year. Mr Roy, who was formerly with Tata AIG Life Insurance, said the company will launch standard non-life products in the next 60-80 days. The company has already designed 20 products which it will soon lodge with Irda for approval.
Mr Roy said the company will commence operations with a paid-up capital of Rs 175 crore against the statutory requirement of Rs 100 crore. Most of the additional capital will be invested in building up an information technology backbone. The company would use technology to lower its cost of operations. "We are starting our operations with 10 branches and will gradually extend our network to tier-II and tier-III centres, added MrRoy. He said health would be a major focus area for the company and L&T Insurance would eventually have its own health claim management team. For the shortterm, however, it would outsource claims management to third-party administrators until its own infrastructure was in place. L&T has a presence in the financial services sector through its three wholly-owned subsidiaries — L&T Finance (LTF), L&T Infrastructure Finance (LTIF) and L&T Mutual Fund, which was acquired from Cholamandalam.
No comments:
Post a Comment