Private general insurance companies have now started biting into big ticket insurance business that has so far been the preserve of their public sector peers.
Today, we see a single large project like Delhi Metro being insured by private insurers as well as public sector insurers.
In the case of large construction and infrastructure projects private insurance companies enter into an agreement with the contractors to insure part or whole projects.
Bajaj Allianz insures turnkey project contractors like Larsen & Toubro, Siemens, Skanska Cementation and Jayprakash Industries for various projects.
General insurance policies have to be renewed every year unlike life insurance policies. This makes it necessary for general insurers to offer good services in order to retain their accounts. Failing this, the insured can opt for some other company.
Kamesh Goyal, CEO, Bajaj Allianz General Insurance, told Business Standard, "We work very closely with our clients to understand their needs and offer customized insurance covers. Our global risk management expertise helps in providing an optimum insurance cover at the right pricing so that they pay the premium commensurate with the risks involved."
"Moreover Allianz's global expertise in handling big infrastructure projects like airports, power plants, telecommunication, etc.. helps to tailor the insurance cover to suit their needs and requirements."
ICICI Lombard has insured National Aluminium Corporation for a sum Rs 375 crore (previously insured by National Insurance), National Fertilisers Ltd insured for Rs 132 crore (Oriental Insurance), Cochin International Airport Rs 60 crore (United India Insurance).
Bajaj Allianz has insured the 25 km underground pipelines of the Delhi Metro Project for Rs 110 crore on construction all risk and Motorola for Rs 425 crore for erecton of telecomm unication towers.HVDC Talchar Kolar Transmission Line for Rs 108 crore.
N Raveendran, managing director, Alegion Insurance Services Ltd, said that public sector companies have large capital and the capacity to take on large risks while private insurance company start with a disadvantage.
Private insurers are coming up with customised insurance solutions and good re-insurance packages which suits client needs rather than selling plain vanilla programmes.
Antony Jacob, managing director, Royal Sundaram Alliance Insurance Ltd, said that they have insured the Delhi metro and prefer insuring infrastructure projects. The company will not take riskier sectors like chemicals and oil, he said.
