Shriram group enters general insurance

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In order to cash in on its decades-old network with a huge of truckers in India coupled with its vast agents and branch network across the country, Shriram group has entered into general insurance in association with Sanlam group of South Africa, which is also its joint venture partner in life insurance. Shriram General Insurance Company will be headquartered in Jaipur with a capital base of Rs 105 crore. Union finance minister P Chidambaram will be the chief guest at the inaugural function to be held on July 23 in Jaipur, said R Thyagarajan, Chairman, Shriram group.

Addressing a press conference here on Wednesday, he said with the life insurance business more or less stabilised, the group has decided to widen its portfolio to offer general insurance services to its customers in the first stage and extend it to the market later. “We expect nearly 80% of the targeted Rs 200 crore premium will be from the group’s relationships, including from agents, customers, group companies, etc,” Thyagarajan said.

Unlike other general insurers, Shriram General has natural advantages. “We have a strong network, covering 6 lakh truck operators, huge agents network and wide presence across the country. Our target is to cover all the truck operators by giving them a fair deal,” he said. “Unlike others who take one year to two years for claims settlement, Shriram General will ensure that the claim settlements of truckers will be done in 30 days,” he said adding that “the company will also pay the consequential loss (compensating for long lay off their businessdue to accidents and other things).”

According to him, the company is in a unique position to offer a gamut of services. “Our focus will be to get into retail segment sans healthcare. The company will also not look into corporate insurance initially, may be after two years,” he said.

There are over 250 insurance brokerage houses in India who have spent huge money and the industry is not supporting them to enlarge the market scope rather competing themselves in the existing market. “We plan to rope them and given them training on marketing aspects and make them as intermediaries of this business and do good business,” he pointed out.