The Special Life 501K is a 15-year life insurance term policy and has low premiums and includes an additional cover for accidental death and dismemberments. The company has also announced a five per cent bonus, among the highest in the industry, for those who had signed up for full twelve months for life insurance.
Mr Farrokh K Kavarana, chairman of Tata AIG Insurance, launched the scheme. Kavarana was in Pune to open the Tata-AIG Pune operations. Without disclosing the exact numbers he said the companys performance had exceeded the expectations in the first year of operations.
"The results would be announced in Mumbai next week," Mr Kavarana said.
The company has achieved its growth targets without going in for a brand splash.
"Instead of spending an awful lot of money on advertising and campaigns we think it is better to spend money on building reserves and service the customers," Mr Kavarana said.
"If the top player spends Rs 100 we have managed with Rs 20," he added. In the life business the company had the family of 2,30,000 Tata employees to vend its products. It had already started the work-site marketing in Telco Pune and Jabalpur. The response at Tata Tea and Titan was good.
The general insurance company, Tata AIG General Insurance Company, had expected most of the business to come from the Tata Group but was surprised with the response received from other corporates.
The Tata group accounted for only 25 per cent of the business, he said. Reliance, Birla group and some public sector undertakings including a state electricity board have shifted to Tata AIG.