ICICI Lombard expects 10% rise in motor insurance business

KOCHI: ICICI Lombard General Insurance is expecting 10 % increase in its motor insurance turnover in the current year despite increasing competition. Last year, the company���s motor insurance business volumes had touched Rs 1400 crore.

To maintain its edge in the motor insurance business, ICICI Lombard is planning to roll out its innovative service programmes to more centres, Mr N.Easwaranatarajan, Head ���motor insurance of the company told ET.

The red carpet service offered to strategy customers enabling easy documentation and reduction in claim processes is currently enjoyed by 400 fleet owners across the country. This will be extended to other commercial vehicles including cars, Mr Easwaranatarajan said.

Similarly, the company���s mobile claims services which is present at 50 centres in the country will be made available at 75 centres, he added. The two innovative service programmes have helped the company in going ahead in the competition.

Almost 40 % of its turnover of Rs 3749 crore is accounted by the motor insurances business. Last year the company issued 25 lakh policies and settled 3.5 lakh claims amounting Rs 650 crore. The company was recently ranked the highest in customer satisfaction with auto insurance providers by J.D.Power Asia Pacific 2009 India auto insurance customer satisfaction index study.

Mr Easwaranatarajan feels the tariff rates which are at rock bottom now will see a slight rise in the next months. ``The tariff rates have seen a 30 to 35 % drop with competition intensifying. As a result the margins of private general insurance companies are under severe pressure,������ he said. He expects the tariffs to rise by 5 %.in the coming months.

But more than tariffs, the customers are looking at customer service, brand, relationship with dealer and product innovation while selecting an insurance company, he added.