ICICI Bank unveils property insurance cover

As an introductory offer, between 13 June and 30 September 2002, the product comes free with every new home loan, says ICICI Bank executive director Chanda Kochhar. "The bank is yet to finalise the price of the insurance cover, which is being offered by ICICI-Lombard, the general insurance venture of the universal bank."

She says HomeSafe customers will be covered for damage to property due to unforeseen disasters such as earthquake, lightening, fire, landslides, riots or strikes. "The cover, for the total construction value of the property, will be on for the tenure of the loan and will cease on full repayment."

ICICI-Lombard managing director Sandeep Bakhshi says mortgage insurance is expected to be the fastest-growing segment in general insurance. "Currently mortgage, travel and health insurance constitute just about 20 per cent of the Rs 11,000-crore general insurance market in India. This segment will grow exponentially in the years to come."

In the past year, Bakhshi says, general insurance in India has grown by about Rs 900 crore. "The general insurance sector is currently dominated by motor insurance, which comprises about 40 per cent. Of ICICI-Lombards Rs 70-crore portfolio, 15 per cent is retail insurance and the rest is corporate."