IFFCO-Tokio launches technology liability policy for IT / ITeS sector
12 October 2006
Mumbai: The Indian-Japanese insurance company IFFCO-Tokio General Insurance Co. Ltd, today announced the launch of a unique policy for the IT / ITeS sector.
The technology liability 'errors and omissions (technology) policy' is designed to protect consultants and vendors against potential litigation due to software failure, deficiency in consultancy services leading to failed implementations, and failure of managed or hosted services (BPOs) resulting in delays, systemic errors and technology failures.
The new policy is being launched through a tie-up with UK-based specialist insurer Hiscox Plc, one of the leading technology underwriters in the world, and Tokio Marine Global, a subsidiary of the Tokio Marine & Nichido Fire Insurance Co. Ltd, one of the Indian partners of the Indian joint venture company.
IFFCO-Tokio General Insurance Company is a joint venture promoted by the Indian Farmers Fertiliser Co-operative (IFFCO) and The Tokio Marine and Nichido Fire, the largest insurance company in Japan. IFFCO holds a 74-per cent stake, while Tokio Marine has contributed 26 per cent through group company Tokio Marine Asia Pte Ltd.
"While most Indian IT / ITeS firms are recognised for high quality processes and services and security orientation, purchasers of IT products and services are usually keen to blame their suppliers, whether or not the supplier is at fault, in case something goes wrong, says Ajit Narain, managing director and chief executive officer, IFFCO TOKIO.
Narain
further explains, "Combined with an incipient and
multi-jurisdictional landscape, there is an urgent need
to protect the companies in this sector against any
kind of risk due to such unforeseen circumstances. This
has led us to bring this policy to India. What makes
this policy unique is that it is the only policy available
in the Indian market that covers explicit 'breach of
contract', amongst other benefits."
"The exclusive tie-up with Tokio Marine Global
and Hiscox will give us access to the best technical,
underwriting and claims management capabilities in the
world, which will in turn give us the bandwidth to manage
large policies," he added.
According to Stephen Wares, manager, International Technology,
Hiscox, "India has emerged as an important market
in the global IT arena, and we could not have asked
for a better partner to enter the country. The underwriting
and claims management capability of Hiscox, along with
the understanding that ITGI has of the Indian market
will provide us a competitive edge while offering this
cover."
ITGI will have dedicated teams across five offices at
Bangalore, Chennai, Hyderabad, Mumbai and Delhi for
this policy, to work as nodal marketing offices explains
N K Kedia, executive director, IFFCO-Tokio. The company
has a network with 92 offices across the country
ITGI is the first insurer in India to offer a policy
specifically to protect the IT / ITeS providers, especially
the SMEs.
The policy will provide a cover for explicit breach
of contract, infringement of intellectual property,
breach of confidence / infringement of a right to privacy,
defamation and payment for outstanding
fees and the company says that its policy is written
in simple
English and is easy to understand and interpret.