Tata AIG Life eyes NRIs to expand business

James Paul
4 September 2002

Kochi: The private sector Tata AIG Life Insurance Company is eyeing the huge non-resident Indian (NRI) community from Kerala for expanding its business in the state.

The company, which is into its second year of operations in India, is also committed to establish a base in the rural market, Tata AIG Life Insurance managing director Ian J Watts tells domain-b.

We have a strong presence in the Middle-East, where a large number of people from Kerala are employed, he says. The families of those working overseas will be educated on the need for having insurance cover for their kith and kin in Kerala. Watts is here in connection with the establishment of Tata AIGs office in Kochi.

It is estimated that there are over 5 lakh NRIs from Kerala working in all parts of the world (a large portion is in the Gulf) and Tata AIG Life hopes to capture a significant slice of this business. Asked whether the company is designing specialised products for the NRIs from Kerala, he said his company officials are exploring the possibility, but gave no further details.

On the rural front, Watts says Tata AIG Life has sold 11 per cent of its total insurance products in the rural areas, as against the Insurance Regulatory Authority of India (IRDA) stipulation of 5 per cent in the first year of operation. In the second year, as against the IRDA requirement of 7 per cent, the company plans to sell over 10 per cent of its total insurance products sold in the rural areas.

To meet its obligation for the rural market, Tata AIG Life, which has three schemes for the sector, has tied up with the Bangalore-based NGO Bridge Foundation to insure the rural populace. Labourers earning as low as Rs 10 per day are our policyholders. The premiums are as low as Rs 25 per month. Rural markets in Kerala, Tamil Nadu and Andhra Pradesh have been tapped to meet the obligation, he says.

Tata AIG Life, which has a presence in nine cities in India, will open branches in other centres as well. Watts says the company, which has about 300 agents (270 licensed agents), has sold over 35,000 policies in the first year. In 2001-02, the figure has risen to 60,000 and in 2002-03 it is expected to increase over 1 lakh.