Reducing risks for policyholders
12 July 2007
N V Subba Rao, head, risk services, Chola MS Risk Services Ltd, shares his perspectives, expects risk mitigation services to grow with the growth of the insurance sector. By Venkatachari Jagannathan
Chennai: The promoter of a popular hotel chain in India was shocked to learn that a thermal imaging study by Cholamandalam MS Risk Services Limited, part of the Murugappa Group, revealed that a new hotel had 22 ''hotspots''.
Here ''hotspots'' refer to those electric points that emit more than normal heat, making them trigger points for potential electrical fire accidents. The hotel chain asked Chola MS Risk Services to conduct thermal imaging studies at all its properties to be able to take corrective measures across the chain.
"No more do corporates look at risk management companies to merely to save insurance premium. Today corporates would like to be seen as responsible corporate citizens by minimising the accident risks," says N V Subba Rao, head, Risk Services, Chola MS Risk Services.
He further adds, "Rather than reducing the premium outgo there have been instances where after our risk inspection report, companies have increased their insurance coverage by paying higher premium."
Interestingly Chola MS Risk Services is instrumental in getting a sizeable business for the $2-billion Murugappa group''s non life insurance company, Cholamandalam MS General Insurance Company Limited. For instance Madras Cements Limited, which initially hired the risk management company to conduct a safety audit later shifted its insurance account to Cholamandalam MS General Insurance.