IFFCO-Tokio General Insurance Co has launched 'Errors & Omissions (Tech) policy' to exclusively cater to the technology sector. | |
| Speaking to mediapersons here today, Managing Director Ajit Narain said the new policy was being launched in the country through a tie-up with Tokio Marine Global and Hiscox, a London-based insurer and technology underwriter. |
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| "The tie-up with Tokio Marine Global and Hiscox is expected to give us access to the technical, underwriting and claims management capabilities, which, in turn, give us the bandwidth to manage large policies," he added. |
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| Errors & Omissions indemnity insurance is becoming a vital cover sought by technology companies. This is amid a situation where purchasers of IT products and services are less tolerant of wasted expenses and usually blame their suppliers, whether they are at fault or not. Also, long-drawn disputes and high-value settlements are now not uncommon throughout Europe and the US. |
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| In the given scenario, an increasing number of businesses in India, too, have started leveraging computer hardware, software and the internet and other related technologies to automate critical business operations. |
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| Also the country has emerged a key provider of IT services, software products, IT-enabled services (ITeS) and e-businesses to as many as 95 countries. |
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| Unfortunately, since these products, services and technologies are constantly changing and are also very complex, their successful delivery or deployment is often fraught with risk. This might lead to potential difference between the service providers and their clients, who were located in different parts of the world, Narain said. |
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| "Hence, there is an urgent need to protect the companies in this sector from any risks arising out of such circumstances. This has led us to bringing the policy in India. It is the only policy available in the market that covers explicit 'breach of contact'," he added. |
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| Stephen Wares, manager-international technology, Hiscox, said, "India has emerged a key in the global IT arena. This market is evolving and changing rapidly. The policy "" Errors & Omissions (Tech) policy "" that we developed about 10 years ago has undergone three changes to ensure that it is genuinely geared to meet the current needs." |
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| For its Indian rollout, the company has designed to protect IT/ITeS providers, particularly the SMEs (small and medium enterprises), consultants and vendors operating in the country, said N K Kedia, executive director, IFFCO-Tokio General Insurance. |
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| To market the specialised product, the company is going to build teams, which will be positioned in some major cities "" Bangalore, Chennai, Hyderabad, Delhi and Mumbai, he added. |
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