SBI General kicks off operation

SBI General Insurance today launched its operation in a limited geographical area. It has received regulatory approval for two products in the fire and property segment.

“We have got approval for two products in the property segment. We plan to roll out pan-India operation in the next four-five months. We will start from Mumbai as of now,” said RR Belle, managing director and chief executive officer, SBI General Insurance.

At present, SBI General is in the process of setting up its comprehensive IT infrastructure and is expected to commence full scale operations later during the year.

SBI General is a joint venture between SBI and Insurance Australia Group IAG with 74 per cent and 26 per cent share in the capital structure. SBI has invested Rs 111 crore for its 74 per cent equity, while IAG has pumped in about Rs 542.10 crore (including about Rs 500 crore premium) for its 26 per cent stake. It got the final (R3) regulatory approval in December 2009.

Entering into the market now will help SBI get corporate clients, as most of the policies get renewed in April. In addition, it will get advantage of SBI’s 14,000 branches and a huge client base, mostly in retail and small & medium enterprises segments.