Cholamandalam MS, Toyota sign pact

Cholamandalam MS General Insurance and Toyota Kirloskar Motor today signed a memorandum of understanding (MoU), whereby Cholamandalam will start selling motor insurance policies to Toyota's customers at the dealership points.

In presentations made by the representatives of both the companies at a press conference, it was pointed out that insurance packages play an important role in the process of sales.

The MoU would allow Cholamandalam to promote its product at the point of sale. The product's key feature is that it would allow Toyota's owners to avail themselves of 'near cashless' claims service.

Toyota has existing preferred insurer relationships with New India Assurance and Iffco-Tokyo. Toyota currently has 51 dealerships in India, and aims to increase it to 60 by the end of the current financial year, said company's deputy managing director K K Swamy.

Chola MS' managing director Arun Agarwal said the company would start selling its products at 18 dealership points in the beginning.

The company estimated that the revenue potential in each dealership is Rs 2.5 crore to Rs 3 crore.