IFFCO-TOKIO launches policy for IT/ITeS

IFFCO-TOKIO General Insurance (ITGI) today launched the technology liability/errors and omissions (tech) policy for the information technology (IT)/IT enabled services (ITeS) sector.

"There is an urgent need to protect the companies in the sector against any kind of risk due to unforeseen circumstances," Ajit Narain, MD of ITGI, said.

What makes the policy unique is that it is the only policy available in the Indian market that covers explicit breach of contract, he said.

It is designed to protect the IT/ITeS providers, especially the SMEs, consultants and vendors operating in India against potential litigation due to failure of software, deficiency in consultancy services rendered. It led to failed implementations and lack of managed/hosted services (BPOs) resulting in delays, systemic errors and technology failures, he said.

The new policy is being launched through a tie-up with Hiscox, a UK-based specialist insurer and leading Technology underwriters, and Tokio Marine Global, a subsidiary of the Tokio Marine and Nichido Fire Insurance Co, one of ITGI's JV partners.

ITGI is a joint venture by Indian Farmers Fertiliser Co-operative (IFFCO) and its associates and The Tokio Marine and Nichido Fire of Japan.