Shriram to launch general insurance arm by May

Shriram Life Insurance, a joint venture life insurance company of Chennai-based Shriram Group and Sanlam Group of South Africa, is all set to launch a general insurance arm.

Akhila Srinivasan, managing director of Shriram Life Insurance, said that the company would enter into the general insurance market by April-May next year.

"We are looking out for a strategic foreign partner and we expect to finalise the contract soon. We have all the strength and sufficient know-how for commencing a general insurance wing," she said.

Unveiling the future plans of the company, Akhila added that the group would also start a mutual fund as it is complementary to the insurance business. The company proposes to start MF operations by June 2007.

As part of enhancing life insurance business, micro insurance scheme would be introduced in 2007 January. She said that the company would popularise the scheme through Shriram Rural Development Project, which is active in the rural areas of Tamil Nadu, Andhra Pradesh, Karanataka, Madhya Pradesh, Maharashtra and Jharkhand.

Aimed at providing insurance cover to the poor in the rural areas, the company has planned to market the scheme through self-help groups and other institutions in villages.

Shriram Life Insurance that commenced operations in February 2006 had already collected Rs 105 crore as premium through sale of 72,000 policies. She added that the company would get Rs 140 crore through 90,000 policies by the end of one year of operation.

Shriram Vishram, a Unit Linked Insurance Plan (ULIP), would be introduced shortly in addition to its ongoing eight schemes. Four other products would also be launched focused in the area of social insurance, group insurance and unit linked products in the next fiscal.

The company has also targeted to achieve Rs 300 crore premium revenue by the end of next year. The number of IRDA-certified agents of the company increased to 8,847 by October 2006.