Icici Prudential Sees Paid-Up Cap Up At Rs 300 Crore

ICICI Prudential Life Insurance is planning to double its paid-up capital from the existing Rs 150 crore to around Rs 300 crore by the end of the next fiscal.

According to ICICI Prudential managing director Shikha Sharma, the promoters would infuse Rs 40 crore equity by the end of next month. The life insurer today launched ICICI PruSmart Kid to cater to the educational needs of children.

The company has, in the first 14 months of operation, earned around Rs 100 crore premium and has a sum assured of Rs 1,000 crore from around 70,000 policies.

ICICI holds a 74 per cent equity in the insurance venture, while the remaining stake is with the UK insurer Prudential.

 

Though the company is yet to fulfill its rural and social sector obligations, Sharma said the targets would be met. ICICI Prudential has set a target to sell 7,500 policies in the social sector, while seven per cent of its policies should be sold in rural areas.

ICICI Prudential is planning to seek an exemption from the Insurance Regulatory and Development Authority (IRDA) on the seven per cent rural obligation stipulation.

"Since we were in the business only for three months of the first financial year of operations, we will request IRDA to only limit our rural sector obligation at five per cent," Sharma said.

She added that the insurance regulator on its part is unlikely to give it a waiver and the company would try to meet the seven per cent stipulation.

The life insurance company has tied up with three non-governmental orgnisations and Punjab Maharashtra Co-operative Bank to meet the rural sector stipulations.

The bank has also tie-ups with Bank of India and ICICI Bank for selling products through their branches.

In the absence of the required amendments to the Insurance Act, 1938, regarding the mandatory training requirements for all directors of corporate agents, ICICI Prudential, like other insurers, is not using banks for selling insurance products. "Once the guidelines are in place we would use these banks to sell policies," Sharma said.

The insurance company is, meanwhile, starting the system of payment of premiums through collection points inside ICICI Bank automated teller machine complexes.

It is also going to begin Web-based services for its customers from March 1, ICICI Prudential's marketing chief Sugata Gupta said.