Magma launches insurance scheme in Orissa

The Kolkata based Magma Leasing Ltd, a leading non-banking finance institution and National Insurance Company today launched NICMagma insurance and financial coverage service in Orissa.

The co-branded product will be available from all Magma branches and select National Insurance branches in the state.

Launching the insurance scheme, Debashish Sanyal, country head - insurance division, said, "Magma is foraying into insurance not only to insure assets financed by the company, but also to provide better effective service where the customer gets all the service including finance, insurance policy and claims redressal under one window".

Besides adding value to the existing service bouquet, this will help in reducing payment defaults and NPAs,he added. Insurance business for Magma is a natural extension since the same is mandatory for any new asset.

"The new business will strengthen our business and enhance company's bottom-line", he pointed out.

Magma posted business of Rs 876 crore in 2003-04 which is expected to rise to Rs 1400 crore this fiscal.

Similarly the insurable asset base of the company is expected to reach about Rs 2000 crore by March 2005.

The company is providing a whole gamut of services including generation of fresh policies, renewals and settling claims related issues under the new services and the same will also be available in Orissa.

"We have approximately generated 10,000 policies till December 2004 in the five regions that the service has been launched", Sanyal said, adding, soon it will be extended to the entire country. "We handle claim of our customers effectively and release payments within 15 days of the receipt of the entire set of documents from the branches" he said.

Magma expects to increase its insurance business two fold in the near future.