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Mr Ajit Narain (left), Managing Director, ITGI, shaking hands with Dr J.C. Mohanty, Managing Director, APSFC, after signing an MoU in the presence of Mr M. Gopalakrishna, Chairman, APSFC, in Hyderabad on Monday.

HYDERABAD, June 10

IFFCO-Tokio General Insurance Company Ltd (ITGI), the general insurance joint venture between the Indian Farmers Fertiliser Cooperative Ltd (Iffco) and the Japanese insurance giant Tokio Marine and Fire Insurance Company Ltd, has entered into a strategic alliance with the Andhra Pradesh State Financial Corporation (APSFC), a premier term lending financial institution for industries in Andhra Pradesh.

Announcing this here on Monday, the APSFC Chairman, Mr M. Gopalakrishna, said the corporation has identified insurance distributionship as one of the potential areas of operations as a part of its corporate plans and growth strategies.

According to him, the tie-up would enable the corporation to provide the prospective entrepreneurs not only the financial assistance but also guidance in suitably providing insurance cover for their assets from various perils and risks.

As a part of the memorandum of understanding (MoU) entered into with APSFC, the insurance major would provide training facilities to the staff of the corporation on insurance products and skills for better and qualitative delivery of services to the customers of APSFC.

The corporation proposes to extend the range and scope of distribution of insurance products to other establishments in Government and private sector. Towards this objective, APSFC plans to provide comprehensive training to its staff, Mr Gopalakrishna said.

The APSFC Managing Director, Dr J.C. Mohanty, said the corporation was actively pursuing various other suitable and synergic activities such as non-fund based activities to turn it into a multi-product conglomerate and help improve its revenues and profitability.

Stating that the inter-connectivity of 25 branches of APSFC across the State would be completed by the month-end, Dr Mohanty said it would enable easy and quick settlement of insurance claims pertaining to the units assisted by the Corporation.

According to the Iffco-Tokio Managing Director, Mr Ajit Narain, in the first phase of operations in Andhra Pradesh in alliance with APSFC, the insurance company would offer its services to tiny, small and medium scale manufacturing and service enterprises which were assisted by APSFC. In the next phase, the network would be enlarged to serve associated units and other public and private sector units.

Stating that ITGI was constantly reviewing its product portfolio to continuously upgrade them to suit the needs of individual and corporate customers, Mr Narain said the insurance company was targeting a growth of 100 per cent in its premium income during the current fiscal and achieve around Rs 180 crore as against Rs 90 crore in the last fiscal.

On the plans to further enhance its paid-up equity base from the current level of Rs 100 crore, Mr Narain said the company found no necessity to increase its equity base in the next couple of years keeping in view the comfortable solvency ratio.

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