Tata AIG ready to hike capital
By Our Corporate Bureau | 26 Jun 2004
Bangalore: Tata AIG General Insurance Company has indicated that it was prepared to increase its capital further to sustain business growth.
Addressing a press conference yesterday, Dalip Verma, managing director of Tata AIG, said, "Presently, our capital is sufficient to take care of our projected business growth and raising the level of capital is certainly not a problem," Tata AIG is capitalised at Rs 125 crore. AIG, one of the world's largest insurers, has a 26 per cent stake in the joint venture and the Tata group the remaining.
He said that insurers are awaiting the regulator's move on de-tariffing in the motor vehicle sector before any aggressive business expansion. However, some issues related to third party risks still need needed to be addressed, he said. These issues included unlimited liabilities in the case of third party covers. A committee of the IRDA was examining the issues. Insurers he said, were are awaiting the report of this committee, before making large increases in some portfolios, where claims ratios where high.