Bharti Axa General Insurance on Tuesday launched an add-on insurance product for car owners, which will provide them full purchase price of the vehicle for the first two years, in case of theft or loss.
"Currently, other insurance companies give cover to the customers on depreciating value, which varies from 20 per cent to 30 per cent in two years. But customers of this product will avail the purchase price of their vehicle," Bharti Axa General Insurance CEO and managing director Amarnath Ananthanarayan said.
The add-on product, Invoice Price Cover, will be available with the company's motor insurance product, the SmartDrive Private Car Policy.
After two years, the cover would be based on normal depreciating value, Ananthanarayan added.
Bharti Axa General Insurance is a joint venture between Bharti Enterprises, which holds 74 per cent in the company, and UK-based AXA that owns the remaining 26 per cent stake.
"Normally the premium constitutes 3.5 per cent of the car value. With this add-on product, there would an increase of 0.25- 1.25
per cent of the value of the vehicles," Ananthanarayan added.
He further said that more than 40,000 vehicles worth Rs 140 crore (Rs 1.40 billion) were stolen in our country every year.
Around 50 per cent of Bharti Axa General Insurance's revenue comes from motor insurance, while close to 20 per cent is accrued from its health business.
In 2009-10, the company's revenue stood at Rs 320 crore (Rs 3.20 billion) and the company expects to register a growth of 70 per cent in the current fiscal.
Answering queries on capital infusion, Ananthanarayan said, "We have infused Rs 75 crore (Rs 750 million) in July. We plan to infuse additional Rs 250 crore (Rs 2.50 billion) in the next two years."
Bharti Axa General Insurance has over 3 per cent market share among private insurers.