Tens of thousands of pilgrims taking the 45-day Amarnath Yatra in the terrorist-stricken Jammu & Kashmir can avail of terrorism cover.
Bajaj Allianz General Insurance Co is offering personal accident cover of Rs 100,000 for a mere premium (cost) of Rs 15, which also covers terrorism risk. Most personal accident plans of insurance companies exclude terrorism coverage, which in the case of J&K becomes most essential.
Bajaj Allianz expects to sell at least 50,000 personal accident policies to the pilgrims this year through its tie up with J&K Bank, said Bajaj Allianz General chief operating officer Kamesh Goyal. Last year, of the 70,000-odd pilgrims trekking down the Yatra route, about 40 to 50 per cent bought a personal accident cover from Bajaj Allianz.
"We lost money last year on the sale of this policy due to terrorist attacks. The loss claim ratio worked out to 130 per cent," added Goyal. This is the second year Bajaj Allianz is offering the cover during the Yatra that takes place annually during July-August.
The idea behind Bajaj Allianz willing to take on such a risky portfolio is primarily to increase its brand awareness among the general public. "This is very important as our focus will now be on the retail segment," said Goyal.
Further, the sale of this product through the J&K Bank branches is part of Bajaj Allianz's commitment to its bank partner, he added.
With severe pressure in the corporate segment and rebating intensifying on account of a greater number of intermediaries, many general insurance companies are moving away from the price sensitive corporate segment.
Said Goyal: "Here the margins are low and falling, and the business is not growing. Hence, there is a need to develop the retail market in a bigger way."
Bajaj Allianz proposes to enhance its presence in the retail segment, focusing on all aspects of insurance including travel, health, shopkeeper, and householder policies.