The Hindu Business Line : Oriental Insurance bullish on tie-up with Punjab National Bank

New Delhi, May 13 Oriental Insurance Co is expecting a business of Rs 200 crore this fiscal through its tie-up with Punjab National Bank. The agreement is to sell its non-life insurance products.

It is also looking to tap the growth in the health care insurance business by launching more policies.

“The health care insurance segment is growing at about 35 per cent. This fiscal we plan to do a business of Rs 1,000 crore compared with Rs 750 crore that we did last fiscal,” said Mr Sanjeev Chanana, Director and General Manager, Oriental Insurance.

This would be by launching four-five health policies for which it has already sent the application to the insurance regulator. The company expects to launch these policies in the next quarter of the year.

Cross-selling

Mr Chanana admitted that the claim ratio was high in the health policies, making it less profitable. At present, the company’s claim ratio is 70-72 per cent in this category, which it managed to lower by 10 per cent last year. It is now looking to further lower this by cross-selling its other products along with the health policy to companies.

“About 60 per cent of the business is from group policies and 40 per cent is from individual family policies. So under the group insurance policy, we will try to sell other products like fire, marine and engineering insurances to these companies,” he added.

During this fiscal, Oriental Insurance which has 20,000 direct selling agents will add another 3,000-3,500. It also hopes to increase its total insurance business to Rs 4,600 crore against Rs 4,000 crore for the fiscal ended March 31, 2009.

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