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Magma HDI is likely to come up with new plans and processes as the prospect of economic restoration is expected to offer newer opportunities. The general insurance company is planning to sell health insurance policies and designing new products under the industrial risk cover space.
Magma HDI is a joint venture of non-bank lender Magma Fincorp and Germany’s HDI Gerling Industrie Versicherung AG. Earlier, for first six quarters it used to focus majorly on motor insurance, now, the company is targeting on 50% growth in this financial year as the prospect of FDI in insurance is increasing which would push up their business estimation.
Swaraj Krishna, Managing director and chief executive believe that the infrastructure projects will bring in good money along with economic growth and better opportunities for insurance companies. He added that the company will be more into creation of policies which would aim to cover risk in infrastructure projects and health insurance besides motor insurance. He also informed that a low cost structure has been created by the company to capture the rural and semi-urban pockets.
If the government allows, HDI Gerling would raise its stake from 26% to 49%, as per Krishna. Magma HDI would require Rs. 15 crore additional capital in FY16 to achieve their target of 50% growth wherein the premium income should increase from Rs 425 crore to Rs 650 crore.
Sajjan Kumar Kedia, chief financial officer said at a media interaction that the company is planning to make operating profit from current fiscal and break even in 2016-17 after setting aside all accumulated losses.
The company would be bringing up individual, family and group health insurance products along with plans that would introduce pre-loaded cash card for covering hospital cash requirement along with health products.
The plan is to create a product that would cover the risk of paying penalties in case the infrastructure project gets delayed because of unforeseen situations, except, land acquisition and political blockades.