Tata Motors ties up with 3 insurers to cover vehicles
17 February, 2009
Tata Motors has tied up with United India Insurance, National Insurance Company and Royal Sundaram Insurance for extending motor insurance cover to its customers through a single-window facility. The project was launched on a pilot basis in three cities - Kolkata, Bangalore and Mumbai - on February 9 and the countrywide launch was expected by April, a Tata Motors dealer told Business Line. Sources in the insurance companies also confirmed the development, pointing out that the memorandum of understanding was inked in December.
Under the new arrangement, a dealer selling Tata Motors' vehicles would provide motor insurance cover to customers through the newly formed in-house insurance broking firm Tata Motors Insurance Broking and Advisory Service Ltd. The software, back office and call centre support in the venture would be provided by Tata Business Support Services (TBSS) to provide the insurance cover for new cars as well as for renewal premium payment. Insurance for both 'own damage' (damage of the car) as well as third party damage (for compensations to victims of an accident) would be provided under the package, the sources said. Currently, 12 Tata Motors' dealers are participating in the pilot venture, while the 700-odd dealers would be engaged after the national launch, the sources said. The three insurance companies have started training programmes for the dealers. "In the single-window system, TBSS would automatically issue an insurance proposal form to the new customer through us after filling up the database of the car and its owner," a dealer said. This would save the customers' time while easing renewal payment procedures, he added. Maruti has a similar arrangement with National Insurance, New India Assurance, Royal Sundaram and Bajaj Allianz through its associate company Maruti Insurance Broking and Advisory services. National Insurance Company provides over 65 per cent of Maruti's motor insurance cover. NIC, the market leader in motor insurance in the country, collected Rs 599.50 crore premium from Maruti's distribution network as on January 31.