Calcutta, Nov. 12: Om Kotak Mahindra Life Insurance has decided to hike its share capital by Rs 30 crore at the end of the current financial year.
The present capital base of the company is Rs 203 crore. “Since our business is growing, we will inject Rs 30 crore to increase our share capital either by the end of the current financial year or at the beginning of the next,” company managing director Shivaji Dam said.
The company aims at garnering Rs 100 crore premium in the current financial year.
In the first six months of 2003-04, the company has been able to mop up Rs 26.13 crore premium.
Its unit-linked, child and capital multiplier products are major contributors to the premium income. “The unit-linked product has contributed to 20 per cent of the premium income,” Dam said.
Dam said insurance penetration has increased to 12 per cent in the current financial year from 8 per cent last year.
The total volume of the insurance industry was Rs 12,300 crore last year. This year, the industry has attained a size of Rs 5,435 crore till date. Of this, Life Insurance Corporation of India has alone contributed Rs 4,840. The remaining has come from the private insurers.
Om Kotak has plans to expand in 40 cities by 2005 from 30 at present.
“We will restrict ourselves to major cities. We are targeting the middle-class population in these cities,” Dam said.
The company has recently struck a deal with Oil India Limited for its group insurance product. “The total premium income from this deal is Rs 3 crore,” Dam said.
The company has tied up with Swiss Life. Under the agreement, Swiss Life will refer all its multinational clients to Om Kotak for their insurance needs.
“We are also targeting the software industry for our group insurance product,” Dam said.
The company has no immediate plans to launch new products. “We will re-orient our products according to the needs of the market,” he added.
The company has a rural product called Kotak Gramin Bima Yojana, which is sold through corporate agents.