In a boost to general insurance companies, the Supreme Court has mandated that they must offer third party motor insurance for longer duration as against one year at present.
Sanjiv Bajaj, MD of Bajaj Finserv, spoke at length about the same .
"We don’t believe that the new insurance policy will impact business," said Bajaj.
He further said that companies will crumble to get access to motor dealers to get customers.
“A number of the large players including us already have this access, these tie-ups. So we have to make sure that we get our business going right away and in our case it started from September 1,” he said.
Talking further about the motor insurance, Bajaj said, “Today motor insurance, we know, is not only the single largest line but for example, other than insurance getting return out of motor dealers, it is also sold by agents and the agency network which employs individuals is one of the largest in the country. We have to see how they get affected and they need to be reinforced as well, which we have started doing.”
According to him, new motor third party insurance norms will generate more revenue in commercial vehicle (CV) space.
On the RBI circular, he said, “Over the last five years incremental credits that is going to small and medium enterprises (SMEs), going to bank is going lot more from NBFCs than from banks.”