Bharti Axa announces new add-on insurance product for cars

Bharti Axa General Insurance, a leading insurance provider in the Indian market, launched an add-on insurance product for car owners in the country in which it will offer a full purchase price of the vehicle for the first two years in the case of theft or loss to the customers. According to a statement given by company's CEO and Managing Director Amarnath Ananthanarayan, to a leading Indian news daily, currently, other insurance companies give cover to the customers on depreciating value, which varies from 20 per cent to 30 per cent in two years. But customers of this product will avail the purchase price of their vehicle, he added.

The new exciting add-on insurance product has been named as ' Invoice Price Cover' and it will be available with the company's Smart Drive Private Car Policy. After the completion of two years duration, the cover would be based on the normal depreciating value. Mr Ananthanarayan said that Normally the premium constitutes 3.5 per cent of the car value but with this add-on product, there would be an increase of 0.25- 1.25 per cent of the value of the vehicles.

The Bharti Axa General Insurance is a joint venture between India's Bharti Enterprises (owns 74%) and British AXA (owns 26%). The company earns more than 50 percent of its revenue from motor insurance while the health business contributes for more than 20 per cent in its revenue. In the financial year 2009-10, the company's revenue was at Rs 320 crore. The company aims to register a growth of more than 70 % in this fiscal.