IFFCO-TOKIO's unique insurance policy for the IT/ITeS Sector

New Delhi, Oct 12 (UNI) IFFCO-TOKIO General Insurance Co Ltd (ITGI), a general insurance firm, today announced the launch of a unique policy for the IT/ITeS sector -- the technology liability/errors and omissions (Tech) Policy, to safeguard the providers of these services.

The new policy was launched through a tie-up between Hiscox Plc, a UK based specialist insurer and one of the leading technology underwriters in the world and Tokio Marine Global, a subsidiary of the Tokio Marine and Nichido Fire Insurance Co Ltd, one of ITGI's JV partners.

''Most Indian IT/ITeS firms are recognised for high quality processes and services and security orientation, and purchasers of their services tend to blame their suppliers in case something goes wrong. This has led us to bring this policy in India, which is unique as it is the only policy available in the country that covers explicit Breach of Contract amongst other benefits,'' company MD and CEO Ajit Narain said.

The exclusive tie-up with Tokio Marine Global and Hiscox will give IFFCO access to the best technical, underwriting and claims management capabilities in the world, which will in turn give it the bandwidth to manage large policies.

ITGI will have dedicated teams across its 5 offices, namely, Bangalore, Chennai, Hyderabad, Mumbai and Delhi for this policy, which will work as nodal marketing offices.

ITGI is the first company to launch a policy that has been specifically designed to protect the IT/ITeS providers, especially the SMEs, consultants and vendors operating in India against potential litigation due to failure of software, deficiency in consultancy services rendered leading to failed implementations and failure of managed/hosted services (BPOs) resulting in delays, systemic errors and technology failures.

ITGI's E&O (Tech) policy will provide cover for explicit breach of contract, infringement of intellectual property, breach of confidence/infringement of a right to privacy, defamation and payment for outstanding fees.

ITGI is a joint venture promoted by Indian Farmers Fertiliser Co-operative (IFFCO) and its associates and The Tokio Marine and Nichido Fire, the largest insurance company in Japan. The Indian promoter's contribution is 74 per cent, while Tokio Marine has contributed 26 per cent through group company Tokio Marine Asia Pvt Ltd.

It has a widespread network with 92 offices across the country.

As per the latest IRDA figure, ITGI has grown at a rate of 80 per cent, thus garnering a market share of 4.5 per cent.

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