Unique insurance policy launched for IT, ITeS sector

Bangalore, Oct 12 (UNI) IFFCO, the largest fertiliser manufacturing company in the cooperative sector, today launched a unique general insurance policy for the booming IT and ITeS sector, the Technology Liability Errors and Ommissions (Tech) policy, in collaboration with Japan-based Tokio Marine and Nichido Fire Insurance Company, here.

Speaking to newspersons here, IFFCO Tokio General Insurance Co Ltd (ITGi) MD and CEO Ajit Narain said his company had recently entered into an exclusive arrangement with Hiscox Plc, a leading UK-based specialist re-insurer and one of the largest syndicates in the Lloyds market in London, for launching the sector-specific policy in the country.

He said that in recent years, India had emerged as a key provider of world-class IT services, software products, IT enabled Services (ITeS) and e-business to almost 95 countries and more than a third of Fortune 500 companies around the world. ''Since these products, services and technologies are constantly changing and were usually very complex, successful delivery or deployment was often fraught with difficulty, leading to differences between the service providers and their clients.'' Taking into consideration the importance of Errors and Omissions Indemnity Insurance cover sought by the companies against any kind of risk due to unforseen circumstances, ITGi was bringing in the sector-specific insurance policy to safeguard the interests of technology firms in the country, he said, adding that the policy wording was prepared by the people who underwrite the risks and assess the claims and were thus fully attuned to the developments in the IT market.

Hiscox International Technology Manager Stephen Wares, who also spoke on the occasion, said ''the underwriting and claims management capability of Hiscox, along with the understanding that ITGi has of the Indian market, will provide us a competitive edge while offering this cover.'' He said the policy had been specially designed to safeguard the interests of IT and ITeS providers, consultants and vendors against potential ligitation due to failure of software, deficiency in consultancy services rendered, leading to failed implementation, and failure of managed and hosted services resulting in delays, systemic errors and technology failures.

Outlining some of the policy features, he said it was designed to cover explicit breach of contract, infringement of IPR, defamation, and payment of outstanding fees. Fixing of premium for the policy would be based on the activities of the client company and its total turnover.

UNI MV GD RKN1805