Kolkata: Corporate liability insurance is catching up here. Be it lessons from Enron, Worldcomm or Andersen or just importance of corporate governance, Indian companies are sure feeling the need of corporate liability insurance.

And private insurer, Tata AIG is going strong on issuance of such liability products.

Unlike many new private insurers, Tata AIG has built on a model of an equitable distribution of its businesses between commercial and personal lines.

The general insurer is in the process of rolling out almost all AIG lines in India. It is awaiting the regulator’s clearance for its new medical product.

Having garnered a premium income of Rs 122 crore in the first six months of the current year, the company is now targeting income over Rs 200 crore by the end of the fiscal.

In an exclusive interview with ET, Dalip Verma, managing director, Tata AIG General Insurance Co said, “A recent international study has seen companies finding it hard to get independent directors on board. The need for liability insurance are a precondition at times. The growing awareness for corporate governance will also see Indian companies take cover against all liabilities.”

“Sure, it may not overtake mainline businesses like fire or motor insurance but corporates will be experiencing the needs for appropriate insurance cover as a measure of risk transfer. At Tata AIG, we are experiencing a three-digit growth in such policies, “ Mr Verma said.

Some of these significant policies include directors and officers liability insurance, professional errors and omissions liability insurance, commercial general liability and technology related liability covers.

Tata AIG, which commands about 23% market share among the new players, is looking at increasing its distribution channels. Waiting for the brokers business to start off in India, the company is also in talks with a number of banks and corporate agents for tie-ups.

Tata AIG has tie-ups with HSBC and IDBI Bank for bancassurance. According to the MD, the company has fared well on its travel insurance.

Although state insurers hold a substantial chunk of overseas travel insurance, new private players including Tata AIG have been able to corner almost 15 % of the share. Tie-ups with leading travel agencies have made travel insurance less cumbersome, he felt.

“In fact, we have also sold almost 75,000 policies through the internet. The new product Student Guard has also evoked considerable response,” he said. Present in 11 cities, the general insurer plans to add five more cities over the next few months time.

It also plans to increase its agent force from 600 at present. The company with an equity capital of Rs 125 crore has no immediate plans to hike capital.