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Mumbai, July 19 (PTI) In a bid to tap the insurance sector, which has just 0.6 per cent penetration in India''s GDP, the L&T General Insurance Company Ltd, has decided to commence operations -- with branches located across 10 different cities -- in six to 10 weeks. The company is a wholly-owned subsidiary of diversified conglomerate Larsen and Tubro Limited. "We have got R3 approval from insurance regulator Irda and filed for over 20 products with the regulator for the final approvals. Our team is ready, and everything is in place to commence the operations in next 6-10 weeks," L&T Insurance CEO Joydeep Roy told reporters here. In the first phase, the company will launch branches in 10 different cities, including metros, and expand to Tier 2 and Tier 3 cities within a year, he said. According to YM Deosthale, whole-time director and CFO of L&T, the company has invested Rs 175 crore in the insurance arm. "We will leverage the L&T ecosystem for the insurance arm, including over 300 branches of L&T Finance, L&T Infrastructure Finance and L&T AMC," he said. The company is confident about entering the insurance space without a JV partner. Stating that it is concentrating only on general insurance for the time being, he said, "We are not contemplating any partners at this point of time." The company will provide customised products for corporates and SMEs, with special focus on engineering space -- where parent firm L&T has a sizeable presence. The company has set up a state-of-the-art technology platform in place for giving total enterprise solutions. In order to achieve this, the company has invested close to Rs 75 crore, he said, adding that the company is expected to break even after five years. It has filed documents for over 20 products in three different verticals titled ''My Assets'', ''My Jeevika'' and ''My Health'', Roy said. "''My Assets'' pertains to insurance for the asset class, such as home or car, while ''My Jeevika'' is for the insurance of products that help people''s livelihood such as commercial vehicles. We offer a variety of different health insurance products under ''My Health'' vertical," Roy said. The company is on the verge of signing agreements with a few big reinsurance players, and will take the help of Third Party Administrators (TPAs) for claim settlements in the beginning, he said. At present, the insurance firm has a 100-person-strong workforce, and it will be increased to 300 by the end of this fiscal, Roy said.
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