Apart from being the first non-life policy by a new private sector company, the significant feature of the policy is that it is the first captive policy where the Iffco-Tokio General Insurance has underwritten the risk for one of the four plants belonging to Iffco, which is the majority partner in the joint venture.

The joint venture, which is yet to have formal launch has taken a special permission from the Insurance Regulatory & Development Authority (IRDA) for the underwriting the captive deal.

The Rs 100-crore Iffco-Tokio General Insurance company is a joint venture between the Japan's largest non-life company, Tokio-Marine and India's largest co-operative Iffco.

However, considering the fact that the joint venture's Rs 100-crore capital is not sufficient to underwrite a big risk like the Iffco plant, it has co-insured 98 per cent of the cover with the four state-owned non-life companies.

Though the joint venture has insured the plant, the major part of the premium money has been shared by the four non-life companies.

Earlier, the Iffco used to be the exclusive client of the largest domestic non-life company New India Assurance.

The Iffco deal has also set a trend in terms of the fact that co-insurance with the existing state-owned non-life companies by the new private sector company is an operational requirement.

Begining with Iffco plant, the Iffco-Tokio Marine General Insurance Company has plans to underwrite all of the properties of their promoters including Kirbocho and India Potash Ltd. However, recently the Reliance group of companies had renewed its mega-risk policy with a total sum assured of over Rs 50,000 crore through New India Assurance as insurer along with a clutch of re-insurer including Munich Re and Swiss Re.

Though the Reliance non-life company Reliance Fire and General company has already received the licence, it never participated in the deal.

Analysts point out the two different approachs by the Iffco-Tokio Marine General insurance and Reliance Fire and General company is a matter of distinct strategy.

Reliance may use its non-life subsidiary to undewrite its mega-risk policy in the next year renewal.

The market observers are keenly observing the movments of the Tata-AIG General Insurance, Royal-Sundaram Alliance, two non-life companies set up by Tatas and the TVs group in this regard.