DOHA • Insurance penetration in Qatar is gradually increasing as premiums collected last year totalled an impressive QR461m, according to a senior banker.

The figure is expected to reach a staggering QR4bn by 2013, R Seetharaman, Group CEO of Doha Bank, told reporters here yesterday.

He was addressing a news conference to announce Doha Bank's foray into the general insurance business.

The bank is launching today a fully-owned subsidiary (Doha Bank Assurance Company LLC), which is licensed by the Qatar Financial Centre Regulatory Authority (QFCRA) to carry out general insurance activities.

Seetharaman said with massive expansions going on in Qatar's vibrant energy and industrial sectors where investments worth billions of riyals were planned over the next few years, the scope for insurance was huge.

Talking mostly of corporate investment, he said the assurance company being floated by Doha Bank was looking at the energy sector as a very lucrative segment of the risk underwriting business here. "We can't simply overlook these opportunities," said the CEO.

Oil, gas and related projects worth billions of dollars were planned here over the next few years, providing tremendous scope for reinsurance, he said. The QFCRA, according to Seetharaman, has licensed the Doha Bank Assurance Company to carry out the general insurance business only, so covering life was out of its purview.

Giving a list of insurance products, the CEO said individuals and companies can buy cover against risks like fire and burglary in households and business interruption (loss of profit or rent), among other things.

Personal accident and personal liability insurance as well as shopkeepers' comprehensive cover would also be available with the company.

The firm will be selling motor cover, health insurance as well as medical malpractice insurance. And some of the other unique products include professional indemnity for doctors, lawyers, chartered accountants, surveyors and architects, etc.

Asked how the company was allowed to offer Workmen's Compensation Insurance when it holds the licence to deal in general insurance products, a senior official explained the QFCRA had included this policy in the general insurance category.

Seetharaman said a number of insurance providers in the Gulf were keen to have tie-ups with the Doha Assurance Company.