Despite tariff rationalisation by the Insurance Regulatory and Development Authority (Irda), the underwriting losses of the four public sector general insurance companies —National Insurance, New India Assurance, Oriental Insurance and United India Insurance—have ballooned by a whopping 47 per cent during the last fiscal. A major part of the loss was suffered by the insurance companies while underwriting motor accident claims.Irda, after notifying a new tariff structure for motor insurance, has kept it in abeyance without citing any valid reasons. General insurance companies have been clamouring for a revision in motor insurance tariffs for quite sometime. The current practice allows unlimited claims on insurance companies underwriting motor insurance policies but receive only a limited premium.According to latest figures available from Irda, the combined underwriting losses of the four PSU general insurance firms works out to be Rs 2,061.43 crore (Rs 1,398.38 crore during the previous fiscal) for the last fiscal. This is about 23.57 per cent (17.29 per cent) of the net premium income collected by the four companies concerned.National Insurance, which has underwritten a net premium of Rs 1,813.12 crore last fiscal (Rs 1,804.55) has suffered an underwriting loss of Rs 462.52 crore (Rs 247.89 crore) which is about 25.51 per cent (13.74 per cent) of the net premium collected during the year. New India Assurance has suffered an underwriting loss of Rs 552.92 crore (Rs 453.25 crore) during the last fiscal. This works out to be 18.02 per cent (16.97 per cent) of its net premium income of Rs 3,068.23 crore (Rs 2,671.48 crore) during the fiscal.Oriental Insurance which collected a net premium income of Rs 1,818.50 crore (Rs 1,725.55 crore) has suffered an underwriting loss to the tune of Rs 592.91 crore (Rs 276 crore, which is about 32.6 per cent (16 per cent) of its net premium income. United India took a Rs 453.08 crore (Rs 421.24 crore) loss on a net premium collected of Rs 2,045.07 crore (Rs 1,884.38 crore). This works out to be 22.15 per cent (22.35 per cent) of its net premium income collected during the fiscal. The total gross investment income collected by the four companies during the year stood at Rs 2,358.87 crore (Rs 2,080.49 crore) during the year.
