New India posts 12% growth in premium

MUMBAI, Sept 28: New India Assurance Company Ltd has recorded a 12 per cent growth in premium during the first five months of current yea...

MUMBAI, Sept 28: New India Assurance Company Ltd has recorded a 12 per cent growth in premium during the first five months of current year against a target of 17 per cent for the year. The deceleration in growth rate was due to the sluggish growth of the economy, recession in the automobile segment affecting motor insurance, slowdown in international trade and the delay in setting up of mega projects, according to S K Kanwar, chairman and managing director of the company.

He said that the company has set up a goal to achieve a gross direct premium income of Rs 2,867 crore in India while for foreign business a target of Rs 291.70 crore has been fixed.

During the 1997-98, the total premium has increased to Rs 2688.57 crore during 1997-98 from Rs 2433.64 crore last year. Of this, the gross direct premium income in India increased to Rs 2433.73 crore from Rs 2174.36 crore, an increase of 11.93 per cent. Overseas operations showed a net profit of Rs 14.97 crore on a net premium of Rs 253.86 crore.

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He saidthat it is a matter of satisfaction that the company was able to generate underwriting profit of Rs 57.13 crore against a loss of Rs 78.95 crore last year.

Investment income also went up from Rs 505.75 crore to Rs 573.90 crore, showing an increase of 14.4 per cent. The company has recommended a higher dividend of 75 per cent against 60 per cent paid last year.

“About 15 new policies were introduced catering to every section of society. Settlement time for small motor own damage claims has been reduced by way of introducing a system of "self-survey" by the company’s own employees. Similarly, employees have been trained in risk inspection for risks with sums insured more than Rs 50 lakh and upto Rs 2 crore,” he added.

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