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NIC sees dip in auto insurance business

Special Correspondent

Launches group policy for Tower Infotech



V. Ramasaamy

KOLKATA: The recession-hit automobile industry is impacting the business of insurance companies especially the ones for whom auto insurance constitutes a bulk of the business portfolio. However, there may be a rush by corporates to take terrorist coverage in the wake of India’s worst terrorist attack. Personal insurance coverage for such attacks are covered under the personal accident policy.

The Chairman-cum-Managing Director of National Insurance Company (NIC), V. Ramasaamy, said that his company did not have any exposure to either the Taj Mahal Hotel or the Oberoi Trident.

He said that the financial meltdown had not affected his company although auto insurance premium, which constitutes 51 per cent of NIC’s business portfolio might take a hit. “There has been growth till October but new vehicle insurance may be lower. We are therefore concentrating on renewals,” he said. Between April and October, NIC clocked a growth of 10.9 per cent with business touching Rs. 2,510 crore. The public sector insurer is confident of touching its target of Rs. 4,500 crore this fiscal which will represent a 11 per cent growth over 2007-08 when business stood at Rs. 4,024 crore. He said segments such as health had contributed handsomely to the business with a growth of 30 per cent and an income of Rs. 900 crore. Medical insurance had a 17 per cent share in NIC’s business.

Mr. Ramasaamy said that the 82,000 agents had been revitalised with an incentive scheme over and above their commission. The back assurance scheme which had generated Rs. 240 crore worth of business in 2007-08 through 26 tie-ups with leading banks, is set to see a jump by Rs. 50 crore. “There may be one or two more such tie-ups by march 2009,” he said.

Earlier, Mr. Ramasaamy launched a group mediclaim policy for Tower Infotech which will cover their 51,000 business associates to provide financial assistance during hospitalisation.

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