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Finance Ministry will take a call on Rs 3,000 crore capital infusion this fiscal based on financial performance of three loss-making public sector general insurance companies. According to sources, the finance ministry last year had asked these three insurers -- National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company to chase bottomline rather than topline and underwrite only good proposals.

Finance Ministry To Take A Call On Rs 3,000 Crore Fund Infusion Based On Performance Of PSU General Insurers

The Baramulla District Consumer Disputes Redressal Commission, led by Peerzada Qousar Hussain (President) with Ms. Nyla Yaseen (Member), found the National Insurance Company responsible for unfair practices under Section 12 of the Consumer Protection Act 1986. The complaint filed by residents of Usman Colony in Baramulla claimed that the insurance company did not provide insurance

National Insurance Company to Compensate for Earthquake Damages, Awards Rs. 6 Lakhs Compensation

Public sector general insurer National Insurance Company Ltd (NIC) is aiming at a return to profit in the current 2024-25 fiscal, after incurring losses for nearly a decade. The company is expecting Rs 100-200 crore profit this year, NIC Executive Director T Babu Paul said.The Kolkata-based insurer noted that a single-digit revision in policy tariffs is expected as medical treatment costs have increased, he said. "We were able to narrow down the loss to Rs 187 crore in FY'24 (2023-24) from a whopping Rs 3,865 crore loss in the previous year. We expect to post a net profit of Rs 100-200 crore, provided no catastrophe hits us in the remaining quarters," Paul said on the sidelines of the 6th edition of the Insurance Leader Meet & Excellence Awards organised by Assocham. He mentioned that the company's ability to reduce loss-making insurance products and implement other cost-saving measures has set the public sector insurer on a path to turnaround.
"We have either pruned or re-priced motor insurance and group or bulk health products. Now, we are focusing more on retail ones," Paul added. In the health sector, retail accounts for about one-third of the total Rs 7,000 crore premium, while in motor insurance, it accounts for nearly two-thirds of the Rs 5,000 crore premium from the segment.

National Insurance Company aims for Rs 100-200 cr profit in FY25

Although NIC’s solvency ratio reached 1.21times as on March 31, 2021 with a capital infusion of Rs. 3,175 crores in FY2021 by the GoI, it remains below the regulatory requirement of 1.50 times.

The low solvency, coupled with the impact of the Covid19 pandemic, limits the company’s ability to underwrite business.

The issuer has made timely interest payments.

Smt. Rajeshwari Singh Muni, Chairman cum Managing Director

NIC is entirely owned by the GoI. It is expected that the company to continue to receive strong Government support, given its systemic importance to the general insurance industry and its wide distribution network.

NIC is among the largest general insurance companies in the country with a sound franchise value in eastern India and a long operating history.

As the seventh-largest player in the Indian general insurance space, National Insurance holds a market share of 5.5% based on gross premiums originated in India during the first nine months of fiscal 2024 with 837 branches across the country.

8.35%National Insurance Company Limited 26 Mar 2027

ISIN:

INE168X08014

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National Insurance Company Limited

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Finance Ministry To Take A Call On Rs 3,000 Crore Fund Infusion Based On Performance Of PSU General Insurers

National Insurance Company to Compensate for Earthquake Damages, Awards Rs. 6 Lakhs Compensation

National Insurance Company aims for Rs 100-200 cr profit in FY25

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