Page 402 - Motor Insurance Ebook IC 72
P. 402

The Insurance Times

         where rates are driven by re-insurers. Big corporates
         are going for mega risk covers, which are helping
         them to save crores in insurance premium.

         Until now it was energy or utility companies that were
         buying mega risk covers. But now a non energy
         company is understood to have opted for the mega
         risk policy bringing down its premium bill of Rs.21 crore
         by nearly 25%. Mega Risk policies are cheap under
         present market conditions but if there is an upheaval
         in the reinsurance markets the domestic rates could
         end up being cheaper.

Private companies are going after creamy business,
raining the issue of state owned companies being
compelled to underwrite non-profitable business because
of their dominant position. Most private companies have
made very little headway in the personal lines of business
except for new automobiles.

New India Assurance company, the largest non-life
insurance company in India, has reported a 130% rise
in net profit of Rs.590 crore for the year ended March
2004 compared with Rs.256 crore in the previous year.
The rise has been due to an improvement in claim ratio
and a big jump in investment income, which rose 64%
to the last years.

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