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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