United India may lose ONGC account

United India, which re-insures almost 98 per cent of Oil and Natural Gas Corporation (ONGC) account with overseas reinsurers, is likely lose the account with the oil PSU planning to start its own insurance outfit.

V Jagannathan, CMD of United India, however, said, "We will cross the bridge when we come across it". United India has been issuing mega risk policy to ONGC for the last three years.

"More than the contribution to our profit and premium income, it is a matter of great pride to bag the ONGC account which also helps us in bagging other large sized accounts," Jagannathan said.

ONGC's total business to insurance companies have been declining over the last few years. The onshore and offshore business given to insurance companies was just Rs 133 crore for the current year compared to Rs 168 crore in 2003-04 and Rs 242 crore in 2002-03.

United India insures around 65 per cent of its offshore business and 100 per cent of its on shore business.

The reason pointed out for the decline in total business to insurance companies is owing to the good experience internationally.

There has not been any major incidents and, therefore, no large claims in the international market as well as domestically.