Targeting a premium income of Rs.11,000 crore for fiscal 2014-15, public sector general insurer United India Insurance Company plans to launch new health and motor insurance policies while reducing the claims outgo, said a top official.
The company will also hire around 400 people in the officer cadre to even the outgo due to retirements, he added.
Sharing the company's performance figures for 2013-14 financial year, Milind Kharat, chairman-cum-managing director, said: "Next fiscal we are targeting a gross premium of around Rs.11,000 crore."
He said the company will also re-engineer its internal processes to reduce the turn-around time for claims as well as to reduce the claims outgo.
On the launch of new health insurance policies, Asha Nair, director and general manager, said the company is focussing on high networth individuals with a new policy that offers high insurance values/sum insured like Rs.1 million or Rs.1.5 million.
She said United India has also filed with the insurance regulator new motor insurance policies for approval.
United India closed last fiscal with a gross premium of Rs.9,709 crore and an after tax profit of Rs.527.60 crore. During 2012-13 the company had earned a gross premium of Rs.9,266 crore and an after tax profit of Rs.527.33 crore.
According to V.E.Kaimal, general manager and financial advisor, the provision for unexpired risk reserve has gone up to Rs.688 crore last year from Rs.238 crore in 2012-13.
This is due to the changes in the reserving formula for health insurance by the insurance regulator, he said.
Kharat said claims worth around Rs.824 crore were filed with the company due to the floods in Uttarakhand floods of which around Rs.82 crore has been settled.
"The balance claim amount is due to project insurance and the claims will be settled soon. We have paid some money as 'on account settlement' basis and the remaining sums will be paid this year," Kharat said.
He said the company will also focus in increase the business from the direct channel from the current 21 percent as it would result in reduction in commission out go.
Kharat said the company will focus on online sales of policies which would not involve any intermediary and commission pay out.
Asked about the performance of the Tamil Nadu government's health insurance scheme for the poor, he said the premium and the claims outgo are at equal levels.
About the company's rejig plans, Kharat told IANS that the central government wanted all the four companies to come out with a proposal for hiring a consultant for chalking out the rejig strategy.
