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About New India Assurance limited
The New India assurance Company limited (NIACL) was founded by the House of Tata Founder member - Sir Dorab Tata and was incorporated on July 23rd, 1919. It has an employee strength of 20686. NIACL is a pioneer among the Indian companies on various fronts, right from insuring the first domestic airlines in 1946 to satellite insurance in 1990. The latest addition to the list of firsts is the insurance of the INSAT-2E. With a wide range of policies, NIACL has become the largest non-life insurance company not only in India, but also one of the leading insurers in the Afro-Asian region. NIACL has 1068 fully computerized offices across India.
The general insurance business in the country was nationalized on January 1, 1973 by the merger and grouping of more than 107 non-life firms into four public sector companies. The IRDA (Insurance Regulatory and Development Authority of India) Act, 1999, paved the way for the entry of private players into the insurance market. There are now 30 insurance companies in the market, of which 14 are in the general insurance business. The market share of the four PSU insurance companies stands at around 77 per cent as on March, with the rest shared by the private companies.
Industry position
Motor insurance comprises at least 40 per cent of the overall volume of non-life business. This business has been growing at a rate of 20 per cent. Although there are at least 65 million vehicles registered with all the transport authorities in the country, only about 26 million are insured. This discrepancy is partially due to the PSU insurers tightening grip on high loss customers during the last two years. Motor insurance is a high-loss risk business with claims to premiums collected ratio of over 150 per cent. For this reason, private sector insurers have been reluctant to enter the sector. Private sector presence in motor insurance is restricted only to cars where the claims ratios...