The general insurance industry is planning to move the Insurance Regulatory and Development Authority (IRDA) to deregulate motor insurance tariff.
Addressing presspersons here on Monday, Milind Kharat, Chairman-cum-Managing Director of United India Insurance Company, said the insurers felt that the pricing of the premium of third party motor insurance, determined by the IRDA, was not adequate. The IRDA allowed up to 20 per cent increase in third party rates from April 1 in view of rising inflation, and the history of claim settlement.
The overall percentage increase in the motor third party portfolio worked out to 18.9 per cent.
Mr. Kharat said the industry was a vibrant one growing at the rate of 20 per cent. However, a sharp decline in sales of automobiles, especially cars and commercial vehicles, had an impact on the growth in 2012-13. With better claims control measures and underwriting practices, United India was able to report an improved performance in the last financial year, he said.
The company could manage the claims ratio at 84.61 per cent in 2012-13 against 88.50 per cent in 2011-12 with the net incurred claims at Rs.6,135 crore against Rs.5,387 crore in the previous year.
Announcing the details of financial performance, S. Surenther, Director and General Manager, said, the company clocked a gross direct premium of Rs.9,266 crore against Rs.8,179 crore, registering a growth of 13.28 per cent with an accretion of Rs.1,087 crore.
The net premium earned stood at Rs.7,251 crore against Rs.6,087 crore, a growth of 19.12 per cent. The net profit after tax rose by 36 per cent to Rs.527 crore from Rs.387 crore. The solvency ratio was comfortable at 2.52 against the regulatory requirement of 1.40, he said. The ratio was 2.71 in 2011-12.
The company has proposed a dividend of 70 per cent against 52 per cent in the previous year.
