NEW DELHI: Oriental Insurance Company Ltd on Friday reported a 75 per cent jump in net profit to Rs 497.27 crore for 2006-07 from Rs 283.91 crore in the previous fiscal. "The growth in profit is the result of detariffing of prices on insurance products from January, rise in business in certain sectors and cut in losses on motor insurance," OIC Chairman and Managing Director M Ramadoss said here. The company also declared a dividend of 100 per cent as against 50 per cent in 2005-06. Gross premimum collections rose from Rs 3,609 crore to Rs 4,020 crore during this period. With surplus cash of about Rs 2,000 crore, the company plans to expand operations in the Middle-east countries, after doing a business of around Rs 90 crore in overseas markets including Dubai and Kuwait. The company, which had incurred a loss of Rs 235.48 crore in 2001-02, is making efforts to add new corporate clients to achieve a growth of over 10 per cent annually. Ramadoss said among new clients, the company gained a business of Rs 30 crore from Vedanta Group in 2006-07, and renewed contracts with NTPC for Rs 35 crore. It also provides insurance cover Jet Airways, Air Sahara and Kingfisher. The company did a business of Rs 150 crore last fiscal in rural areas, he said. "We are targeting to enter rural health insurance in a big way through our vast district-level network. For this, we are in talks with NGOs, micro-financial institutions and Self-Help Groups for distribution of insurance products." OIC also cut expenses on management by Rs 97 crore, and now complies with the Insurance Act provisions in this regard. It raised solvency ratio to 2.17 per cent as against 1.5 per cent directed by insurance regulator IRDA for covering risk against insurance claims.
Source: PTI
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