Coimbatore: In order to tide over the declining growth rate of insurance companies, Oriental Insurance is planning to explore the untapped areas to balance the falling growth rate, said M. Ramadoss, Chairman and Managing Director of The Oriental Insurance Company Limited, New Delhi. He was speaking at the function organised for the inauguration of the new premises of the Coimbatore Regional Office.
S. Surenther, Financial Advisor and General Manager were present. The economic slow down had resulted in the growth rate plummeting during the current fiscal from two to three per cent in October, it fell to one per cent in November and till December the overall growth rate had been only three per cent. Mr.Ramadoss said that the overall growth at the end of the fiscal was expected to stagnate at 10 to 12 per cent.
The fall in premium revenue and the resultant drop in growth rate were also because of the review of pricing and de-tariff measures in the premium rates done in April 2007. In the automobile insurance sector, Oriental was planning to come up with premium products such as depreciation free claim, alternate vehicle replacement policy during the period between accident and restoration of the vehicle.
The Commercial vehicle production had plummeted from 55,000 to 17,000 showing a drastic fall in the premium revenue graph. The health insurance sector alone was growing at a rapid pace. Growth in the health insurance sector stood at 55 per cent last year and it had already crossed more than 25 per cent. Out of the Rs 4,000 crore premium income per annum, Rs 550 crore came from health insurance segment alone and this was expected to touch a Rs 850 crore mark during the current fiscal or next, he said. The focus of the insurance industry would be more on this sector, he said.
However, expressing concern at the fraudulent practices, Mr.Ramadoss said that insurance sector was continuously asking the health ministry to standardise treatment procedures at the private hospitals. In the health insurance and motor vehicle insurance sector, the loss ratio incurred in terms of claims settlement was at Rs 120 crore. Owing to sustained efforts to tame the loss, it fell by 10 per cent this year and was expected to fall by another 10 per cent.
Oriental Insurance was also considering the setting up of a centralised claims processing centre which would be assisted by a panel of surveyors. Personal accident policy, house hold insurance policy, burglary protection cover besides inculcating the habit of insurance among younger generation and focusing on untapped rural areas could help balancing the fall in growth, Mr. Ramdoss said. Oriental Insurance has 900 offices and new regional offices are being opened at Hubli, Vizag and Raipur. An overseas branch is being opened at Doha in Middle East, he said.
S. Surenther, Financial Advisor and General Manager were present. The economic slow down had resulted in the growth rate plummeting during the current fiscal from two to three per cent in October, it fell to one per cent in November and till December the overall growth rate had been only three per cent. Mr.Ramadoss said that the overall growth at the end of the fiscal was expected to stagnate at 10 to 12 per cent.
The fall in premium revenue and the resultant drop in growth rate were also because of the review of pricing and de-tariff measures in the premium rates done in April 2007. In the automobile insurance sector, Oriental was planning to come up with premium products such as depreciation free claim, alternate vehicle replacement policy during the period between accident and restoration of the vehicle.
The Commercial vehicle production had plummeted from 55,000 to 17,000 showing a drastic fall in the premium revenue graph. The health insurance sector alone was growing at a rapid pace. Growth in the health insurance sector stood at 55 per cent last year and it had already crossed more than 25 per cent. Out of the Rs 4,000 crore premium income per annum, Rs 550 crore came from health insurance segment alone and this was expected to touch a Rs 850 crore mark during the current fiscal or next, he said. The focus of the insurance industry would be more on this sector, he said.
However, expressing concern at the fraudulent practices, Mr.Ramadoss said that insurance sector was continuously asking the health ministry to standardise treatment procedures at the private hospitals. In the health insurance and motor vehicle insurance sector, the loss ratio incurred in terms of claims settlement was at Rs 120 crore. Owing to sustained efforts to tame the loss, it fell by 10 per cent this year and was expected to fall by another 10 per cent.
Oriental Insurance was also considering the setting up of a centralised claims processing centre which would be assisted by a panel of surveyors. Personal accident policy, house hold insurance policy, burglary protection cover besides inculcating the habit of insurance among younger generation and focusing on untapped rural areas could help balancing the fall in growth, Mr. Ramdoss said. Oriental Insurance has 900 offices and new regional offices are being opened at Hubli, Vizag and Raipur. An overseas branch is being opened at Doha in Middle East, he said.
Source: The Hindu
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