|
|
|
|
National Insurance posts Rs 4,108-cr loss for FY20
|
|
|
|
| Top Stories |
 |
|
|
|
SME Times News Bureau | 30 Sep, 2020
The government-owned non-life insurer, National Insurance Company Ltd,
has closed the last fiscal with a net loss of Rs 4,108 crore, affecting
its net worth and solvency, a top company official said on Wednesday.
In
a communication to the employees, its Chairman-cum-Managing Director
Tajinder Mukherjee said: "Our final accounts for FY 2019-20 have been
adopted by the Board on September 26. As you would have seen, the
company made a net loss of Rs 4,108 crore, which severely impacted its
net worth and solvency."
She said the losses for the third
consecutive year could be attributed to: (a) high claims ratio in major
portfolios like motor, health and crop (b) increased provisions of IBNR
(claims incurred but not reported by policyholders), and (c) provisions
for employees' future pension liabilities.
"Despite the recurring
losses, I assure you that the company is not facing any liquidity
crunch and all payments towards claimants, vendors and employees are
being released on time," she told her colleagues.
According to
her, the process of rationalisation of IBNR, particularly for motor
third-party portfolio, began in 2017-18 and the company has added over
Rs 6,000 crore to its value in these three years.
Mukherjee said
that an additional Rs 1,430 crore in 2019-20, compared with FY 2018-19,
was provided for employees' pension liabilities.
Expressing
concern over the incurred claims ratios (ICR) of certain offices, she
said that the corporate office has initiated steps for managing and
monitoring claims to reduce the overall ratio.
Pointing out to
capital infusion of Rs 1,675 crore by the government in July 2020,
Mukherjee said further capital infusion this year is linked to
achievement of key performance indicators (KPI) for growth, ICR, and
curtailment of expenses.
She said the exercise for restructuring of offices is underway to make each of the operating units viable.
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
| Japanese
Yen |
55.05 |
53.40 |
| As on 12 Oct, 2024 |
|
|
| Daily Poll |
 |
 |
| Do you think Indian businesses will be negatively affected by Trump's America First Policy? |
|
|
|
|
|
| Commented Stories |
|
|
|
|
|
|
| |
|
