New India keen to insure state against calamities

New India Assurance, which has its presence in 22 countries plans to open three more branches in Myanmar, Qatar and Canada

India's largest general insurance company, New India Assurance has proposed the state government to subscribe to an insurance coverage plan on natural calamities.

"We have floated an idea with the state government officials and Chief Minister for an insurance scheme to insure against natural calamities, particularly cyclone, as the state is prone to it," said G Srinivasan, Chairman cum managing director of the insurance company.

He said, "we have to work out the product in discussion with the National Disaster Management Authority (NDMA) for coverage of loss of life and homes etc due to the calamities."

New India Assurance, which has its presence in 22 countries plans to open three more branches in Myanmar, Qatar and Canada by next financial year to expand its international operations.

In the state, the company has set a target to open seven more micro offices in addition to 18 such offices at present and collect Rs 155 crore premium before March 31, 2013.

Srinivasan said, New India has become the first Indian non-life insurance company to cross the Rs 10,000 crore premium mark and had set a target of Rs 12,000 crore premium income for the current financial year.

The investment income of the company stood at Rs 2,055 crore for the nine months ended December 2012 compared to Rs 1,709.14 crore in the same period in the previous year.

"There is increase in the investment income due to improved market conditions," he said.

Under Rashtriya Swasthya Bima Yojana, a health insurance scheme of the Central government, the company is providing health insurance cover to BPL (below poverty line) families in five districts of Angul, Dhenkanal, Nabarangpur, Keonjhar and Jagatsinghpur. New India has already covered 5,39,290 BPL families in the state.