NIC expects Rs 12,000 cr income from premium during FY16

During FY15, the company's premium income stood at Rs 11,235 crore, up by nearly 10%

Kolkata based state-owned general insurer National Insurance Company (NIC) is expecting its income from premiums to scale up by nearly seven per cent to Rs 12,000 crore by the end of the current financial year while its gross profit is likely to increase by 10 per cent.

Till the end of February, the insurer, which commands a 13.27 per cent share second only to New India Assurance, in the Rs 85,000 crore general insurance market has been able to extract premiums in excess of Rs 10,000 crore.

During 2014-15, the company's premium income stood at Rs 11,235 crore, up by nearly 10 per cent while its the gross profit neared a 19 per cent rise.

"We are having a growth rate of 10 per cent and hope to maintain it till the end of the current financial year", chairman of NIC, K Sanath Kumar said.

This comes in wake of the Chennai floods where the insurance industry took a hit by nearly Rs 5,000 crore.

Kumar, who is also the managing director of the company, is focusing on increasing its retail distribution channels as well as turn the company tech-savvy to better its consumer centric approach.

"We have started data mining and analysis in this aspect so that we know a customer's attitude, buying pattern and related things", he said.

Also, it is expecting a "good impact" on its bottomnline after the IRDA rolls out the new car insurance premium plans. Motor insurance accounts for 47 per cent of its total annual earnings.

After, finance minister announced his plans of listing the state-owned insurance companies on the country's bourses, NIC has also been in the run alongwith its competitors, however, this may not happen anytime soon.

"After the government comes up with guidelines over the listing process, normally it takes around 7-8 months to go for the listing", Kumar said.

Thus, it has not started valuating the company for the listing process. Besides, it is felt that New India Assurance and General Insurance Company, the big names in the insurance sector, would first be prioritised for the listing process.

Asked if the listing process may be initiated in 2016, the senior official said, "It is too early to say that".