Oriental Insurance net profit up 4%

State-owned Oriental Insurance Company today reported over 4% rise in net profit at Rs 330.52 crore netting premium income of Rs 2,218.02 crore during 2004-05 despite rising number of claims.

Keeping options open for a public offer, the general insurer is aiming at about 14% growth in business and a gross premium of Rs 3,439 crore in this fiscal, M Ramadoss, CMD of Oriental Insurance said announcing last fiscal's results.

Stating that insurance claims were on a rising curve, he described the trend as "disturbing."

"The increasing claims experienced in segments like fire, health, motor third party, motor own damage and marine hull needs to be arrested," he said.

He highlighted that incurred claims ratio was up by over 19% in the case of fire, over 16% in health, over 13% in motor third party, about 10% in motor own damage and a little over 6% in the case of marine hull.

Despite the increasing claims, the company's solvency ratio (which shows the withstanding ability in case of rising claims) improved to 1.46% as on March 31, 2005.

Worried over incurred claims ratio of 230.6% in the case of motor third party, he said "The issue needs to be addressed as we cannot bleed on this count, particulary as we are not allowed to refuse TP business" and sought regulator's help in fixing higher premium.