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New India Assurance Company Ltd.

BSE: 540769 Sector: Financials
NSE: NIACL ISIN Code: INE470Y01017
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52-Week high 195.65
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P/E 16.48
Mkt Cap.(Rs cr) 16,810
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Sell Price 95.00
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52-Week high 195.65
52-Week low 0.00
P/E 16.48
Mkt Cap.(Rs cr) 16,810
Buy Price 102.00
Buy Qty 100.00
Sell Price 95.00
Sell Qty 5.00

New India Assurance Company Ltd. (NIACL) - Director Report

Company director report

To the Members:

Your Directors have immense pleasure in presenting the Ninety Ninth Annual Report ofthe Company together with the audited statement of accounts and balance sheet for the yearended 31st March 2018.

1. The snapshot of your Company Standalone financial performance is as below :

(Rs. in crores)

Fire Marine Misc Total
Gross Direct Premium Income India CY 2082.57 600.01 20036.19 22718.76
PY 1824.28 610.03 16680.38 19114.69
(% Growth) CY 14.16 -1.64 20.12 18.85
PY 7.83 -1.22 29.91 26.17
Outside India CY 659.74 41.16 1739.65 2440.55
PY 727.25 54.05 1701.92 2483.22
(% Growth) CY -9.28 -23.86 2.22 -1.72
PY -15.21 -5.58 0.18 -5.00
Global CY 2742.31 641.16 21775.84 25159.31
PY 2551.53 664.08 18382.30 21597.92
(% Growth) CY 7.48 -3.45 18.46 16.49
PY 0.08 -1.59 26.43 21.59
Reinsurance Premium Accepted India CY 90.72 5.19 137.68 233.59
PY 87.82 5.15 325.32 418.29
Outside India CY 954.47 38.44 168.58 1161.50
PY 841.04 30.89 132.58 1004.51
Reinsurance Premium Accepted Global CY 1045.19 43.63 306.26 1395.08
PY 928.86 36.04 457.90 1422.80
Reinsurance Premium Ceded India CY 1315.11 263.99 3278.38 4857.48
PY 1018.49 323.47 2425.54 3767.49
Outside India CY 512.42 11.29 216.84 740.55
PY 454.69 11.41 196.21 662.31
Reinsurance Premium Ceded Global CY 1827.53 275.28 3495.23 5598.04
PY 1473.18 334.88 2621.75 4429.80
Global Net Premium CY 1959.96 409.52 18586.87 20956.35
PY 2007.21 365.25 16218.46 18590.92
Addition / Reduction in Un-expired Risks Reserves CY -2.38 31.65 1202.48 1231.76
PY 88.53 -96.78 784.39 776.14
(% to Net Premium) CY -0.12 7.73 6.47 5.88
PY 4.41 -26.50 4.84 4.17
Earned Premium CY 1962.34 377.87 17384.39 19724.60
PY 1918.69 462.03 15434.07 17814.78
Incurred Claims Net CY 1510.40 226.16 15159.90 16896.47
PY 1959.37 349.34 13948.22 16256.93
(% to Earned Premium) CY 76.97 59.85 87.20 85.66
PY 102.12 75.61 90.37 91.26

 

(Rs. in crores)
Fire Marine Misc Total
Commission Net CY 288.74 56.62 1478.65 1824.01
PY 340.60 45.39 937.15 1323.14
(% to Net Premium) CY 14.73 13.83 7.96 8.70
PY 16.97 12.43 5.78 7.12
Operating Expenses CY 330.40 68.95 3129.67 3529.02
PY 408.67 74.29 3299.06 3782.02
(% to Net Premium) CY 16.86 16.84 16.84 16.84
PY 20.36 20.34 20.34 20.34
U/W Results CY -167.20 26.14 -2383.83 -2524.90
PY -789.95 -6.99 -2750.36 -3547.31
Investment Income-Policy Holders CY 596.57 84.51 2847.20 3528.28
PY 443.35 94.28 2452.73 2990.36
Revenue (Policy Holder) Account Surplus CY 429.37 110.65 463.37 1003.38
PY -346.60 87.29 -297.63 -556.95
Investment Income-Share Holders CY 1636.58
PY 1519.08
Other Income less Outgo CY 85.09
PY 201.73
Profit before Tax CY 2725.05
PY 1163.86
Provision for Tax CY 524.14
PY 155.93
Profit after Tax CY 2200.91
PY 1007.93
Interim Dividend CY 309.00
PY 0.00
Dividend Tax CY 62.91
PY 1.09
Transfer to Reserves CY 1829.00
PY 1006.84

DIVIDEND DISTRIBUTION POLICY

Your Directors are pleased to recommend a Final Dividend of Rs. 5 per Equity share offace value of Rs. 5 each. The Company had distributed an Interim Dividend of Rs. 3.75 perEquity share of face value of Rs. 5 each in the month of December 2017. The total outgoincluding the final dividend ofRs. 5 per Equity share is Rs. 8685929745 includingDividend Distribution Tax of Rs. 1475929745 as against Rs. 3731192240 includingDividend Distribution Tax of Rs. 631192240.

In terms of Regulation 43A of Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 ("ListingRegulations") the Dividend Distribution Policy of the Company has been hosted onCompany's website and can be viewed at the below mentioned link :"https://www.newindia.co.in/cms/c52d520f-6589-4772-bcc8-e214657297ec/Dividend%20DistributionPolicy.pdf?guest=true"

BONUS

Your Company had announced a Bonus of 1 new Equity Share for every 1 existing EquityShare.

2. PERFORMANCE REVIEW (Global)

(Rs. in crores

2017-18 2016-17
A Gross Written Premium (India) 22952 19533
% change over previous year 17.50 26.09
Gross Written Premium (Foreign) 3602 3488
%change over previous year Gross 3.27 -0.97
Global Premium 26554 23021
%change over previous year 15.35 21.09
Gross Written Premium (GWP) in India has increased from Rs. 19533 crore in 2016-17 to Rs. 22952 crore in 2017-18 recording a good growth of 17.50 % in 2017-18. The company continues to be the market leader in India and is scaling to new heights. Good growth has been achieved by all the regions. The company crossed Rs. 22000 crore In Indian market itself in 2017-18.
B Net Premium 20956.35 18590.92
% change over previous year 12.72 16.84
The net premium income of the company grew by Rs. 2365 crore from Rs. 18591 crore to Rs. 20956 crore.
C Additional Un-expired Risk Reserves 1231.76 776.14
% change over previous year 58.70 -18.48
D Earned Premium 19724.60 17814.78
% change over previous year 10.72 19.08
E Incurred Claims (Net) 16896.47 16256.93
Percentage to earned premium 85.66 91.26
F Commission (Net) 1824.01 1323.14
Percentage to Net premium 8.70 7.12
G Operating Expenses 3529.02 3782.02
Percentage to Net premium 16.84 20.34
H Underwriting Results (2524.90) (3547.31)
I Investment Income (Less Provision)
Apportioned to policyholders 3528.28 2990.36
Apportioned to Shareholders 1636.58 1519.08
Total 5164.86 4509.44
J Revenue (Policyholders) Account Results 1003.38 -556.95
K Other Income/Outgo 85.09 201.73
L Profit Before Tax (PBT) 2725.05 1163.86
M Profit After Tax (PAT) 2200.91 1007.93
N Proposed Total Dividend 721.00 310.00
O Dividend Tax 147.59 63.12

 

(Rs. in crores
2017-18 2016-17
P Paid-up Capital 412.00 200.00
Q Reserves and Surplus 15277.22 11970.16
R Total Assets 76626.79 69172.81
S Investments (at cost)
T Solvency Margin
i. Required sovency margin under IRDA regulations (Global) 5322.97 5073.53
ii. Available solvency margin (Global) 13738.87 11134.68
The company's Global solvency ratio is 2.58 times (PY 2.19 times)
U Compliance with Section 40C
i. Expenses prescribed under the act 7225.88 6209.59
ii. Actual expenses 5004.81 4593.88
iii. Difference 2221.07 1612.70

The Company proposes to transfer an amount of Rs. 1926.68 crore to General Reserve.

3. GENERAL INSURANCE INDUSTRY VIS-A-VIS INDIAN

ECONOMY: Indian economy

The Indian Economy grew at 6.7% in 2017-18. Notably the growth in the third and fourthquarter were 7.2% and 7.7% respectively indicating that the coming year could witnesshigher growth and this augurs well for the economy in general and the insurance industryin particular. During this Financial Year inflation has remained largely stable andMacro-economic factors continue to be positive though rising crude prices and increasingrates are a cause of concern.

Reforms such as GST RERA and the push towards a Digital economy there has been atransitional shift/push from the informal economy to the formal economy. Implementation ofbankruptcy code and recapitalisation of banks also augurs well for the financial sector.Taking note of these developments Moody's raised India's rating from the lowestinvestment grade of Baa3 to Baa2 and changed the outlook from stable to positive inNovember 2017. This was India's first upgrade in 14 years.

Indian general insurance industry

The Indian General Insurance Industry grew by 17.44 % in FY18 and the total grossdirect premium of the industry reached 150571 crore. Motor Health and Crop were theprimary growth drivers of the industry.

In the year 2017-18 The Government of India has unveiled Ayushman Bharat the world'slargest National Health Protection Scheme which is expected to cover 10 crore families(approximately 50 Crore beneficiaries) with a defined benefit cover of Rs. 5 lakh peryear per family. This is a great opportunity for the Insurance industry which is alreadythe recipient of favourable tailwindsfrom opportunity for the improving economy. TheHealth Insurance segment will see transformation in the coming years.

The impending amendment to the Motor Vehicle Act will be a game changer for theindustry and can go a long way in speedier settlement of third party claims reducing thenumber of road accidents and decreasing the number of uninsured vehicles on the road. TheMotor Insurance Service Provider guidelines issued by the regulator will play an importantrole in rationalising the pay-outs to intermediaries. Crop insurance business which saw ahuge growth after the launch of Pradhan Mantri Fasal Bima Yojana will continue to grow asmore and more farmers are brought under the ambit of insurance. The traditional lines likeFire and Engineering where growth is closely linked to the general performance of theeconomy are also expected to fare better in the coming years with higher growth of Indianeconomy and revival of public and private sector investments.

Reforms such as the introduction of the Real Estate Regulation

Act 2016 (RERA) has also ushered in further reform in the Real Estate sector. TitleInsurance which is a multi-billion dollar market globally has been made mandatory fordevelopers under RERA.

The listing of a few large insurers with many other insurers planning to list hasbrought in higher corporate Governance standards and more rational competition in thesector. The GOI has announced the merger of three large PSU insurers followed by listingof the combined entity which can lead to consolidation and reduced competitive intensityin the industry. Information Technology is an enabler and disruptive technologies such asBlockchain Artificial Intelligence and Machine learning will be increasingly used goingforward The Insurance industry will be in the forefront in the use of technology forsettlement of claims detection of fraud targeted delivery etc. Underwriting pricing andmarketing decisions will be increasingly data-driven.

The Indian General Insurance industry continues to be underpenetrated compared to itsglobal peers and there is growth. The insurance penetration of significant the Indiannon-life insurance sector has been low keeping around 0.5-0.8 percent range in the last10 years. The non-life insurance penetration in the year 2016 has improved a bit to .77from .72 percent in the year 2015. However non-life insurance density has gone up fromUSD 2.4 in 2001 to USD 13.2 in 2016. Non-traditional lines like home owners' insuranceshop-keepers insurance and various kinds of liability insurance have huge untappedpotential and can provide the next leg of growth.

The Government's vision of a "New India" is expected to create atransformative push over the next few years. The Insurance Industry as a whole is expectedto be a major contributor towards this achievement and the General Insurance industry isin a position to deliver unique solutions and benefit to all stakeholders.

4. OVERVIEW OF COMPANY'S OPERATIONS INDIAN OPERATIONS:

Gross direct premium in India has increased from Rs. 19114.69 crores in 2016-17 to Rs.22718.76 crores in 2017-18 recording a growth of 18.85 % during 2017-18. The growth isobserved in all geographical segments as well as all classes of business

INDIAN OPERATIONAL RESULTS

Sr. No PARTICULARS 2017-18 (Rs. in Crore) (%) 2016-17 (Rs. in Crore) (%)
1 Gross Direct premium 22718.76 18.85 19114.85 26.17
2 Net premium 18475.96 14.84 16088.54 21.68
3 Increase in unexpired risk reserve 1246.17 877.76
4 Net earned premium 17229.79 15210.78
5 Commission 1203.10 6.51 699.54 4.35
6 Incurred claims 15247.75 82.53 14487.46 90.05
7 Management expenses 3341.68 18.09 3592.84 22.33
8 Other income (net of outgo) 87.66 0.47 192.61 1.20
9 Investment income 5036.22 27.26 4373.81 27.18

Note: Percentage shown in sr. no. 1 & 2 indicates the growth over previous year andthe percentage shown in sr. no. . 5 to 9 is percentage to 'Net Premium.'

B. FOREIGN OPERATIONS: • Kuwait
New India commenced its foreign operations shortly after its formation in 1919. The London branch was opened in 1920. After that the Company saw a steady increase in presence abroad with Manila Port Louis and Japan. Today New India has presence in 28 countries. • Oman
• Aruba
• Curacao.
Apart from these countries the Company has subsidiaries in
Today the company operates in the following countries through Branches & Agency offices: Nigeria (Prestige Assurance Plc.) Trinidad and Tobago (New India Assurance T &T) and Sierra Leone. The New India T &T also operates in countries such as St. Lucia Dominica St Maarten
•United Kingdom
• Japan Guyana and Anguilla. The Company has opened a Representative office in Myanmar and is planning to open an office in SEZ
• Hong Kong Myanmar. The Company also has its presence in Saudi Arabia (WAFA Insurance) Singapore (India International Pte Singapore) and Kenya (Ken India Assurance Co. Ltd. Nairobi)
• Philippines
• Thailand The Company's foreign operations saw a gross written premium
• Australia turnover in rupee equivalent of Rs. 3203 crores and a Net premium of Rs. 2480 crore in 2017-18. The foreign operations recorded an underwriting profit ofRs. 37.84 crore and profit before tax wasRs. 163.91 crore..
• New Zealand
• Mauritius
• Fiji New India Assurance has taken a license to operate in DIFC Dubai
• Dubai through a Regional office.
• Abu Dhabi
• Bahrain

OVERSEAS OPERATIONAL RESULTS

Sr. No. Particulars 2017-18 2016-17
(Rs. in Crore) (%) (Rs. in Crore) (%)
1 Gross premium (Gross Direct plus Accepted) 3202.89 1.22 3164.00 -1.79
2 Net premium 2480.40 -0.88 2502.53 -7.47
3 Increase in unexpired risk reserve -14.41 NA -101.62 NA
4 Net Earned Premium 2494.81 NA 2604.15 NA
5 Incurred claims 1648.72 66.47 1769.47 70.71
6 Commission 620.91 25.03 623.60 24.92
7 Expenses of management 187.34 7.55 189.18 7.56
8 Other outgo -2.57 -0.10 9.12 0.36
9 Investment income 128.64 5.19 135.63 5.42

Note: Percentage shown in Sr. No. 1 & 2 indicates the growth over previous year andpercentage shown in Sr. no. 5 to 9 is percentage to net premium.

5. ORGANISATION STRUCTURE

Domestic

The Company has been consistently expanding its footprint by opening new Micro Officesin unexplored semi-urban and rural areas and upgrading its large Micro Offices to BranchOffices and Branch Offices to Divisional Offices to provide better service to the blic.The Company has set up new 70 Micro Officesto cater to the general insurance needs ofunexplored rural areas and unrepresented urban areas and upgraded 19 micro offices toBranch Offices and 3 branch offices to Divisional offices in this financial year. As on31st March 2018 the Company has a network of 31 Regional Offices 7 Large CorporateOffices 1 Auto Hub 1 IFSC Insurance 460 Divisional Offices 603 Branch Offices 27Direct Agent Branches and 1341 Micro Offices totaling 2472

Foreign

The Company operates in 28 countries

REINSURANCE

The year 2017-18 witnessed several devastating Natural catastrophic events in theUnited States and the Caribbean Islands though there were no major natural calamities inIndia.Our foreign branches in ArubaCuracao and UK were impacted by claims arising fromHurricane Irma which hit the island of St.Maarten in September 2017. Similarly oursubsidiary New India T&T was also impacted by the claims from Hurricane Maria andIrma. Most of these losses are recoverable from our Reinsurance arrangements.

Renewal of all proportional and non-proportional treaties of Indian as well as foreignoffices was completed as per schedule and placements made with well rated securities. Thenew line of crop Insurance business of Pradhan Mantri Fasal Bima Yojana is protected witha new Quota Share and Stoploss Treaty from this year.

Our International Financial Service Office(IIO)at Centre

GIFT city Gandhinagar completed one full year of operations with profitable results.

TECHNO MARKETING

Techno Marketing Department of the company is a specialized cell which operates fromthe Corporate Office. The department caters to the requirements of corporate clientsdealing with Large Projects and operational Large Risks.

The company continued to maintain its lead position in the

Large Risk Segment which is an indication of its superior technical expertise marketreputation and underwriting capacity. The Company has been able to design bespoke coversto suit the requirements of corporate clients with the support of National andinternational Reinsurers. pu The department arranged Risk Engineering and Risk Inspectionfor some of the risks as a value added service. These services are useful for PMLAssessment and for imparting loss minimization measures to the Insured.

The company aims to maintain its leadership in this area in the coming years as well.

FIRE AND ENGINEERING INSURANCE

With Economy growing at a faster pace Property Insurance .

Segment remains one of the most promising sectors in General Insurance Industry. With2082.56 Cr premium in Fire & 445.06 Cr in Engineering your company has once againretained the leadership position in property Insurance in Indian General Insurance market.Growing at 14.16% in LOB Fire we have gained new business worth 258.28 Cr & are goinghand in hand with the Industry. Our aim has been to implement prudent underwritingguidelines to get quality business. Our efforts have been fruitful as the ICR has comedown significantly in both Fire & Engineering adding to financial strength of thecompany. Apart from that we have continued our efforts in improving the pricing schemeunderwriting & claims management through proper coordination with operating offices byconducting Underwriting & claim workshops & regular VCs to educate our technicalteam

Your Company has emphasized on quick disposal of Claims via proper utilization ofresources & efficient claims management which has helped in reducing the overall costof claims & in improving the profitability of the company.

We are focused to maintain our leadership position in the segment in the upcomingyear(s) by proactive approach prudent underwriting efficient claims managementtechnical competence & innovative techniques.

HEALTH INSURANCE

Your company maintains its leadership position in Health Insurance this year too withan annual growth of 17.6% amounting to Rs. 7008 Crores vis a vis Rs. 5960 Crores lastfiscal.

This year consistent efforts were made to contain the ICR in Health Department and thedesired results were achieved. There has been good spurt of growth at the Retail segment@19% in this financial year. Your Company has pioneered a prestigious product by name"The New India Global Mediclaim policy" covering treatment abroad at WorldLeading Medical Centres Globally. Some of the centres offered for treatment include JohnHopkins University Medical Centre Memorial Sloan Kattering Cancer Centre (New York)Kings College Hospital (London) and Mount Elizabeth Hospital (Singapore).

We have broadened our existing New India Mediclaim 2012 policy too with severalattractive features and optional covers. We have introduced restoration of sum insuredfree of cost under this policy. Our New India Floater Mediclaim policy too has beenenhanced with sum insured from a maximum of Rs.

8 lacs to Rs. 15 lacs.

Recruitment of another batch of 26 doctors is in process for developing in-houseexpertise in Health Department. Constant audit and visit to the hospitals/TPAs forsurprise check is being carried out which has resulted in containing the ICR.

Regular training and briefing sessions are carried out for updating the marketing forceas well as the executives for better service and growth in the Health Vertical.

MARINE CARGO AND HULL INSURANCE

Your Company continues to maintain its leadership in

Marine Line of Business with highest market share in Cargo as well as Hull in theIndian Market. The Company has approximately 36.4 % of market share in Hull and 15.5 % inCargo Business. Company achieved a Marine

Cargo Domestic premium of Rs. 350 Crores as against Rs. 342

Crores in the previous year. Despite a very soft market and reduction in premium ratesat renewal your Company has registered a growth of 2.38%. For the first time in Indianmarket we have launched P&I cover for coastal vessels of Indian Ship owners. Suchbusiness is being underwritten by foreign market due to non-availability of the product inIndia. We hope to retain this business within Indian market. Hull business has declinedbecause of market conditions but with increase in oil prices and revival of energybusiness prospects are good for the next year. Marine business generated by ForeignOffices isRs. 33.50 Crore in Cargo and Rs. 7.60 Crores in Hull. The total Marine Businessglobally is Rs. 641 Crores. As a leader in Marine Hull & Cargo Insurance we arecommitted to deliver the best service to its clients and therefore number of initiativesare being undertaken for effective e-marine solution for issuance of Certificates/Policies through Customer/Intermediary Portals and also for claims handling. Despitereduction in premium rates Marine Cargo Portfolio remains profitable. ICR for MarineCargo Business was 51% in the year 2017-18. The efforts made towards claims managementrisk management careful underwriting and recovery has contributed to sustainedprofitability of the Portfolio. A Centralized Recovery System has been deployed on pilotbasis for selected Offices with the intention of better handling of marine recoveriesunder subrogation.

Focus area for the next year will be towards faster disposal of claims to touch higherlevels of customer satisfaction and also boost growth rates in marine line of businessusing IT infrastructure and innovation and maintaining balanced and healthy portfolio inmarine department.

AVIATION INSURANCE

Your Company continues to be the lead insurer for India's National Carrier Air IndiaIndigo Airlines Go Air and Vistara. During the year 2017-18 we have been chosen as leadinsurer for Spice Jet and increased our participation in Jet Air. New India has also beena preferred Insurer for HAL the Aircraft Manufacturer and R&D organization IndiraGandhi National Flying Academy the flagship training academy of India and various otherGeneral Aviation Business. With the advent of Government sponsored Regional Connectivityscheme your Company has been the forerunner in the two airlines that have taken off Airodisha and Air Deccan. A few more are in the pipe line.

Your Company continues to be a preferred re-insurer in international market extendingits support to around 170 Aviation Reinsurance Programs across the Globe includingLufthansa Singapore Airlines Emirates Airways. Your Company has provided capacity asQuote Share Reinsurer to GIC Re London for their participation in Altitude Risk PartnersPool for enhancing its penetration in the Global Aviation Market.

MOTOR

AUTO TIE-UP

Auto Tie-up has been a rich source of new motor vehicle business and New India has beenable to tie up with motor dealers across India through partnership with major brands inthe Indian market such as Maruti SuzukiTata Motors Hyundai Ford Royal Enfield HondaMotorcycles and Scooters Ashok Leyland Volvo-Eicher Mahindra & Mahindra Yamahaetc. . This network thru centralized tie up has enabled us to source business through morethan 4350 dealers. Besides more than 1550 dealers (other than OEM Tie ups) of privateCars commercial Vehicles and two wheelers have tied up with New India offices directlyfor sale of motor insurance policies to their customers. Auto tie up has empowered NewIndia to create a brand image of leading motor insurer in India who has been deliveringvalue added services like; instant delivery of insurance policies & endorsementsseamless settlement of claim TAT based delivery of services &cashless facility atdealer points. This has been possible through intervention of IT enabling our partnerdealers to execute all such activities on portals available at each dealer point.

With the recognition of role of motor dealers as MISP a recognized intermediary ofmotor insurance business the auto tie up business has moved into a new era of regulatedmarketing of motor insurance through the dealers in which New India has not only beenable to migrate quickly and grow steadily in the new set.

The premium achieved by Auto Tie up Department in financial year 2017-18 is Rs. 2627.64Crores as against premium of

Rs. 2380.23 Crores in 2016-17. Along with increase in volume of business we have alsobeen continuously focusing on control of ICR to create a comfortable business surplus.

Motor Own Damage (O.D.)

Our company is maintaining number one position in Motor segment for the last fouryears. Overall Motor business grew at the rate of 19.6% during 2017-18 with Motor ODpremium showing an accretion of 8.35% and Motor third party premium at 27.42% which is atpar with industry growth rate

Motor OD business has shown profitable growth during the year and same trend isexpected to continue in the coming years. Claim settlement in Motor OD segment has shownimprovement which is at 94.2% as against target of 92%. Motor OD incurred claim ratio hascome down considerably compared with earlier years. There are 34 claims hub which handlethe claims of over 800 operating offices and company has tied up with over 1200 reputedmotor workshop/garages to provide cashless service to retail customers.

Motor TP Claims and Motor TP Claims Hubs

Your Company focuses on improving the performance in TP claims handling. This hasresulted into reduction of OS claims from 156490 in previous year to 147997 at the endof FY 2017-18. Further overall Claims Disposal Ratio increased to 36.99% compared to 34%in preceding year Keeping the current judicial view of the Hon'ble Supreme Court and HighCourts in mind the company has adopted the strategy to minimize the further litigationand thus number of claims under appeal or SLP before the Higher Courts have been reduced.The company targeted to settle the maximum number of fit claims by way of compromise andsettled nearly 37% of total settled claims by way of compromise through Lok Adalat andother Conciliatory Mechanisms.

Information Technology aspect had remained the majorarea channel of focus during thisyear and considerable modifications were carried out in the system which shall enable theuser to monitor and manage the claims effectively.

Solatium Fund

The Company is the Fund Manager of Solatium Fund for motor ‘hit and run' accidentcases. The fund balance as at 31st March 2018 is Rs. 80 crore backed up by earmarked shortterm investments. Both the fund and the investments are included in the financials of theCompany as at 31st March 2018. The Solatium Fund will be maintained separately and notclubbed in the books of the Company from 2018-19 onwards

MISCELLANEOUS AND LIABILITY INSURANCE

Your Company continues to be market leader in Liability Insurance for the eighthconsecutive year. This year we achieved a domestic premium of Rs. 371.57 crores (gross) inthe Liability line of business. Our milestones in Liability this year include being thefirst Insurer in the Indian Market to file Title Insurance. Your Company is also thepreferred lnsurance partners in the new emerging lines of Cyber Liability Insurance forBanks & Financial Institutions. We have forayed into issuing a Professional IndemnityCover to cover lnsolvency Resolution Practitioners as there is Personal Liability underSection 233 of the Insolvency and Bankruptcy Code 2016. We are also the proud Insurers ofthe prestigious Mumbai Trans harbour Project. The Miscellaneous Department continues toprovide innovative corporate and retail products. The Pradhan Mantri Kaushal vikasYojanais a Special Group Personal Accident Scheme we have created for the technologytrainees of the National Skill Development Corporation of India for a 3 years period.

BROKERS AND BANCASSURANCE :

Bancassurance Channel is a business model which offers immense opportunities ofbusiness in the current scenario. We have Bancassurance partnership with 28 Banks whichincludes 5 PSU Banks i.e. Corporation Bank Union Bank of India Bank of India CanaraBank and Punjab National Bank. Recently we also Tied up with Bandhan Bank and talks havebeen initiated with SIDBI as well as DBS Bank for Bancassurance Tie-Up.

Bancassurance channel registered a growth of 34% in 2017-18. We have provided Portalaccess to several Banks and also devised co-branded policies as per the Bank'srequirement. The Bank Branches have also been mapped with our Offices throughout thecountry so that the channel potential can be fully utilized.

Your Company recognized the importance of the Broker channel at the early stages andhas been conducting Technical Workshops for Brokers in different parts of the country tofamiliarize the Brokers with the latest Products of the Company. We have specializedoffices across the country to provide service to Brokers. This channel has grown at 23% inthis financial year and contributing 27% of the total business.

AGENCY

The Agency channel constitutes largest share to the

Company's Premium income and continues to be the most business. Continuous efforts weresignificant made during the year for training and empowering Agents for better functioningand enhancing productivity of agents amidst increasingly stiffer competition in retailmarket. During the year 9519 new agents were recruited and various Reward schemes wereimplemented for agents in Motor retail Health and Miscellaneous business. The Premiumprocured by Individual agents was Rs. 9602 Crores with growth of 16.85 % & Rs. 119Crores through Corporate Agents other than Banks with 133% growth. All Operating officeshave an

Agent Manager whose role is to recruit and train agents and provide them sales andservice support. During the year 200 new Agent Managers were imparted training to betterperform their role in nurturing and supporting agents and enhance their performance.Programs were also organized for CMD club agents and champion Agent Managers for enhancingtheir skills. Agent portal & App were improved further to make them more user friendlyto enhance penetration and thrust in retail market. Constant encouragement and motivationsupported by training significantly enhanced usage of agent portal and App. During theyear Portal access was enhanced to over 22700 agents and they issued 29.77 Lac policiesgenerating Premium of Rupees 1710 Crores.

RURAL AND SOCIAL SECTOR AND MICRO INSURANCE

Your Company is the pioneer Non-Life Insurance Company in insuring all types of assetsand lives under Rural and Social Sector in the country. Company has been a major player inthe Rural & Social Sector Insurance Business in India with a variety of products whichsuits the requirements of our rural mass. Insurance covers provided by the Company areneed-based/tailor made for the benefit of Rural and Social Sectors and Rural Insuranceactivities are village specific. We have participated in Centrally SponsoredCattle/Livestock Insurance Schemes Corporate Dairy schemes and State & District Levelschemes special Insurance Schemes like Drip Irrigation Policy Agriculture Solar PumpsetInsurance Policy KCC Master Policy etc. Your Company is empanelled by the Government ofIndia for implementation of our Hon. Prime Minister's Ambitious Insurance Programme forIndian Farmers i.e. PMFBY Restructured Weather Based Crop Insurance Scheme (RWBCIS) &Unified Package Insurance Scheme(UPIS) since Kharif 2016. We are participating in theTender process in various State Governments all over India. Your Company has successfullyimplemented PMFBY during Kharif 2017 in Tamil Nadu Rajasthan Gujarat & Uttar Pradesh& Rabi 2017-18 in Tamil Nadu & Uttar Pradesh.

RSBY &GOVERNMENT BUSINESS

Social Security and healthcare assurance for all has been the motto of Government ofIndia and it has taken various steps in this regard. RSBY was launched in early 2008 andwas initially designed to target only the Below Poverty Line (BPL) households but has beenexpanded to cover other defined categories of unorganised workers too. Your Company isimplementing RSBY schemes in various states of India. The company is also implementingvarious other government sponsored mass schemes like ‘Bhama Shah Swasthya Bima Yojna'in Rajasthan Megha Health Insurance Scheme in Meghalaya and so on. In Both theabove-mentioned mass schemes New India is the sole insurer for third year in a row. The‘RuPay Insurance program providing Personal Accident cover to more than 43 CroreRuPay Cardholders has been successfully implemented by your Company

PRADHAN MANTRI SURAKSHA BIMA YOJNA

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a flagship scheme under the umbrella ofPradhan Mantri Jan DhanYojana (PMJDY). To achieve the motto of financial inclusion ofGovernment of India your Company has conducted various enrolment and awareness campaignsfor PMSBY. We have tied- up with more than 200 banks for PMSBY and have settled more than4600 claims keeping the disposal ratio consistently above 95%.

Your Company will continue to exhibit consistent growth with the help of such giantschemes.

ALTERNATE BUSINESS CHANNEL DEPARTMENT

In line with the developments in the market your company has forayed into the onlinespace and has been making rapid strides in this segment. Web aggregators who arepredominantly changing the online landscape are in partnership with us along with theother channel partners. Simplified products are being put up for sale to ensure ease ofpurchase. During the current year we have forayed into social media arena to enhance ourvisibility as well as to use this avenue to enhance our sales.

We are confident during the years ahead our sales through online channel willsignificantincreasekeeping in show view the current market developments.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

Complying with the provisions of the Companies Act 2013 CSR committee of the board wasconstituted in September 2014 with a mission to achieve our vision "to strive totransform India into a Risk Aware Society from being a Risk Averse Society" byintegrating social environmental and health concerns of the Indian Society into Company'soverall CSR Policy and Programme.

The thrust of our CSR activities is on capacity building empowerment of communities'inclusive social economic growth environment protection promotion of green and energyefficient technologies development of backward regions and up-liftment of themarginalized and under privileged sections of the society. Procedure was formulated andguidelines were issued for ease of CSR activities. Some of the notable CSR projects wherein your Company participated were with organizations like Swachh Bharat Mission KedarnathUtthan Charitable Trust Vivekananda Rock Memorial and Vivekananda Kendra in North EastAkshaya Patra in Uttar Pradesh Science and Technology Park in Pune Apparel Made-ups& Home Furnishing Sector Skill Council for Skill India in Himachal Pradesh Aim ForSeva in Orissa Disabled Welfare Trust of India in Gujarat Ramakrishna Mission Ashram'sSolar System Installation in Chennai.

CUSTOMER CARE

Customer Care Department is functioning well at Company's Corporate Office as well asall Regional Offices. Dedicated Customer Care Nodal Officers are working in all theoperating offices throughout the country for extending quality service to thePolicyholders and the prospects. Online information on the Company's products are providedin the website https:// newindia.co.in for the benefit of the public.

The Company's Call Centre established in 2010 forms an integral part of CustomerRelationship Management Activity. The toll free number of the company 1800-209-1415 isavailable to the customer 24*7 for inquiries of various Products Claims and Grievancesboth in Hindi and English. Service Requests for further follow up are replied/resolved bycompany's operating offices. This initiative and endeavor of ‘Customer Service' is akey and vital element of our business strategy for a continuous and progressive growth inthe General Insurance Industry with value added products matching the Customers' needsand requirements. Grievances received orally over telephone or in writing are registeredby us in the CRM Module. Customers can register their grievance through our websitehttps://www.newindia. co.in/portal/#/home. Customer grievances received by IRDA getsregistered in IGMS. Our CRM Module is integrated with IGMS on real time basis. We alsoreceive customer grievances registered in Centralized Public Grievance Redress andMonitoring System (CPGRAMS) portal and National Consumer Helpline portal. We resolve thegrievances intimate the customers and post the resolution through the portal.

The Grievance Redressal position for the period 1.4.2017 to 31.3.2018 is as under :

Outstanding grievances as on 31/03/2017 38
Registered (From 01.04.2017 to 31.03.2018) 4864
Resolved (From 01.04.2017 to 31.03.2018) 4902
Outstanding as on 31.03.2018 0
Disposal Ratio 100%

ENTERPRISE RISK MANAGEMENT

Enterprise Risk Management department (ERM) is an emerging department established atCompany's corporate office with its wings at all Regional Offices and Large CorporateBroker Offices represented by ERM Nodal Officers. Efforts are in full swing to completethe ERM Project by implementing a suitable ERM software system.

1. The Risk Appetite statement (RAS) of our company identifies key risk obstructing ourstrategic objectives and helps the company to maintain a tolerance/ threshold limit foracceptance of such risk.

2. The TOP RISK register focusing on 10 key risk areas of our company includes a rangeof Key Risk indicators helps to measure the intensity of risk and suggest takingappropriate risk mitigation measures.

3. The RAS and the TOP RISK register have been approved by the Risk Managementcommittee (RMC).

4. Incident Reporting (Operational loss reporting) circular was issued to all the HOdepartments and RO's/ LCBO's to report six types of incidences that cater to operationallosses.

To create and spread awareness on the domain ERM various initiatives like ERM Desktopwallpapers ERM Quiz and ERM Mailers were held. ERM refresher training and Cyber risktraining was held for Chief Managers and ERM

SPOCS to embrace them continuously on the risk domain. Business Continuity Management -Establishing Business Continuity Management process is a sub-part of ERM dept that focuseson mitigating the business continuity risk during exigencies.

1. Following the mandate of RMC & based on instruction of ERM Dept all the RO's& LCBO's have conducted Fire Safety Audit of their offices to ensure safety ofemployees systems and premises.

2. Recovery Procedure Document a single pager guide during the emergency times havebeen implemented across all the RO's & LCBO's. The RPD implementation at all otheroffices is under progress.

.3 Evacuation Mock drill was conducted in one of the Mumbai RO on a pilot basis to testthe readiness of the said premises to respond in case of emergency. Similar exercise wasreplicated in few other RO's. BCP training was provided to Fire Prevention Officersnominated at HO.

The following functions were also performed under ERM framework: -

- The Revised Corporate Anti-Fraud Policy 2018 was approved by Board and adopted by ourcompany recently.

- The Outsourcing activities of our company for the FY 2017-18 have been reported asper Outsourcing Guidelines 2017 to IRDAI in the specified format

- Information and Cyber Security is also a focal point in Risk management and is beingaddressed by various measures at people procedures and technology levels in coordinationwith IT dept.

- The Chief Risk Officer reports to the Risk Management Committee of the Boardperiodically to update on the progress of the ERM departmental activities.

CLAIMS MANAGEMENT

Your Company carried out various activities throughout the year as under :

1. Regular monitoring right from the beginning of the financial year was done bytargeting settlement of claims based on the age-wise analysis.

2. For claims that were falling in more than one year category special focus was done

3. To equip our claims processing officials with technical knowledge and to improvetheir customer care skills training programmes were held at the College of

Insurance. Total six batches of training were held and 150 participants were impartedtraining.

Non Suit Suit Total
Number of Claims OS as on 01.04.2017 137150 167205 304355
Number of Claims Intimated during 2017-18 4576487 296254 4872741
Number of Claims Settled during 2017-18 4587425 305670 4893095
Number of Claims OS as on 31.03.2018 126212 157789 284001
Non Suit Suit Total
Claims OS for less than 3 months 106642 7651 114293
Claims OS for more than 3 months but less than 1 year 18439 26609 45048
Claims OS for more than 1 year 1131 123529 124660

MANAGEMENT OF NON SUIT CLAIMS

Parameter 31.03.2016 31.03.2017 31.03.2018
No of claims O/s 96424 137529 126212
Amount of claims O/s Rs. 4055 cr Rs. 4769 cr Rs. 5097 cr
No of claim O/s for more than one year (Excl.GA and Coinsurance) 2114 1261 786
Non Suit Claim 96% 97% 97.32%
Settlement Ratio

MARKETING DEPARTMENT

Your Company has once again displayed its leadership by retaining number one positionin the insurance industry with a total of 15.06% market share.

Our marketing team of development officers contributed with a remarkable share ofpremium of Rs. 4821.71 Crs. Our business associates also contributed more than Rs. 272.88crs premium for the FY-2017-18.

CMD Club for AO (D) AM (D) was formed and its first convention was held at Coimbatoreand convention of Development Officers' CMD Club was held at Hyderabad to felicitate thestars performers. Development Officers incentives for the FY-16-17 were paid throughincentive module.

Special 3 days residential training programme for development officers' CMD clubmembers for 2017-2018 was arranged in association with Tata Institute of Social Sciences(TISS) at four major centres across India. The department undertook 3 Days ResidentialTraining Programme on Effective Marketing Skill & Customer Service for more than 300Divisional & Senior Divisional Managers all over India. The training programme wasarranged at Insurance Institute of India BandraKurla Complex Mumbai.

CORPORATE COMMUNICATION DEPARTMENT

Press conferences were organized to apprise the media fraternity of our variousfinancial achievements and also the launch of New Global Mediclaim Policy during theyear. Wide coverage of our achievements carried out by all the leading publicationsboosted brand image of our company. Your Company organized foundation day programmesuccessfully with guest speaker Mr. Amitabh Kant CEO Niti Aayog and a number of mediapersons attended the event. In addition to effective use of traditional outdoor media; newmethods like Digital Advertising on platforms such as Google Ads Digital platform of TOIDainik Bhaskar Railway Online Ticketing Portal irctc and E.mailers were also used toreach out to maximum customers. New Hoardings and Glow signs in over 150 displays havebeen placed at prominent Airports Road junctions Highways Railway stations and Busstands throughout the country to increase our visibility. Advertisements were alsodisplayed on moving media like Mumbai and Delhi Metro trains Kolkata Nano Trams busescontainers and also on digital screens on railway platforms. Inside airport branding wastaken on all the major Airports with addition of displays on 7 airports - CoimbatoreMadurai Bhubaneshwar Lucknow Bhopal Dehradun and Goa Airport. Also branding inside 34Aircrafts of Go Air Flights was done.

Effective use of electronic media - T.V. to create Pan India awareness of our Brandthrough some of the niche channels to create awareness about our Motor and Health productsespecially our newly launched health product Global Mediclaim .

We sponsored a number of customer seminars public awareness camps sports musicalcultural events and fairs exhibitions & regional festivals to reach the masses toexpand our base.

RIGHT TO INFORMATION ACT

The Right to Information Department was set up at Head Office in 2005.It processes therequests for information from Citizens all over the country and adjudicate on appealspromptly and efficiently. The department continues to facilitate the principles oftransparency and accountability in conformity with the objectives of the RTI Act. TheCentral Public Information Officers (CPIOs) of 31 Regional Offices and 7 Large CorporateBroker Offices (LCBOs) also contributed to the promotion of the ideals of the Act underthe umbrella of RTI Department at Head Office.

With a view to maintaining uniformity consistency and improved standard of compliancethe function of First Appellate Authority is centralized at Head Office. In compliancewith the directive of CIC your Company has appointed Transparency Officer in the rank ofGeneral Manager.

As per the directives of Ministry of Personnel Public Grievances and Pensions DoPTNew Delhi we have extended the facility of RTI Web Portal w.e.f. 20.07.2016 under theadministrative control of Department of Financial Services (DFS). It is a citizeninterface which facilitates Indian Citizens to file RTI applications and First Appealsonline and also to make online payment of RTI fees. During the year 2017-18 the total(including online) number of RTI Applications received is 2411 and First Appeals is 375.In compliance with the CIC guidelines / RTI Act the Company's official website isup-dated from time to time disclosing and uploading maximum information under xvii pointsas mandated under the provisions of Section 4(1)(b) of the RTI Act2005.

ANTI MONEY LAUNDERING

Your Company has been complying with the Prevention of Money Laundering Act (PMLA) 2002since it has been made applicable to insurance companies w.e.f. 01.08.2006. Amendmentsissued by IRDAI are adopted by the Board from time to time. The Principal ComplianceOfficer posted at Corporate Office monitors the compliance of AML guidelines.

INDUSTRIAL DISPUTES AND DISCIPLINE

Your Company has strived to impart massive Training on CDA Rules 2014 across the boardto bring about awareness on Misconducts Prohibitions and Restrictions to ensure better IRclimate in the Organization.

In order to ensure strict adherence to a climate of discipline the Company has viewedall instances of Unauthorised Absences cases seriously and appropriate actions are taken.

The Board of your Company has approved the policy on Prevention Prohibition andRedressal of Sexual Harassment at Workplace. Internal Complaints Committee (ICC) whichconsists of Chairperson (Women employed at Senior Level) two members amongst the employeecommitted to cause of women and one member from NGO or Association at Head Office and allRegional offices has been set up to redress complaints received and to promote a workenvironment that is safe secure and free of any form of harassment at Workplace .

Submission of On-line Annual Property Returns have been further streamlined and hassince achieved optimum efficacy.

There has been no labour unrest nor and any severe IR problem during the Financial Yeardue to proactive approach of Senior Management at Head Office as well as the RegionalOffices.

INFORMATION TECHNOLOGY

The year saw our ICT to take another leap forward and we augmented our ITinfrastructure keeping in mind agility and security as the prime drivers and now have astate of the art infrastructure to cater to the growing needs in the coming years. We havealso introduced compute in the Near site to ensure that there is no disruption in ourinternet facing applications should there be any contingency in the DC. We are amongst fewenterprises in the country today for having introduced the Software Driven Networkinfrastructures in DCs. With this robust modern infrastructure in place we were able togarner a total Indian premium of Rs. 22719 crore. Digital premium increased from 15% to18.95% amounting to Rs. 4302 crore an accretion of 47% as compared to the previous yearamount of Rs. 2927 crore. The giant strides made were visible in the agent's portal whichdoubled in the portal usage from Rs. 763 crore to Rs. 1691 crore. With this robustinfrastructure in place we were able to issue 29.7 MN policies and settle 4.9 MN claims.The year also saw a major focus and direction towards improving security of our ICTinfrastructure across our wide spread of offices and many measures taken included beefingup security from End points to the Database and Data centres. We have introduced Biometricas a two factor authentication for all our employees in system usage. Security is anongoing process and we have to always be on the guard and are taking the required measuresand guidance given by Government Agencies and Regulator. We also completed the SecurityAudit as envisaged by IRDAI.

Our focus going forward in technology is from the enterprise to the customer andAgents. With this in mind we have enabled various features for customer to login claimsto the Agents we have provided many new features to manage claims appointments calendaralert notifications etc. We have also changed the look and feel of our website and portalto make int more appealing and customer oriented. We hope to do more in the coming year inthis direction with introduction of a chatbot and the paperless claims processing. Theyear also included moving towards advanced Business Analytics from the traditional BI witha Data Visualisation tool an envisage extensive usage in the years to come for betteranalytics and empowerment of Business Owners in their decision making. With our relentlesspursuit to transform ourselves into a technology-driven company the aim is to keep thecustomer in the centre of our enterprise and to create a working environment which issuperlative to all stakeholders.

HUMAN RESOURCES DEVELOPMENT AND PERSONNEL

STAFF WELFARE SCHEMES

In line with the tradition of keeping the interest of its employees foremost theCompany has continued to implement welfare schemes for its employees. Active as well asretired employees along with their dependent and non-dependent family members are coveredunder Group Staff Mediclaim Policy covering all kinds of diseases with minimal exclusionsGroup Personal Accident Policy providing 24 hours cover to employees against accidentaldeath or permanent disablement Group Savings Linked Life Insurance Group Term LifeInsurance Employees Deposit Linked Life Insurance Lump sum payment for DomiciliaryMedical Treatment Group Baggage Policy Education Advance Scheme for children ofemployees to pursue quality education Housing Loan at subsidized rate of interestMedical Check-up facility to Manager and above cadres Director's Mediclaim Scheme forreimbursement of medical expenses of active as well as retired Directors along with theirdependent family members etc.

The Company provides Ex-gratia relief scheme to its employees which provides forreimbursement of medical expenses beyond the Mediclaim cover. Special leave is sanctionedand medical expenses are reimbursed if employee meets with accident whilst on duty whichis in addition to the

24 hours Personal Accident cover provided to employees. Special leave is also grantedfor participating in National

& International sports events including Mountaineering Expedition and Trekkingevents. Employees are encouraged for pursuing higher post graduate academic courses forwhich financial assistance is provided.

Other welfare schemes like Vehicle Loans at subsidized rate of interest Leasedaccommodation to all cadres of employees Retirement Benefit and Death Relief Schemesmanaged by Mutual Benefit Society for employees Leave Travel Subsidy Labour Welfarescheme are provided. In order to facilitate more transparency and expeditious settlementthe Company has implemented online access for all its employees for availing the benefitsand necessary training has also been imparted to them.

HUMAN RESOURCES

Employee strength as on 31st March 2018

Category of Employees Male Female Total
Class I 5568 2141 7709
Class II 960 39 999
Class III 5710 1929 7639
Class IV (Excluding 1121 400 1521
Part Time Sweepers)
Part Time Sweepers 10 2 12
TOTAL 13369 4511 17880

RECRUITMENT AND RESERVATION

Number of employees recruited during 2017-18

Category of Employees SC ST OBC Total* Ex-Ser- vicemen PWD
Class-I 43 16 83 300 1 7
Class-II
Class III 139 54 222 938 69 34
Class IV 7 6 4 20
(Excluding
Part Time
Sweepers)
Part Time
Sweepers
TOTAL 189 76 309 1258 70 41

* Ex-Servicemen and PWD included in Total

Representation of Scheduled Caste and Scheduled Tribe employees under various cadres ason 31.03.2018

Category/ Level Total Number Number and Percentage
SC % ST number of %
Class-I 7709 1590 20.63% 617 8.00%
Class-II 999 97 9.71% 38 3.80%
Class III 7639 1611 21.09% 586 7.67%
Class IV 1521 745 48.98% 130 8.55%
(Excluding Part Time Sweepers)
Part Time 12 9 75.00% 0 0.00%
Sweepers
TOTAL 17880 4052 22.66% 1371 7.67%

Your Company Strictly adheres to Brochure provisions and Government DoPT guidelinesregarding reservations and concessions in the matter of recruitment and promotion andsafeguards the interest of employees belonging to SC/ST/ OBC/PWD and Ex-servicemen.

Pre-promotional training programs were duly organised for all eligible SC/ST/OBCemployees for promotion to various cadres. Similarly for Class III and Class III to Ipromotional exercise pre-promotional training is imparted to SC/ST/ OBC employees underDr. B. R. Ambedkar Welfare Trust.

Regular training programmes are conducted on personality development stressmanagement motivation etc. for SC/ST employees of various cadres. Various benefits underDr. B. R. Ambedkar Welfare Trust have been given to SC/ST/OBC employees. SC/ST/OBCemployees have been nominated for NIA Pune training programmes on a regular basis.

Pre-recruitment training programmes were also arranged for

SC/ST/OBC candidates at various centres on all-India basis. A separate reservation cellis actively functioning at Head Office and Regional Office level forSC/ST/OBC/PWD/Ex-servicemen employees. A Liaison Officer under the charge of Chief LiaisonOfficer manages this cell at Head Office whereas Assistant Liaison Officers head thecells at various Regional Offices.

A well-defined mechanism has been provided under which on yearly basis the LiaisonOfficer from the Head Office inspects the Rosters pertaining to recruitment and promotionsat all Regional Offices. The inspection report with observations of Liaison Officer areput up to the Chief Liaison Officer & General Manager (Personnel) for furtherdirections and sent back to the respective Regional Offices with necessary advices. Basedon the inspection report action is taken by the concerned Regional Offices incoordination with the Head Office to rectify shortcomings in procedure if any observedby the Liaison Officer. Special attention is given to complaints/grievances raised bySC/ST/OBC employees and they are resolved within shortest possible time-frame.

Your Company is providing financial support on behalf of Dr. B. R. Ambedkar WelfareTrust to various SC/ST/ OBC welfare activities. On the eve of Mahaparinirvan Day i.e.December 6th every year these welfare activities are supported to observe the deathanniversary of Dr. B.R. Ambedkar at Chaitya Bhumi Dadar.

GENDER ISSUES AND EMPOWERMENT OF WOMEN Your Company has a strong women force andprovides adequate opportunities for self and career development. A Officers as on31.03.2018 are significant holding senior positions in our Offices:

General Manager 2
Deputy General Manager 6
Chief Manager / Regional Manager 19
Divisional Manager / Sr. Divisional Manager 53
Branch Manager / Sr. Branch Manager 65

• Women executives are nominated for various programmes organized by Forum ofWomen in Public Sector (WIPS)

• Women Officers are also nominated in large numbers to the Programme for WomenManagers conducted by National Insurance Academy Pune

• Women's Committees are constituted at Head Office and various Regional Officesand are actively involved in resolving all gender-related issues/cases referred to them

• The International Women's Day was celebrated on March 8th 2018 in all Officesacross the country. Seminars were organised at various centers on topics such as WomenEntrepreneurship Stress Management Work-Life Balance Mental & Physical HealthNutritious diets Rights of women under various laws of the country and new law forprotection of the women at workplace etc.

TRAINING :

In the competitive scenario of the insurance industry of present times it is of utmostimportance to keep our employees abreast of the changes and to develop their insuranceskills both in underwriting and claims settlement. Keeping this in mind the Companyconducts regular training programs. Your Company also nominates employees for varioustraining programs organized by external institutes from time to time. The focus of thetrainings are on policy awareness technical matters specialized topics marketingstrategies IT personality development etc. Apart from emphasizing on mainstreamtraining the Company encourages the nominations in alternate training programs asarranged for homogenous group of employees. Women employees are also nominated tospecialized training programs like the Women Managers Training Programme. Pre-promotionaltraining had been imparted to all eligible SC/ST/OBC employees of all cadres.Pre-recruitment training had been imparted to all SC/ST/OBC applicants. Based on our studyof previous nominations the system of Training Nominations have shifted fromnomination-based to employees' work profile based i.e. the employee is nominated fortraining relevant to his line of working. Every effort is made to limit the training of anemployee to two in a year so that maximum number of employees get the opportunity to betrained Apart from above various Departments at HO conducted homogeneous trainingprogrammes to respective employees based on their work profile. Marketing Dept HOarranged Training to the Operating Office Heads; Agency Dept Rural Insurance and ClaimsHUB Departments HO imparted Training to Agents Managers and respective Dept- Officials.

OFFICIAL LANGUAGE IMPLEMENTATION

The Official Language Department works as per the guidelines issued by the OfficialLanguage Department of Ministry of Home Affairs and Financial Services Department.According to these guidelines all the offices of the company are required to make allpossible efforts to increase Official Language Implementation work and explore in the areaof Official Language. Hindi Workshops were organized Inspections were done of all theRegional/operating offices Hindi Diwas was organized trainings were held to motivate andincrease the interest of the Official language hindi among the employees.

INTERNAL AUDIT

Internal Audit has been playing a vital role towards strengthening the CorporateGovernance and complying with management objectives to improve and strengthen internalcontrols.

Internal Audit functions comprises of examining evaluating and reporting to theManagement on adequacy of internal controls effective and efficient use of resources inthebest All India possible manner to guard against the leakage of revenue. IAD hasensured that all operating offices are audited at least once in the financial year. TheDepartment has also conducted regular audits of their Regional Offices Claims HubsBroker DO LCBOs Auto tie-up offices& HO

Departments and monitor financial transactions quality underwriting and adequacy ofprovisions.

Internal Audit Dept. has been instrumental in detecting and reporting to the Managementfor rectification of systems and procedural lapses. The Internal Audit Department (IAD)has also helped in enhancing the performance of Audit

Compliance Cells at the various operating offices for speedy resolution of pendingaudit queries both internal and CAG.

During the Financial Year maximum stress was given towards resolving pending queries.At the end of the financial year the observations of the IAD is consolidated in the formof Annual Report.

In addition to laying emphasis on adherence to various systems and procedural lapsesmore stress has been given for strengthening the audit compliance mechanisms andinitiating fresh interventions to ensure elimination of recurring system & procedurallapses. In addition to HO level Audit

Workshops Internal Audit Department at Regional Offices is conducting quarterlyworkshops for resolving maximum number of pending queries.

LEGAL& CONSUMER FORUM

The legal matters other than T.P claims pertaining to Consumer Fora cases/SupremeCourt cases and Arbitration cases in coordination with respective Technical Departments atHead Office.

The procedure for handling Arbitration and consumer disputes has been streamlined tohelp proper defense and quicker resolution of cases. Delhi Legal Hub handles NationalCommission/Supreme Court cases and State Commission/District Forum cases are handled byrespective Regional Offices/Legal Hubs/Divisional Offices.

Encouraging and monitoring compromise in consumer disputes have resulted in improvementin suit claim disposal to 28% as against 25% in previous year. The Department has alsosensitized handling officials on more effective handling of forum cases through personalvisit workshop in Regional Conference. offices and The Department strives towardsachieving the twin objective of minimizing fresh reporting of cases by handling claimskeeping in mind the trend of Consumer courts and faster disposal of pending cases whichwill improve the customer satisfaction index of the Company.

VIGILANCE

The Vigilance Department is headed by Chief Vigilance Officer & focuses onPreventive Vigilance with an objective of systemic improvements which besides reducingcorruption also lead to better operational results. It is a tool of management & goodgovernance & is aimed at identifying tackling / addressing the root cause ofcorruption within the organization.

Towards this end Preventive Vigilance Workshops were conducted at 180 offices andSurprise Inspections were carried out at 550 offices. Recommendations were also made forsystems improvement. Vigilance Awareness Week was observed from 30th October to 4thNovember 2017. The theme for the year was "My Vision Corruption Free India".

The theme was reinforced across the cross section of society by organizing QuizCompetition Essay Writing Competition Workshops pan India across various educationalinstitutions.

PARTICULARS WITH REGARD TO EMPLOYEES DRAWING REMUNERATION IN EXFESS OF RUPEES ONE CRORETWO LAKH PER ANNUM IF EMPLOYED THROUGHOUT THE YEAR OR EIGHT LAKH FIRTY THOUSAND PER MONTHIF EMPLOYED FOR PART OF THE YEAR.

SR. NO. NAME OF THE EMPLOYEES SERVICE IN YRS DESIGNATION REMUNERA- TION QUALIFI- CATION DATE OF JOINING AGE LAST EMPLOYMENT HELD PLACE
1 PHILIP SCOTT 39 CHIEF UNDERWRITER 12739131 ACII 1.8.2011 59 Assicurazione Gernerali Spa LONDON
2 JAMES DEY 33 TREATY UNDERWRITER 17834779 ACII 19.9.2011 52 BRIT LONDON

SECRETARIAL STANDARDS

During FY 2018 the Company was in compliance with the applicable Secretarial Standardsissued by the Institute of Company Secretaries of India with respect to Board and GeneralMeetings.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALSIMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS.

There are no significant and/or material orders passed by the Regulators or Courts orTribunals during FY 2018 impacting the going concern status of future operations of theCompany.

The Company received an order from Competition Commission of India imposing a penaltyof Rs. 25107 lakhs in 2015-16. The Company contested against the order in CompetitionAppeal Tribunal and the Tribunal awarded penalty of Rs. 20 lakhs as against Rs. 25107lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against theorder of the Tribunal at the Apex Court and the case has been admitted in the Apex Courtin March 2017.

INDEPENDENT DIRECTORS

All Independent Directors have given declarations that meet the criteria ofindependence as laid down under

Section 149(6) of the Companies Act 2013 SEBI (Listing Obligations & DisclosureRequirements) Regulations 2015 and ‘fit and proper' declaration as laid down underCorporate Governance guidelines of IRDAI.

LISTING OF EQUITY SHARES

During FY 2018 The New India Assurance Co. Ltd. completed its Initial Public Offer("IPO") by way of Offer for Sale up to 96000000 Equity Shares of face valueof Rs. 5 each of the Company by the selling shareholder Government of India and FreshIssue of 24000000 equity shares of face value of Rs. 5 each.

The shares of the Company were listed on National Stock Exchange of India Limited (NSE)and BSE Limited (BSE) on November 13 2017.

BOARD EVALUATION

Pursuant to the provisions of the Companies Act 2013 and guidelines for insurancecompanies issued by Insurance Regulatory and Development Authority of India (IRDAI) theBoard has carried out an annual performance evaluation of its own performance. TheEvaluation has been carried-out as per the criteria approved by the Nomination andRemuneration Committee.

AUDITORS REPORT

The replies to the qualification made by the Statutory Auditors in their report isattached as Annexure to the Directors

Report.

SECRETARIAL AUDITORS

Pursuant to provisions of Section 204 of the Companies Act 2013 and the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hadappointed S.N.Ananthasubramanian Practising Company Secretary to conduct SecretarialAudit Report is annexed herewith as Annexure. There are no qualifications reservationadverse remark or disclaimer made by the auditor in the report save and except disclaimermade by them in discharge of their professional obligation.

INTERNAL FINANCIAL CONTROL AND ITS ADEQUACY

The Board has adopted policies & procedures for ensuring the orderly &efficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention & detection of fraud ever reportingmechanisms the accuracy and completeness of the accounting records and the timelypreparation of reliable financial disclosures.

RELATED PARTY TRANSACTIONS

Your Company undertakes transactions with related parties in the ordinary course ofbusiness. The details of related party transactions are disclosed under Notes to FinancialStatements for FY 2018.

Board approved policy on Related Party Transactions has been hosted on the website ofthe Company and can be viewed at the below link: "https://www.newindia.co.in/cms/755da005-5d81-4145-bfe3-43b8f82caecf/Related%20 party%20Policy.pdf?guest=true".

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI)

The Company being a General Insurance Company its working and functions are governedby the regulations of Insurance Regulatory and Development Authority of India.

The Accounts of the Company are drawn up according to the stipulations prescribed inthe IRDA (preparation of Financial Statements and Auditor's Report) Regulations 2002 andas amended from time to time.

FINANCIAL RATING

AM Best Company has reaffirmed the Financial Strength Rating of A-(Excellent). Therating reflects the Company's favorable investment results strong solvency ratio and itsstrong presence in domestic and overseas markets. CRISIL has reaffirmed its‘AAA/Stable' rating of The New India Assurance Company Ltd. indicating that theCompany has the highest degree of financial strength to honour its policyholder'sobligations. The rating continues to reflect the Company's leadership position in theIndian General Insurance industry its healthy capitalization sound asset quality andcomfortable liquidity.

FOREIGN EXCHANGE EARNING & OUTGO AND OTHER INFORMATION

The particulars of Foreign Exchange earnings/outgo as required by the Companies Actunder Section 217(1)(e) is given below : Earnings : Rs. 574.28 crores (p.year Rs. 369.68crores) Outgo :Rs. 648.15 crores (p.year Rs. 582.51 crores)

The earnings included all receipts denominated in foreign currencies in respect ofpremium recovery of claims outward commission and investment earnings. The outgocomprised all payments in foreign currency in respect of outward premium claims onreinsurance accepted commission and expenses of management.

Expenses on (a) Entertainment (b) Foreign tours and (c) Publicity and Advertisementamounted to Rs. 10440855 (P.Y.11169220); Rs. 17463104 (P.Y. Rs.23785462) and Rs. 630971503 (P.Y. Rs. 604507128) respectively.

CONSOLIDATED FINANCIAL STATEMENTS

Provisions regarding Financial Statements are laid down under Section 129 of the newCompanies Act 2013. As per the provision of Section 129 (2) of the said Act at everyAnnual General Meeting of a company the Board of Directors of the Company shall laybefore such meeting financial statements for the financial year. Section 129(3) of theCompanies Act 2013 provides that where a company has one or more subsidiaries it shallin addition to financial statements provided under sub-section (2) of Section 129 preparea consolidated financial statements of the company and of the subsidiaries in the sameform and manner as that of its own which shall also be laid before the Annual GeneralMeeting of the company along with the laying of its financial statements under Sub Section(2) of Section 129.

As per the above section the Company is required to prepare financial statements asabove.

CORPORATE GOVERNANCE

Your Company is fully committed to follow sound corporate governance practices. TheCompany's Board is constituted in compliance with CA 2013 in accordance with SEBI(Listing Obligations & Disclosure Requirements) Regulations 2015 and IRDAI CorporateGovernance guidelines 2015. The Board comprises of Corporate governance refers to the setof systems principles and processes by which a company is governed. They provide theguidelines as to how the company can be directed or controlled such that it can fulfillits goals and objectives in a manner that adds to the value of the company and is alsobeneficial in the long term. Stakeholders in this case would include everyone ranging fromthe board of directors management shareholders to customers employees and society. Themanagement of the company hence assumes the role of a trustee for all others.

The Board meets at least once a quarter to review the quarterly financial andoperational and investment performance of the Company. The company's philosophy oncorporate Governance lays strong emphasis on transparency accountability and integrity.Corporate governance is concerned with the establishment of a system whereby the Directorsare entrusted with responsibilities and duties in relation to the directions of corporateaffairs. It is concerned with accountability of who are managing it. It is concerned withmorals ethics values parameters conduct and behavior of the company and itsmanagement. The Board functions either as an entity per se or through various committeesconstituted to oversee specific operational areas. There is an appropriate mix ofExecutive Non-Executive and Independent Directors to maintain the independence of theBoard. None of the Directors are related to any other Directors or employees of theCompany. Mr. Sharad S. Ramnarayanan Appointed Actuary of the Company is a permanentinvitee to the Board meeting.

BOARD OF DIRECTORS

The Board underwent the following changes in its composition since the date of lastdirectors' report i.e. 30th April 2017:

Cessation of Ms T.L. Alamelu as Director w.e.f. 31st May 2017

Cessation of Mr. Arun Tiwari as Director w.e.f. 30th June 2017.

Appointment of Mr. Anil Kumar as Whole Time Director w.e.f. 20th June 2017.

Appointment of Mr. P. Ramana Murthy and Mr. Neelam Damodharan as Ex-Officio Directorson the Board w.e.f. 14th August 2017.

Appointment of Ms Papia Sengupta as Ex-Officion Director on the Board w.e.f.. 27thSeptember 2017.

Appointment of Mr. S.K. Banerjee Mr. S.K. Chanana and Mr. Kuldip Singh as Non OfficialDirectors w.e.f. 29th September 2017. for all stakeholders

Cessation of Mr. Mohd. Mustafa as Director w.e.f. 3rd October 2017.

Appointment of Mr. Lok Ranjan as Government Nominee Director w.e.f. 3rd October 2017.

Cessation of Mr. Lok Ranjan as Government Nominee Director w.e.f. 24th May 2018.

Appointment of Mr. Mohd. Zafir Alam as Director w.e.f. 30th January 2018.

Appointment of Mr. Debasish Panda as Government Nominee Director w.e.f. 24th May 2018The composition of the Board of Directors as on 31.03.2018: (i) Mr. G. SrinivasanChairman-cum-Managing Director (ii) Mr. Lok Ranjan Government Nominee Director (iii) Mr.Hemant G. Rokade Whole Time Director (iv) Mr. Neelam Damodaran Non Executive andIndependent Director (v) Mr. P Ramana Murthy Director (vi) Ms. Papia Sengupta Director(vii) Mr. S. Chanana Director (viii) Mr. Kuldip Singh Director (ix) Mr. S.K. BanerjeeDirector

DETAILS OF DIRECTORS AS ON MARCH 31 2018 AND ON THE DATE OF 99th ANNUAL GENERALMEETING:

Name Designation Qualifications
G Srinivasan
DIN No. 01876234 Chairman cum Managing Director B.Com ACMA FIII
Hemant G Rokade
DIN No. 06417520 Director & General Manager M.Com (FIN)
C Narambunathan 1
DIN No. 08101846 Director & General Manager M.Com A.C.S. F.I.I.I.
Neelam Damodharan 2
DIN No.07759291 Non-Executive & Independent Director B.Sc(Agr.) CAIIB Diploma in Financial
Management
P R Murthy 3
DIN No. 07815852 Non-Executive & Independent Director B.Sc(Agr.) CAIIB
Papia Sengupta 4
DIN No. 07701564 Non-Executive & Independent Director B.Sc CFA(India) CALLB
S K Banerjee 5
DIN No. 01987541 Independent Director Master of Commerce Fellow ICAI
Kuldip Singh 6
DIN No. 02905840 Independent Director B.Sc Agr. (Hons)
S K Chanana 7
DIN No. 00112424 Independent Director M.A LLB ACS
Lok Ranjan 8
DIN No. 07791967 Government Nominee Director M. Tech
Debashish Panda 9
DIN No. 06479085 Government Nominee Director Post Graduate in Mphil

 

1. Appointed on 2nd April 2018
2. Appointed on 14th August 2017
3. Appointed on 14th August 2017
4. Appointed on 27th September 2017
5. Appointed on 29th September 2017
6. Appointed on 29th September 2017
7. Appointed on 29th September 2017
8. Appointed on 3rd October 2017 and ceases on 24th May 2018
9. Appointed on 24th May 2018

 

Name of the Director Category 1 of directors No of Directorship in listed entities including the Company Number of memberships in Audit/ Stakeholder Committee(s) including the Company No of post of Chairperson in Audit/ Stakeholder Committee held in listed entities including the Company
G Srinivasan Executive Director 4 1 0
Hemant Rokade Executive Director 1 2 0
C Narambunathan1 Executive Director 1 2 0
N Damodharan2 Non-Executive - Independent Director 3 3 1
P Ramana Murthy3 Non-Executive - Independent Director 3 3 1
Papia Sengupta4 Non-Executive - Independent Director 5 0 0
S K Banerjee5 Non-Executive - Independent Director 1 1 0
Kuldip Singh6 Non-Executive - Independent Director 1 1 0
S K Chanana7 Non-Executive - Independent Director 1 0 0
Lok Ranjan8 Govt. Nominee Director 2 0 0
Debashish Panda9 Govt. Nominee Director 2 1 0

1. Appointed on 2nd April 2018

2. Appointed on 14th August 2017

3. Appointed on 14th August 2017

4. Appointed on 27th September 2017

5. Appointed on 29th September 2017

6. Appointed on 29th September 2017

7. Appointed on 29th September 2017

8. Appointed on 3rd October 2017 and ceases on 24th May 2018

9. Appointed on 24th May 2018

DETAILS OF BOARD MEETING AND COMMITTEES OF THE BOARD FOR FY 2018 : ? BOARDMEETING:

During the year the Board met thirteen (13) times. The names of the Directors theirattendance at Board Meetings during the year and the number of directorships and boardcommittee memberships held by them as on the date of the report are set out in thefollowing table :

Director No. of Meetings attended/ held
Mr. G. Srinivasan 13/13
Mr. Mohd. Mustafa 3/13
Mr. Arun Tiwari 1/13
Mr. Hemant G. Rokade 10/13
Ms. T.L.Alamelu 1/13
Mr. Anil Kumar 9/13
Mr. P. R. Murthy 8/13
Mr. N. Damodharan 3/13
Ms. P. Sengupta 3/13
Mr. S.K.Banerjee 6/13
Mr. Kuldip Singh 7/13
Mr. S.K.Chanana 7/13
Mr. Lok Ranjan 1/13

Details of Equity Shares held by the non-executive director as on March 31 2018 :

S r . No. Name of the Director No. of Shares Equity
1 Mr. S.K. Banerjee 36

FAMILIARISATION PROGRAMME FOR INDEPENDENT

DIRECTORS :

The detail of the familiarization programme have been hosted on the website of theCompany and can be viewed at the below mentioned link : https://www.newindia.co.in/cms/2412893c-cecd-41bc-9537-37aa4b7ba9bb/ Familiarization.pdf?guest=true

CODE OF CONDUCT FOR DIRECTORS/SENIOR

MANAGEMENT

The Code of Conduct for Directors/Senior management has been hosted on the website ofthe Company and can be viewed at the below mentioned link : https://www.newindia.co.in/cms/f6aac711-c72a-4f75-82ae-f2001bf929d3/ Code%20of%20Conduct.pdf?guest=true

CRITERIA FOR APPOINTMENT OF DIRECTORS AND

SENIOR MANAGEMENT

The appointment of Directors & Senior Management are as per the relevantnotifications issued by Government of India.

REMUNERATION POLICY

The remuneration to Whole Time Directors Key Managerial Personnel Senior Managementand other employees is as per relevant notifications issued by Government of India.

COMMITTEES OF THE BOARD :

The Board has constituted the following committees: i) Audit Committee ii) InvestmentCommittee iii) Risk Management Committee iv) Policyholders Protection Committee v)Nomination & Remuneration Committee vi) Corporate Social Responsibility Committee vii)Stakeholders Relationship Committee viii) Information Technology Committee ix) PropertyReview Committee The terms of reference the composition along with the number of meetingsheld during FY 2018 and the attendance of the Committees of the Board are provided below :

AUDIT COMMITTEE:

Terms of Reference:

1. Oversight of the company's financial reporting process and the disclosure of itsfinancial information to ensure that the financial statements are correct sufficientandcredible;

2. Taking on record the appointment of auditors of the company by the Comptroller andAuditor General of India;

3. Recommendation for remuneration and terms of appointment of auditors of the company;

4. Approval of payment to statutory auditors for any other services rendered by thestatutory auditors;

5. Reviewing with the management the annual financial statements and auditor's reportthereon before submission to the Board for approval with reference to: (i) Mattersrequired to be included in the Director's Responsibility Statement to be included in theBoard's report in terms of clause (c) of subsection 3 of section 134 of the Companies Act2013; (ii) Changes if any in accounting policies and practices and reasons for the same;(iii) Major accounting entries involving estimates based on the exercise of judgment bymanagement; adjustments made in the financial (iv) Significant statements arising out ofaudit findings; (v) Compliance with listing and other legal requirements relating tofinancial statements; (vi) Disclosure of any related party transactions; and

(vii) Modified opinion(s)/ qualifications in the draft audit report.

6. Reviewing with the management the quarterly financial statements before submissionto the Board for approval;

7. Reviewing with the management the statement of uses / application of funds raisedthrough an issue (public issue rights issue preferential issue etc.) the statement offunds utilized for purposes other than those stated in the offer document / prospectus /notice and the report submitted by the monitoring agency monitoring the utilization ofproceeds of a public or rights issue (if applicable) and making appropriaterecommendations to the Board to take up steps in this matter;

8. Reviewing and monitoring the auditor's independence and performance andeffectiveness of audit process;

9. Approval of any subsequent modification of transactions of the company with relatedparties; Explanation: The term "related party transactions" shall have the samemeaning as provided in Clause2(zc) of the SEBI (Listing Obligations And DisclosureRequirements) Regulations 2015 (hereinafter referred to as "Listing Regulations)and/or the Accounting Standards. 10. Scrutiny of inter-corporate loans and investments;11. Valuation of undertakings or assets of the company wherever it is necessary; controlsand 12. risk Evaluation of internal financial management systems; 13. Reviewing with themanagement performance of statutory and internal auditors adequacy of the internalcontrol systems; 14. Reviewing the adequacy of internal audit function if any includingthe structure of the internal audit department staffing and seniority of the officialheading the department reporting structure coverage and frequency of internal audit; 15.Discussion with internal auditors of any significant findings and follow up there on; 16.Reviewing the findings of any internal investigations by the internal auditors intomatters where there is suspected fraud or irregularity or a failure of internal controlsystems of a material nature and reporting the matter to the Board; 17. Discussion withstatutory auditors before the audit commences about the nature and scope of audit as wellas post-audit discussion to ascertain any area of concern; 18. Looking into the reasonsfor substantial defaults in the payment to depositors debenture holders shareholders (incase of non-payment of declared dividends) and creditors; 19. Reviewing the functioning ofthe whistle blower mechanism and the chief risk officer of the Company; 20. Approval ofappointment of CFO (i.e. the whole-time Finance Director or any other person heading thefinance function or discharging that function) after assessing the qualificationsexperience and background etc. of the candidate; 21. Oversee the vigil mechanismestablished by the

Company and the chairman of audit committee shall directly hear grievances ofvictimization of employees and directors who use vigil mechanism to report genuineconcerns; and

22. Carry out any other function as is mentioned in the terms of reference of the AuditCommittee and any other terms of reference as may be decided by the board of directors ofthe Company or specified/ provided under the Companies Act 2013 or by the SEBI ListingRegulations or by any other regulatory authority. 23. Management discussion and analysisof financial condition and results of operations; 24. related party Statement oftransactions significant (as defined by the Audit Committee) submitted by management; 25.Management letters / letters of internal control weaknesses issued by the statutoryauditors; 26. Internal audit reports relating to internal control weaknesses; 27. Theappointment removal and terms of remuneration of the Chief internal auditor shall besubject to review by the Audit Committee.

Attendance of Members of the Audit Committee:

Director No. of Meetings attended/ held
Mr. Mohd. Mustafa 3/9
Mr. Arun Tiwari 1/9
Mr. Hemant G. Rokade 8/9
Ms. T.L.Alamelu 1/9
Mr. Anil Kumar 4/9
Mr. N. Damodharan 3/9
Mr. P. R. Murthy 3/9
Mr. Lok Ranjan 1/9
Mr. S.K. Banerjee 2/9
Mr. Kuldip Singh 1/9

? INVESTMENT COMMITTEE: Terms of Reference:

1. Overseeing the implementation of the investment policy approved by our Board fromtime to time;

2. Reviewing the investment policy;

3. Periodical updating to our Board with regard to investment activities of theCompany;

4. Reviewing the investment strategies adopted from time to time and giving suitabledirections as needed in the best interest of the Company;

5. Reviewing the broker policy and making suitable amendments from time to time;

6. Reviewing counter party/intermediary exposure norms;

7. Supervising the asset allocation strategy to ensure financial liquidity securityand diversification through liquidity contingency plan and asset liability managementpolicy; and

8. Overseeing the assessment measurement and accounting for other than temporaryimpairment in investments in accordance with the policy adopted by the Company.

Attendance of the Members of the Investment Committee:

Director No. of Meetings attended/ held
Mr. G. Srinivasan 5/5
Mr. Arun Tiwari 1/5
Mr. Hemant G. Rokade 5/5
Ms. T.L.Alamelu 1/5
Mr. Anil Kumar 1/5
Mr. P. R. Murthy 3/5
Ms. P. Sengupta 0/5
Mr. S.K.Chanana 3/5
Ms S.N. Rajeswari 5/5
Mr. Sharad Ramnarayanan 5/5
Mr. S. Shankar 4/5
Mr. S. Harinath 4/5
Mr. Mahesh S. Joshi 1/5

? RISK MANAGEMENT COMMITTEE:

Terms of Reference:

1. To review and assess the risk management system and policy of the Company from timeto time and recommend for amendment or modification thereof;

2. To frame and devise risk management plan and policy of the Company;

3. To review and recommend potential risk involved in any new business plans andprocesses; and

4. Establish effective Risk Management framework and recommend to the Board the RiskManagement policy and processes for the organization.

5. Set the risk tolerance limits and assess the cost and benefits associated with riskexposure.

6. Review the Company's risk- -reward performance to align with overall policyobjectives.

7. Discuss and consider best practices in risk management in the market and advise therespective functions;

8. Assist the Board in effective operation of the risk management system by performingspecialized analyses and quality reviews;

9. Maintain an aggregated view on the risk profile of the Company for all categories ofrisk including insurance risk market risk credit risk liquidity risk operational riskcompliance risk legal risk reputation risk etc.

10. Advise the Board with regard to risk management decisions in relation to strategicand operational matters such as corporate strategy mergers and acquisitions and relatedmatters.

11. Report to the Board details on the risk exposures and the actions taken to managethe exposures; review monitor and challenge where necessary risks undertaken by theCompany 12. Review the solvency position of the Company on a regular basis.

13. Monitor and review regular updates on business continuity.

14. Formulation of a Fraud monitoring policy and framework for approval by the Board.

15. Monitor implementation of Anti-fraud policy for effective deterrence preventiondetection and mitigation of frauds.

16. Review compliance with the guidelines on Insurance Fraud Monitoring Framework dt.21st January 2013 issued by the Authority.

17. Any other similar or other functions as may be laid down by Board from time totime." Attendance of Members of the Risk Management Committee:

Director No. of Meetings attended/ held
Mr. G. Srinivasan 4/4
Mr. Hemant G. Rokade 2/4
Mr. Anil Kumar 2/4
Mr. N. Damodharan 1/4
Ms. P. Sengupta 2/4
Mr. S.K.Chanana 3/4
Mr. Kuldip Singh 3/4
Mr. S.K.Banerjee 3/4

As per IRDAI guidelines Mr. Sharad Ramnarayanan Appointed Actuary and Mr. S. ShankarChief Risk Officer were present in all meetings of the Risk Management committee heldduring the year.

? POLICYHOLDERS PROTECTION COMMITTEE :

Terms of Reference :

1. Putting in place proper procedures and effective mechanism to address complaints andgrievances of Policyholders including mis-selling by intermediaries;

2. Ensuring compliance with the statutory requirements as laid down in the regulatoryframework;

3. Reviewing the mechanism at periodic intervals;

4. Ensuring adequacy of "material information" to the policyholders to complywith the requirements laid down by the authority both at the point of sale and periodicintervals;

5. Reviewing the status of complaints at periodic intervals;

6. Providing the details of grievance at periodic intervals in such formats as may beprescribed by the authority;

7. Providing details of insurance ombudsman to the policyholders;

8. Monitoring of payments of dues to the policyholders and disclosure of unclaimedamount thereof;

9. Review of regulatory reports to be submitted to various authorities; 10. To reviewthe standard operating procedures for treating the customer fairly including time-framesfor policy and claims servicing parameters and monitoring implementation thereof;

11. To review the framework for awards given by Insurance Ombudsman/ Consumer Forums.Analyse the root cause of customer complaints identify market conduct issues and advisethe management appropriately about rectifying systemic issues if any; 12. To review allthe awards given by Insurance Ombudsman/ Consumer Forums remaining unimplemented for morethan three (3) months with reasons therefore and report the same to our Board forinitiating remedial action where necessary; 13. To review claim report including statusof outstanding claims with ageing of outstanding claims; and 14. To review repudiatedclaims with analysis of reasons 15. Recommend a policy on customer education for approvalof the Board and ensure proper implementation of such policy; 16. Put in place systems toensure that policyholders have access to redressal mechanisms and shall establish policiesand procedures for the creation of a dedicated unit to deal with customer complaints andresolve disputes expeditiously; 17. Status of settlement of other customer benefit payoutslike surrenders loan partial withdrawal requests etc.; and

18. Review of unclaimed amounts of policyholders as required under the circulars andguidelines issued by the Authority.

Attendance of Members of the Policyholders Protection Committee :

Director No. of Meetings attended/ held
Mr. G. Srinivasan 4/4
Mr. Hemant G. Rokade 2/4
Mr. Anil Kumar 2/4
Mr. Kuldip Singh 3/4
Mr. N. Damodharan 1/4
Mr. S.K.Banerjee 3/4

NOMINATION & REMUNERATION COMMITTEE :

Terms of Reference :

1. Recommend to the Board a policy relating to the remuneration of the key managerialpersonnel and other employees;

2. The Nomination and Remuneration Committee while formulating the above policyshould ensure that (a) relationship of remuneration to performance is clear and meetsappropriate performance benchmarks; and (b) remuneration to key managerial personnel andsenior management involves a balance between fixed and incentive pay reflecting short andlong term performance objectives appropriate to the working of the Company and its goals.

3. Taking on record the appointment and removal of directors including independentdirectors by the President of India acting through respective ministries;

4. Taking on record the extension if any of the term of the independent directors ofour Company as may be directed by the President of India acting through the respectiveministries;

5. Taking on record the extension if any of the term of the independent directors ofour Company as may be directed by the President of India acting through the respectiveministries;

6. Taking on record the various policies if any promulgated by the Central Governmentincluding policy on diversity of board of the directors and criteria for evaluation ofperformance of the directors;

7. Framing suitable policies and systems to ensure that there is no violation by anemployee of any applicable laws in India or overseas including: (a) The Securities andExchange Board of India (Prohibition of Insider Trading) Regulations 1992 or theSecurities and Exchange Board of India (Prohibition of Insider Trading) Regulations 2015to the extent each is applicable; or (b) The Securities and Exchange Board of India(Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market)Regulations 2003.

(c) Performing such other activities as may be delegated by the Board of Directors and/or are statutorily prescribed under any law to be attended to by the Nomination andRemuneration Committee.

Attendance of Members of the Nomination & Remuneration Committee :

Director No. of Meetings attended
Mr. S.K. Chanana 2/2
Mr. Lok Ranjan 2/2
Mr. G. Srinivasan 1/2
Mr. P. Ramana Murthy 2/2

? CORPORATE SOCIAL RESPONSIBILITY COMMITTEE : Terms of Reference :

1. To formulate and recommend to the Board a CSR policy which will indicate theactivities to be undertaken by the Company in accordance with Schedule VII of theCompanies Act 2013;

2. To review and recommend the amount of expenditure to be incurred on theaforementioned activities to be undertaken by the Company;

3. To monitor the CSR policy of the Company from time to time.

Attendance of Members of the Corporate Social Responsibility Committee :

Director No. of

Meetings attended

Mr. G. Srinivasan 3/3 Mr. Arun Tiwari 1/3 Mr. Hemant G. Rokade 3/3 Ms T.L. Alamelu 1/3Mr. P. Ramana Murthy 1/3 Ms Papia Sengupta 0/3 Mr. Kuldip Singh 2/3

? STAKEHOLDERS RELATIONSHIP COMMITTEE :

Terms of Reference :

1. Considering and resolving grievances of shareholders' debenture holders and othersecurity holders of the Company;

2. Redressal of grievances of the security holders of the Company including complaintsin respect of allotment or transfer of equity shares non-receipt of annual reportnon-receipt of declared dividends balance sheets of the Company etc.;

3. Allotment or transfer of equity shares approval of transfer or transmission ofequity shares debentures or any other securities of the Company;

4. Issue of duplicate certificates and new certificates on split/consolidation/renewaletc.; and

5. Carrying out any other function contained in the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 as and whenamended from time to time.

Attendance of Members of the Stakeholders Relationship Committee :

Director No. of Meetings attended
Mr. P. Ramana Murthy 1/2
Mr. G. Srinivasan 2/2
Mr. Neelam Damodharan 2/2
Mr. Hemant G. Rokade 2/2
Ms T.L. Alamelu 1/3

Number of Complaints :

During the year the Company/its Registrar received the following complaints fromSEBI/Stock Exchanges/ Depositories which were resolved within the time frame laid down bySEBI :

Sr. PARTICULARS No.
No.
1 No. of Investors complaints pending as on 0
13.11.2017
2 No. of Investors complaints received during 1
13.11.2017 to 31.3.2018

 

3 No. of Investors complaints disposed 1
during 13.11.2017 to 31.3.2018
4 No. of Investors complaints those remained 0
unsolved as on 31.3.2018

? INFORMATION TECHNOLOGY COMMITTEE : Terms of Reference :

Evaluation of various IT proposals and after perusal recommending the same to the boardfor approval.

Attendance of Members of the Information Technology Committee :

Director No. of Meetings attended
Mr. G. Srinivasan 2/2
Mr. Hemant G. Rokade 2/2
Mr. Neelam Damodharan 2/2
Ms Papia Sengupta 2/2
Mr. S.K. Chanana 2/2

? PROPERTY REVIEW COMMITTEE : Terms of Reference :

To review the various matters with regard to the properties held by the Company.

In 2017-18 no meeting of the Property Review Committee was held.

SITTING FEES PAID TO INDEPENDENT DIRECTORS

DURING THE FINANCIAL YEAR ENDED MARCH 31 2018:

Name of the Director Sitting Fees (Rs. )
Mr. S.K. Chanana 216000
Mr. Kuldip Singh 216000
Mr. S.K. Banerjee 189000

KEY MANAGERIAL PERSONNEL :

As per Section 2(51) and Secton 203(1) of The Companies Act 2013 the following were theKey Managerial Personnel of the Company as on 31.3.2018 :

Chairman cum
Managing Director : Mr. G. Srinivasan
Director & General Manager : Mr.Hemant G. Rokade
Director General Manager
& FA : Mr C. Narambunathan
General Manager : Mr. S. Pradhan
General Manager : Ms Tajinder Mukherjee
General Manager & CFO : Ms S.N. Rajeswari
General Manager : Mr. Ranjit Gangadharan
General Manager : Mr. R.M. Singh
General Manager : Mr. J.K. Garg
General Manager &
Chief Risk Officer : Mr. S. Shankar
Appointed Actuary : Mr. Sharad S.
Ramnarayanan
Chief Investment Officer : Mr. Mahesh Joshi

Chief of Internal Audit : Mr. R.P. Joshi Company Secretary & Chief ComplianceOfficer : Ms Jayashree Nair Chief Financial Officer : Ms S.N. Rajeswari

Disclosures :

1. During the year there are no pecuniary relationships or transactions with theNon-Executive Directors.

2. Financial Statements accurately and fairly represent the financial condition of theCompany.

3. There has not been significantchange in the any accounting policies of the Companyduring the year.

4. The Company has Business Risk Management process which is periodically reviewed bythe Board of Directors/Risk Management Committee to determine its effectiveness.

5. The Board of Directors and the Audit Committee periodically reviewed the status ofcompliances in respect of applicable Laws and report thereon by the Internal Audit team.

6. Whistle Blower Policy The Company has a Whistle Blower Policy and the same has beenhosted on the website.

7. The Global solvency Margin of the company for the year 2017-18 is 2.58 times.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITIONAND REDRESSAL ACT 2013)

The Company has formulated an Anti Sexual Harassment Policy in line with therequirements of The Sexual Harassment of Women at the workplace (Prevention Prohibition&Redressal) Act 2013 Internal complaints committee (ICC) has been set up to redresscomplaints received regarding sexual harassment. All employees (permanent contractualtemporary trainees) are covered under this policy. The following is the summary of Sexualharassment complaints received and disposed off during the year 2017-18 :

No. of Complaints received : Nil No. of complaints disposed off : Nil

AUDITORS AND AUDIT REPORT

Under 139 and Section 143of The Companies Act 2013 the Comptroller and AuditorGeneral of India appointed M/s. Devendra Kumar and Associates M/s. Bafna and Associatesand M/s. NBS & Co. as the Central Statutory Auditors of the Company for the year2017-18. Branch auditors for the various Regional Offices Divisional Offices and claimshubs in India and for the foreign branch/agency offices were also appointed for the year.The Board of Directors expresses its gratitude for the directions and guidance given bythe statutory auditors in drawing up the Company's annual results.

EXTRACT OF ANNUAL RETURN :

Pursuant to Section 92(3) of the Companies Act 2013 and Rule 12(1) of the Companies(Management and Administration) Rules 2014 the extract of the Annual Return is annexed asAnnexure

RENEWAL OF LICENCE BY THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA(IRDAI)

Section 3 A has been amended by the Insurance Laws (Amendment) Act 2015 to remove theprocess of annual renewal of the certificate of Registration issued to insurers underSection 3 of the Insurance Act 1938. The insurers however shall continue to pay suchannual fee as may be prescribed by the Regulations. Thus w.e.f. 26.12.2014 insurers shallnot be issued Certificateof the Renewal Registration (IRDA/R6) on an annual basis. ofRegistration of the Insurers Accordingly the Certificate renewed in 2016 and whichexpired on 31st March 2018 shall continue to be in force from 1st April 2018 subject tothe provisions of Section 3A read with Section 3 of the Insurance of License has beenrenewed by Act 1938.The Certificate IRDA w.e.f. 01.04.2018.

The Company has paid the renewal fees as prescribed by the above Regulations.

SUBSIDIARY COMPANIES

The Company has 3 Subsidiary Companies. The names and details of New India shareholdingare as under:

S.No. Name of the subsidiary Total paid-up capital (no. of shares) New India's shareholding (no. of shares) % holding of New India Assurance
1. The New India Assurance Company (Trinidad & Tobago) Limited 17418946 14612444 83.89
2. The New India Assurance Company (Sierra Leone) Limited 250000 250000 100.00
3. Prestige Assurance Plc. Nigeria 5370434000 3732491383 69.50

The performance of subsidiaries for the year ended 31st December 2017 is summarizedbelow:

(Figures in ‘000)

Name of the subsidiary Curr ency U/w Profit/Loss Investment Income Other Income Profit before tax Dividend
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
NIA (T&T) Ltd. $ (21144) 13068 6672 5245 - 1076 (14472) 19389 3484
NIA (S.Leone) Ltd. Le (18607) (41758) 12680 21553 - - (5927) (20205) - NIL
Prestige Assurance N (348538) (181320) 1023979 385955 22548 135759 697989 340394 NIL

All the subsidiary companies follow the calendar year for finalisation of accounts.Therefore performance has been given for the year ended 31st December 2017.

The New India Assurance Company (Sierra Leone) Limited has closed down businessoperations with effect from 1st January 2003 due to the civil disturbances prevailing inthat country. The Company has not declared any dividend for the year 2017-18.

In compliance with the provisions of the Companies Act 2013 the report and auditedaccounts of the subsidiary companies are appended hereto.

GENERAL MEETINGS HELD :

The details of the Annual General Meetings held in the previous three financial : yearsare given below

Annual General Meeting Day Date Time Venue
Ninety Eighth AGM Wednesday August 2nd 2017 11.30 a.m. New India Assurance Building 87 M.G. Road Fort Mumbai 400 001
Ninety Seventh AGM Thursday August 25th 2016 11.30 a.m. New India Assurance Building 87 M.G. Road Fort Mumbai 400 001
Ninety Sixth AGM Thursday July 9th 2017 3.00 p.m. New India Assurance Building 87 M.G. Road Fort Mumbai 400 001

The details of the Special Resolutions passed in the Annual General Meetings held inthe previous three financial years are given below :

General Body Meeting Day and Date Resolution
Annual General Meeting Wednesday August 2nd 2017 1. Approval for adoption of new set of Articles of Association
2. Approval of sub-division of shares.
3. Increase in Authorised Share Capital of the Company and subsequent alteration in the Capital Clause of Memorandum of Association
4. Approval of issuance of Bonus Shares.
5. To consider and approve the Initial Public Offer
Annual General Meeting Thursday August 25th 2017 -
Annual General Meeting Thursday July 9th 2017 -

SUBMISSION OF ACCOUNTS BEFORE PARLIAMENT

The Ministry of Finance Department of Financial Services (Insurance Division) hasconfirmed that the Annual Report of the Company for the Financial Year 2016-17 along withthe Directors' Report was placed before Lok Sabha on 22.12.2017 and Rajya Sabha on22.12.2017 as per the requirement of the Companies Act 2013.

MEANS OF COMMUNICATION

The Company's website (www.newindia.co.in) allows access to all the stakeholders of theCompany to access information at their convenience. It provides comprehensive informationof the Company.

The financial and other information and the various compliances as required/prescribedunder the Listing Regulations are filed electronically with BSE and NSE. The financialresults official news releases analyst call transcripts and presentations are alsoavailable on the Company's website.

GENERAL SHAREHOLDER INFORMATION

Registration Number 190
Corporate Identification L66000MH1919GOI 000526
Number
Financial Year 2017-18
Board Meeting for adoption May 11 2018
of Audited Annual Accounts
Day Date and Time of 99th
Annual General Meeting
Venue
Financial Year April 1 March 31
Book Closure
Date of Dividend Payment
Company's Website www.newindia.co.in

LISTING OF EQUITY SHARES

Currently the Equity shares of the company are listed at :

Stock Exchange Code
BSE Limited (BSE) 540769
Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai 400001
National Stock Exchange of India NIACL
Limited (NSE)
Exchange Plaza 5th Floor
Plot C/1 G block Bandra Kurla
Complex
Bandra (East) Mumbai 400 051

The Company has paid the annual listing fees for the relevant period to BSE and NSE.

MARKET PRICE INFORMATION :

Month BSE NSE
High Low High Low
2017
November 725.06 632.9 750.00 632.26
December 619.6 545.8 636.90 545.06
2018
January 639.86 605.40 631.16 602.00
February 733.66 650.60 751.56 645.00
March 711.30 655.36 719.00 635.00

REGISTRAR AND TRANSFER AGENTS :

The Registrar and Transfer Agent of the Company is Link In Time India Pvt. Ltd. forEquity Shares. Investor services related queries/requests/complaints may be directed atthe address as under :

Link In Time India Pvt. Ltd.

247 Park C 101 1st Floor LBS Marg Vikhroli (W) Mumbai 400 083 Phone No. : 02249186000 Email id : rnt.helpdesk@linkintime.co.in

INFORMATION ON SHAREHOLDING :

Sl. No. Category Number of Shares on March 31 2018 % total
1 Central Government(Promoter) 703999856 85.4369
2 Clearing Members 46193 0.0056
3 Financial Institutions 386123 0.0469
4 Foreign Portfolio Investors (Corporate) 1071495 0.13
5 GIC & its subsidiaries 16514834 2.0042
6 Hindu Undivided Family 128672 0.0156
7 Insurance Companies 2234465 0.2712
8 Life Insurance Corporation of India 71416594 8.6671
9 Mutual Funds 2220988 0.2695
10 Nationalised Banks 17394986 2.1110
11 Non Nationalised Banks 516568 0.0627
12 Non Resident (Non Repatriable) 74468 0.0090
13 Non Resident Indians 230641 0.0280
14 Other Bodies Corporate 2660299 0.3229
15 Public 5093718 0.6182
16 Trust 10100 0.0012

SHAREHOLDERS OF THE COMPANY WITH MORE THAN 1% HOLDING AS ON MARCH 31 2018 (OTHERTHAN PROMOTER OF THE COMPANY:

Sr No. Name No. of Shares Held Percentage (%) of total number of shares
1 LIFE INSURANCE CORPORATION OF INDIA 71416594 8.6671
2 GENERAL INSURANCE CORPORATION OF INDIA 10833823 1.3148
3 STATE BANK OF INDIA 10353042 1.2564

DISTRIBUTION OF THE SHAREHOLDING OF THE COMPANY AS ON MARCH 31 2018 :

Sr No.

Shareholding of Nominal Value (INR)

Number of Shareholders % OF TOTAL SHARE AMOUNT (INR) % OF TOTAL ISSUED AMOUNT
From To
1 1 2500 99701 99.1793 21005715.00 0.5098
2 2501 5000 504 0.5014 1749545.00 0.0425
3 5001 10000 142 0.1413 1004840.00 0.0244
4 10001 15000 42 0.0418 527675.00 0.0128
5 15001 20000 19 0.0189 340995.00 0.0083
6 20001 25000 16 0.0159 360315.00 0.0087
7 25001 50000 28 0.0279 1044865.00 0.0254
8 50001 Above 74 0.0736 4093966050.00 99.3681

COMPLIANCE CERTIFICATE OF AUDITORS :

The Company has annexed to this report a certificate obtained from the StatutoryAuditors of the Company regarding compliance of conditions of Corporate Governance asstipulated in SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

EVENTS AFTER BALANCE SHEET DATE :

There has been no material changes and commitments affecting the financial position ofthe Company which have occurred between the end of the financial year of the Company towhich the balance sheet relates and the date of this report.

POLICY FOR MATERIAL SUBSIDIARIES :

The Company is in the process of formulating this policy and placing to the Board. Thesame would then be uploaded on the website of the Company.

DIRECTORS' RESPONSIBILITY STATEMENT :

Pursuant to the requirements under Section 134(5) of the Companies Act 2013 the Boardof Directors of the Company hereby state and confirm that :

(a) In the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures; (b)Appropriate accounting policies and applied them consistently and made judgments andestimates that are reasonable and prudent so as to give a true and fair view of the stateof affairs of the company at the end of the financial year and of the profit the companyfor that period; (c) Proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of this Act for safeguarding the assets of thecompany and for preventing and detecting fraud and other irregularities; (d) The annualaccounts on a going concern basis; and (e) Proper systems to ensure compliance with theprovisions of all applicable laws and that such system were adequate and operatingeffectively.

(f) No Material Changes and commitments affecting the financial position of the Companyhas occurred between 31st March 2017 and the date of the Report.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION :

Considering the nature of the operations of the Company the provisions of Section134(3)(m) of The Companies Act 2013 read with Companies (Accounts) Rules 2014 relating toinformation to be furnished on conservation of energy and technology absorption are notapplicable.

ACKNOWLEDGEMENT

The Board of directors thanks Government of India Ministry of Finance Department ofFinancial Services (Insurance Division) Insurance Regulatory & Development Authority(IRDA) General Insurers' (Public Sector) Association of India (GIPSA) General InsuranceCouncil intermediaries and other government and regulatory agencies for their valuableguidelines and continuous support provided to the company throughout the year. loss ofTheBoard of directors are also grateful to the valued customers bankers agents surveyorsstakeholders and public at large for the patronage and confidence reposed in the company.The Board of directors places on record their appreciation for the commitment sense ofinvolvement and dedication exhibited by each staff member in the overall development andgrowth of the company and look forward to the continued support and whole-heartedcooperation for the realization of the corporate goals in the yearahead.

For and on behalf of the Board

G. SRINIVASAN

Chairman cum Managing Director

DIN No. 01876234

Place :Mumbai

Dated : May 11 2018