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New India Assurance Company Ltd.

BSE: 540769 Sector: Financials
NSE: NIACL ISIN Code: INE470Y01017
BSE 14:23 | 18 Oct 164.65 0.65






NSE 14:14 | 18 Oct 165.00 1.10






OPEN 165.50
VOLUME 28769
52-Week high 197.00
52-Week low 99.55
P/E 19.28
Mkt Cap.(Rs cr) 27,134
Buy Price 164.55
Buy Qty 1.00
Sell Price 164.80
Sell Qty 125.00
OPEN 165.50
CLOSE 164.00
VOLUME 28769
52-Week high 197.00
52-Week low 99.55
P/E 19.28
Mkt Cap.(Rs cr) 27,134
Buy Price 164.55
Buy Qty 1.00
Sell Price 164.80
Sell Qty 125.00

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

Company director report

"To the Members: Your Directors have immense pleasure inpresenting the Hundred and One Annual Report of the Company together with the auditedstatement of accounts and balance sheet for the year ended 31st March 2020." 1. Thesnapshot of your Company Standalone financial performance is as below:


Rs in Crores

Fire Marine Misc Total
Gross Direct Premium Income India CY 3063.16 741.06 23008.91 26813.13
PY 2224.75 708.89 20976.52 23910.16
(% Growth) CY 37.69 4.54 9.69 12.14
PY 6.83 18.15 4.69 5.24
Outside India CY 823.78 42.92 2035.24 2901.94
PY 752.46 52.77 1892.60 2697.83
(% Growth) CY 9.48 (18.68) 7.54 7.57
PY 14.05 28.23 8.79 10.54
Global CY 3886.94 783.97 25044.15 29715.07
PY 2977.21 761.66 22869.12 26607.99
(% Growth) CY 30.56 2.93 9.51 11.68
PY 8.57 18.79 5.02 5.76
Reinsurance Premium Accepted CY 1174.47 63.50 290.82 1528.79
PY 1123.08 49.15 236.89 1409.11
Global Gross Written Premium CY 5061.41 847.48 25334.97 31243.86
PY 4100.29 810.81 23106.00 28017.10
Growth in Global Gross Written Premium CY 23.44 4.52 9.65 11.52
Reinsurance Premium Ceded CY 2303.32 414.01 4039.48 6756.81
PY 1983.16 366.77 3546.32 5896.25
Global Net Premium CY 2758.09 433.46 21295.50 24487.05
PY 2117.13 444.04 19559.69 22120.86
(% Growth) CY 30.28 (2.38) 8.87 10.70
PY 8.02 8.43 5.23 5.56
(% to Gross CY 70.96 55.29 85.03 82.41
PY 71.11 58.30 85.53 83.14
Addition / Reduction in Un-expired Risks CY (314.73) (4.16) (639.32) (958.21)
PY (226.23) (24.73) (382.30) (633.26)
(% to Net CY (11.41) (0.96) (3.00) (3.91)
PY (10.69) (5.57) (1.95) (2.86)
Earned Premium CY 2443.36 429.31 20656.18 23528.84
PY 1890.90 419.31 19177.38 21487.59
Incurred Claims Net CY 1860.13 292.11 19360.38 21512.62
PY 2138.08 345.44 18013.18 20496.70
(% to Earned CY 76.13 68.04 93.73 91.43
PY 113.07 82.38 93.93 95.39
Commission Net CY 432.18 72.71 1788.87 2293.76
PY 448.61 61.34 1689.03 2198.98
(% to Earned CY 15.67 16.77 8.40 9.37
PY 21.19 13.81 8.64 9.94
Operating Expenses CY 431.08 67.75 3328.40 3827.23
PY 386.14 80.99 3567.51 4034.64
(% to Earned CY 15.63 15.63 15.63 15.63
PY 18.24 18.24 18.24 18.24
U/W Results CY (280.03) (3.26) (3821.48) (4104.76)
PY (1081.94) (68.45) (4092.33) (5242.73)
(% to Earned CY (11.46) (0.76) (18.50) (17.45)
PY (57.22) (16.33) (21.34) (24.40)
Investment Income-Policy Holders CY 621.73 89.10 3806.89 4517.72
PY 497.17 79.98 3207.64 3784.79
Revenue (Policy Holder) Account Surplus CY 341.71 85.84 (14.59) 412.96
PY (584.77) 11.52 (884.69) (1457.94)
Investment Income-Share Holders CY 2247.89
PY 2101.03
Other Income less Outgo CY (1022.02)
PY 1.78
Profit before Tax CY 1638.83
PY 644.87
Provision for Tax CY 221.07
PY 65.08
Profit after Tax CY 1417.75
PY 579.79


(Rs in Crores)

2019-20 2018-19
A Gross Written Premium (India) 26999 24035
% change over previous year 12.33 4.70
Gross Written Premium (Foreign) 4245 3982
% change over previous year Gross 6.60 10.54
Global Premium 31244 28017
% change over previous year 11.52 5.50
Gross Written Premium (GWP) in India has increased from 24035 crore in 2018-19 to 26999 crore in 2019-20 recording a growth of 12.33% in 2019-20. The company continues to be the market leader in India.
B Net Premium 24487 22121
% change over previous year 10.70 5.56
The net premium income of the company grew by 2366 crore from 22121 crore to 24487 crore.
C Change in Unexpired Risk Reserve 958 633
D Earned Premium 23529 21488
% change over previous year 9.50 8.94
E Incurred Claims (Net) 21513 20497
Percentage to earned premium 91.43 95.39
F Commission (Net) 2294 2199
Percentage to Net premium 9.37 9.94
G Operating Expenses 3827 4035
Percentage to Net premium 15.63 18.23
H Underwriting Results (4105) (5243)
I Investment Income (Less Provision)
Apportioned to policyholders 4518 3785
Apportioned to Shareholders 2248 2101
Total 6766 5886
J Revenue (Policyholders) Account Results 413 (1458)
K Other Income/Outgo (1022) 2
L Profit Before Tax (PBT) 1639 645
M Profit After Tax (PAT) 1418 580
N Proposed Total Dividend 0.00 247.20
O Dividend Tax 0.00 50.81
P Paid-up Capital 824.00 824.00
Q Reserves and Surplus 16632 15121
R Total Assets 74609 79475
S Investments (at cost) 41133 36930
T Solvency Margin
i. Required solvency margin under IRDA regulations 6770 6332
ii. Available solvency margin 14296 13495
The company's Global solvency ratio is 2.11 times (PY 2.13 times)
U Compliance with Section 40C
i. Expenses prescribed under the act 8417 7277
ii. Actual expenses 5636 5538
iii. Difference 2781 1739


The Indian Economy grew at 4.2% in 2019-20. Despite macroeconomicchallenges throughout the year culminating with the COVID-19 pandemic in the 4th Quarterof FY 20 India continues to be among the fastest growing major economies in the world.India's foreign exchange reserves crossed US$

500 billion according to data from the RBI as of 12th June 2020.During this Financial Year inflation has remained largely stable and Macro-economicfactors continue to be positive. The nation-wide lockdown that began on 24th March 2020was extended till the end of May. Subsequently beginning 1st June 2020 various parts ofthe country began to re-open for Business. Strong rural growth and demand particularlyfrom

Tier 3 and Tier 4 cities could be the way forward for the Indian

Economy in the FY 2020-21.

Indian general insurance industry

The Indian General Insurance Industry grew by nearly 12% in FY 2019-20and the total gross direct premium of the industry crossed 1.8 lakh crore. Motor Healthand Property remained the primary growth drivers of the industry. Good monsoon isproviding a tailwind to the Kharif sowing activities and expected to boost the ruralconsumption.

The traditional lines like Property and Engineering where growth islinked to the general level of investment activity in the economy are also expected tofare better in the coming years. The Industry has experienced a rationalizing of rates inthe property and Engineering Segment This is expected to improve the loss ratio of theproperty line of business.

IRDAI has initiated two major initiatives in the Health segment.

The first is a Standardized Health Insurance Product named "ArogyaSanjeevani" with a Sum Insured of up to 500000 and standardized Terms andConditions which every general insurance company has to offer. The second initiative

Guidelines on Standardization of General Terms and Clauses in HealthInsurance Policy contracts is expected to bring uniformity across the Insurance Industryand reduce disputes on interpretation of the contract for the stakeholders involved.

The COVID-19 pandemic has increased the awareness of health insuranceand the segment is expected to do well in the near to medium term.

While growth in FY 2020-21 remains a challenge the insurancepenetration in India continues to be low and the industry is expected to grow well in themedium term.


Gross direct premium in India has increased from 23910 crores in2018-19 to 26813 crores in 2019-20 recording a growth of 12.14% during 2019-20. The growthis observed in all geographical segments as well as all classes of business.


Sr. No PARTICULARS 2019-20 2018-19
( in Crore) (%) ( in Crore) (%)
1 Gross Direct premium 26813.13 12.14 23910.16 5.24
2 Net premium 21444.06 11.21 19281.76 4.36
3 Change in unexpired risk reserve 872.78 - (289.65) -
4 Net earned premium 20571.28 8.31 18992.11 10.23
5 Commission 1595.98 7.44 1510.88 7.84
6 Incurred claims 19556.03 95.06 18366.87 96.71
7 Management expenses 3597.34 16.78 3813.98 19.78
8 Other income (net of outgo) (1024.49) (4.78) (2.38) (0.01)
9 Investment income 6596.44 30.76 5736.77 29.75

Note: Percentage shown in Sr. No. 1 2 & 4 indicates the growthover previous year percentage shown in Sr. No. 5 7 to 9 is percentage to ‘Netpremium' and percentage shown in Sr. No. 6 is percentage to ‘Net EarnedPremium'


The Company commenced its foreign operations shortly after itsformation in 1919. The London branch was opened in 1920. After that the Company saw asteady increase in presence abroad with Manila Port Louis and Japan. Today New India haspresence in 28 countries.

Today the company operates in the following countries:

Branches & Agency offices:
United Kingdom
Hong Kong

New Zealand


Fiji y Dubai

Abu Dhabi





Curacao of 73.31 crores Apart from these countries theCompany has subsidiaries in Nigeria (Prestige Assurance Plc.) Trinidad and Tobago (NewIndia Assurance T&T) and Sierra Leone. The New India T&T also operates incountries such as St. Lucia Dominica St

Maarten Guyana and Anguilla. The Company has opened a Representativeoffice in Myanmar and is planning to open an office in SEZ Myanmar. The Company also hasits presence in Saudi Arabia (WAFA Insurance) Singapore (India International PteSingapore) and Kenya (Ken India Assurance Co. Ltd.


The Company's foreign operations saw a gross written premiumturnover in rupee equivalent of 3747.58 crores and a Net Premium of 3042.99 crores in FY2019-20. The foreign operations recorded an underwriting profit and Profit After Tax was214.91 crores.

New India Assurance has taken a license to operate in DIFC Dubaithrough a regional office

2019-20 2018-19
Sr. No PARTICULARS ( in Crore) (%) ( in Crore) (%)
1 Gross Direct premium 2901.94 7.57 2697.83 10.54
2 Net premium 3042.99 7.18 2839.09 14.46
3 Change in unexpired risk reserve (85.42) - (343.61) -
4 Net Earned premium 2957.57 18.51 2495.48 0.03
5 Incurred claims 1956.59 66.16 2129.83 85.35
6 Commission 697.77 22.93 688.10 24.24
7 Expenses of management 229.89 7.55 220.65 7.77
8 Other outgo 2.47 0.08 4.16 0.14
9 Investment income 169.17 5.56 149.04 5.25

Note: Percentage shown in Sr No 12 & 4 indicates the growth overprevious year percentage shown in Sr. No. 6 to 9 is percentage to ‘Net premium'and percentage shown in Sr. No. 5 is percentage to ‘Net Earned Premium'


The Company had been consistently expanding its footprints by openingMicro Offices in remote areas and upgrading its Micro Offices to Branch becoming thecornerstone for better services to every length of the country.

As on 31st March 2020 the Company has a network of 31 RegionalOffices 7 Large Corporate Offices 1 Auto Hub 1 office at International FinancialServices Centre 1 Digital Hub 474 Divisional Offices 591 Branch Offices 25 DirectAgent Branches and 1160 Micro Offices totalling 2292 offices inclusive of Head Office yForeign

The Company operates in 28 countries


The Company continues it's endeavour to have an optimum protectioncommensurate with the Company's risk profile and Financial position. Renewal of allproportional and non-proportional treaties of both Indian and foreign offices wascompleted as per schedule This year 2020 the company was impacted by major Catastrophiclosses. There were losses in Orissa in the month of May on account of Fani Cyclone. Thenthere were floods in a number of states in the months of July August and September. Onthe global front the major catastrophic events which impacted New India's foreignBranches were Hurricane Dorian (Bahamas) and Typhoon Faxai (Japan) in September followedby Typhoon Hagibis (Japan) in the month of October. All these losses impacted theReinsurance treaties/Covers taken by the Company.

Company's IFSC (GIFT city) which came into operations in October2016 has posted an accretion of 30.6% .


. Techno Marketing is a specialized Department

Created at Corporate office to cater the needs of Large

Corporate clients for their operational Business units and constructionprojects of Large and Mid-segment customers. The company with its underwriting capacityTechnical Expertise Market Reputation Market

Intelligence and Financial Strength continues to lead the Market in theLarge Risk segment of construction and Operational covers.

Corporate clients in the Indian market with the implementationnewTechnology and new business models are always looking for customized covers which is beingaddressed by the department by devising need based Insurance solutions with the expertiseavailable in the department. Also with the support of National and InternationalReinsurers company has been able to design few Unique covers to fulfil of Corporateclients.

Seminars are organized for Large corporates at their work places toeducate their employees and executives about the Large risk policies along with the claimsmodalities. In view of focus on the corporate strategy of Underwriting the risk withprofitability clients are educated about the Risk management practices loss minimizingactivities. Risks inspections for a few risks are conducted by International repute riskengineers.

The Company is equipped to face the challenges in this segment and aimsto maintain the leadership in coming years as well.


The company continued its top-notch performance in the Propertyinsurance segment. Moving higher than the growth in economy the Fire premium rose from2225 Cr to 3063 Cr and Engineering from 516 Cr to 558 Cr. The company continued itsleadership position in this segment of the general insurance market. While the Firepremium grew at the record rate riding on the back of increased Fire premium rates acrosssectors the

Engineering premium increased at the rate of economy. It is ourconstant endeavour to improve underwriting and claims management. During the year thecompany adopted stricter measures and enhanced rating for high claim policy renewals as apart of improvement in underwriting. The company also decentralized policy underwriting ina controlled manner at regional offices which improved the customer servicing and

The company conducted workshops on underwriting and claims managementfor the education of the technical teams in various offices. Apart from regularlyconducted video conferences for better coordination with the technical teams.

The ICR of the company improved in Fire portfolio but took beatingunder the Engineering portfolio predominantly due to catastrophic events. Overall itdidn't hamper the business performance. Tight claims control was achieved by optimumutilization of the resources and thrust on quicker claims settlement. This resulted inreducing the cost of claims and increased profitability. We aspire to maintain ourleadership in the years to come by utilizing our proactive approach technical competence& innovative techniques towards better underwriting & claims management.


The Company has completed premium of 9394 crores during the year FY2019-20 as against the premium of 8254 crores with an accretion of 14%.

Major highlights in FY 2019-20 are :

1) Loss minimization measures to contain Incurred Loss Ratio in healthand this has resulted in reduction of ICR in group mediclaim by 2%. the actual requirement

2) To boost the growth of retail health lot of customer centricactivities were carried out during the year.

Add on covers and option for enhancement of sum insured in the renewalnotices incorporated thereby encouraging customers to have adequate healthinsurance.Cumulative bonus of 25% in the first claim free renewal and 50% in the secondclaim free year has been introduced in New India Mediclaim. This feature which waswithdrawn in the year 2013 has been reinstated to promote retention of all our retailcustomers. We have also introduced various Add on covers viz Proportionate waiver clausematernity benefit and Cataract benefit in New India Floater policy to meet the demands ofinsuring public. We have launched a specialized product viz New India Cancer Guard Policy.This product has received good response in the market.

As mandated by IRDAI we have launched Arogya

Sanjeevani New India Assurance on 30/3/2020 and got approval for thesame. This product will be available on all digital platforms and all distributionchannels including

POS web aggregators CPSC will be utilized to promote the marketing ofthis product.

Our inhouse doctors too contribute significantly in productdevelopment claim adjudication and audit and fraud control. This helps us to not onlycontain the ICR but also bring in professional adjudication of medical disputes and buildin novel ideas into the products. Constant audit and visit to the hospitals/TPAs forsurprise check is being carried out which has resulted in containing the ICR.

During FY 2019-20 we issued 1709366 number of efficiency healthpolicies number of claims settled were 4602958 with claims disposal ratio of 97%.Claims disposal ratio of 97% not only reflects the sound financial standing of thethecompany Company but also its operational efficiency.

As a part of the networking branch of the Health Insurance

Department we would like to mention that the following operations havebeen undertaken for the growth of our Company:

PPN (Preferred Provider Network): It is a network of hospital andTPA arrangement for providing cashless facility to our clientele in collaboration with theother 3 PSUs and 26 TPAs. This network is available in the 12 major cities of our country.

New India Network of hospitals: The Company had taken the lead toextend this facility in cities other than the cities where PPN is available; to facilitateour policyholders. This is direct agreement between New India TPAs and the hospitals. Theother PSUs are not a party to it. Total number of hospitals under such direct agreement is369.

Help Desk Facility: The Company started a hand holding initiativeto our customers in the form of Help desks at major hospitals. The facility is managedwith the help of lead TPA in the concerned area. Regular training sessions and workshopsare carried out for marketing force agents and agent managers for product knowledgeupdation for enabling better service and growth of the Health department.

The last quarter of this fiscal began turbulently with

COVID 19 problems which greatly impeded our marketing activitiesespecially March which is a crucial one. Thousands of our customers could not remit theirrenewal premium due to lock down situation. Customer centric measures were undertaken forenabling premium remittance like SMS alert payment link on mobiles giving coversretrospectively etc.


The Company continues to maintain its leadership in the Marine Line ofBusiness with the highest market share in Marine Cargo as well as Marine Hull in theIndian Market. The Company has 35.10% of market share in Marine Hull and 16.40 % in Marine

Cargo Insurance. The company achieved a Marine Cargo Domestic premiumof Rs 437 Crores as against

Rs 394 Crores in the previous year. Marine cargo portfolio in FY2019-20 remains profitablewith ICR approximately of 54.50%. As the leader in Marine Hulland Marine Cargo Insurance the Company is committed to delivering best-in-the-businessservice to its clients. Initiatives are being undertaken for effective online marinesolutions for issuance of Certificates/Policies through Customer/

Intermediary Portals and also for faster claims handling.

Effective claims management and risk management along with carefulunderwriting and vigorous recovery efforts have contributed to sustaining theprofitability these Portfolios.

The Company insures major shipping lines of India majority of Inlandand Coastal vessels sailing vessels and fishing vessels in the at major ports of India inthe oil and energy segment we have consistently been the market leaders since inception.We are the first insurance company to come up with a Protection and Indemnity cover. Whilewe are still at a preliminary stage in this direction our efforts shall ensure that Indiafinally has

P&I club.

We are proud to announce that we bagged the prestigious "SamudraManthan " Awards for the year 2019. Not only are we the pre-dominant insurer in Indiabut also are one of the major players in the World Reinsurance

Market. As Reinsurers we give support to major upstream energy andOffshore construction projects all over the world - with our specific focus beingMiddle-east Asia Central Asia Asia-pacific and Africa. We continue to show a veryhealthy and profitable growth even during these hard times.


New India is the preferred insurer for Aircraft Manufacturers R&DOrganizations and various other

General Aviation Business.

With the advent of Government sponsored Regional Connectivity schemeNew India has been the fore-runner in the smaller airlines that have taken off under UDAN

(Udey Desh ka Aam Naagrik) Scheme.

The Company continues to be a preferred re-insurer in internationalmarket extending its support to around 100 Aviation Reinsurance Programme across theGlobe.



During the FY 2019-20 the company entered into New tie ups. The Companyhas tie ups with motor dealers across India through partnership with major brands in theIndian market.

The company's Tie up network covers more than 5000 dealers.Besides more than 2800 dealers (other than

OEM Tie ups) of private cars commercial vehicles and two wheelers havetied up with company offices directly for sale of motor insurance policies to theircustomers. Auto tie up has empowered the company to create a brand image of leading motorinsurer in India who has been delivering value added services like; instant delivery ofinsurance policies & endorsements seamless settlement of claim TAT based delivery ofservices & cashless facility at dealer points etc.. This has been possible throughintervention of IT; enabling our partner dealers to execute all such activities on portalsavailable at each dealer point.


During FY 2019-20 the Automobile Industry sales has declined due tovarious factors such as the BS VI- Emission norms to become effective from April 2020 theIntroduction and promotion for transition to electric vehicle etc. The Slowdown ofAutomobile industry has had a direct impact on Motor Insurance Business. Also thelockdown due to COVID-19 from March 2020 had an impact on business and claims servicing.The Industry growth of Motor Premium has been only 7.3% with Own Damage (OD) premiumgrowth at 0.2% and Third Party (TP) Premium growth at 12.1%.

During the year two new products were approved by the Regulator –IRDAI (Stand Alone Motor Own Damage

Policy for Two-Wheeler and for Private Car). Further company is inprocess of filing new products in the coming year too to augment the product range.

Claim Settlement in Motor Own Damage segment stands at 93.98%. Thereare 36 claims hubs which handle the claims of 948 operating offices as on date. Companyhas tied up with over 1283 reputed motor workshop/garages to provide cashless service toretail customers.

During the financialyear 2019-20 the company has rolled significant ITenabled initiatives with an objective outafew of providing effortless service tocustomers. Automation of Motor OD claim process has been introduced on pilot basis in fewClaim Hubs auto appointment of surveyors for Private Cars and Two-wheelers has beeninitiated for Estimate upto 50000/- development of digital Survey

Reports which enables faster settlement of claims and helps inanalysis. The Company's Core System has been integrated to Digi Locker for enablingverification of vehicle documents instantly in case of claims. These new initiatives areproposed to be implemented in all offices during the year 2020-21 with furtherimprovements/ additional features.


The focus of the company is to settle maximum number of TP claimsthrough conciliatory process and avoiding further litigation by filing appeals in highcourts and Supreme Court. Company has settled about 35% of Total claims settled by way ofcompromise through Lok Adalat and other Conciliatory Mechanisms. Despite protest of

Advocates in major centres viz. Ernakulam Bangalore Chennai andHyderabad during National Lok Adalat we could compromise sizeable number of claims bestby any

General Insurance Company.

The number of claims outstanding is 151698; with the Settlement Ratioof 33% and Throughput Ratio of 90%. Due to spread of Covid-19 in the month of March 2020of claims for Company could not settle significant want of receiving compromise andregular awards.

With the aim of digitizing the medium of communication with our serviceproviders and to get constant and instant follow-ups to track the case movement before theCourt of Law initiated work on Advocate Portal Advocate App and

Investigator Portal.

2 Legal Hubs at Mumbai and Delhi and 48 Motor TP

. Delhi Legal Claims Hubs are efficiently

Hub works as the face of the company in Supreme Court and NCDRCMatters.


The Company's visibility in the Industry as pioneers in writingEvent Insurance Film Production Insurance continues and we are able to sustain theselines of business due to increase in premium rates and reinsurance support frominternational market.

We have had leadership in the Nuclear Pool for the year 2019-2020 andpropose to continue the same in the coming years.

It has been our endeavour to continuously support our banking sector byproviding them with Cyber Liability Insurance and Commercial Crime insurance which are themost critical cover in today's digital world where we are dependent on technology.

Efforts are being made to approach International Markets to bring newerproducts to Indian Market as per market needs so as to ensure stable economical growth.


The Company's Premium procured through Brokers'

Channel during FY 2019-20 was 6908 Crores against the Previous Yearcompletion of 5306 Crores in India. This has resulted in accretion of Premium by 30.21%.

Premium of 26.50 Crores through Insurance Marketing Firm (IMF) channelwith a growth of 5% over previous year has been achieved by the Company.

In order to give stimulus to the online business your

Company has been providing Broker/IMF Portals to the Intermediaries tofacilitate quick issuance of policy and also to encourage the Intermediaries to useDigital

Payment methods. During this fiscal year75 new Broker

Portals and 14 new IMF Portals have been provided.


Banks with their geographical spread and penetration in terms ofcustomer reach of all segments have emerged as viable sources for the distribution ofinsurance products offering bank customers ease of purchase competitive price diverseproducts from different insurers and doorstep delivery.

In the financial year 2019-20 Company has been selected by India PostPayment Bank and IDBI Bank as it's General Insurance business partners. Bancassurancedepartment of the company contributed 352 Crs of premium during FY 2019-20 with a growthrate of 9.60%.

Various campaigns were launched during the course of the year toincrease the reach. Technology intervention is constantly being increased to improveavailability efficiency speed and ease of service to mutual customers.

Portal integration with various Banks was implemented towards this end.Training of bank's personnel engaged with insurance operations is also offeredperiodically.

Department is looking forward to mark company's presence in PSUBanks post-merger and tie-up with other Public sector Banks as also other large and smallbanks in coming year by offering a bouquet of Insurance Products to enable the last milecustomers to avail Insurance of their choice.


The Agency channel has been a major channel of business for the Companycontributing the largest share of Premium income with consistently favorable incurredclaims ratio.The Premium procured by Individual agents during the FY 2019-20 was 10124crores & by Corporate Agents (other than Banks) 114 Crores. Recruitment of 8866 newagents during the year enhanced the strength of Agency. Various recognition and rewardschemes implemented for motivating & recognizing agents were reviewed and revised toencourage and reward agents and to motivate them to face market challenges.

A new initiative was launched to publish a quarterly Agents Magazinenamed "PRAGATI" based on the articles Poems and achievements by agents. Variousother measures like sending text messages to agents on various occasions Birthdayfestivals etc Celebrating "First Monday of every Month" as "AgentsDay" honoring the top performer agent in every office etc are implemented.

The Company has one designated Officer in every operating office in therole of Agent manager for recruiting & training agents and providing them constantsales and service support.Training was imparted during the year to 191 new Agent Managersin order to enhance their knowledge and skills for performing their role better innurturing and supporting agents. Programs were alsoorganized for CMD club agents forenhancing their skills.

This year a record 8911 eligible agents were facilitated in Conventionsheld at RO & HO level under Agent Club Membership scheme based on 2018-19 performance.Agent portal & App facilitates quick issuance of policies on 24x7 basis.Agent portal& App were improved further to make them more user friendly for enhancing penetrationand thrust in retail business. The Agent App with new features available in smart phoneenables agents to quickly renew policies and better manage their renewals and claims. TheCompany made constant efforts supported by training for encouraging and motivating agentsfor usage of agent portal and App. During the year

Portal access was enhanced to over 38597 agents and they issued 67 Lacpolicies generating Premium of 3517 Crores. The Premium through agent portal was 35% oftotal agency business as against 27% in previous year.


The Company as the premier Non-Life Insurance Company in keeping withits rich traditions & strong social commitment of serving the rural mass has alwaysbeen in the forefront of devising host of Rural Insurance Products. The Company has alwaysbeen continuously striving to offer the needs & and requirements of Rural population.The company provides protection for various assets of rural community.

A wide variety of covers are now available for the rural areas to meetthe specific needs of the Rural mass. To name a few Cattle Insurance Agriculture pumpset Poultry Insurance Brackish water prawn insurance Janata Personal AccidentPlantation Insurance Personal

Accident Insurance cover to Kisan Credit Card Holders

(KCC) are some of the products which have provided safety &security to rural populations. The Company is the pioneer in covering temple elephantswhich is one of the most valued possessions of the Temple Authority. Basing on the marketrequirements add on cover for treatment expenses of insured animals is in the pipeline.The Company has always shown keen interest in various Government sponsored Schemes and isactively participating in such schemes like Pradhan Mantri Fasal

Bima Yojana (PMFBY) Restructured Weather Based Crop Insurance Scheme(RWBCIS) Cattle/ Livestock

Insurance schemes under National Livestock Mission in various StatesRajrajeshwari Mahila Kalyan Yojana etc. for benefit of the rural population. The Companyhas opened up Micro Offices at remote & interior parts of the country to ensure smoothdistribution of exclusive rural centric products. Our extensive network of rural Agencyforce has been provided with Portal for immediate issuance of policy even in remote cornerof the country.

It has always been the objective of the Company for growth &promotion of micro insurance products for the Rural & marginalized population. Thecompany has made the claim processing procedure simple & easy to popularize the microproducts.

The company has believed in the philosophy that right product designand right pricing are essential to make the rural insurance products more attractive andmeaningful to rural community. With more than 50 Rural Insurance

Products the Company has been doing its bit for sustained Ruraldevelopment which is backbone of Indian Economy.


The Company has successfully implemented the Ayushman Bharat schemelaunched by the Government in September 2018 in place of earlier RSBY scheme.

There are States which are still continuing their own sponsored schemelike Bhamashah Swasthya Bima Yojana of Rajasthan and we extended our Services in theseState as well. Under ‘Bhamashah Swasthya Bima Yojana' the company has coveredmore than one Crore families. We are implementing a new Scheme in the State of Punjab for‘Bhai Ghanhya Sehat Sewa Scheme'.

We are the insurers providing the prestigious RuPay

>Insurance program under the umbrella Scheme of Pradhan

Mantri Jan Dhan Yojana (PMJDY) from the FY 2015-16 in association withNPCI. We have provided Personal best possible products customized according to AccidentCover to 52.8 Crore RuPay Card Holders.


Pradhan Mantri Suraksha Bima Yojana is one of the flagship schemesunder the umbrella of Pradhan Mantri

Jan Dhan Yojana (PMJDY) launched in 2015. To achieve the motto ofFinancial Inclusion of Government of India

Our Company has conducted various enrollment and awareness Campaignsfor PMSBY and has provided Coverage to 2.07 Crore Subscribers. The Company has tied upwith more than 283 banks and Cooperative societies.


Alternative Business Channel is a dedicated department to strategizeand develop alternate channels for business procurement and to support the Nodal Officesfor effectively handling the Digital Operations. For this Financial Year it hascontributed 4917 Crs Premium which is 19.44% of the total. This has been achieved throughthe customer portals and tie ups with different partners e.g. Agency Brokers WebAggregators Corporate Agencies IMF POS CPSC etc. With the arrival of new innovativetechnologies its scope and presence are going to grow manifolds. The awareness andacceptability factor for the New Age customers are also a driving force for the growth ofour retail customers.


CSR Committee of the board was constituted in September 2014 with amission to achieve our vision to strive to transform India into a "Risk Aware"society from being a "Risk-Averse" society and with a mission to "achieveour vision by integrating social environmental and health concerns of the Indian societyinto Company's overall CSR Policy and programmes". The Company's

CSR Policy strives to achieve a balance between the expectations of thestakeholder and its social obligation as a socially responsible corporate.

The thrust of the entire gamut of CSR initiatives is on capacitybuilding empowerment of communities inclusive socio-economic growth environmentprotection promotion of green and energy efficient technologies development of backwardregions and upliftment of the marginalized and under-privileged sections of the society.Procedures were formulated and guidelines were issued to facilitate CSR activities.

In this year The Company has utilized its CSR budget with presence inareas spanning Government and other social sectors working for the targeted beneficiariesin accordance with the Company CSR objective.

On the Government front CSR investment included CentralGovernment-backed initiatives like Armed Forces Flag Day fund for the benefit of our bravearmed forces veterans war widows and their dependents and funding Prime Minister'sCitizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND).

Other social sector CSR activities cover a broad swathe of sectorsacross different states in India in areas ranging from health to education to eradicationof hunger to women's empowerment to environment protection to providing support tothe specially-abled. To mention a few The Company

(a) Rendered Financial Assistance to Ramkrishna Mission Aalo (Along)– Arunachal Pradesh for setting up Solar Plant.

(b) Provided Sponsorship of the Akshaya Patra Mid-

Day Programme for Underprivileged Govt School children as a CSRActivity.

(c) Co-Sponsored Puducherry Kitchen of Akshaya Patra foundation whichruns world's largest NGO-led mid- day meal program providing 1.6 million hot lunchesto government school children.

(d) Financial assistance for construction of 10 Rooms for Old Age Homeat Raipur's Vanprasth Ashram. (e) Financial assistance to Language and LearningFoundation (LLF) for Early Learning Improvement Programme at Durg District ofChhattisgarh.


Dedicated Customer Care Nodal Officers are working in all the operatingoffices throughout the country for extending quality service to the Policyholders and theprospects. Online information on the Company's products are provided in the for the benefit of the public.

The Company's Call Centre 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 enquiries on 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 ‘CustomerService' is a key and vital element of our business strategy for a continuous andprogressive growth in the General Insurance Industry with value added products matchingthe Customers' needs and requirements.

The Company has a Grievance Redressal Policy approved by the Board ofDirectors of the Company which lays down the guidelines for timely redressal of customergrievances maintaining a high level of quality. The Company also has a Policy forProtection of Policyholders' Interests approved by the Board of Directors whichformulates the high standard of service the Company aspires to extend to its Policyholdersand the prospects.

Grievances received orally over telephone or in writing are registeredin the CRM Module. Customers can register their grievance through our website The Company has a dedicated e-mail for getting customer grievances and service related issuesand this is monitored by the Head Office. With a view to give special attention to thegrievances and service related issues of the senior citizens the Company has a dedicatede-mail address seniorcitizencare.ho@ which is also monitored by the HeadOffice.

Customer grievances received by IRDA gets registered in IGMS. Our CRMModule is integrated with IGMS on real time basis. We also receive customer grievancesregistered in Centralized Public Grievance Redress and Monitoring System (CPGRAMS) portaland National

Consumer Helpline portal. We resolve the grievances intimate thecustomers and post the resolution through the portal.

The Grievance Redressal position for the period 01.04.2019 to31.03.2020 is as under:

Source Outstanding as on 31/03/2019 Received From 01/04/2019 To 31/03/2020 Resolved From 01/04/2019 To 31/03/2020 Outstanding as on 31/03/2020 Disposal Ratio
ALL 34 5587 5601 20 99.64%


Enterprise Risk Management (ERM) vertical established at Company'sCorporate office with its wings at all Regional Offices and Large Corporate Broker Officesrepresented by ERM Nodal Officers. Efforts are in swing to complete the ERM Project byimplementing a suitable ERM software system. Business Continuity Management is a part ofERM function that focuses on mitigating the business continuity risk during exigencies.

1. All the Regional Officesand Large Corporates and Brokers Officeshave conducted Fire Safety Audit of their offices to ensure safety of employees systemsand premises. Fire Safety Training was conducted at Head Office for staff for firedemonstration and escape chute.

2. Recovery Procedure Document a single pager guide during theemergency times have been implemented across all the RO's & LCBO's. The RPDis also in the final stage of implementation at Head office.

3. The Business Continuity Policy of the company was put to test in thecurrent pandemic. This Policy has withstood the vagaries of the current pandemic andvalidated our strategy in this regard.

The following functions were also performed under -

ERM framework: -

• The Revised Corporate Anti-Fraud Policy and Standard OperatingProcedure 2019 was approved by Board and adopted by our company.

• The Outsourcing Policy was approved by Board on 12th November2018 as per Outsourcing Regulations 2017 and it is displayed on the website of our companyunder the head ‘Information and help'.

• Information and Cyber Security is also a focal point in Riskmanagement and is being addressed by various measures at people procedures and technologylevels in coordination with IT dept.

• Cyber risk workshop was organized for Senior Executives of theCompany

• The Chief Risk Officer reports to the Risk Management Committeeof the Board periodically to update on the progress of the ERM departmental activities.


The Company carried out the following activities in this verticalduring the FY 2019-20

• Close monitoring of claims with an objective to bring downoutstanding claims and increase settlement ratio.

• Effective monitoring of Catastrophic claims.

• Undertaken training of claim handing officials of OperatingOffices focusing on improving their skills in handling customers claims Management andInsurance Knowledge at the College of Insurance. Total 6 batches of training were held and179 participants were imparted training.

• Implementation of the guidelines enumerated under theSurveyors' Management Policy (SMP)adopted by Board on 13.10.2018. y During theyear commenced claim automation process under Motor OD claims in Claim Hubs

Parameter Non-Suit Suit Total
Number of Claims OS as on 01.04.2019 155690 153864 309554
Number of Claims Intimated during 2019-20 5446116 86673 5532789
Number of Claims Settled during 2019-20 5372413 77777 5450190
Number of Claims OS as on 31.03.2020 229393 162760 392153
Parameter Non-Suit Suit Total
Claims OS for less than 3 months 129014 7417 136431
Claims OS for more than 3 months but less than 1 year 93765 30017 123782
Claims OS for more than 1 year 6614 125326 131940


Parameter 31.03.2018 31.03.2019 31.03.2020
No of claims O/s 126212 155690 229393
Amount of claims O/s 5097 cr 6210 cr 7437 cr
No of claim O/s for more than one year (Excl.GA and Coinsurance) 786 2361 6167
Non Suit Claim Settlement Ratio 97.32% 97.00% 95.91%


New India has once again perpetuated its supremacy in the insuranceindustry with a total of 14.10% market share. Our marketing team contributed to thistriumph of New India with a remarkable share of premium by our Development Officers of4380 crs. Our Business Associates have successfully contributed more than 832 crs premiumfor the FY2019-20. In all total share of premium by AO (D) AM (D) from all over India is1537 crs.


Corporate Communication remained overactive throughout the year toincrease visibility of our products and services through various promotion tools to createfavourable opinion about our Company our various

Products among our esteemed customers which helped to create newhistory of crossing 30000 Crores Global premium. Wide coverage of our achievementscarried out by all the leading publications boosted brand image of our company.Foundation day programme was successfully organised with Shri Subhash Chandra KhuntiaChairman IRDAI as Guest speaker along with a number of media persons who attended theevent.

In addition to effective use of traditional outdoor media Print Media;new methods like Digital Advertising on platforms such as DailyHunt and digital platformof magazines such as India Today The Week Value

Reasearch and Marathi newspaper Lokmat were also used to reach out tomaximum customers. New Hoardings and Glow signs in around 12 locations/cities with around240 displays have been placed at prominent

Airports Road junctions Highways Railway stations and Bus stands/Buses Express trains throughout the country to increase our visibility Semi Naming Rightsof Ashram Metro Station in Delhi with branding display area of around 22000 sqft.Advertisements were also displayed on moving media like Mumbai Delhi and Hyderabad Metrotrains Spicejet Aircrafts Kolkata New Nano Trams AC buses containers and also ondigital screens on railway platforms. Inside Airport branding was taken on all the majorAirports (Existing 9 Airports) with addition of displays on 1 airports i.e. LucknowAirport. Also branding inside 50 Spicejet Aircrafts done.

Effective use of electronic media - Through television to create PanIndia awareness of our Brand through some of the niche channels i.e. Aaj Tak ABP NewsIndia TV Times Now Republic TV CNBC TV 18 CNBC Awaaz CNBC Bazar Zee News TV 9Marathi EPIC TV and India Today TV through wishing Ads Aston Band Campaigns on Aaj Takand ABP News and also through Show sponsorship on TV 9 Marathi and EPIC TV. Pan

India Radio advertisement campaign staggered for a period of 10 weekswas taken up on major radio stations like Big FM Radio Nasha Red FM Fever FM My FM

Radio One & Radio City for Product Launch of New India Cancer GuardPolicy and good wishes were conveyed on 101st Foundation Day to have greater mileage.

As part of completion of our Centenary year programme Tree Plantationdrive and Blood donation drive were organised by our various Regional Offices.

Corporate Communication plays a vital role in promoting our globaloperations by sponsoring International Insurance summit like Monto Carlo Baden Badenreinsurance &

Singapore International Reinsurance conferences and releasingadvertisements in Asia Insurance Post and other Indian magazines.


In conformity with the grand objectives of the RTI Act.

The Central Public Information Officers' (CPIOs') of 31Regional Offices and 12 LCBOs / HUBs also contributed to the promotion of the ideals ofthe Act under the umbrella of RTI Department at Head Office.

With a view to maintaining uniformity consistency and improvedstandard of approach the function of First Appellate Authority is centralized at HeadOffice. In compliance with the directive of CIC our Company has appointed TransparencyOfficer in the rank of General Manager.

As per the directives of Ministry of Personnel Public Grievances andPensions DoPT New Delhi we have extended the facility of RTI Web Portal w.e.f.20.07.2016 under the administrative control of Department of Financial Services (DFS). Itis a citizen interface which facilitates Indian Citizens to file RTI applications andFirst Appeals online and also to make online payment of RTI fees.

During the year 2019-20 the total (including online) number of RTIApplications received is 2252 and First Appeals is 324.

In compliance with the CIC guidelines / RTI Act the Company'sofficial website is up-dated from time to time disclosing and uploading maximuminformation under xvii points as mandated under the provisions of Section 4(1)

(b) of the RTI Act2005.


The Company has strived to impart massive Training on ConductDiscipline & Appeal (CDA) Rules 2014 across the board to bring about awareness onMisconducts

Prohibitions and Restrictions to ensure better IR climate in theOrganization. During the year FY 2019-20 4 Training Programmes for awareness of CDA ruleswere conducted at New Delhi Mumbai Kolkata and Bengaluru for North West East and SouthZone Officers.

In order to ensure strict adherence to a climate of discipline theCompany has viewed all instances of Unauthorized Absences cases seriously and appropriateactions are taken.

The Company's Board has approved the policy on PreventionProhibition and Redressal of Sexual Harassment at Workplace. Internal Committee (IC)which consists of Presiding Officer (Women employed at Senior Level) two members amongstthe employee committed to cause of women and one member from

NGO or Association at Head Office and all Regional offices has been setup to redress complaints received and to promote a work environment that is safe secureand free of any form of harassment at Workplace. During the year FY 2019-20 5 trainingprogrammes/workshops for awareness of POSH Act were conducted at New Delhi Mumbai KochiKolkata and Bengaluru which were attended by H.R.Officials Internal Committee Membersand other officials of the Company.

Submission of On-line Annual Property Returns have been furtherstreamlined and has since achieved optimum efficacy.

There has been no labour unrest nor and any severe IR problem duringthe Financial Year due to proactive approach of Senior Management at Head Office as wellas the Regional Offices.


The year FY 2019-20 has witnessed New India's transformation intoa technology driven conglomerate with more than 23% premium coming from online channelsto the tune of 6076 crore as against 5367 crore in the previous year with an accretionof 13.21%. The giant strides made in technology were clearly visible with

Agent Portal premium increasing from 2697 crore in the previous yearto 3508 crore in FY 2019-20. The robust modern infrastructure in place also facilitatedgarnering a total Indian premium of 26999 crore at a growth rate of 12.33% while theCompany crossed the much awaited and a glorious milestone of a global business of 30000crore.

Adoption of a robust business continuity plan allowed us to rely on ouragile technology during the lockdown to support Work from Home understand customerexperience monitor the availability of services protection of our assets and mostvital to ensure business continuity.

Our focus has always been to remain absolutely customer friendly andimproving our services through technology. Our Customer portal and App have enabled ourcustomers to go for online purchase of policies. Customers now have multiple options tolodge claims through mobile app customer portal or call centre. Facilities like AutomaticSurveyor appointment and Digital survey Report have been rolled out for Motor Own damageclaims in a phased manner. The agent app has been upgraded to the latest technology stackwith enhanced features and user-friendly design. Both agent app and agent portal nowincludes many more products than before for online issuance of policies. The entireprocess of insurance business stands completely digitized as on date.

We have taken a giant leap in the realm of real-time integrations atvarious levels policy sales and claim servicing. Our various Integrations of B2B B2C G2Cand Bancassurance have proven to be a great platform with direct server to server talkbetween New India and the concerned entity for premium amount transfer and policyissuance. Real-time web service integration with TPAs ensures uninterrupted health claimsprocessing and payment to customers. New India has always been pioneering revolutionarytechnology trends and acting as a diverse playground to test such technology and exploretheir mettle. Company has started its journey in the zones of RPA (Robotic

Process Automation) and eventually will graduate to adopt RPA 2.0 andHyper-automation. The company has been striving ceaselessly with an undying determinationto bring the robot out of the human and thereby define a new level of productivity.

To enable instant information exchange with employees customers andother stakeholders we have created a multichannel communication infra which includesCloud based Email IP Telephony SMS Gateways and Video Conferencing. In compliance ofRegulator's guidelines we have successfully carried out the Planned NDR Drill whenour entire operation was moved to NDR for a week and return seamlessly.


In line with the tradition of keeping the interest of its employeesforemost the Company has continued to implement welfare schemes for its employees. Activeas well as retired employees along with their dependent and non-dependent family membersare covered under Group Staff Mediclaim Policy covering all kinds of diseases with minimalexclusions Group Personal Accident Policy providing 24 hours cover to employees againstaccidental death or permanent disablement Group Savings Linked Life Insurance Group TermLife Insurance Employees Deposit Linked Life Insurance Lump sum payment for

Domiciliary Medical Treatment Group Baggage Policy

Education Advance Scheme for children of employees to pursue qualityeducation Housing Loan at subsidized rate of interest Medical Check-up facility toManager and above cadres Director's Mediclaim Scheme for reimbursement of medicalexpenses of active as well as retired Directors along with their dependent family membersetc.

The Company provides Ex-gratia relief scheme to its employees whichprovides for reimbursement of medical expenses beyond the Mediclaim cover. Special leaveis sanctioned and medical expenses are reimbursed if employee meets with accident whilston duty which is in addition to the 24 hours Personal Accident cover provided toemployees. Special leave is also granted for participating in National & Internationalsports events including Mountaineering Expedition and Trekking events. Employees areencouraged for pursuing higher post graduate academic courses for which financialassistance is provided.

Other welfare schemes like Vehicle Loans at subsidized rate ofinterest Leased accommodation to all cadres of employees Retirement Benefit and DeathRelief Schemes managed by Mutual Benefit Society for employees Leave Travel SubsidyLabour Welfare scheme 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.


Employee strength as on 31st March 2020

Category of Employees Male Female Total
Class I 5458 2450 7908
Class II 635 30 665
Class III 5006 1652 6658
Class IV (Excluding Part Time Sweepers) 917 352 1269
Part Time Sweepers 6 - 6
TOTAL 12022 4484 16506


Number of employees recruited during 2019-20

Category of Employees SC ST OBC Total* Ex-Servicemen PWD
Class-I 35 24 75 304 0 12
Class-II - - - - - -
Class III 26 14 37 176 21 1
Class IV (Excluding Part Time Sweepers) 11 3 6 28 0 0
Part Time Sweepers - - - - - -
TOTAL 72 41 118 508 21 13

* Ex-Servicemen and PWD included in Total

Representation of Scheduled Caste and Scheduled Tribe employees undervarious cadres as on 31.03.2020

Category/Level Total

Number and Percentage

Number SC % ST % OBC# %#
Class-I 7908 1622 20.51% 662 8.37% 952 12.04%
Class-II 665 65 9.77% 34 5.11% 29 4.36%
Class III 6658 1301 19.54% 550 8.26% 1003 15.06%
Class IV (Excluding Part Time Sweepers) 1269 638 50.28% 117 9.22% 117 9.22%
Part Time Sweepers 6 4 66.67% 1 16.67% 0 0.00%
TOTAL 16506 3630 21.99% 1364 8.26% 2101 12.73%

# OBC reservation was introduced in 1993. The prescribed OBCreservation % is being maintained in all direct recruitments since then.

The Company Strictly adheres to Brochure provisions and Government DoPTguidelines regarding reservations and concessions in the matter of recruitment andpromotion and safeguards the interest of employees belonging to sc/st/obc/pwbd andex-servicemen.

Pre-promotional training programs were duly organised for all eligibleSC/ST/OBC employees for promotion to various cadres. Regular training programmes areconducted on personality development stress management motivation etc. for SC/ST/OBCemployees of various cadres.

Various benefits under Dr. B. R. Ambedkar Welfare Trust have been givento SC/ST/OBC employees. SC/ST/OBC employees have been nominated for NIA Pune trainingprogrammes on a regular basis.

Pre-recruitment training programmes were also arranged for SC/ST/OBCcandidates at various centres on all-India basis.

A separate reservation cell is actively functioning at Head

Office and Regional Office level for SC/ST/OBC/PWD/ Ex-servicemenemployees. A Liaison Officer under the charge of Chief Liaison Officer manages this cellat Head Office whereas Assistant Liaison Officers head the at various Regional Offices.

A well-defined mechanism has been provided under which on yearlybasis the Liaison Officer from the Head Office inspects the Rosters pertaining torecruitment and promotions at all Regional Offices. The inspection report withobservations of Liaison Officer are put up to the Chief Liaison Officer & GeneralManager (Personnel) for further directions and sent back to the respective

Regional Offices with necessary advices. Based on the inspectionreport action is taken by the concerned Regional Offices in co-ordination with the HeadOffice rectify shortcomings in procedure if any observed by the Liaison Officer.

Special attention is given to complaints/grievances raised by SC/ST/OBCemployees and they are resolved within shortest possible time-frame.

The Company is providing financial support on behalf of Dr. B. R.Ambedkar Welfare Trust to various SC/ST/OBC welfare activities. On the eve ofMahaparinirvan Day i.e. December 6th every year these welfare activities are supported toobserve the death anniversary of Dr. B.R.

Ambedkar at Chaitya Bhumi Dadar.


The Company has a strong women force and provides adequateopportunities for self and career development. A

31.03.2020 significant are holding senior positions in our Offices:

31st Mar. 2020
Director 01
General Manager 04
Deputy General Manager 05
Chief Manager/ Regional Manager 31
Divisional Manager/Sr. Divisional Manager 64
Branch Manager/Sr. Branch Manager 65

• Women executives are nominated for various programmes organizedby Forum of Women in Public Sector (WIPS)

• Women Officers are also nominated in large numbers to theProgramme for Women Managers conducted by National Insurance Academy Pune

• Women's Committees are constituted at Head Office andvarious Regional Offices and are actively involved in resolving all gender-relatedissues/cases referred to them

• The International Women's Day was celebrated on March 8th2020 in all Offices across the country. Seminars were organised at various centers ontopics such as

Women Entrepreneurship Stress Management Work-Life Balance Mental& Physical Health Nutritious diets Rights of women under various laws of thecountry and new law for protection of the women at workplace etc.


In the competitive scenario of the insurance industry of present timesit is of utmost importance to keep our employees abreast of the changes and to developtheir insurance skills both in underwriting and claims settlement. Keeping this in mindthe Company conducts regular training programs. The Company also nominates employees forvarious training programs organized by external institutes from time to time. The focus ofthe trainings are on policy awareness technical matters specialized topics marketingstrategies IT personality development etc. Apart from emphasizing on mainstreamtraining the Company encourages nominations in alternate training programs as arrangedfor homogenous group of employees. Women employees are also nominated to specializedtraining programs like the Women Managers Training Programme. Pre-promotional training isimparted to all eligible SC/ST/

OBC employees of all cadres. Pre-recruitment training is imparted toall SC/ST/OBC applicants desirous of availing the same. Based on our study of previousnominations the system of Training Nominations have shifted from nomination-based toemployees' work profile based i.e. the employee is nominated for training relevantto his line of working. Every effort is made to limit the training of an employee to twoin a year so that maximum number of employees get the opportunity to be trained.

Apart from above various Departments at Company's officeconducted homogeneous training programmes to respective employees based on their workprofile.


The Official Language section of the Company works as per theguidelines issued by the Official Language Department of Ministry of Home Affairs and DFS.As per guidelines all the officesof the company makes all possible efforts to increaseOfficial Language Implementation work and explore in the area of Official Language. Inthese series celebration of Hindi week/Hindi fortnight/Hindi month Hindi workshopsHindi Inspections and Official

Language Implementation committee meetings are held and symposiumconducted at Head office as well as in the Regional Offices. One day Workshop cum trainingprograms are organized for the Hindi Representatives of ‘'B' and‘C' Regions. Employees were felicitated under Cash Incentive Scheme for workingin Hindi throughout the year. A collection of Hindi poems titled ‘New India andHum' was published on the company's centenary year. 104 employees whocontributed to it through their poems were honored with cash prizes and certificates.Twoissues of Corporate House Magazine ‘Arjan' are published and RegionalOffices also published their House magazine and e-magazine. The company received 74 Awardsfor official language implementation on All India level.

The Company is constantly working to play a key role in spreadingRegional Language along with the Official Language.


Internal Audit has been playing a vital role towards strengthening theCorporate Governance and complying with management objectives to improve and strengtheninternal controls. Internal Audit functions through Audit teams positioned at variousRegional offices and supervised by Head office

A Annual audit program is drawn so as to ensure that all operatingoffices are audited at least once in the financial year. The Department has also conductedregular audits of their Regional Offices Claims Hubs Broker DO LCBOs Auto tie-upoffices & HO Departments to ensure proper implementation of Corporate guidelines.

IAD has also helped in enhancing the performance of

Audit Compliance Cells at the various operating offices for speedyresolution of pending audit queries both internal and CAG.

IAD has conducted 17 HO level audit workshops 99 RO level workshopsand been able to resolve and close many queries.

At the end of the financial year the observations of the

IAD is consolidated in the form of Annual Report and informed to theBoard.

The Company has been complying with the Prevention of Money LaunderingAct (PMLA) 2002 since it has been made applicable to insurance companies w.e.f.01.08.2006. Amendments issued by IRDA are adopted by the Board from time to time. ThePrincipal Compliance

Officer posted at Corporate Office monitors the compliance of AMLguidelines.

IAD keeps control of expenses of the company by preparing budget forrevenue and capital expenses. After the approval of the Board the budget is allocated toRO LCBO and HO Department. Due care for budget utilization and review are being taken byIAD HO.


The Company has in place an SOP to streamline the process of dealingwith NCDRC/Supreme Court and

Arbitration matters across all offices Department has in placeStandard Operating Procedure. Similarly the

Company has standing guidelines for quick disposal of consumer forumawards; avoidance of execution petitions and issuance of arrest warrants. The Company hasbeen persistent in monitoring of the Execution cases wherein

Head Office Executives have been impleaded in the array of parties.Continuous follow up with ROs/DOs have resulted in better disposal of Execution cases.

The total settlement ratio is 28%.

The Company sustainably works towards achieving the twin objective ofminimizing fresh reporting of cases and faster disposal of pending cases which willimprove the customer satisfaction index of the Company.


The Company's Vigilance function is headed by

Chief Vigilance Officer. The focus is to create a sound vigilanceculture with emphasis upon the Preventive Vigilance Mechanism which will bring not onlysystemic improvement but also raise the standard of corporate governance. It aims atidentifying corruption / malpractices inside the organization and transparent process todeal with the same. Robust preventive vigilance measures with a sound vigilance cultureacross the organization would help in achieving organizational excellence. The VigilanceCommittee at HO (VCHO) and the Preventive

Vigilance committees (PVC) at Regional Offices are also contributing onvigilance awareness and preventive vigilance. Internal Advisory committee ensure thatthere is fairness and justice in determination of vigilance angle and timely completion ofdisciplinary proceedings. During the year Surprise Inspections were conducted at 650offices and Regular Preventive Vigilance Workshops were conducted at various offices andHead Office to educate and sensitize the staff about the importance of vigilance in publicand personal life. Recommendations were also made for further improvement of the system.Vigilance awareness week was observed from 28th October 2019 to 02nd November 2019. Thetheme for the year was

"Integrity A way of life". During the Vigilance Awarenessweek various activities / events / competitions within and outside organization wereorganized to spread the message of building a corruption free and strong India.



1 PHILIP SCOTT 43 CHIEF UNDERWRITER (Facultative) 15454794.47 ACII 01.08.2011 63 Assicurazione Generali SPA LONDON
2 JAMES DAY 37 CHIEF UNDERWRITER (Treaty) 14400136.58 ACII 19.09.2011 57 Brit Insurance LONDON


During FY 2020 the Company was in compliance with the applicableSecretarial Standards issued by the Institute of Company Secretaries of India with respectto Board and General Meetings.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS ORTRIBUNALS IMPACTING GOING STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS. passed byThere are no significant the Regulators or Courts or Tribunals during FY 2019-20 impactingthe going concern status of future operations of the Company.


All Independent Directors have given declarations that meet thecriteria of independence as laid down under Section 149(6) of the Companies Act 2013 SEBI(Listing Obligations & Disclosure Requirements) Regulations 2015 and ‘fit andproper' declaration as laid down under Corporate Governance guidelines of IRDAI.Executive Independent Directors have registered in the data bank in MCA.

Further Mr. Kuldip Singh Independent Director resigned on 2nd October2019 as he was appointed as Insurance Ombudsman at Ahmedabad. Other than this there isno material reason for his resignation.


The Evaluation criteria for evaluation of the Board Directors and theCommittees was approved by the Nomination and Remuneration Committee. Subsequentlyevaluation of the Board Directors and the Committees were carried-out for FY 2019-20.


The replies to the qualification made by the Statutory Auditors intheir report is attached as Annexure to the Directors Report.


Pursuant to provisions of Section 204 of the Companies Act 2013 and theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 the Companyhad appointed Mehta & Mehta Practicing Company Secretary to conduct Secretarial AuditReport is annexed herewith as Annexure. There are no qualifications reservation adverseremark or disclaimer made by the auditor in the report save and except for observationsdisclaimer made by them in discharge of their professional obligation.


The Board has adopted policies & procedures for ensuring theorderly & efficient conduct of its business including adherence to the Company'spolicies the safeguarding of its assets the prevention & detection of fraud everreporting mechanisms the accuracy and completeness of the accounting records and thetimely preparation of reliable financial disclosures.


The Company undertakes transactions with related parties in theordinary course of business. The details of related party transactions are disclosed underNotes to

Financial Statements for FY 2019-20.

Board approved policy on Related Party Transactions has been hosted onthe website of the Company and can be viewed at the below link:"".


During the year under review there were no instances of fraud reportedby the Statutory auditors and secretarial auditor under section 143(12) of the Act to theAudit Committee or the Board of Directors of the Company.


The Company being a General Insurance Company its working andfunctions are governed by the regulations of Insurance Regulatory and DevelopmentAuthority of India. The Accounts of the Company are drawn up according to the stipulationsprescribed in the IRDA (preparation of Financial Statements and Auditor's Report)Regulations 2002 and as amended from time to time.


AM Best Company has affirmed the Financial Strength Rating of B++(Stable Outlook) and Issuer Credit Rating : bbb+ (Stable Outlook). CRISIL has assigned itsCorporate

Credit Rating (CCR) of ‘CCR AAA/Stable'.


The particulars of Foreign Exchange earnings/outgo as required by theCompanies Act under Section 134(3)(m) is given below : Earnings: 645.83 crs. (previousyear 624.62 crs.) Outgo : 1554.06 crs. (previous year 653.66 crs.)

The earnings included all receipts denominated in foreign currencies inrespect of premium recovery of claims outward commission and investment earnings. Theoutgo comprised 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 andAdvertisement amounted to 9498362 (P.Y. 10440855). 20434903 (P.Y. 17463104) and524041287 (P.Y. 630971503) respectively.


The Profit after tax of the Company is at 1418 crore for the currentyear as against 580 crore for the previous year.

In the IRDAI circular Ref no. IRDA/F&A/CIR/ MISC/099/04/2020 theRegulator states the following: In view of the emerging market conditions and to conservecapital with the insurance companies in the interests of the policyholders and of theeconomy at large insurers are urged to take a conscious call to refrain from dividendpay-outs from profits pertaining to the financial year ending 31st March 2020 tillfurther instructions. This position shall be reassessed quarter ending 30thSeptember 2020.

In light of the above circular and the external macro conditions causeddue to COVID-19 the Board of Directors of the Company had not proposed any dividend forFY 2020. 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:


Provisions regarding Financial Statements are laid down under Section129 of the new Companies Act 2013. As per the provision of Section 129 (2) of the saidAct at every Annual General Meeting of a company the Board of Directors of the Companyshall lay before such meeting financial statements for the financial year. Section 129(3)of the Companies Act 2013 provides that where a company has one or more subsidiaries itshall in addition to financial statements provided under sub-section (2) of Section 129prepare a Consolidated Financial

Statements of the company and of the subsidiaries in the same form andmanner as that of its own which shall also be laid before the Annual General Meeting ofthe company along with the laying of its financial statements under Sub Section (2) ofSection129.

The Company prepares Standalone Financial Statements and ConsolidatedStatements which are available in the Annual Report.


In accordance with the Listing Regulations the Business ResponsibilityReport (BRR) forms part of the Annual Report.


The issued and paid-up equity share capital of the Company as on March31 2020 is 82.40 crore. The solvency margin position of the Company as at March 31

2020 was 2.11 times as against the minimum solvency margin requirementof 1.50 times as prescribed by IRDAI.


The provisions of Section 186(4) of the Companies Act 2013 ("theAct") requiring disclosure in the financial statements of full particulars of theloans given investment made or guarantee given or security provided and the purpose forwhich the loan or guarantee or security is proposed to be utilised by the recipient of theloan or guarantee or security is not applicable to the Company.


All Independent Directors of the Company have given declarations thatthey meet the criteria of independence as laid down under Section 149(6) & (7) of theAct the Companies (Appointment and Qualification of Directors) Rules 2014 as amendedfrom time to time and Regulation 16(1)(b) of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 ("ListingRegulations").

All the Independent Directors of the Company have also confirmed thatthey have complied with Schedule IV of the Act and the Company's Code of Conduct forDirectors and Senior Management.


During the year under review the Company has not accepted any depositsunder Section 73 of the Act.


Being an Insurance Company the Company is not required to maintaincost records as specified by the Central Government under Section 148(1) of the Act..


All the transactions with related parties were in the ordinary courseof business and on arm's length basis and there were no material contracts orarrangement or transactions entered with related parties during the FY 2019-20.


Pursuant to Section 124 & 125 of the Act read with the

Investor Education and Protection Fund (Accounting Audit Transfer andRefund) Rules 2016 the Company was not required to transfer any unpaid/unclaimeddividend amount to the Investor Education and Protection Fund in FY 2019-20.


In accordance with SEBI (Prohibition of Insider Trading)

Regulations 2015 ("Insider Trading Regulations") theCompany has in place a code of conduct to regulate monitor and report trading by itsDesignated Persons

("the Insider Trading Code") to the extent specified in theInsider Trading Code of the Company. The Insider Trading Code of the Company has beenrevised in line with the amendments in the Insider Trading Regulations as amended fromtime to time.

The Company also has in place Code of Conduct to Regulate Monitor andReport Trading by Insiders which is hosted on the website of the Company and can be viewedat :


Pursuant to Regulation 17(8) of the Listing Regulations Certificationby the Managing Director & CEO and the Chief Financial Officer of the Company on thefinancial statements and the Internal Financial Controls relating to financial reportingfor FY 2019-20 has been obtained.