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KOLKATA, Oct. 1

THE public sector insurer, National Insurance Company Ltd (NICL), hopes to register a profit of Rs 200 crore during the current financial year after reporting an operating loss of Rs 94 crore in 2001-02.

This was stated by Mr H.S. Wadhwa, Chairman-cum-Managing Director, while talking to newspersons here today after the launching of the National Insurance Sampoorna Suraksha Bima, a new policy with seven different covers.

In 2000-01, NICL registered a profit of Rs 89 crore, and in 2001-02, the company suffered heavy underwriting losses and had to pay huge third party claims on motor insurance. Moreover, the yields on its investments were under tremendous pressure. As a corrective measure, the company has decided to concentrate more on personal lines of business in the current year.

``The profit margins are higher in this kind of business. We have decided to appoint another 25,000 agents during the next six months. At present, we have 50,000 agents. We have opened about 100 training centres'', Mr Wadhwa said.

Senior company officials said underwriting losses in 2001-02 increased by 87 per cent to Rs 440 crore. The third party claims for motor insurance was approximately Rs 730 crore.

``During the current financial year, we hope to record a profit of over Rs 200 crore on a targeted premium income of Rs 2,700 crore. In 2001-02, the premium income was Rs 2,365.47 crore and investments on income was Rs 439.77 crore'', he said.

NICL has also tied up with Indian Overseas Bank for banc assurance. Moreover, it has entered into an agreement with Maruti Udyog Ltd whereby its products would be sold to the customers from the dealers' outlets.

The company claimed that Sampoorna Suraksha Bima policy was the first such scheme where seven types of insurance coverage had been compressed into one. These are household items, residential buildings or flats, personal accident, mediclaim, personal computer, professional indemnity and motor package. The company has targeted to sell one-lakh policies during the next six months.

However, the income-tax benefits of a mediclaim policy will be available in this new scheme. Mr P.C. James, manager of National Insurance, said the company would urge the Union Government to extend the income-tax benefits on the mediclaim portion of this scheme.

The policy was formally launched by the West Bengal Minister for Sports and Transport, Mr Subhash Chakraborty. He said a medical insurance scheme could be introduced for the Government employees instead of giving them a paltry medical allowance of Rs 120 per month.

Mr Wadhwa readily accepted the offer and said NICL was even willing to offer a subsidised premium for such a policy. "We can even incorporate other facilities into this scheme'', he said.

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