The Hindu Business Line : NIC sees Rs 200-cr net this year

NATIONAL Insurance Company (NIC) is expecting a net profit of Rs 200 crore by the end of the current fiscal, up from Rs 141 crore in the previous year.

The projected jump in the profit has been driven by a rise in the company's investment income.

Mr V. Ramaswamy, Chairman and Managing Director, said that the expected investment income was Rs 850-900 crore, higher than Rs 680 crore last year. The total investment of the company in the current fiscal was Rs 3,800 crore.

However, the expectation in terms of total premium, at Rs 3,600 crore, is less than last fiscal's Rs 3,800 crore.

"Our exposure to some loss-making portfolios has meant a drop in the premium."

In the Mumbai floods, the company faced losses of Rs 450 crore but the actual impact on the balance sheet was only around Rs 50 crore thanks to reinsurance.

With respect to the overhaul of Mediclaim policies, Mr Ramaswamy said that the company would introduce products specific to different age segments.

"We will be introducing a product for individuals less than 35 as well as for senior citizens where the age of entry begins at 55."

On the new micro-insurance guidelines, he said that the company was in talks with LIC and SBI Life for tie-ups.

Speaking at a seminar organised by the National Insurance Academy, Mr Ramaswamy said that for the success of micro-insurance, there should be adequate health care infrastructure.

There is potential for the health insurance segment to rake in premium of Rs 50,000 crore, though it currently rakes in only 4-5 per cent of that figure.