United Insurance Hopes Motor Insurance Segment To Break Even

Kolkata: The motor insurance segment is likely to break-even as rates of premium have gone up in the segment post de-tariffing of the insurance industry earlier this year. The segment that constitutes nearly 45 per cent of the non-life insurance market, was making losses earlier, especially,in the commercial vehicles segment, the source said. The total market for non-life insurance was estimated at Rs 25,000 crore. Though income from premium has gone down in the property,fire, engineering segments, health, and third party liability insurance in case of private and commercial vehicles has seen a rise in income, he added.

Riding on this, the company collected Rs 4000 crore from premium incomes this year up to October, compared to Rs 3500 crore last year. United India recorded an overall growth rate of 5 per cent for period up to October this year as compared to 7 per cent for the same period last year, on accounts of rates of premium going down post de-tariffing. The sectors that came under de-tariffing were fire, engineering,motor, and workmen compensation. The second stage of de-tariffing will see policy de-control, after the first stage that saw price de-control. United India had posted a net profit of Rs 520 crore for the last fiscal, and was hopeful of bettering it this financial year.