Tag: United India Insurance

All India Insurance Employees’ Association urges govt to drop United India privatisation plan

Banking & Finance

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The All India Insurance Employees’ Association (AIIEA) has opposed any move towards privatisation of United India Insurance.

“It is unfortunate that the government which had earlier decided on merger of three public sector general insurance companies has given up these plans and is now pushing for privatisation. The AIIEA demands the government to revive the plan for merger which would bring economies of scale and benefit the national economy and weaker sections of population,” the Association said in a statement on Wednesday.

Finance Minister Nirmala Sitharaman had in the Union Budget 2021-22 announced that the government would take up the privatisation of one general insurance company in 2021-22. According to reports, the NITI Aayog has recommended privatisation of United India Insurance.

Urging the government to drop any move towards privatisation of United India Insurance, the association also said it has been mobilising public opinion against the disinvestment of public sector institutions in general and public sector general insurance companies in particular.

Its units have also approached over 350 Members of Parliament on the issue.

“Insurance employees under the banner of the AIIEA are determined to carry forward the resistance against the move of the government to privatise United India Insurance Company and the public sector institutions at large,” it said.

The association also pointed out that public sector general insurance companies implement all the schemes announced by the government, including the recently announced scheme of death coverage to frontline workers due to Covid-19.

United India is the insurer for TN Chief Minister Health Insurance Scheme for 10 years and Maharashtra Government’s Mahathma Jyothiba Phule Jan Arogya Yojana Health Insurance Scheme from 2020. It has also underwritten the Prime Minister Suraksha Bima Yojana on a large scale which the private insurance companies hesitate to underwrite, the association said.

The AIIEA is of the firm opinion that privatisation of United India Insurance or any other public sector general insurance company will be antithetical to the government’s objective of Aatmanirbhar Bharat, it further said.

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Axis Bank, promoter United India Insurance settle non-disclosure case with Sebi, BFSI News, ET BFSI

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Axis Bank has paid Rs 41.4 lakh to Sebi to settle its case of non-disclosure of information relating to offloading of the bank’s shares by its promoter United India Insurance Company(UIIC).

The non-life insurer also paid Rs 10.1 lakh to the regulator to settle the same case.

Sebi said it noted in the investigation that during the period from October 01, 2017 to September 30, 2018, the value of trades by UICC in the securities of the private lender on each trading day was more than Rs 10 lakh.

Under Sebi rules, Axis Bank was required to disclose the same to the stock exchange within two trading days of the receipt of the disclosure from UIIC.

“However, the same was disclosed by the applicant (Axis Bank) to the stock exchange only on October 16, 2020, only with a delay of 1072 – 1080 days,” Sebi said in its order on Tuesday.

The regulator said in five instances the disclosures made by UIIC to Axis Bank was with a delay of 10-17 days. It was required to disclose the same within two working days.



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Three public sector general insurers lose market share in 2019-20: IRDAI report

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The market share of public sector general insurers fell to 38.78 per cent in 2019-20 from 40.52 per cent in 2018-19 although in the life insurance sector, Life Insurance Corporation of India has roughly managed to maintain its market share in the period with only a marginal decline.

“In case of public sector general insurers, all four companies expanded their business with an increase in respective premium collections over the previous year,” said the Annual Report 2019-20 of the Insurance Regulatory and Development Authority of India (IRDAI). The report revealed that the market share of three of the four public sector insurers, except New India Assurance, has decreased from the previous year.

New India grows

The market share of New India marginally increased to 14.19 per cent in 2019-20 from 14.11 per cent in 2018-19.

The market share of United India Insurance, National Insurance and Oriental Insurance declined to 9.27 per cent, 8.08 per cent, and 7.24 per cent in 2019- 20 from 9.69 per cent, 8.93 per cent and 7.79 per cent in 2018-19, respectively.

“New India, which collected direct premium of ₹26,813 crore, once again remained as the largest general insurance company in India,” it further revealed.

The market share of private general insurers increased to 48.03 per cent in 2019-20 from 47.97 per cent in the previous fiscal.

Life Insurance

The market share of LIC remained at 66.22 per cent in 2019-20 marginally lower than the 66.42 per cent in the previous year, the report showed.

The market share of private insurers slightly increased from 33.58 per cent in 2018-19 to 33.78 per cent in 2019-20.

In terms of number of new policies issued, LIC witnessed a growth of 2.3 per cent in 2019-20 while the private sector registered a decline of 4.05 per cent compared to the previous year. Overall during 2019-20, life insurers issued 2.88 crore new individual policies, out of which LIC issued 2.18 crore policies (75.91 per cent) and the private life insurers issued 69.50 lakh policies (24.09 per cent), the report showed.

Insurance penetration

Insurance penetration also increased in 2019-20 in both the life and general segments.

After a small decline in 2018 to 2.74 per cent, life insurance penetration increased to 2.82 per cent in 2019.

The penetration of non-life insurance sector in the country has gone up from 0.56 per cent in 2001 to 0.94 per cent in 2019.

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