Debasish Acharya
Post News Network
Bhubaneswar, April 1: General Insurance industry in the state has to suffer a diversion of about Rs 100 crore of premium as corporate offices of most major companies operating in Orissa lies outside the state, a top official of National Insurance Company limited (NICL) said. “The general insurance Industry in the state has to face a diversion of Rs 100 crore of premium as most of the corporate offices of major corporate groups lie outside the state,” the official said.
Orissa is home to most of the blue chip metal firms of the country. Despite this, insurance policies for these state units are issued from outside as these companies are based outside the state. According to the official, corporate offices of these industries mostly lie in Delhi or Bombay, so the business generated over here is credited at offices in those places. If this diversion is checked and credit of premium is given to the state where the business is generated then the insurance industry in the state may see a sound growth.
Currently growth of the general insurance industry in the state is at 9 per cent against an all India figure of 10 per cent as on February. However, number of policies has grown at 10 per cent till February this year. “Our growth in terms of policy gain is almost at the same level as that of all India figure but premium growth is not so encouraging,” the official added. She also said the industry has seen degrowth in terms of premium as companies have to offer discounts on premium to attract customers. Private players create an atmosphere of stiff competition by providing huge discounts on premium to attract customers due to which the overall premium growth of the industry is affected in the state. “Losses can be checked if the regulatory body would regulate prices and discounts. Moreover, customers need to be aware about the service offered by the company than focusing on lowest premium,” the official said.
