The company had posted an underwriting loss of over Rs 280 crore on account of third-party motor claims. However, the loss was absorbed by the net profit earned from marine and fire income.

``The third-party loss has taken place despite efforts to control the damage,'' a top company official said, adding the losses would be marginalised over a period of three years.

Efforts for out-of-court settlements of third-party claims were further intensified during 1997-98 by forming conciliatory committees in more centres to dispose of the maximum number of cases.

Before the end of the currentyear, the committees will start functioning in all regions. In centres like Mumbai, which resisted the formation of such a committee, the company would organise direct negotiations between claimants and officers. These conciliatory committees have joined forces with special in-house committees. Besides, disposal of cases by direct negotiations is bound to yield results in the current year, the officer claimed.

The company has also launched a comprehensive programme of self-survey in respect of own damage (motor) claims during 1996-97 which was subjected to rigorous implemention during 1997-98. The self-survey has greatly contributed towards cutting costs, efficiency and speedy disposal of claims.

The fresh investble funds of the company increased from Rs 500 crore to Rs 630 crore during 1997-98 and accordingly the investment portfolio increased to Rs 4,886 crore from Rs 4,253 crore during the year.

The assets increased to Rs 6,000 crore from Rs 5,280 crore during the year.

Despite a fall in premiumsthe company's foreign operations, which include 18 branches, three associate companies and one fully-owned subsidiary, also has recorded a net profit of around Rs 15 crore on a branch premium of Rs 253.86 crore. The international market experienced soft market conditions characterised by excess capacity, intense competition and a steep reduction in rates.

The overall claims ratio of the company has shown a slight increase from 69.89 per cent to 71.43 per cent during the year. For fiscal 1998-99, the company has set a net profit target of Rs 700 crore, the official said. It also has set a premium target of Rs 2,867 crore for the year, envisaging an 18 per cent growth.