General insurance premiums climb 12.6% in June, public sector favoured

By: |
Mumbai | July 21, 2015 12:08 AM

India’s general insurance sector continued its monthly growth and registered a surge of 12.6% in gross direct premium income underwritten in the month of June. Public sector insurance companies continued to remain ahead of their private peers. According to the data from General Insurance Council, for overall general insurance industry, gross direct premium income underwritten […]

India’s general insurance sector continued its monthly growth and registered a surge of 12.6% in gross direct premium income underwritten in the month of June. Public sector insurance companies continued to remain ahead of their private peers. According to the data from General Insurance Council, for overall general insurance industry, gross direct premium income underwritten in the month of June was R7,089.58 crore as against R6,298.31 crore in June last year.

The data also indicates that, public sector’s gross direct premium income underwritten in the month of June grew by 13.8%. The premium stood at R3,861.94 crore in June 2015, compared to R3,394.81 crore in the same month last year. While private sector’s gross direct premium income underwritten in the month of June grew by 10.5%.

V Jagannathan, CMD at Star Health and Allied Insurance said, “There is increasing awareness about health insurance and now it is seen as a necessity. The positive trend in the first few months of the year is quite encouraging as in the past many people used to come during year ending to fulfill their tax deductions.” In the first three months of the current financial year, stand-alone health insurance company saw gross direct premium income underwritten at Rs 741.07 crore.

In the health insurance segment, gross direct premium income underwritten by the non-life insurers for the first three months of the current financial year was at Rs 1,561.08 crore for private sector and Rs 4,123.20 crore for public sector. For the motor insurance, the premium income for the June quarter was Rs 5,062.09 crore for private sector and Rs 4,697.44 crore for public sector, showed the data from General Insurance Council.

Senior officials among the non-life industry are confident motor and health insurance will continue to see positive growth going forward.

Covering risks
* Gross direct premium income underwritten in June was R7,089.58 cr as against R6,298.31 cr last year
* In the health insurance segment, gross direct premium income underwritten by non-life insurers for
the first three months of the current financial year was at R1,561.08 cr for private sector and R4,123.20 cr for public sector
* For the motor insurance, the premium income for the June quarter was R5,062.09 cr for private sector and
Rs 4,697.44 cr for public sector

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