ANNUAL REPORT 2007-08
The claim settlement ratio of LIC was better than that of the private life insurers. While LIC settled 96.71 per cent of claims intimated to them, the private life insurers settled 78.93 per cent of claims. The percentage of repudiations for LIC was quite low at 1.13 per cent as against 10.17 per cent for the private life insurers.
A total of 159333 group claims were settled in the year out of the 162837 claims intimated. The number of group claims repudiated in the year was 1241, which was 0.76 per cent of the claims intimated.
end of year
As on March 31, 2008 there are 18 general insurance companies which have been granted registration for doing non- life insurance business in the country. Of these 6 are in public sector and the rest in private sector. Of the public sector companies, two are specialized insurance companies; one for credit insurance (ECGC) and another for Agriculture (AIC). Of the 12 private sector companies, three have been granted license during 2007-08 including one stand alone health insurance company. The performance of the two specialised insurance companies is reviewed separately in the Annual Report. As such, the analysis in this section confines to 4 public sector companies and 10 private insurance companies. The performance of the two standalone health insurance companies has been covered under a separate sub-section.
Private Total LIC Industry Total
TABLE 15 GROUP DEATH CLAIMS
< 3 mths
3 - < 6 mths
6 - <1 yr
> 1 yr
41.83 8.70 39.43
18.91 62.11 22.03
14.41 22.98 15.03
24.85 6.21 23.51
Private insurers have settled 84.43 per cent of the total claims payable while 9.66 per cent remained pending at the end of the year 2007-08.
II) Non-Life Insurance
(In percent of lives covered) Break up of claims pending
duration wise (Lives)
2007 2007-08 2008 Non -Life
ECGC AIC Star Health Apollo DKV
March 31, during the year March 31,
800.00 200.00 105.00
PAID-UP CAPITAL : NON-LIFE INSURERS AND RE-INSURER
The total paid up capital of general insurers as on March 31, 2007 was Rs 3485.87 crore. During 2007-08, the general insurers have added Rs.604.98 crore to their capital. The increase in the paid up capital of the private insurers through capital contributions during the year was Rs.504.98 crore (Rs. 121.86 crore in 2006-07).
This addition includes the equity capital brought in by the health insurer and the two new insurers who were granted registration during 2007-08 (domestic promoters Rs.376.26 crore and foreign joint venture partners Rs.128.72 crore). The specialised insurer ECGC had added Rs.100 crore to its capital during the year. PSU insurers have not added capital during the current year.