Indian public sector insurance company
United India Insurance Company (UIIC) is an Indian public sector insurance company owned by the Government of India and administered by the Ministry of Finance. Headquartered in Chennai, Tamil Nadu, the company has 30 regional offices and more than 1,400 operating offices nationwide, including 511 micro offices, as of 31 March 2023.[3] It also had underwriting operations in Hong Kong that ceased effective 1 April 2002, following which the New India Assurance Company Limited, Hong Kong, has taken over the run-off portfolio. This foreign operation had three outstanding claims as of 31 March 2023.[4] The company was incorporated on 18 February 1938[5] and nationalized in 1972. The Company recorded a gross direct premium income of ₹17,644 in the financial year 2022-23, registering a growth of 12.23% over the previous year.[6]
It has a network of 6 Large Corporate Business Cells (LCBs), 366 Divisional Offices, 558 Branch Offices and 511 Micro Offices, besides its Head Office in Chennai and 30 Regional Offices in the country, as of 31 March 2023,[3] and 10,356 employees on its payroll.[2] The company's Agency Vertical has a strength of 88,657 individual agents that produced a gross premium income of ₹7,419 Crores contributing to the extent of 41.74% of the company's overall gross premium. Almost half the individual agents have access to the company's portal facility for online transactions that touched a record high premium of ₹2,660 Crores. 533 Brokers tied up with the Company in 2022-23, sourcing a premium of ₹3,885 Crores. The company has also tied up with automobile manufacturers, including Maruti, Volkswagen, Tata, Mahindra,
Hero and Daimler, enabling it to procure a ₹539 Crores business in 2022-23. The business sourced through LCBs in Mumbai, Chennai, Delhi, Bangalore, Hyderabad and Kolkata amounted to ₹1,261 Crores. The company tied up with 54 Corporate Agents as of 31 March 2023, contributing a premium income of ₹423 Crores. Of these, 40 were Banks and Non-Banking Financial Companies. The 511 Micro Offices of the company spread across the country have contributed to a total gross premium of close to ₹875 Crores.[7]
History
UIIC was incorporated on 18 February 1938 in Chennai. Following the nationalisation of the general insurance industry in terms of the provisions of the General Insurance Business (Nationalisation) Act, 1972 (GIBNA), 12 Indian insurance companies, four cooperative insurance societies, and the Indian operations of 5 foreign insurers, besides the general insurance operations of the southern region of Life Insurance Corporation of India were merged with UIIC. The Government of India transferred all the shares of the merged entity to the General Insurance Corporation of India (GIC).[8] UIIC became one of the four subsidiaries of GIC, with its headquarters in Chennai.
With the General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) coming into force on March 21, 2003, GIC ceased to be a holding company of its subsidiaries. The ownership of the four erstwhile subsidiary companies and the General Insurance Corporation of India was vested with the Government of India. All company shares held by the GIC were transferred to the central government.[8]
Corporate Governance
Board Committees
The following Committees have been constituted by the Board of Directors of UIIC:[9]
- Audit Committee's terms of reference include:
- Oversight of (a) the Company's financial reporting, quarterly and annual disclosure of the correct, sufficient and credible financial information, and (b) its Internal Audit Department's efficient functioning, review of the findings and investigation where deemed necessary for reporting to the Board;
- Recommendation for appointment, remuneration, performance and oversight of the work of the Auditors; and
- Approval or subsequent modification of transaction with related parties.
- Investment Committee is mandated to recommend the investment policy and lay down the operational framework for the Company's investment operations. The policy should focus on prudential Asset Liability Management (ALM) supported by robust internal control systems.
- Risk Management (RM) Committee is expected to establish an effective Risk Management Framework and recommend the Company's RM policy and processes to the Board; assist the Board in operating the RM system by performing specialized analysis and quality reviews; formulate fraud monitoring policy and framework for approval by the Board and monitor its implementation; report to the Board details on the risk exposures and the actions taken to manage the exposures; and review the solvency position of the Company and also to monitor regular updates on business continuity.
- Policyholders' Protection Committee is mandated to establish an effective mechanism to address complaints and grievances of policyholders; put in place a framework for review of awards given by Insurance Ombudsman/Consumer Forums; review unclaimed amounts of policyholders; ensure the adequacy of disclosure of “material information” to the policyholders; and adopt standard operating procedures for fair treatment of customers including time frames for policy and claims servicing parameters and monitoring implementation thereof.
- Nomination & Remuneration Committee is entrusted with the responsibility of recommending to the Board for approval the appointment/changes in Executive Directors (including Chairman cum Managing Director) who are appointed by the President of India acting through the respective Ministry; reviewing and taking note of Key Managerial Personnel/Senior Management through annual promotion exercises conducted as per the existing rules and regulations; recommending to the Board for approval the appointment/ changes in Key Managerial Personnel (other than Executive Directors and Chairman cum Managing Director) as per recommendations of Chairman cum Managing Director; taking on record various directives/policies issued by the Government of India, including policy on diversity of Board of Directors; and formulating the criteria of evaluation of performance of Independent Directors and Board of Directors.
- 'Corporate Social Responsibility Committee is constituted as per Section 135 of the Companies Act, 2013 to formulate and recommend CSR Policy to the Board and ensure its effective implementation.
- Stakeholders' Relationship Committee is responsible for resolving the grievances of the security holders of the listed entity, including complaints related to the transfer/transmission of shares, non-receipt of annual reports, non-receipt of declared dividends, issue of new/duplicate certificates, general meetings, etc.; and reviewing of adherence to the service standards adopted by the listed entity in respect of various services being rendered by the Registrar and Share Transfer Agent.
- Information Technology Committee evaluates various IT proposals and recommends them to the Board for approval.
- Human Resources Committee was formed per the United India Insurance Company (Conduct, Discipline & Appeal) Rules, 2014, as amended to date. As per Rule 40 of the said Rules read with Schedule A, Memorial of Officers in Scale IV & V cadres will be placed to this Committee. The Committee is also the Appellate Authority for Scale VI & VII cadres officers.
- Property Review Committee was constituted in terms of the directives received from the Ministry of Finance to review the matters of properties held by the Company and other Estate-related matters.
Overall Performance
UIIC's overall operational performance resulted in an operational loss of ₹415.10 crore (US$52 million) in 2022-23 as against ₹1,677.81 crore (US$210 million) in 2021-22, thus recording an improvement. The net incurred claims ratio slightly decreased to 91.32% in 2022-23 from 100.47% in 2021-22.
The Gross Investment income registered a growth compared to last financial year. From ₹2,935.03 crore (US$370 million) in 2021-22, it rose to ₹3,573.57 crore (US$450 million) in 2022-23. The Total Net Loss further dropped from ₹2,135.55 crore (US$270 million) in 2021-22 to ₹2,829.33 crore (US$350 million) in 2022-23.[6]
Subsidiaries and Associates
Subsidiary
UIIC holds 69.45% of Zenith Securities & Investment Ltd., a Union Govt company incorporated on 27 August 1916. The company's authorised capital is fully paid at ₹20 lakh (US$25,000). It has been majorly in the Insurance business for the last 108 years, and currently, company operations are active. The registered office of the Company is in Mumbai, Maharashtra.[10][11]
Associates
- Health Insurance TPA of India Limited is a New Delhi based Associate Company with a paid-up capital of ₹120 crore (US$15 million). UIIC holds 23.75% of the Company, with an annual turnover of ₹59.47 crore (US$7.4 million).[10]
- India International Insurance PTE Ltd. is a Singapore based Associate Company, with a total paid-up Share Capital of S$5 crore (US$37.31 million). UIIC holds 20% of the shares, along with the General Insurance Corporation of India and its former other subsidiaries.[10]
₹17,644 crore (US$2.2 billion)[1] (2022-23)
₹−2,829 crore (US$−350 million)[1] (2022-23)
