Annual Report 2017-18
Annual Report 2017-18
Annual Report 2017-18
OUR VISION
The Largest non-life Insurance Company in India with a strong global presence
The employer of choice, known for its energetic and motivated workforce.
In the famous words of its founder-Chairman, Sir Dorab J Tata, the illustrious son of
renowned, pioneering Indian industrialist Jamsetji N Tata, “The New India constitutes
the commencement of a new and large commercial undertaking for India. It is not
a Bombay Insurance Company or a Company working solely in India, but may claim
to be a Worldwide Company.”
India’s challenge today is to support its various socio-economic classes and their
aspirations for a bright and secure future. The common man want food, security,
good health & financial well being. Both industrial development and financial
inclusion have to take place hand in hand for India to reach the heights it richly
deserves.
The General Insurance Industry & its leader, The New India Assurance Co. Ltd. can be
this friend and benefactor to the individual and to businesses through its risk covers,
its policies and schemes. At New India Assurance, it is our constant endeavour to
live up to the expectations of all our stakeholders – from our investors to customers to
agents to channel partners to our employees.
2
Board of Directors (as on 30th June 2018)
Mr. G. Srinivasan
Chairman cum Managing Director
Dun & Bradstreet India's Leading General Insurance Company (Public) Award 2018
Dalal Street Investment Journal 2017 Roll of Honour for Highest Market Share in Gross
Premium of 5 years.
India Insurance Summit Award 2018 : General Insurance Company of the year
India Insurance Summit Award 2018 : Product Innovator of the year- Title Insurance Policy
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Chairman's Message
Dear Shareholders,
It gives me immense pleasure to share with you that we have had yet another successful year just on the verge of the onset of the centenary
year of your Company’s foundation. Your Company had a great year in terms of financial performance vis-à-vis the Industry’s performance
and had a few prominent achievements and new initiatives taken in the fiscal 2017-18.
Continuing the successful growth story, your Company attained historical highs in terms of Gross Written Premium and Profit after Tax in
the last fiscal. Your Company continued a robust premium growth in the FY 2018 in spite of extremely competitive and dynamic business
environment. Your Company continues to be the market leader with a market share of 15.06%. It recorded a global premium of Rs. 26,554
crore recording a growth of 15%. The robust growth was observed across all the Regions. Your Company recorded a Profit After Tax of Rs.
2,201 crores. The Net worth of the Company including fair value is Rs. 38,301 crore and the asset base now stands at Rs. 76,904 crore.
The solvency ratio of the company continues to be high at 2.58 times. In the first year of listing itself, your Company declared total dividend
of Rs.8.75 per share @ 175% on the face value of share. The Board of the Company has also recommended the issue of one bonus share
per share of the Company. I take the opportunity to congratulate all the Shareholders on this great performance to mark the beginning of
the 100th year of successful operations.
In the last fiscal, Your Company was the leader not only in terms of the overall market share but also across all Lines of Business. Your
Company’s growth is keeping pace with the Industry growth and the financials continue to grow stronger year on year.
Today, with a strong network of 2472 offices, online portals, various distribution channels, strong sales force and presence in 28 countries,
the company has it’s reach to the customers across geographies and continually is increasing the same. It has not only grown stronger in
financials or technology aspect but has done well on the human resource front. Today the Company has a competent workforce of around
18000 employees and has been inducting new employees both in the Executive as well as Clerical cadre. The market dynamics demand
skilled workforce for which the company has devised intensive training programmes for the employees. The Company has also been
recruiting new agents and securing business from other new intermediaries & business channels too.
The performance of the company was well recognized by country and it received a few prestigious awards during the year. The prominent
ones among them were the Dun & Bradstreet India's Leading General Insurance Company (Public) Award 2018, Outlook Money Awards
2017: Health Insurance Award, Outlook Money Awards 2017: Non-Life Insurance Award and the Dalal Street Investment Journal 2017 Roll
of Honour for Highest Market Share in Gross Premium of 5 years.
5
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Our Country’s economy is doing good. The International Monetary Fund (IMF), in it’s report, had reaffirmed that India will be the fastest
growing major economy in 2018, with a growth rate of 7.4 per cent that rises to 7.8 per cent in 2019 with medium-term prospects remaining
positive. Asia continues to be both the fastest-growing region in the world giving thrust to the global economy. Asia contributes more than
60 per cent of global growth and three-quarters of this comes from two major economies i.e. India and China.
This is a very favourable scenario for the General Insurance Industry. The General Insurance industry’s growth is directly proportional to
the growth of the Gross Domestic Product (GDP) of the country which means an increase in manufacturing, service and infrastructure
activities would contribute to growth of the general insurance sector. India has become one of the top priority emerging markets in the global
insurance business industry.
However, India’s general insurance penetration has been hovering in the range of 0.7-0.8%, much lower than the global average of 2.8%
and penetration of between 1.6-1.8% in the Asian economies of China, Malaysia and Thailand. The insurance density too, at USD 13.2 in
2016, is much lower than the global average of around USD 285.
An analysis of various general insurance product lines indicates significant potential for growth across the board as penetration in India is
much lower than global benchmarks. As of fiscal 2016, only 34% of Indians have a health insurance policy, either provided by voluntary
insurance or government schemes. While retail home loans worth around Rs 14 trillion were outstanding as of March 2017, retail property
insurance premiums are not even a fraction of this amount. The scenario is similar when one looks at the corporate-focused lines such as
engineering, fire, and marine insurance, with penetration estimated to be less than 1% of industrial GDP.
The low penetration levels indicate great opportunity for growth for the general insurance industry. We have been constantly innovating
new products keeping in view the demand of the industry as per customer needs. The customer awareness levels are also very low which
needs to be improved for balanced and sustainable growth of the insurance industry. Your Company has constantly focused on the need to
increase the insurance penetration and awareness in the country, aiming towards an inclusive growth. It has opened 70 new micro offices
during the year to increase it’s reach to the untouched population. Alternative distribution channels, digital marketing strategy, online portals
and increasing number of insurance agents and other intermediaries have greatly helped in increasing the reach to the customers as well
as creating insurance awareness among the public.
The Government as well as the Regulator has also taken many pro-industry initiatives. The Government’s introduction of the RERA Act,
Aayushmaan Bharat Yojana, Mudra Yojana, Saubhagya Scheme, Udaan Scheme, etc have all given a boost to the Industry. The amendment
of the Motor Vehicles Act which introduces strong penalties for road traffic rule violations, Improvement in issuing licenses, registration
process for new vehicles, etc is also viewed as a very good move for the Motor Line of business. There have also been several positive
regulatory changes introduced by the regulator that has made the business environment conducive for growth. IRDAI has introduced
various pro-industry regulations and guidelines in the recent past. Motor Insurance Service provider guidelines issued by IRDAI will greatly
help the industry in regulating the motor insurance business sourced through motor dealers.
Your Company has been a major participant in implementing the government sponsored schemes. We have actively participated in various
schemes of the Government of India viz PMFBY, many state Government sponsored schemes, etc. Crop insurance has grown significantly
in the last fiscal and accounted for nearly 16% of the overall industry premium in the FY 2017-18. We also see a greater role in the proposed
National Health Protection Scheme.
In the last fiscal, New India issued 29.7 million policies and processed 4.9 million claims. We have initiated steps for speedier settlement
of claims as well as to make the claim settlements hassle free. We have also taken few initiatives in the direction of Enterprise Risk
Management and Information technology viz introduction of Desktop Management System Pan-India basis and Aadhar authentication for
Employees.
Your Company continue on it’s domestic as well as Global expansion plans. There were 70 new domestic offices opened during the year
and few offices were upgraded too. The company has already obtained license to operate in Dubai Financial Centre. We are also in the
process of registering with Qatar Financial Centre, Doha. As of now nearly 15 % of New India’s business comes from the international
market.
The rising income, surge in the middle class, young population with increased disposable incomes, inflation under control, are the factors
that will induce rapid growth in the insurance business. With economic growth gradually picking up and increase in the manufacturing,
services and infrastructure activities, we expect the growth trajectory of the general insurance sector as well as the Company to remain
strong in the next few years.
We have a very clear future strategy of premium growth with profitability. Your Company is adequately capitalized and have a comfortable
solvency margin , much above the mandatory level of 1.5. We intend to bring down the Incurred Claim Ratio and Combined ratio gradually
year by year till we reach the desired level in order to ensure profitability along with a growth rate keeping in the line with the growing market.
We aim to retain our leadership position in the market as well as in all lines of business.
I wish to thank all the Stakeholders, Board of Directors, Customers, Associates, Intermediaries and all New Indians for their continued
support and co-operation in taking the Company to greater heights.
G. Srinivasan
6
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
30000 (20956)
₹ (26554) 22000
i
25000 (23021) ₹
(19012) 20000 (18591)
n
20000 i
C n 18000
r 15000 (15912)
o C
r 10000 16000
r
e o
s 5000 r 14000
e
0
s
12000
2015-16
2016-17
2017-18 10000
Financial Year
2015-16 2016-17 2017-18
Financial Year
(19725)
F
(38301)
20000 i 2017-18
₹ (17815) n
a
i
18000
n
n c
(14960)
16000 i 2016-17
(35642)
C a
r 14000 l
o
Y
r 12000 e 2015-16 (28895)
e
a
s r
10000
2015-16 2016-17 2017-18 24000 26000 28000 30000 32000 34000 36000 38000 40000
Financial Year ₹ in Crores
Investment Income
F 2017-18 (5165)
i
n
a
n
2016-17
c (4509)
i
a
l
2015-16
(3953)
Y
e
a 2000
3000
r 4000
5000
6000
₹ in Crores
7
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Contents
STANDALONE
CONSOLIDATED
8
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Dear Member,
You are cordially invited to attend the 99th Annual General Meeting of the members of The New India Assurance Company Limited (‘the
Company’) to be held on Monday, July 30, 2018 at 3:00 p.m. IST at the Walchand Hirachand Hall, Indian Merchant Chambers Bldg., IMC
Marg, Churchgate, Mumbai, Maharashtra 400020, India.
The Notice of the meeting, containing the business to be transacted, is enclosed herewith. As per Section 108 of the Companies Act,
2013, read with the related Rules and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the
Company is pleased to provide its members the facility to cast their vote by electronic means on all resolutions set forth in the Notice. The
instructions for e-voting are enclosed herewith.
Yours faithfully,
G Srinivasan
Chairman cum Managing Director
DIN 01876234
Enclosures:
1. Notice to the 99th Annual General Meeting (AGM)
2. Proxy form
3. Attendance slip
4. Instructions for e-voting
Note: Attendees who are differently-abled and require assistance at the AGM are requested to contact Mr. Rajesh, Deputy General
Manager, Estate & Establishment Department, Head Office, 87 M G Road, Mumbai – 400 001 at the below contact details, at least
five days in advance:
Tel: 91 22 22708 502/510/511, Mobile: 91 9819123334
9
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
10
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
NOTICE is hereby given that the 99th Annual General Meeting of “RESOLVED THAT pursuant to provisions of Section 149 of the
the members of The New India Assurance Company Limited will be Companies Act, 2013 and Rules made thereunder and Article 121
convened on Monday, July 30, 2018 at 3.00 p.m. at the Walchand of the Articles of Association of the Company the appointment
Hirachand Hall, Indian Merchant Chambers Bldg., IMC Marg, of Shri Neelam Damodharan (DIN 07759291) as an Ex-Officio
Churchgate, Mumbai, Maharashtra 400020, India to transact the Director w.e.f., 14th August 2017 for a period of three years or until
following: - 30.11.2019 (the date of his superannuation) or until further orders,
whichever is earlier, by Government of India vide Notification F.No.
Ordinary business 11011/1/2015-Ins.II dated 14th August 2017, be and is hereby
Item No 1. To consider and adopt noted.”
(a) the Audited Financial Statements of the Company for the Item No 7. To consider and, if thought fit, to pass the following
Financial Year ended 31st March, 2018; Resolution as an Ordinary Resolution:
(b) the Audited Consolidated Financial Statements of the “RESOLVED THAT pursuant to provisions of Section 149 of the
Company for the Financial Year ended 31st March, 2018; Companies Act, 2013 and Rules made thereunder and Article 121
and of the Articles of Association of the Company the appointment of
(c) the Reports of the Board of Directors and the Statutory Smt. Papia Sengupta (DIN 0701564) a Non Executive Director
Auditors and the Comments of the Comptroller & Auditor w.e.f., 27th September 2017 for a period of three years or until
General of India thereon. 31.09.2019 (the date of her superannuation) or until further orders,
whichever is earlier, by Government of India vide Notification F.No.
Item No 2. To declare dividend on equity shares for the the Financial 11011/1/2015-Ins.II dated 27th September 2017, be and is hereby
Year ended 31st March, 2018 noted.”
Item No 3. To appoint a Director in place of Shri G Srinivasan, Item No 8. To consider and if thought fit, to pass the following
Chairman-cum-Managing Director (DIN: 01876234), who retires by Resolution as Ordinary Resolution:
rotation and being eligible, offers himself for re-appointment.
“RESOLVED THAT pursuant to provisions of Section 149 of the
Item No.4. To consider and if thought fit, to pass the following Companies Act, 2013 and Rules made thereunder and Article 121
Resolution, as an Ordinary Resolution: of the Articles of Association of the Company the appointment of
Shri S.K. Chanana (DIN 00112424), a Non Executive Independent
“RESOLVED THAT pursuant to the provisions of Section 139(5)
Director w.e.f., 28th September 2017 for a period of three years or
read with Section 142 of the Companies Act, 2013, the Board of
until further orders, whichever is earlier, by Government of India
Directors of the Company be and is hereby authorised to decide
vide Notification F.No. 15011/03/2015-Ins. I dated 20th September
and fix the remuneration of the Joint Statutory Auditors of the
2017, be and is hereby noted.”
Company appointed / to be appointed by the Comptroller & Auditor
General of India for the Financial Year 2018-19. Item No 9. To consider and if thought fit, to pass the following
Resolution as Ordinary Resolution:
Special business
“RESOLVED THAT pursuant to provisions of Section 149 of the
Item No 5. To consider and, if thought fit, to pass the following
Companies Act, 2013 and Rules made thereunder and Article 121
Resolution as an Ordinary Resolution:
of the Articles of Association of the Company the appointment of
“RESOLVED THAT pursuant to provisions of Section 149 of the Shri Samir Kumar Banerjee (DIN 01987541), a Non Executive
Companies Act, 2013 and Rules made thereunder and Article 121 Independent Director w.e.f., 28th September 2017 for a period
of the Articles of Association of the Company, the appointment of of three years or until further orders, whichever is earlier, by
Shri P. Ramana Murthy (DIN 07815852) as an Ex-Officio Director Government of India vide Notification F.No. 15011/03/2015-Ins. I
w.e.f., 14th August 2017 for a period of three years or until dated 20th September 2017, be and is hereby noted.”
31.05.2024 (the date of his superannuation) or until further orders,
Item No 10. To consider and if thought fit, to pass the following
whichever is earlier, by Government of India vide Notification F.No.
Resolution as Ordinary Resolution:
11011/1/2015-Ins.II dated 14th August 2017, be and is hereby
noted.” “RESOLVED THAT pursuant to provisions of Section 149 of the
Companies Act, 2013 and Rules made thereunder and Article 121
Item No 6. To consider and if thought fit, to pass the following
of the Articles of Association of the Company the appointment of
Resolution as Ordinary Resolution:
Shri Kuldip Singh (DIN 02905840), a Non Executive Independent
Director w.e.f., 28th September 2017 for a period of three years or
11
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
until further orders, whichever is earlier, by Government of India period of three years or until further orders, whichever is earlier, by
vide Notification F.No. 15011/03/2015-Ins. I dated 20th September Government of India vide Notification F.No. A.11011/10/2009-Ins.
2017, be and is hereby noted.” by order of the Board of Directors IV, be and is hereby noted.”
Item No 11. To consider and if thought fit, to pass the following by order of the Board of Directors
Resolution as Ordinary Resolution: for The New India Assurance Company Limited
12
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
13. The Annual Report 2017-18, the Notice of the 99th AGM and details to the Registrar and Share Transfer Agents.
instructions for e-voting, along with the attendance slip and 18. All documents referred to in the Notice will be available for
proxy form, have being sent by electronic mode to members inspection at the Company’s registered office during normal
whose email addresses are registered with the Company / business hours on working days up to the date of the AGM.
depository participant(s), unless a member has requested
for a physical copy of the documents. 19. The attendance registration procedure for the AGM is
as follows: Shareholders are requested to tender their
14. For members who have not registered their email addresses, attendance slips at the registration counters at the venue of
physical copies have been sent by the permitted mode. the AGM and seek registration before entering the meeting
15. Members may also note that the Notice of the 99th AGM and hall.
the Company’s Annual Report 2017-18 is available on the The shareholder needs to furnish the printed attendance slip
Company’s website www.newindia.co.in. along with a valid identity proof such as the PAN card, passport,
16. Additional information, pursuant to Regulation 36 of the AADHAAR card or driving license to enter the AGM Hall.
Listing Regulations, in respect of the directors seeking by order of the Board of Directors
appointment / reappointment at this AGM, forms part of the
for The New India Assurance Company Limited
Notice.
17. The SEBI has mandated the submission of the Permanent
Account Number (PAN) by every participant in the securities
market. Members holding shares in electronic form are, Registered office: Jayashree Nair
therefore, requested to submit their PAN to their depository 87 M G Road, Fort, Company Secretary
participant(s), if not already submitted. Members holding Mumbai – 400 001, India
shares in physical form are required to submit their PAN
July 02, 2018
2. Risk Management Committee Disclosure of inter-se relationships between directors and Key
Managerial Personnel: Nil
3. Large Value Frauds Committee
Listed companies (other than The New India Assurance Co
4. Customer Service Committee Ltd and It’s Group Companies) in which Neelam Damodharan
5. IT Strategy holds directorship and committee membership:
6. Stakeholders Relationship Committee Directorship
7. Recovery Committee Bank of India
13
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Note: Details of Neelam Damodharan’s remuneration and number Chairperson / Membership of Board committees: Nil
of Board meetings attended during fiscal 2018 are provided in the Shareholding in the Company (as on 30.06.2018): Nil
Corporate governance report of the Annual Report 2017-18. Note : Details of S K Chanana’s remuneration and number of Board
meetings attended during fiscal 2018 are provided in the Corporate
Papia Sen Gupta governance report of the Annual Report 2017-18.
Chairperson / Membership of Board committees: Nil Chairperson / Membership of Board committees: Nil
Shareholding in the Company (as on 30.06.2018): Nil Shareholding in the Company (as on 30.06.2018): 36
Note: Details of Papia Sen Gupta’s remuneration and number of Note: Details of S K Banerjee’s remuneration and number of Board
Board meetings attended during fiscal 2018 are provided in the meetings attended during fiscal 2018 are provided in the Corporate
Corporate governance report of the Annual Report 2017-18. governance report of the Annual Report 2017-18.
14
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
15
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
To the Members:
Your Directors have immense pleasure in presenting the Ninety Ninth Annual Report of the Company together with the audited statement
of accounts and balance sheet for the year ended 31st March, 2018.
16
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
(` in crores)
Fire Marine Misc Total
Commission Net CY 288.74 56.62 1478.65 1824.01
PY 340.60 45.39 937.15 1323.14
(% to Net Premium) CY 14.73 13.83 7.96 8.70
PY 16.97 12.43 5.78 7.12
Operating Expenses CY 330.40 68.95 3129.67 3529.02
PY 408.67 74.29 3299.06 3782.02
(% to Net Premium) CY 16.86 16.84 16.84 16.84
PY 20.36 20.34 20.34 20.34
U/W Results CY -167.20 26.14 -2383.83 -2524.90
PY -789.95 -6.99 -2750.36 -3547.31
Investment Income-Policy Holders CY 596.57 84.51 2847.20 3528.28
PY 443.35 94.28 2452.73 2990.36
Revenue (Policy Holder) Account Surplus CY 429.37 110.65 463.37 1003.38
PY -346.60 87.29 -297.63 -556.95
Investment Income-Share Holders CY 1636.58
PY 1519.08
Other Income less Outgo CY 85.09
PY 201.73
Profit before Tax CY 2725.05
PY 1163.86
Provision for Tax CY 524.14
PY 155.93
Profit after Tax CY 2200.91
PY 1007.93
Interim Dividend CY 309.00
PY 0.00
Dividend Tax CY 62.91
PY 1.09
Transfer to Reserves CY 1829.00
PY 1006.84
DIVIDEND DISTRIBUTION POLICY
Your Directors are pleased to recommend a Final Dividend of ` 5 per Equity share of face value of ` 5 each. The Company had distributed
an Interim Dividend of ` 3.75 per Equity share of face value of ` 5 each in the month of December 2017. The total outgo including the
final dividend of ` 5 per Equity share is ` 868,59,29,745 including Dividend Distribution Tax of ` 147,59,29,745 as against ` 373,11,92,240
including Dividend Distribution Tax of ` 63,11,92,240.
In terms of Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015
(“Listing Regulations”) the Dividend Distribution Policy of the Company has been hosted on Company’s website and can be viewed at the
below mentioned link :
“https://www.newindia.co.in/cms/c52d520f-6589-4772-bcc8-e214657297ec/Dividend%20DistributionPolicy.pdf?guest=true”
BONUS
Your Company had announced a Bonus of 1 new Equity Share for every 1 existing Equity Share.
17
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
2017-18 2016-17
Gross Written Premium (GWP) in India has increased from ` 19533 crore in 2016-17 to ` 22952 crore in 2017-18 recording a good growth
of 17.50 % in 2017-18. The company continues to be the market leader in India and is scaling to new heights. Good growth has been
achieved by all the regions. The company crossed ` 22000 crore In Indian market itself in 2017-18.
B Net Premium 20956.35 18590.92
The net premium income of the company grew by ` 2365 crore from `18591 crore to ` 20956 crore.
18
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
(` in crores
2017-18 2016-17
T Solvency Margin
The company's Global solvency ratio is 2.58 times (PY 2.19 times)
The Company proposes to transfer an amount of ` 1926.68 crore The impending amendment to the Motor Vehicle Act will be a
to General Reserve. game changer for the industry and can go a long way in speedier
settlement of third party claims, reducing the number of road
3. GENERAL INSURANCE INDUSTRY VIS-À-VIS INDIAN accidents and decreasing the number of uninsured vehicles on the
ECONOMY: road. The Motor Insurance Service Provider guidelines issued by
Indian economy the regulator will play an important role in rationalising the pay-outs
to intermediaries.
The Indian Economy grew at 6.7% in 2017-18. Notably the growth
in the third and fourth quarter were 7.2% and 7.7% respectively Crop insurance business which saw a huge growth after the launch
indicating that the coming year could witness higher growth, and of Pradhan Mantri Fasal Bima Yojana will continue to grow as more
this augurs well for the economy in general and the insurance and more farmers are brought under the ambit of insurance.
industry in particular. During this Financial Year, inflation has The traditional lines like Fire and Engineering where growth is
remained largely stable, and Macro-economic factors continue to closely linked to the general performance of the economy are also
be positive though rising crude prices and increasing rates are a expected to fare better in the coming years with higher growth of
cause of concern. Indian economy and revival of public and private sector investments.
Reforms such as GST, RERA and the push towards a Digital Reforms such as the introduction of the Real Estate Regulation
economy, there has been a transitional shift/push from the informal Act, 2016 (RERA) has also ushered in further reform in the Real
economy to the formal economy. Implementation of bankruptcy Estate sector. Title Insurance, which is a multi-billion dollar market
code and recapitalisation of banks also augurs well for the financial globally, has been made mandatory for developers under RERA.
sector. Taking note of these developments, Moody’s raised India’s
rating from the lowest investment grade of Baa3 to Baa2 and The listing of a few large insurers with many other insurers planning
changed the outlook from stable to positive in November 2017. This to list has brought in higher corporate Governance standards, and
was India’s first upgrade in 14 years. more rational competition in the sector. The GOI has announced
the merger of three large PSU insurers followed by listing of the
Indian general insurance industry combined entity which can lead to consolidation and reduced
The Indian General Insurance Industry grew by 17.44 % in FY18 competitive intensity in the industry.
and the total gross direct premium of the industry reached 1,50,571 Information Technology is an enabler, and disruptive technologies
crore. Motor, Health and Crop were the primary growth drivers of such as Blockchain, Artificial Intelligence and Machine learning will
the industry. be increasingly used going forward The Insurance industry will be
In the year 2017-18, The Government of India has unveiled in the forefront in the use of technology for settlement of claims,
Ayushman Bharat, the world’s largest National Health Protection detection of fraud, targeted delivery etc. Underwriting pricing and
Scheme, which is expected to cover 10 crore families (approximately marketing decisions will be increasingly data-driven.
50 Crore beneficiaries), with a defined benefit cover of ` 5 lakh The Indian General Insurance industry continues to be
per year, per family. This is a great opportunity for the Insurance underpenetrated compared to its global peers and there is
industry, which is already the recipient of favourable tailwinds from significant opportunity for growth. The insurance penetration of
the improving economy. The Health Insurance segment will see the Indian non-life insurance sector has been low, keeping around
transformation in the coming years. 0.5-0.8 percent range in the last 10 years. The non-life insurance
19
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
penetration in the year 2016 has improved a bit to .77 from .72 percent in the year 2015. However, non-life insurance density has gone up
from USD 2.4 in 2001 to USD 13.2 in 2016. Non-traditional lines like home owners’ insurance, shop-keepers insurance and various kinds
of liability insurance have huge untapped potential and can provide the next leg of growth.
The Government’s vision of a “New India” is expected to create a transformative push over the next few years. The Insurance Industry as a
whole is expected to be a major contributor towards this achievement, and the General Insurance industry is in a position to deliver unique
solutions and benefit to all stakeholders.
INDIAN OPERATIONS:
Gross direct premium in India has increased from ` 19,114.69 crores in 2016-17 to ` 22,718.76 crores in 2017-18 recording a growth of
18.85 % during 2017-18. The growth is observed in all geographical segments as well as all classes of business
20
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
5. ORGANISATION STRUCTURE The company continued to maintain its lead position in the
Large Risk Segment which is an indication of its superior
Domestic technical expertise, market reputation and underwriting
The Company has been consistently expanding its footprint by capacity. The Company has been able to design bespoke
opening new Micro Offices in unexplored semi-urban and rural areas covers to suit the requirements of corporate clients with the
and upgrading its large Micro Offices to Branch Offices and Branch support of National and international Reinsurers.
Offices to Divisional Offices to provide better service to the public. The department arranged Risk Engineering and Risk
The Company has set up new 70 Micro Offices to cater to the general Inspection for some of the risks as a value added service.
insurance needs of unexplored rural areas and unrepresented These services are useful for PML Assessment and for
urban areas and upgraded 19 micro offices to Branch Offices and 3 imparting loss minimization measures to the Insured.
branch offices to Divisional offices in this financial year. As on 31st The company aims to maintain its leadership in this area in
March 2018, the Company has a network of 31 Regional Offices, the coming years as well.
7 Large Corporate Offices, 1 Auto Hub, 1 IFSC Insurance, 460
Divisional Offices, 603 Branch Offices, 27 Direct Agent Branches FIRE AND ENGINEERING INSURANCE
and 1341 Micro Offices, totaling 2472 offices. With Economy growing at a faster pace, Property Insurance
Segment remains one of the most promising sectors in
Foreign General Insurance Industry. With 2082.56 Cr premium in
The Company operates in 28 countries Fire & 445.06 Cr in Engineering, your company has once
again retained the leadership position in property Insurance
REINSURANCE in Indian General Insurance market. Growing at 14.16% in
The year 2017-18 witnessed several devastating Natural LOB Fire we have gained new business worth 258.28 Cr
catastrophic events in the United States and the Caribbean & are going hand in hand with the Industry. Our aim has
Islands though there were no major natural calamities in been to implement prudent underwriting guidelines to get
India.Our foreign branches in Aruba,Curacao and UK were quality business. Our efforts have been fruitful as the ICR
impacted by claims arising from Hurricane Irma which hit has come down significantly in both Fire & Engineering
the island of St.Maarten in September 2017. Similarly, our adding to financial strength of the company. Apart from
subsidiary New India T&T was also impacted by the claims that we have continued our efforts in improving the pricing
from Hurricane Maria and Irma. Most of these losses are scheme, underwriting & claims management through
recoverable from our Reinsurance arrangements. proper coordination with operating offices by conducting
Renewal of all proportional and non-proportional treaties Underwriting & claim workshops & regular VCs to educate
of Indian as well as foreign offices was completed as per our technical team
schedule and placements made with well rated securities. Your Company has emphasized on quick disposal of
The new line of crop Insurance business of Pradhan Mantri Claims via proper utilization of resources & efficient claims
Fasal Bima Yojana is protected with a new Quota Share and management which has helped in reducing the overall cost
Stoploss Treaty from this year. of claims & in improving the profitability of the company.
Our International Financial Service Centre Office(IIO) at We are focused to maintain our leadership position in the
GIFT city Gandhinagar completed one full year of operations segment in the upcoming year(s) by proactive approach,
with profitable results. prudent underwriting, efficient claims management, technical
competence & innovative techniques.
TECHNO MARKETING HEALTH INSURANCE
Techno Marketing Department of the company is a specialized Your company maintains its leadership position in Health
cell which operates from the Corporate Office. The department Insurance this year too with an annual growth of 17.6%
caters to the requirements of corporate clients dealing with
amounting to ` 7008 Crores vis a vis ` 5960 Crores last
Large Projects and operational Large Risks.
fiscal.
21
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
This year, consistent efforts were made to contain the ICR in Focus area for the next year will be towards faster disposal
Health Department and the desired results were achieved. of claims to touch higher levels of customer satisfaction and
There has been good spurt of growth at the Retail segment also boost growth rates in marine line of business using IT
@19% in this financial year. infrastructure and innovation and maintaining balanced and
Your Company has pioneered a prestigious product by name healthy portfolio in marine department.
“The New India Global Mediclaim policy” covering treatment AVIATION INSURANCE
abroad at World Leading Medical Centres Globally. Some Your Company continues to be the lead insurer for India’s
of the centres offered for treatment include John Hopkins National Carrier Air India, Indigo Airlines, Go Air and Vistara.
University Medical Centre, Memorial Sloan Kattering Cancer During the year 2017-18, we have been chosen as lead
Centre (New York), Kings College Hospital (London) and insurer for Spice Jet and increased our participation in Jet
Mount Elizabeth Hospital (Singapore). Air. New India has also been a preferred Insurer for HAL, the
We have broadened our existing New India Mediclaim 2012 Aircraft Manufacturer and R&D organization, Indira Gandhi
policy too with several attractive features and optional covers. National Flying Academy, the flagship training academy of
We have introduced restoration of sum insured free of cost India and various other General Aviation Business.
under this policy. Our New India Floater Mediclaim policy too With the advent of Government sponsored Regional
has been enhanced with sum insured from a maximum of ` Connectivity scheme, your Company has been the fore-
8 lacs to ` 15 lacs. runner in the two airlines that have taken off – Air odisha and
Recruitment of another batch of 26 doctors is in process for Air Deccan. A few more are in the pipe line.
developing in-house expertise in Health Department. Your Company continues to be a preferred re-insurer in
Constant audit and visit to the hospitals/TPAs for surprise international market extending its support to around 170
check is being carried out which has resulted in containing Aviation Reinsurance Programs across the Globe, including
the ICR. Lufthansa, Singapore Airlines, Emirates Airways. Your
Company has provided capacity as Quote Share Reinsurer
Regular training and briefing sessions are carried out for to GIC Re London for their participation in Altitude Risk
updating the marketing force as well as the executives for Partners Pool for enhancing its penetration in the Global
better service and growth in the Health Vertical. Aviation Market.
MARINE CARGO AND HULL INSURANCE MOTOR
Your Company continues to maintain its leadership in AUTO TIE-UP
Marine Line of Business with highest market share in Auto Tie-up has been a rich source of new motor vehicle
Cargo as well as Hull in the Indian Market. The Company business and New India has been able to tie up with
has approximately 36.4 % of market share in Hull and motor dealers across India through partnership with major
15.5 % in Cargo Business. Company achieved a Marine brands in the Indian market such as, Maruti Suzuki,Tata
Cargo Domestic premium of ` 350 Crores as against ` 342 Motors, Hyundai, Ford, Royal Enfield, Honda Motorcycles
Crores in the previous year. Despite a very soft market and and Scooters, Ashok Leyland, Volvo-Eicher, Mahindra &
reduction in premium rates at renewal, your Company has Mahindra, Yamaha etc. . This network thru centralized tie
registered a growth of 2.38%. For the first time in Indian up has enabled us to source business through more than
market, we have launched P&I cover for coastal vessels of 4350 dealers. Besides more than 1550 dealers (other than
Indian Ship owners. Such business is being underwritten OEM Tie ups) of private Cars, commercial Vehicles and two
by foreign market due to non-availability of the product in wheelers have tied up with New India offices directly for
India. We hope to retain this business within Indian market. sale of motor insurance policies to their customers. Auto
Hull business has declined because of market conditions but tie up has empowered New India to create a brand image
with increase in oil prices and revival of energy business, of leading motor insurer in India who has been delivering
prospects are good for the next year. Marine business value added services like; instant delivery of insurance
generated by Foreign Offices is ` 33.50 Crore in Cargo and policies & endorsements, seamless settlement of claim, TAT
` 7.60 Crores in Hull. The total Marine Business globally is based delivery of services &cashless facility at dealer points.
` 641 Crores. As a leader in Marine Hull & Cargo Insurance, This has been possible through intervention of IT enabling
we are committed to deliver the best service to its clients our partner dealers to execute all such activities on portals
and therefore, number of initiatives are being undertaken available at each dealer point.
for effective e-marine solution for issuance of Certificates/
Policies through Customer/Intermediary Portals and also for With the recognition of role of motor dealers as MISP – a
claims handling. recognized intermediary of motor insurance business – the
auto tie up business has moved into a new era of regulated
Despite reduction in premium rates, Marine Cargo Portfolio marketing of motor insurance through the dealers, in which
remains profitable. ICR for Marine Cargo Business was New India has not only been able to migrate quickly and
51% in the year 2017-18. The efforts made towards claims grow steadily in the new set.
management, risk management, careful underwriting
and recovery has contributed to sustained profitability of The premium achieved by Auto Tie up Department in financial
the Portfolio. A Centralized Recovery System has been year 2017-18 is ` 2627.64 Crores as against premium of
deployed on pilot basis for selected Offices with the intention ` 2380.23 Crores in 2016-17. Along with increase in volume
of better handling of marine recoveries under subrogation. of business we have also been continuously focusing on
control of ICR to create a comfortable business surplus.
22
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Motor Own Damage (O.D.) vikas Yojanais a Special Group Personal Accident Scheme
we have created for the technology trainees of the National
Our company is maintaining number one position in Motor Skill Development Corporation of India for a 3 years period.
segment for the last four years. Overall Motor business
grew at the rate of 19.6% during 2017-18 with Motor OD BROKERS AND BANCASSURANCE :
premium showing an accretion of 8.35% and Motor third Bancassurance Channel is a business model which offers
party premium at 27.42% which is at par with industry growth immense opportunities of business in the current scenario.
rate We have Bancassurance partnership with 28 Banks which
Motor OD business has shown profitable growth during the includes 5 PSU Banks i.e. Corporation Bank, Union Bank
year and same trend is expected to continue in the coming of India, Bank of India, Canara Bank and Punjab National
years. Claim settlement in Motor OD segment has shown Bank. Recently we also Tied up with Bandhan Bank and
improvement which is at 94.2% as against target of 92%. talks have been initiated with SIDBI as well as DBS Bank for
Motor OD incurred claim ratio has come down considerably Bancassurance Tie-Up.
compared with earlier years. There are 34 claims hub which Bancassurance channel registered a growth of 34% in
handle the claims of over 800 operating offices and company
2017-18. We have provided Portal access to several Banks
has tied up with over 1200 reputed motor workshop/garages
to provide cashless service to retail customers. and also devised co-branded policies as per the Bank’s
requirement. The Bank Branches have also been mapped
Motor TP Claims and Motor TP Claims Hubs
with our Offices throughout the country so that the channel
Your Company focuses on improving the performance in
potential can be fully utilized.
TP claims handling. This has resulted into reduction of OS
claims from 1,56,490 in previous year to 1,47,997 at the Your Company recognized the importance of the Broker
end of FY 2017-18. Further, overall Claims Disposal Ratio channel at the early stages and has been conducting
increased to 36.99%, compared to 34% in preceding year Technical Workshops for Brokers in different parts of the
country to familiarize the Brokers with the latest Products
Keeping the current judicial view of the Hon’ble Supreme
of the Company. We have specialized offices across the
Court and High Courts in mind, the company has adopted the
country to provide service to Brokers. This channel has
strategy to minimize the further litigation and thus number of
grown at 23% in this financial year and contributing 27% of
claims under appeal or SLP before the Higher Courts have
the total business.
been reduced. The company targeted to settle the maximum
number of fit claims by way of compromise and settled nearly AGENCY
37% of total settled claims by way of compromise through The Agency channel constitutes largest share to the
Lok Adalat and other Conciliatory Mechanisms. Company's Premium income and continues to be the most
Information Technology aspect had remained the major area significant channel of business. Continuous efforts were
of focus during this year and considerable modifications made during the year for training and empowering Agents
were carried out in the system, which shall enable the user for better functioning and enhancing productivity of agents
to monitor and manage the claims effectively. amidst increasingly stiffer competition in retail market. During
the year, 9519 new agents were recruited, and various
Solatium Fund
Reward schemes were implemented for agents in Motor,
The Company is the Fund Manager of Solatium Fund for retail Health and Miscellaneous business. The Premium
motor ‘hit and run’ accident cases. The fund balance as at procured by Individual agents was ` 9602 Crores with growth
31st March 2018 is ` 80 crore backed up by earmarked short of 16.85 % & ` 119 Crores through Corporate Agents other
term investments. Both the fund and the investments are than Banks with 133% growth. All Operating offices have an
included in the financials of the Company as at 31st March Agent Manager whose role is to recruit and train agents and
2018. The Solatium Fund will be maintained separately and provide them sales and service support. During the year, 200
not clubbed in the books of the Company from 2018-19 new Agent Managers were imparted training to better perform
onwards their role in nurturing and supporting agents and enhance
MISCELLANEOUS AND LIABILITY INSURANCE their performance. Programs were also organized for CMD
club agents and champion Agent Managers for enhancing
Your Company continues to be market leader in Liability their skills. Agent portal & App were improved further to make
Insurance for the eighth consecutive year. This year we them more user friendly to enhance penetration and thrust
achieved a domestic premium of ` 371.57 crores (gross) in retail market. Constant encouragement and motivation
in the Liability line of business. Our milestones in Liability supported by training significantly enhanced usage of agent
this year include being the first Insurer in the Indian Market portal and App. During the year, Portal access was enhanced
to file Title Insurance. Your Company is also the preferred to over 22700 agents and they issued 29.77 Lac policies
lnsurance partners in the new emerging lines of Cyber generating Premium of Rupees 1710 Crores.
Liability Insurance for Banks & Financial Institutions. We
have forayed into issuing a Professional Indemnity Cover RURAL AND SOCIAL SECTOR AND MICRO INSURANCE
to cover lnsolvency Resolution Practitioners as there is Your Company is the pioneer Non-Life Insurance Company in
Personal Liability under Section 233 of the Insolvency and insuring all types of assets and lives under Rural and Social
Bankruptcy Code 2016. We are also the proud Insurers Sector in the country. Company has been a major player in
of the prestigious Mumbai Trans harbour Project. The the Rural & Social Sector Insurance Business in India with a
Miscellaneous Department continues to provide innovative variety of products which suits the requirements of our rural
corporate and retail products. The Pradhan Mantri Kaushal mass. Insurance covers provided by the Company are need-
23
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
based/tailor made for the benefit of Rural and Social Sectors CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
and Rural Insurance activities are village specific. We
Complying with the provisions of the Companies Act 2013,
have participated in Centrally Sponsored Cattle/Livestock
CSR committee of the board was constituted in September
Insurance Schemes, Corporate Dairy schemes and State
2014 with a mission to achieve our vision “to strive to
& District Level schemes, special Insurance Schemes like
transform India into a Risk Aware Society from being a Risk
Drip Irrigation Policy, Agriculture Solar Pumpset Insurance
Averse Society” by integrating social, environmental and
Policy, KCC Master Policy etc. Your Company is empanelled
health concerns of the Indian Society into Company’s overall
by the Government of India, for implementation of our Hon.
CSR Policy and Programme.
Prime Minister’s Ambitious Insurance Programme for Indian
Farmers i.e. PMFBY, Restructured Weather Based Crop The thrust of our CSR activities is on capacity building,
Insurance Scheme (RWBCIS) & Unified Package Insurance empowerment of communities’ inclusive social economic
Scheme(UPIS) since Kharif 2016. We are participating in growth, environment protection, promotion of green and
the Tender process in various State Governments all over energy efficient technologies, development of backward
India. Your Company has successfully implemented PMFBY regions and up-liftment of the marginalized and under
during Kharif 2017 in Tamil Nadu, Rajasthan, Gujarat & Uttar privileged sections of the society. Procedure was formulated
Pradesh & Rabi 2017-18 in Tamil Nadu & Uttar Pradesh. and guidelines were issued for ease of CSR activities.
RSBY &GOVERNMENT BUSINESS Some of the notable CSR projects where in your Company
participated were with organizations like Swachh Bharat
Social Security and healthcare assurance for all has been
Mission, Kedarnath Utthan Charitable Trust, Vivekananda
the motto of Government of India, and it has taken various
Rock Memorial and Vivekananda Kendra in North East,
steps in this regard. RSBY was launched in early 2008 and
Akshaya Patra in Uttar Pradesh, Science and Technology
was initially designed to target only the Below Poverty Line
Park in Pune, Apparel Made-ups & Home Furnishing Sector
(BPL) households but has been expanded to cover other
Skill Council for Skill India in Himachal Pradesh, Aim For
defined categories of unorganised workers too.
Seva in Orissa, Disabled Welfare Trust of India in Gujarat,
Your Company is implementing RSBY schemes in various Ramakrishna Mission Ashram’s Solar System Installation in
states of India. The company is also implementing various Chennai.
other government sponsored mass schemes like ‘Bhama
CUSTOMER CARE
Shah Swasthya Bima Yojna’ in Rajasthan, Megha Health
Insurance Scheme in Meghalaya and so on. In Both the Customer Care Department is functioning well at Company’s
above-mentioned mass schemes, New India is the sole Corporate Office as well as all Regional Offices. Dedicated
insurer for third year in a row. The ‘RuPay Insurance program, Customer Care Nodal Officers are working in all the operating
providing Personal Accident cover to more than 43 Crore offices throughout the country for extending quality service to
RuPay Cardholders, has been successfully implemented by the Policyholders and the prospects. Online information on
your Company the Company’s products are provided in the website https://
newindia.co.in for the benefit of the public.
PRADHAN MANTRI SURAKSHA BIMA YOJNA
The Company’s Call Centre established in 2010 forms an
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a
integral part of Customer Relationship Management Activity.
flagship scheme under the umbrella of Pradhan Mantri Jan
The toll free number of the company 1800-209-1415 is
DhanYojana (PMJDY). To achieve the motto of financial
available to the customer 24*7 for inquiries of various
inclusion of Government of India, your Company has
Products, Claims and Grievances, both in Hindi and English.
conducted various enrolment and awareness campaigns
Service Requests for further follow up are replied/resolved
for PMSBY. We have tied- up with more than 200 banks for
by company’s operating offices. This initiative and endeavor
PMSBY and have settled more than 4600 claims keeping the
of ‘Customer Service’ is a key and vital element of our
disposal ratio consistently above 95%.
business strategy for a continuous and progressive growth
Your Company will continue to exhibit consistent growth with in the General Insurance Industry, with value added products
the help of such giant schemes. matching the Customers’ needs and requirements.
ALTERNATE BUSINESS CHANNEL DEPARTMENT Grievances received orally, over telephone or in writing are
In line with the developments in the market your company registered by us in the CRM Module. Customers can register
has forayed into the online space and has been making their grievance through our website https://www.newindia.
rapid strides in this segment. Web aggregators who are co.in/portal/#/home. Customer grievances received by IRDA
predominantly changing the online landscape are in gets registered in IGMS. Our CRM Module is integrated
partnership with us along with the other channel partners. with IGMS on real time basis. We also receive customer
grievances registered in Centralized Public Grievance
Simplified products are being put up for sale to ensure ease Redress and Monitoring System ( CPGRAMS) portal
of purchase. During the current year we have forayed into and National Consumer Helpline portal. We resolve the
social media arena to enhance our visibility as well as to use grievances, intimate the customers and post the resolution
this avenue to enhance our sales. through the portal.
We are confident during the years ahead our sales through
online channel will show a significant increase keeping in
view the current market developments.
24
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
The Grievance Redressal position for the period 1.4.2017 to - The Outsourcing activities of our company for the
31.3.2018 is as under : FY 2017-18 have been reported as per Outsourcing
Guidelines, 2017 to IRDAI in the specified format.
Outstanding grievances as on 31/03/2017 38
- Information and Cyber Security is also a focal point in
Registered (From 01.04.2017 to 4864
Risk management and is being addressed by various
31.03.2018)
measures at people, procedures and technology
Resolved (From 01.04.2017 to 31.03.2018) 4902 levels in coordination with IT dept.
Outstanding as on 31.03.2018 0
- The Chief Risk Officer reports to the Risk Management
Disposal Ratio 100% Committee of the Board periodically to update on the
ENTERPRISE RISK MANAGEMENT progress of the ERM departmental activities.
Enterprise Risk Management department (ERM) is an CLAIMS MANAGEMENT
emerging department established at Company’s corporate Your Company carried out various activities throughout the
office with its wings at all Regional Offices and Large year as under :
Corporate Broker Offices represented by ERM Nodal
Officers. Efforts are in full swing to complete the ERM Project 1. Regular monitoring right from the beginning of the
by implementing a suitable ERM software system. financial year was done by targeting settlement of
claims based on the age-wise analysis.
1. The Risk Appetite statement (RAS) of our company
identifies key risk obstructing our strategic objectives 2. For claims that were falling in more than one year
and helps the company to maintain a tolerance/ category, special focus was done
threshold limit for acceptance of such risk. 3. To equip our claims processing officials with technical
2. The TOP RISK register focusing on 10 key risk knowledge and to improve their customer care skills,
areas of our company includes a range of Key Risk training programmes were held at the College of
indicators helps to measure the intensity of risk and Insurance. Total six batches of training were held and
suggest taking appropriate risk mitigation measures. 150 participants were imparted training.
3. The RAS and the TOP RISK register have been Non Suit Suit Total
approved by the Risk Management committee (RMC).
Number of Claims OS as on 137150 167205 304355
4. Incident Reporting (Operational loss reporting) circular 01.04.2017
was issued to all the HO departments and RO’s/
LCBO’s to report six types of incidences that cater to Number of Claims Intimated 4576487 296254 4872741
operational losses. during 2017-18
To create and spread awareness on the domain ERM, Number of Claims Settled 4587425 305670 4893095
various initiatives like ERM Desktop wallpapers, ERM Quiz during 2017-18
and ERM Mailers were held. ERM refresher training and Number of Claims OS as on 126212 157789 284001
Cyber risk training was held for Chief Managers and ERM 31.03.2018
SPOCS to embrace them continuously on the risk domain. Non Suit Suit Total
Business Continuity Management - Establishing Business Claims OS for less than 3 106642 7651 114293
Continuity Management process is a sub-part of ERM dept months
that focuses on mitigating the business continuity risk during
exigencies. Claims OS for more than 3 18439 26609 45048
months but less than 1 year
1. Following the mandate of RMC & based on instruction
of ERM Dept, all the RO’s & LCBO’s have conducted Claims OS for more than 1 year 1131 123529 124660
Fire Safety Audit of their offices to ensure safety of MANAGEMENT OF NON SUIT CLAIMS
employees, systems and premises.
Parameter 31.03.2016 31.03.2017 31.03.2018
2. Recovery Procedure Document, a single pager
guide during the emergency times, have been No of claims O/s 96424 137529 126212
implemented across all the RO’s & LCBO’s. The RPD Amount of claims O/s ` 4055 cr ` 4769 cr ` 5097 cr
implementation at all other offices is under progress.
No of claim O/s 2114 1261 786
.3 Evacuation Mock drill was conducted in one of the for more than one
Mumbai RO on a pilot basis to test the readiness of year (Excl.GA and
the said premises to respond in case of emergency. Coinsurance)
Similar exercise was replicated in few other RO’s.
BCP training was provided to Fire Prevention Officers Non Suit Claim 96% 97% 97.32%
nominated at HO. Settlement Ratio
The following functions were also performed under ERM MARKETING DEPARTMENT
framework: - Your Company has once again displayed its leadership by
- The Revised Corporate Anti-Fraud Policy 2018 was retaining number one position in the insurance industry with
approved by Board and adopted by our company a total of 15.06% market share.
recently.
25
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Our marketing team of development officers contributed conformity with the objectives of the RTI Act. The Central
with a remarkable share of premium of ` 4821.71 Crs. Our Public Information Officers (CPIOs) of 31 Regional Offices
business associates also contributed more than ` 272.88 crs and 7 Large Corporate Broker Offices (LCBOs) also
premium for the FY-2017-18. contributed to the promotion of the ideals of the Act, under
CMD Club for AO (D), AM (D) was formed and its first the umbrella of RTI Department at Head Office.
convention was held at Coimbatore and convention of With a view to maintaining uniformity, consistency and
Development Officers’ CMD Club was held at Hyderabad improved standard of compliance, the function of First
to felicitate the stars performers. Development Officers Appellate Authority is centralized at Head Office. In
incentives for the FY-16-17 were paid through incentive compliance with the directive of CIC, your Company has
module. appointed Transparency Officer in the rank of General
Special 3 days residential training programme for Manager.
development officers’ CMD club members for 2017-2018 was As per the directives of Ministry of Personnel, Public
arranged in association with Tata Institute of Social Sciences Grievances and Pensions, DoPT, New Delhi ,we have
(TISS) at four major centres across India. The department extended the facility of RTI Web Portal w.e.f. 20.07.2016
undertook 3 Days Residential Training Programme on under the administrative control of Department of Financial
Effective Marketing Skill & Customer Service for more than Services (DFS). It is a citizen interface which facilitates
300 Divisional & Senior Divisional Managers all over India. Indian Citizens to file RTI applications and First Appeals
The training programme was arranged at Insurance Institute online and also to make online payment of RTI fees.
of India, BandraKurla Complex, Mumbai. During the year 2017-18 the total (including online) number
CORPORATE COMMUNICATION DEPARTMENT of RTI Applications received is 2411 and First Appeals is
Press conferences were organized to apprise the media 375. In compliance with the CIC guidelines / RTI Act, the
fraternity of our various financial achievements, and also the Company’s official website is up-dated from time to time,
launch of New Global Mediclaim Policy during the year. Wide disclosing and uploading maximum information under xvii
coverage of our achievements, carried out by all the leading points as mandated under the provisions of Section 4(1)(b)
publications, boosted brand image of our company. of the RTI Act,2005.
26
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
27
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Representation of Scheduled Caste and Scheduled Tribe GENDER ISSUES AND EMPOWERMENT OF WOMEN
employees under various cadres as on 31.03.2018 Your Company has a strong women force and provides
Category/ Total Number and Percentage adequate opportunities for self and career development. A
Level Number significant number of women Officers, as on 31.03.2018, are
SC % ST %
holding senior positions in our Offices:
Class-I 7709 1590 20.63% 617 8.00%
Class-II 999 97 9.71% 38 3.80% General Manager 2
Class III 7639 1611 21.09% 586 7.67% Deputy General Manager 6
Class IV 1521 745 48.98% 130 8.55% Chief Manager / Regional Manager 19
(Excluding Divisional Manager / Sr. Divisional Manager 53
Part Time Branch Manager / Sr. Branch Manager 65
Sweepers)
• Women executives are nominated for various
Part Time 12 9 75.00% 0 0.00% programmes organized by Forum of Women in Public
Sweepers Sector (WIPS)
TOTAL 17880 4052 22.66% 1371 7.67%
• Women Officers are also nominated in large numbers
Your Company Strictly adheres to Brochure provisions and to the Programme for Women Managers conducted by
Government DoPT guidelines regarding reservations and National Insurance Academy, Pune
concessions in the matter of recruitment and promotion and
safeguards the interest of employees belonging to SC/ST/ • Women’s Committees are constituted at Head Office
OBC/PWD and Ex-servicemen. and various Regional Offices and are actively involved
in resolving all gender-related issues/cases referred to
Pre-promotional training programs were duly organised for them
all eligible SC/ST/OBC employees for promotion to various
cadres. Similarly, for Class III and Class III to I promotional • The International Women’s Day was celebrated on
exercise, pre-promotional training is imparted to SC/ST/ March 8th, 2018 in all Offices across the country.
OBC employees under Dr. B. R. Ambedkar Welfare Trust. Seminars were organised at various centers on
Regular training programmes are conducted on personality topics such as Women Entrepreneurship, Stress
development, stress management, motivation etc. for SC/ST Management, Work-Life Balance, Mental & Physical
employees of various cadres. Various benefits under Dr. B. Health, Nutritious diets, Rights of women under
R. Ambedkar Welfare Trust have been given to SC/ST/OBC various laws of the country, and new law for protection
employees. SC/ST/OBC employees have been nominated of the women at workplace etc.
for NIA, Pune training programmes on a regular basis. TRAINING :
Pre-recruitment training programmes were also arranged for In the competitive scenario of the insurance industry of present
SC/ST/OBC candidates at various centres on all-India basis. times, it is of utmost importance to keep our employees
A separate reservation cell is actively functioning at Head abreast of the changes and to develop their insurance skills
Office and Regional Office level for SC/ST/OBC/PWD/Ex- both in underwriting and claims settlement. Keeping this
servicemen employees. A Liaison Officer under the charge in mind, the Company conducts regular training programs.
of Chief Liaison Officer manages this cell at Head Office, Your Company also nominates employees for various
whereas, Assistant Liaison Officers head the cells at various training programs organized by external institutes from time
Regional Offices. to time. The focus of the trainings are on policy awareness,
technical matters, specialized topics, marketing strategies,
A well-defined mechanism has been provided under IT, personality development etc. Apart from emphasizing
which, on yearly basis, the Liaison Officer from the Head on mainstream training, the Company encourages the
Office inspects the Rosters pertaining to recruitment and nominations in alternate training programs, as arranged for
promotions at all Regional Offices. The inspection report homogenous group of employees. Women employees are
with observations of Liaison Officer, are put up to the Chief also nominated to specialized training programs like the
Liaison Officer & General Manager (Personnel) for further Women Managers Training Programme. Pre-promotional
directions and sent back to the respective Regional Offices training had been imparted to all eligible SC/ST/OBC
with necessary advices. Based on the inspection report, employees of all cadres. Pre-recruitment training had been
action is taken by the concerned Regional Offices in co- imparted to all SC/ST/OBC applicants. Based on our study
ordination with the Head Office to rectify shortcomings in of previous nominations, the system of Training Nominations
procedure, if any, observed by the Liaison Officer. have shifted from nomination-based to employees’ work
Special attention is given to complaints/grievances raised profile based, i.e., the employee is nominated for training
by SC/ST/OBC employees and they are resolved within relevant to his line of working. Every effort is made to limit the
shortest possible time-frame. training of an employee to two in a year, so that maximum
number of employees get the opportunity to be trained
Your Company is providing financial support on behalf
of Dr. B. R. Ambedkar Welfare Trust, to various SC/ST/ Apart from above, various Departments at HO conducted
OBC welfare activities. On the eve of Mahaparinirvan Day homogeneous training programmes to respective employees
i.e. December, 6th every year these welfare activities are based on their work profile. Marketing Dept, HO arranged
supported to observe the death anniversary of Dr. B.R. Training to the Operating Office Heads; Agency Dept, Rural
Ambedkar at Chaitya Bhumi, Dadar. Insurance and Claims HUB Departments, HO imparted
Training to Agents Managers and respective Dept- Officials.
28
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
29
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
The Company received an order from Competition party transactions are disclosed under Notes to Financial
Commission of India imposing a penalty of ` 25107 lakhs Statements for FY 2018.
in 2015-16. The Company contested against the order in Board approved policy on Related Party Transactions
Competition Appeal Tribunal and the Tribunal awarded has been hosted on the website of the Company and can
penalty of ` 20 lakhs as against ` 25107 lakhs of CCI order. be viewed at the below link: “https://www.newindia.co.in/
The penalty was paid in January 2017. CCI has appealed cms/755da005-5d81-4145-bfe3-43b8f82caecf/Related%20
against the order of the Tribunal at the Apex Court and the party%20Policy.pdf?guest=true”.
case has been admitted in the Apex Court in March 2017.
INSURANCE REGULATORY AND DEVELOPMENT
INDEPENDENT DIRECTORS AUTHORITY OF INDIA (IRDAI)
All Independent Directors have given declarations that The Company being a General Insurance Company, its
meet the criteria of independence as laid down under working and functions are governed by the regulations of
Section 149(6) of the Companies Act 2013, SEBI (Listing Insurance Regulatory and Development Authority of India.
Obligations & Disclosure Requirements) Regulations 2015 The Accounts of the Company are drawn up according to the
and ‘fit and proper’ declaration as laid down under Corporate stipulations prescribed in the IRDA (preparation of Financial
Governance guidelines of IRDAI. Statements and Auditor’s Report) Regulations 2002 and as
LISTING OF EQUITY SHARES amended from time to time.
During FY 2018, The New India Assurance Co. Ltd. FINANCIAL RATING
completed its Initial Public Offer (“IPO”) by way of Offer for AM Best Company has reaffirmed the Financial Strength
Sale up to 9,60,00,000 Equity Shares of face value of ` 5 Rating of A-(Excellent). The rating reflects the Company’s
each of the Company by the selling shareholder Government favorable investment results, strong solvency ratio and its
of India and Fresh Issue of 2,40,00,000 equity shares of face strong presence in domestic and overseas markets.
value of ` 5 each.
CRISIL has reaffirmed its ‘AAA/Stable’ rating of The New
The shares of the Company were listed on National Stock India Assurance Company Ltd. indicating that the Company
Exchange of India Limited (NSE) and BSE Limited (BSE) on has the highest degree of financial strength to honour its
November 13, 2017. policyholder’s obligations. The rating continues to reflect
BOARD EVALUATION the Company’s leadership position in the Indian General
Pursuant to the provisions of the Companies Act 2013 and Insurance industry, its healthy capitalization, sound asset
guidelines for insurance companies issued by Insurance quality and comfortable liquidity.
Regulatory and Development Authority of India (IRDAI), the FOREIGN EXCHANGE EARNING & OUTGO AND OTHER
Board has carried out an annual performance evaluation INFORMATION
of its own performance. The Evaluation has been carried- The particulars of Foreign Exchange earnings/outgo as
out as per the criteria approved by the Nomination and required by the Companies Act under Section 217(1)(e) is
Remuneration Committee. given below :
AUDITORS REPORT Earnings : ` 574.28 crores (p.year ` 369.68 crores)
The replies to the qualification made by the Statutory Auditors Outgo :` 648.15 crores (p.year ` 582.51 crores)
in their report is attached as Annexure to the Directors
Report. The earnings included all receipts denominated in foreign
currencies in respect of premium, recovery of claims, outward
SECRETARIAL AUDITORS commission and investment earnings. The outgo comprised
Pursuant to provisions of Section 204 of the Companies Act all payments in foreign currency in respect of outward
2013 and the Companies (Appointment and Remuneration premium, claims on reinsurance accepted, commission and
of Managerial Personnel) Rules 2014, the Company had expenses of management.
appointed S.N.Ananthasubramanian, Practising Company Expenses on (a) Entertainment (b) Foreign tours
Secretary to conduct Secretarial Audit Report is annexed and (c) Publicity and Advertisement amounted to
herewith as Annexure. There are no qualifications, ` 1,04,40,855 (P.Y.1,11,69,220); ` 1,74,63,104 (P.Y.
reservation, adverse remark or disclaimer made by the ` 2,37,85,462) and ` 63,09,71,503 (P.Y. ` 60,45,07,128)
auditor in the report save and except disclaimer made by respectively.
them in discharge of their professional obligation.
CONSOLIDATED FINANCIAL STATEMENTS
INTERNAL FINANCIAL CONTROL AND ITS ADEQUACY
Provisions regarding Financial Statements are laid down
The Board has adopted policies & procedures for ensuring under Section 129 of the new Companies Act 2013. As
the orderly & efficient conduct of its business, including per the provision of Section 129 (2) of the said Act, at
adherence to the Company’s policies, the safeguarding every Annual General Meeting of a company, the Board
of its assets, the prevention & detection of fraud, ever of Directors of the Company shall lay before such meeting
reporting mechanisms, the accuracy and completeness of financial statements for the financial year. Section 129(3)
the accounting records and the timely preparation of reliable of the Companies Act 2013 provides that where a company
financial disclosures. has one or more subsidiaries, it shall, in addition to financial
RELATED PARTY TRANSACTIONS statements provided under sub-section (2) of Section 129,
Your Company undertakes transactions with related parties prepare a consolidated financial statements of the company
in the ordinary course of business. The details of related and of the subsidiaries in the same form and manner as that
30
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
of its own which shall also be laid before the Annual General since the date of last directors’ report, i.e., 30th April 2017:
Meeting of the company along with the laying of its financial • Cessation of Ms T.L. Alamelu as Director w.e.f. 31st
statements under Sub Section (2) of Section 129. May 2017
As per the above section, the Company is required to prepare • Cessation of Mr. Arun Tiwari as Director w.e.f. 30th
financial statements as above. June 2017.
CORPORATE GOVERNANCE • Appointment of Mr. Anil Kumar as Whole Time Director
Your Company is fully committed to follow sound corporate w.e.f. 20th June 2017.
governance practices. The Company’s Board is constituted • Appointment of Mr. P. Ramana Murthy and Mr. Neelam
in compliance with CA 2013, in accordance with SEBI (Listing Damodharan as Ex-Officio Directors on the Board
Obligations & Disclosure Requirements) Regulations 2015 w.e.f. 14th August 2017.
and IRDAI Corporate Governance guidelines 2015. The
Board comprises of Corporate governance refers to the set • Appointment of Ms Papia Sengupta as Ex-Officion
of systems, principles and processes by which a company Director on the Board w.e.f.. 27th September 2017.
is governed. They provide the guidelines as to how the • Appointment of Mr. S.K. Banerjee, Mr. S.K. Chanana
company can be directed or controlled such that it can fulfill and Mr. Kuldip Singh as Non Official Directors w.e.f.
its goals and objectives in a manner that adds to the value 29th September 2017.
of the company and is also beneficial for all stakeholders
in the long term. Stakeholders in this case would include • Cessation of Mr. Mohd. Mustafa as Director w.e.f. 3rd
everyone ranging from the board of directors, management, October 2017.
shareholders to customers, employees and society. The • Appointment of Mr. Lok Ranjan as Government
management of the company hence assumes the role of a Nominee Director w.e.f. 3rd October 2017.
trustee for all others. • Cessation of Mr. Lok Ranjan as Government Nominee
The Board meets at least once a quarter to review the Director w.e.f. 24th May 2018.
quarterly, financial, and operational and investment • Appointment of Mr. Mohd. Zafir Alam as Director w.e.f.
performance of the Company. The company’s philosophy 30th January 2018.
on corporate Governance lays strong emphasis on
transparency, accountability and integrity. Corporate • Appointment of Mr. Debasish Panda as Government
governance is concerned with the establishment of a system Nominee Director w.e.f. 24th May 2018
whereby the Directors are entrusted with responsibilities and The composition of the Board of Directors as on 31.03.2018:
duties in relation to the directions of corporate affairs. It is
concerned with accountability of who are managing it. It is (i) Mr. G. Srinivasan, Chairman-cum-Managing Director
concerned with morals, ethics, values, parameters, conduct (ii) Mr. Lok Ranjan, Government Nominee Director
and behavior of the company and its management. (iii) Mr. Hemant G. Rokade, Whole Time Director
The Board functions either as an entity per se, or through (iv) Mr. Neelam Damodaran, Non Executive and
various committees constituted to oversee specific Independent Director
operational areas. There is an appropriate mix of Executive,
Non-Executive and Independent Directors to maintain the (v) Mr. P Ramana Murthy, Director
independence of the Board. None of the Directors are related (vi) Ms. Papia Sengupta, Director
to any other Directors or employees of the Company.
(vii) Mr. S. Chanana, Director
Mr. Sharad S. Ramnarayanan Appointed Actuary of the
Company is a permanent invitee to the Board meeting. (viii) Mr. Kuldip Singh, Director
31
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
DETAILS OF DIRECTORS AS ON MARCH 31 2018 AND ON THE DATE OF 99th ANNUAL GENERAL MEETING:
32
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
33
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
uses / application of funds raised through an issue 22. Carry out any other function as is mentioned in the
(public issue, rights issue, preferential issue, etc.), the terms of reference of the Audit Committee and any
statement of funds utilized for purposes other than other terms of reference as may be decided by the
those stated in the offer document / prospectus / notice board of directors of the Company or specified/
and the report submitted by the monitoring agency provided under the Companies Act, 2013 or by the
monitoring the utilization of proceeds of a public or SEBI Listing Regulations or by any other regulatory
rights issue (if applicable), and making appropriate authority.
recommendations to the Board to take up steps in this 23. Management discussion and analysis of financial
matter; condition and results of operations;
8. Reviewing and monitoring the auditor’s independence 24. Statement of significant related party transactions
and performance, and effectiveness of audit process; (as defined by the Audit Committee), submitted by
9. Approval of any subsequent modification of transactions management;
of the company with related parties; Explanation: The 25. Management letters / letters of internal control
term "related party transactions" shall have the same weaknesses issued by the statutory auditors;
meaning as provided in Clause2(zc) of the SEBI
(Listing Obligations And Disclosure Requirements) 26. Internal audit reports relating to internal control
Regulations, 2015 (hereinafter referred to as “Listing weaknesses;
Regulations) and/or the Accounting Standards. 27. The appointment, removal and terms of remuneration
10. Scrutiny of inter-corporate loans and investments; of the Chief internal auditor shall be subject to review
by the Audit Committee.
11. Valuation of undertakings or assets of the company,
wherever it is necessary; Attendance of Members of the Audit Committee:
12. Evaluation of internal financial controls and risk Director No. of
management systems; Meetings attended/
13. Reviewing, with the management, performance held
of statutory and internal auditors, adequacy of the Mr. Mohd. Mustafa 3/9
internal control systems; Mr. Arun Tiwari 1/9
14. Reviewing the adequacy of internal audit function, Mr. Hemant G. Rokade 8/9
if any, including the structure of the internal audit Ms. T.L.Alamelu 1/9
department, staffing and seniority of the official Mr. Anil Kumar 4/9
heading the department, reporting structure coverage
Mr. N. Damodharan 3/9
and frequency of internal audit;
Mr. P. R. Murthy 3/9
15. Discussion with internal auditors of any significant
Mr. Lok Ranjan 1/9
findings and follow up there on;
Mr. S.K. Banerjee 2/9
16. Reviewing the findings of any internal investigations
Mr. Kuldip Singh 1/9
by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal INVESTMENT COMMITTEE:
control systems of a material nature and reporting the
matter to the Board; Terms of Reference:
17. Discussion with statutory auditors before the audit 1. Overseeing the implementation of the investment
commences, about the nature and scope of audit as policy approved by our Board from time to time;
well as post-audit discussion to ascertain any area of 2. Reviewing the investment policy;
concern;
3. Periodical updating to our Board with regard to
18. Looking into the reasons for substantial defaults investment activities of the Company;
in the payment to depositors, debenture holders,
shareholders (in case of non-payment of declared 4. Reviewing the investment strategies adopted from
dividends) and creditors; time to time and giving suitable directions as needed
in the best interest of the Company;
19. Reviewing the functioning of the whistle blower
mechanism and the chief risk officer of the Company; 5. Reviewing the broker policy and making suitable
amendments from time to time;
20. Approval of appointment of CFO (i.e., the whole-
time Finance Director or any other person heading 6. Reviewing counter party/intermediary exposure
the finance function or discharging that function) norms;
after assessing the qualifications, experience and 7. Supervising the asset allocation strategy to ensure
background, etc. of the candidate; financial liquidity, security and diversification
21. Oversee the vigil mechanism established by the through liquidity contingency plan and asset liability
Company and the chairman of audit committee shall management policy; and
directly hear grievances of victimization of employees 8. Overseeing the assessment, measurement and
and directors, who use vigil mechanism to report accounting for other than temporary impairment in
genuine concerns; and investments in accordance with the policy adopted by
the Company.
34
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Attendance of the Members of the Investment Committee: 13. Monitor and review regular updates on business
continuity.
Director No. of
Meetings attended/ 14. Formulation of a Fraud monitoring policy and
held framework for approval by the Board.
Mr. G. Srinivasan 5/5 15. Monitor implementation of Anti-fraud policy for effective
deterrence, prevention, detection and mitigation of
Mr. Arun Tiwari 1/5 frauds.
Mr. Hemant G. Rokade 5/5 16. Review compliance with the guidelines on Insurance
Ms. T.L.Alamelu 1/5 Fraud Monitoring Framework dt. 21st January 2013,
Mr. Anil Kumar 1/5 issued by the Authority.
Mr. P. R. Murthy 3/5 17. Any other similar or other functions as may be laid
down by Board from time to time.”
Ms. P. Sengupta 0/5
Attendance of Members of the Risk Management Committee:
Mr. S.K.Chanana 3/5
Ms S.N. Rajeswari 5/5 Director No. of
Meetings attended/
Mr. Sharad Ramnarayanan 5/5
held
Mr. S. Shankar 4/5 Mr. G. Srinivasan 4/4
Mr. S. Harinath 4/5 Mr. Hemant G. Rokade 2/4
Mr. Mahesh S. Joshi 1/5 Mr. Anil Kumar 2/4
Mr. N. Damodharan 1/4
RISK MANAGEMENT COMMITTEE:
Ms. P. Sengupta 2/4
Terms of Reference:
Mr. S.K.Chanana 3/4
1. To review and assess the risk management system Mr. Kuldip Singh 3/4
and policy of the Company from time to time and
recommend for amendment or modification thereof; Mr. S.K.Banerjee 3/4
As per IRDAI guidelines, Mr. Sharad Ramnarayanan
2. To frame and devise risk management plan and policy
Appointed Actuary and Mr. S. Shankar Chief Risk Officer
of the Company;
were present in all meetings of the Risk Management
3. To review and recommend potential risk involved in committee held during the year.
any new business plans and processes; and
POLICYHOLDERS PROTECTION COMMITTEE :
4. Establish effective Risk Management framework and
Terms of Reference :
recommend to the Board the Risk Management policy
and processes for the organization. 1. Putting in place proper procedures and effective
mechanism to address complaints and grievances of
5. Set the risk tolerance limits and assess the cost and
Policyholders including mis-selling by intermediaries;
benefits associated with risk exposure.
2. Ensuring compliance with the statutory requirements
6. Review the Company’s risk- -reward performance to
as laid down in the regulatory framework;
align with overall policy objectives.
3. Reviewing the mechanism at periodic intervals;
7. Discuss and consider best practices in risk
management in the market and advise the respective 4. Ensuring adequacy of "material information" to the
functions; policyholders to comply with the requirements laid
down by the authority both at the point of sale and
8. Assist the Board in effective operation of the risk
periodic intervals;
management system by performing specialized
analyses and quality reviews; 5. Reviewing the status of complaints at periodic
intervals;
9. Maintain an aggregated view on the risk profile of the
Company for all categories of risk including insurance 6. Providing the details of grievance at periodic intervals
risk, market risk, credit risk, liquidity risk, operational in such formats as may be prescribed by the authority;
risk, compliance risk, legal risk, reputation risk, etc. 7. Providing details of insurance ombudsman to the
10. Advise the Board with regard to risk management policyholders;
decisions in relation to strategic and operational 8. Monitoring of payments of dues to the policyholders
matters such as corporate strategy, mergers and and disclosure of unclaimed amount thereof;
acquisitions and related matters.
9. Review of regulatory reports to be submitted to various
11. Report to the Board, details on the risk exposures authorities;
and the actions taken to manage the exposures;
review, monitor and challenge where necessary, risks 10. To review the standard operating procedures for
undertaken by the Company treating the customer fairly including time-frames for
policy and claims servicing parameters and monitoring
12. Review the solvency position of the Company on a implementation thereof;
regular basis.
35
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
11. To review the framework for awards given by 3. Taking on record the appointment and removal of
Insurance Ombudsman/ Consumer Forums. Analyse directors, including independent directors, by the
the root cause of customer complaints, identify President of India, acting through respective ministries;
market conduct issues and advise the management 4. Taking on record the extension, if any, of the term of
appropriately about rectifying systemic issues, if any; the independent directors of our Company, as may be
12. To review all the awards given by Insurance directed by the President of India, acting through the
Ombudsman/ Consumer Forums remaining respective ministries;
unimplemented for more than three (3) months with 5. Taking on record the extension, if any, of the term of
reasons therefore and report the same to our Board the independent directors of our Company, as may be
for initiating remedial action, where necessary; directed by the President of India, acting through the
13. To review claim report including status of outstanding respective ministries;
claims with ageing of outstanding claims; and 6. Taking on record the various policies, if any,
14. To review repudiated claims with analysis of reasons promulgated by the Central Government including
15. Recommend a policy on customer education policy on diversity of board of the directors and criteria
for approval of the Board, and ensure proper for evaluation of performance of the directors;
implementation of such policy; 7. Framing suitable policies and systems to ensure that
16. Put in place systems to ensure that policyholders have there is no violation, by an employee of any applicable
access to redressal mechanisms and shall establish laws in India or overseas, including:
policies and procedures for the creation of a dedicated (a) The Securities and Exchange Board of India
unit to deal with customer complaints and resolve (Prohibition of Insider Trading) Regulations,
disputes expeditiously; 1992 or the Securities and Exchange Board
17. Status of settlement of other customer benefit payouts of India (Prohibition of Insider Trading)
like surrenders, loan, partial withdrawal requests etc.; Regulations, 2015 to the extent each is
and applicable; or
18. Review of unclaimed amounts of policyholders, as (b) The Securities and Exchange Board of India
required under the circulars and guidelines issued by (Prohibition of Fraudulent and Unfair Trade
the Authority. Practices relating to the Securities Market)
Regulations, 2003.
Attendance of Members of the Policyholders Protection
Committee : (c) Performing such other activities as may be
delegated by the Board of Directors and/
Director No. of or are statutorily prescribed under any law
Meetings attended/ to be attended to by the Nomination and
held Remuneration Committee.
Mr. G. Srinivasan 4/4 Attendance of Members of the Nomination &
Mr. Hemant G. Rokade 2/4 Remuneration Committee :
Mr. Anil Kumar 2/4
Director No. of
Mr. Kuldip Singh 3/4 Meetings attended
Mr. N. Damodharan 1/4
Mr. S.K. Chanana 2/2
Mr. S.K.Banerjee 3/4
Mr. Lok Ranjan 2/2
NOMINATION & REMUNERATION COMMITTEE : Mr. G. Srinivasan 1/2
Terms of Reference : Mr. P. Ramana Murthy 2/2
1. Recommend to the Board a policy relating to the
remuneration of the key managerial personnel and CORPORATE SOCIAL RESPONSIBILITY COMMITTEE :
other employees; Terms of Reference :
2. The Nomination and Remuneration Committee, while 1. To formulate and recommend to the Board, a CSR
formulating the above policy, should ensure that — policy which will indicate the activities to be undertaken
(a) relationship of remuneration to performance by the Company in accordance with Schedule VII of
is clear and meets appropriate performance the Companies Act, 2013;
benchmarks; and 2. To review and recommend the amount of expenditure
(b) remuneration to key managerial personnel and to be incurred on the aforementioned activities to be
senior management involves a balance between undertaken by the Company;
fixed and incentive pay reflecting short and long 3. To monitor the CSR policy of the Company from time
term performance objectives appropriate to the to time.
working of the Company and its goals.
36
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
37
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Chief of Internal Audit : Mr. R.P. Joshi No. of Complaints received : Nil
Company Secretary & No. of complaints disposed off : Nil
Chief Compliance Officer : Ms Jayashree Nair AUDITORS AND AUDIT REPORT
Chief Financial Officer : Ms S.N. Rajeswari Under 139 and Section 143of The Companies Act, 2013,
Disclosures : the Comptroller and Auditor General of India, appointed M/s.
1. During the year, there are no pecuniary relationships Devendra Kumar and Associates, M/s. Bafna and Associates
or transactions with the Non-Executive Directors. and M/s. NBS & Co. as the Central Statutory Auditors of
the Company for the year 2017-18. Branch auditors for the
2. Financial Statements accurately and fairly represent various Regional Offices, Divisional Offices and claims hubs
the financial condition of the Company. in India and for the foreign branch/agency offices were also
3. There has not been any significant change in the appointed for the year. The Board of Directors expresses
accounting policies of the Company during the year. its gratitude for the directions and guidance given by the
statutory auditors in drawing up the Company's annual
4. The Company has Business Risk Management results.
process which is periodically reviewed by the Board
of Directors/Risk Management Committee to EXTRACT OF ANNUAL RETURN :
determine its effectiveness.
Pursuant to Section 92(3) of the Companies Act 2013
5. The Board of Directors and the Audit Committee and Rule 12(1) of the Companies (Management and
periodically reviewed the status of compliances in Administration) Rules 2014, the extract of the Annual Return
respect of applicable Laws and report thereon by the is annexed as Annexure
Internal Audit team.
RENEWAL OF LICENCE BY THE INSURANCE
6. Whistle Blower Policy – The Company has a Whistle
REGULATORY AND DEVELOPMENT AUTHORITY OF
Blower Policy and the same has been hosted on the
INDIA (IRDAI)
website.
Section 3 A has been amended by the Insurance Laws
7. The Global solvency Margin of the company for the (Amendment) Act 2015 to remove the process of annual
year 2017-18 is 2.58 times. renewal of the certificate of Registration issued to insurers
DISCLOSURE UNDER THE SEXUAL HARASSMENT under Section 3 of the Insurance Act 1938. The insurers
OF WOMEN AT WORKPLACE (PREVENTION, however, shall continue to pay such annual fee as may
PROHIBITIONAND REDRESSAL ACT 2013) be prescribed by the Regulations. Thus w.e.f. 26.12.2014
insurers shall not be issued the Renewal Certificate of
The Company has formulated an Anti Sexual Harassment Registration (IRDA/R6) on an annual basis.
Policy in line with the requirements of The Sexual Harassment
of Women at the workplace (Prevention, Prohibition Accordingly, the Certificate of Registration of the Insurers
&Redressal) Act 2013 Internal complaints committee (ICC) renewed in 2016 and which expired on 31st March 2018 shall
has been set up to redress complaints received regarding continue to be in force from 1st April 2018, subject to the
sexual harassment. All employees (permanent, contractual, provisions of Section 3A read with Section 3 of the Insurance
temporary, trainees) are covered under this policy. Act 1938.The Certificate of License has been renewed by
IRDA w.e.f. 01.04.2018.
The following is the summary of Sexual harassment
complaints received and disposed off during the year 2017- The Company has paid the renewal fees as prescribed by
18 : the above Regulations.
SUBSIDIARY COMPANIES
The Company has 3 Subsidiary Companies. The names and details of New India shareholding are as under:
S.No. Name of the subsidiary Total paid-up capital New India’s % holding of New
(no. of shares) shareholding (no. of India Assurance
shares)
The New India Assurance Company
1. 17,418,946 14,612,444 83.89
(Trinidad & Tobago) Limited
The New India Assurance Company
2. 250,000 250,000 100.00
(Sierra Leone) Limited
3. Prestige Assurance Plc. Nigeria 5,370,434,000 3,732,491,383 69.50
38
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
The performance of subsidiaries for the year ended 31st December 2017 is summarized below:
(Figures in ‘000)
Name of the Curr U/w Profit/Loss Investment Income Other Income Profit before tax Dividend
subsidiary ency
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
NIA (T&T) Ltd. $ (21,144) 13,068 6672 5,245 - 1,076 (14472) 19,389 3484
NIA (S.Leone) Ltd. Le (18607) (41,758) 12680 21,553 - - (5927) (20,205) - NIL
Prestige Assurance N (3,48,538) (1,81,320) 10,23,979 3,85,955 22548 1,35,759 6,97,989 3,40,394 NIL
• All the subsidiary companies follow the calendar year for finalisation of accounts. Therefore, performance has been given for
the year ended 31st December 2017.
• The New India Assurance Company (Sierra Leone) Limited has closed down business operations with effect from 1st January
2003 due to the civil disturbances prevailing in that country. The Company has not declared any dividend for the year 2017-18.
• In compliance with the provisions of the Companies Act 2013, the report and audited accounts of the subsidiary companies are
appended hereto.
The details of the Annual General Meetings held in the previous three financial years are given below :
Annual General Meeting Day, Date Time Venue
Ninety Eighth AGM Wednesday, August 2nd 2017 11.30 a.m. New India Assurance Building, 87, M.G.
Road, Fort, Mumbai 400 001
Ninety Seventh AGM Thursday, August 25th 2016 11.30 a.m. New India Assurance Building, 87, M.G.
Road, Fort, Mumbai 400 001
Ninety Sixth AGM Thursday, July 9th 2017 3.00 p.m. New India Assurance Building, 87, M.G.
Road, Fort, Mumbai 400 001
The details of the Special Resolutions passed in the Annual General Meetings held in the previous three financial years are given
below :
MEANS OF COMMUNICATION
The Company’s website (www.newindia.co.in) allows access to all the stakeholders of the Company to access information at their
convenience. It provides comprehensive information of the Company.
The financial and other information and the various compliances as required/prescribed under the Listing Regulations are filed
electronically with BSE and NSE. The financial results, official news releases, analyst call transcripts and presentations are also
available on the Company’s website.
39
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
40
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
INFORMATION ON SHAREHOLDING :
41
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
42
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
I confirm that all the Directors and members of the senior management have affirmed compliance with Code of Conduct for the year ended
March 31 2018.
G. Srinivasan
Chairman cum Managing Director
Place : Mumbai
Date : May 11, 2018
I, Jayashree Nair hereby certify that the company has complied with the Corporate Governance guidelines for Insurance Companies as
amended from time to time and nothing has been concealed or suppressed.
Jayashree Nair
Company Secretary
ACS 28252
Place : Mumbai
Dated : May 11, 2018
43
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place : Mumbai
Date : May 11, 2018
44
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
This is to certify that the financial statements of the company for the year ended 31st March 2018 placed before the board of directors for
adoption and approval do not contain any false or misleading statements or figures and do not omit any material fact which may make the
statements or figures contained therein misleading.
S. N. Rajeswari G. Srinivasan
Chief Financial Officer Chairman cum Managing Director
Place : Mumbai
Dated : May 11, 2018
45
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
ANNEXURE A
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31sT MARCH, 2018
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
46
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
We have also examined compliance with the applicable clauses I We further report that based on review of compliance
regulations of the following: mechanism established by the Company and on the basis of
Secretarial Standards with regard to Meeting of the Board of Compliance Certificate(s) issued by the Company Secretary
Directors (SS-1) and General Meetings (SS-2) issued by The and taken on record by the Board of Directors at their
Institute of Company Secretaries of India; meeting(s), we are of the opinion that there are adequate
systems and processes in place in the Company which is
The Listing Agreements entered into by the Company with commensurate with its size and operations, to monitor and
BSE Limited and National Stock Exchange of India Limited ensure compliance with applicable laws, rules, regulations
and SEBI (Listing Obligations and Disclosure Requirements) and guidelines.
Regulations, 2015- Applicable with effect from 13th
November, 2017. We further report that during the audit period, following events were
having a bearing on the Company's affairs in pursuance of the
During the period under review, the Company has complied with the above referred laws, rules, regulations, guidelines, standards, etc.:
provisions of the Act, Rules, Regulations, Guidelines, Standards,
etc. mentioned above subject to the following observations: • Sub-division of 30 Crore Equity Shares of the Company
having face value of RS.10 each aggregating to Rs. 300
a) The constitution of Investment Committee was not in crore into 60 Crore Equity Shares of RS.5 each.
conformity with Clause 7.2 of Guidelines for Corporate
Governance for Insurers in India dated 18th May, 2016 • Consequential amendments in MOA and AOA of the
till 29th August, 2017. Company.
b) The Policyholders Protection Committee was not • Issue and allotment of 40 Crore fully paid-up bonus equity
headed by a Non-Executive Director till 21st July, 2017 shares of Rs. 5/- each by capitalizing the reserves of the
as required under Clause 7.4 of Guidelines for Corporate Company to the members in the ratio of one equity share for
Governance for Insurers in India dated 18th May, 2016. one equity share held by them as on the Record Date.
Subsequently the constitution of both the above • The Company made Initial public offer of 12,00,00,000
Committees were in conformity with the Guidelines for equity shares consisting of fresh issue of 2,40,00,000 equity
Corporate Governance. shares and an Offer For Sale of 9,60,00,000 Equity Shares
by the President of India, acting through Ministry of Finance,
We further report that Government of India. The said Equity Shares were listed on
• the Board of Directors of the Company is duly constituted National Stock Exchange of India Limited and SSE Limited
with Executive, Non-Executive and a Woman Director. The with effect from 13th November, 2017.
changes in the composition of the Board of Directors that
took place during the period under review were carried out in
compliance with the provisions of the Act. FOR S. N. ANANTHASUBRAMANIAN & CO.
Company Secretaries
• adequate notice was given to all Directors about the Firm Registration No. P1991MH040400
schedule of the Board / Committee Meetings, agenda and
detailed notes on agenda were sent at least seven days in
advance before the meeting. The Company has obtained S. N. Ananthasubramanian
consents from the Directors for convening meetings of Partner
Board / Committee for which notice and / or agenda were not M.No.: 4206
sent seven days in advance. Any additional information(s) / C.P. No.: 1774
clarification(s) sought by the Directors on the agenda items
before the meetings were provided to them.
Date: 26th April, 2018
• all decisions of the Board and Committee thereof were
Place: Thane
carried with requisite majority.
47
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
ANNEXURE B
The New India Assurance Co. Ltd – Annual CSR Report 2017-18
THE ANNUAL REPORT ON CSR ACTIVITIES TO BE INCLUDED IN THE BOARD’S REPORT 2017-18
1. Brief Outline of CSR Policy :
Adoption of villages, eradication of extreme hunger, malnutrition and poverty, promotion of education, promoting gender equality and
empowering women, reducing child mortality and improving maternal health, combating human immunodeficiency virus, acquired
immune deficiency syndrome, malaria and other diseases, ensuring environmental sustainability, social business project, contribution
to Prime Ministers National Relief Fund or other fund set up by the Central or the State Governments for socio-economic development
and relief and funds for the welfare of the Scheduled Caste, Scheduled Tribes, other backward classes, minorities and women,
Promotion of Road Safety.
2. Composition of CSR Committee
The CSR Committee of the Board was constituted vide 1534 Board Meeting dated 23rd September 2014. The first CSR Committee
Meeting was held on 29th October 2014. During the year under review, the committee met thrice.
1 2 3 4 5 6 7 8
NO CSR Project Sector in which the Projects/ Amount Amount Cumulative Amount Spent Direct
project is covered Programs (1) Outlay(Budget) spent on the expenditure or Implementing
Local Area or Project or Project or up to the Agency
other (2) State/ Program wise Programs reporting
District (1) Direct period
Expenditure
on
projects or
programs(2)
Overheads in
2017-2018
1 Ramakrishna Installation of 18 T. Nagar, 1133989 1133989 1133989 IMPLEMENTING
Mission Ashram KW ON- GRID Chennai AGENCY
Roof Top Mounted
Solar PV System
48
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
2 Social Uplift- Free early Kalyan, Mumbai 400000 100000 100000 IMPLEMENTING
ment and De- detection of cancer AGENCY
velopment for for women.
Health Action
(SAUDHA)
49
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
50
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
51
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
52
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
6. In case the Company has failed to spend 2% of the average net profit of the last three financial years thereof the company
shall provide the reasons for not spending in its Board’s Report:
The Company has actually spent ` 13.40 crore out of the total budget of ` 22.81 crore allocated project wise as given above. Many
Projects which the company is spending under the CSR Budget has commenced this year i.e. 2017-18 but will get completed only in
2018-19. The difference is due to many projects being in various process of completion.
In years to come the Company proposes to ensure that further efforts are made to meet the targeted CSR spends.
The implementation and Monitoring of CSR Policy is in compliance with the CSR objectives and Policy of the Company. The Company
has undertaken and implemented the projects with careful consideration and these projects are aligned with the vision in our CSR
Policy. In line with the requirements of the Companies Act 2013, monitoring mechanisms (involving local Regional Offices as far as
possible) have also been instituted to ensure the projects go on smoothly as planned.
53
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
ANNEXURE C
FORM NO. MGT 9
Extract of Annual Return as on financial year ended March 31 2018.
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company
(Management & Administration) Rules, 2014.
S. No. Name and Description of NIC Code of the % to total turnover of the
main products / services Product/service company
1 Non-Life Insurance 6512 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES :
SN Name & Address of the CIN/GLN Holding/ %of shares Applicable Section
Company Subsidiary/ held
Associate
1 New India Subsidiary 83.89% Section 2(87) of Companies Act
Assurance(Trinidad & Tobago) 2013
2 Prestige Assurance Plc Subsidiary 69.50% Section 2(87) of Companies Act
2013
3 The New India Assurance Co. Subsidiary 100% Section 2(87) of Companies Act
Ltd. (Sierra Leone) Ltd. 2013
4 Health Insurance TPA of India Associate 23.75% Section 2(6) of Companies Act
Limited 2013
5 India International Insurance Associate 20% Section 2(6) of Companies Act
Pte Ltd., Singapore 2013
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
The New India Assurance Company Limited
Sr Category of Shareholders Shareholding at the beginning of the year - 2017 Shareholding at the end of the year - 2018 %
No Change
during
the year
Demat Physical Total % of Demat Physical Total % of
Total Total
Shares Shares
(A) Shareholding of Promoter and Promoter 0 2000000000 2000000000 100
Group
[1] Indian
(a) Individuals / Hindu Undivided Family 0 0 0 '0.0000 703999856 0 703999856 '85.4369 '85.4369
54
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
(ii) Individual shareholders holding nominal 0 0 0 '0.0000 368501 0 368501 '0.0447 '0.0447
share capital in excess of Rs. 1 lakh
55
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
56
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
57
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
SN For each of the Directors Shareholding at the beginning of Cumulative Shareholding during
and KMP the year theyear
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs. 10 to 2
Shareholding during the year specifying the shares of face value of Rs. 5. (Date of split 04.08.2017)
reasons for increase /decrease (e.g. allotment /
transfer / bonus/ sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs. 5 for
each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. Hemant G. Rokade (Director and General Manager)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the
year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs.
Shareholding during the year specifying the reasons 10 to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Ms S.N. Rajeswari (GM, FA & CFO)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs. 10 to
Shareholding during the year specifying the reasons 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. Anil Kumar (Director and General Manager)
58
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs.
Shareholding during the year specifying the reasons 10 to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. C Narambunathan (Director and General Manager)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs.
Shareholding during the year specifying the reasons 10 to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. SidhartSaratchandra Pradhan (General Manager)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs. 10
Shareholding during the year specifying the reasons to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. Hemant G. Rokade (Director and General Manager)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs. 10
Shareholding during the year specifying the reasons to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
59
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs.
Shareholding during the year specifying the reasons 10 to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. Zafir Alam(General Manager)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs.
Shareholding during the year specifying the reasons 10 to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. Renjit Gangadharan (General Manager)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs.
Shareholding during the year specifying the reasons 10 to 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
3 At the end of the year 16 0.000002 16 0.000002
Shareholding of Mr. Rakesh Kumar (General Manager)
SN Shareholding of each Directors and each Key Shareholding at the Cumulative Shareholding
Managerial Personnel beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 At the beginning of the year 4 0.000002 4 0.000002
2 Date wise Increase / Decrease in Promoters Split of the Shares in the ratio of 1 share of face value of Rs. 10 to
Shareholding during the year specifying the reasons 2 shares of face value of Rs. 5. (Date of split 04.08.2017)
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.): Bonus issue of shares in the ratio of 1 share of face value of Rs.
5 for each share of face value of Rs. 5. (Date of split 04.08.2017)
60
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
V) INDEBTEDNESS –
The Company has no indebtedness with respect to Secured or Unsecured Loans or Deposits during the Financial Year 2015-16
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
61
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
(a) Salary as
per
provisions
contained in
section 17(1)
of the
Income-tax
Act, 1961
(b) Value of 25142 451590 229938 765859 408409 180650 26540 230427 2318555
Perquisites
u/s 17(2)
Income-tax
Act, 1961
(c) Profits in
Lieu of salary
under section
17(3)
Income-tax
Act, 1961
2 Stock Option
3 Sweat Equity
62
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
4 Commission
- as % of profit
others,
specify…
5 Others, please
specify
Total 1547686 2415051 2280111 5754569 2107748 1946866 2025350 2285207 20362588
G. SRINIVASAN
CHAIRMAN CUM MANAGING DIRECTOR
DIN NO. 01876234
Place : Mumbai
Date : 11th May 2018
63
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
ANNEXURE D
64
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
The reconciliation of Reinsurance balances is in progress and the corresponding impact on these balances denominated in
foreign currency is also being taken up.
As the reconciliation is in progress in all the above matters, the impact cannot be estimated.
(iii) Auditors' Comments on (i) or (ii) above:
Adequate disclosures have been made in the Notes forming part of accounts referred to in the qualification. Since the impact
arising out of the above disclosure in the Notes, is not ascertained, the overall impact on the financial statement cannot be
commented upon.
IV. Audit Qualification (each audit qualification separately): STANDALONE
a. Details of Audit Qualification:
Balances due to/from persons or bodies carrying on Insurance Business including reinsurers are subject to confirmations
and reconciliation, the ageing of these balances and records relating to old balances are not available in the records of the
Company. Balances of inter office accounts, control accounts, few Bank accounts including those relating to Pradhan Mantri
Fasal Bima Yojana, certain loans and other accounts at certain offices are also pending for reconciliation/confirmation and
consequential adjustments, effect of which, if any, is not ascertainable and cannot be commented upon. The impact of the
above, on year end restatement of these balances recorded in foreign currency as required under Accounting Standard 11
issued under Sec 133 of the Companies Act, 2013 could not be ascertained.
(i) Management's estimation on the impact of audit qualification: Not quantified
(ii ) If management is unable to estimate the impact, reasons for the same:
During the year 2017-18 we have made further progress in the reconciliation of co-insurance balances and the balances
have been further brought down and the exercise would be continued in 2018-19. Reinsurance balances are running
balances for which confirmations are obtained on regular basis and not as a year-end exercise. Company is making
efforts in identifying the amounts received from re-insurers so that it is appropriated with the receivables and proper
ageing of the balances can be generated.
Interoffice accounts reconciliation is being carried on a continuous basis and in our opinion there is no significant impact
on revenue. All Bank accounts have been reconciled and few open items pending are also being attended to. Control
accounts are being reconciled on a continuous basis.
The reconciliation of Reinsurance balances is in progress and the corresponding impact on these balances denominated
in foreign currency is also being taken up.
As the reconciliation is in progress in all the above matters, the impact cannot be estimated.
(iii) Auditors' Comments on (i) or (ii) above:
Adequate disclosures have been made in the Notes forming part of accounts referred to in the qualification. Since the
impact arising out of the above disclosure in the Notes, is not ascertained, the overall impact on the financial statement
cannot be commented upon.
65
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Management Report
1. We confirm that the registration granted by the Insurance 9. (a) Ageing of claims indicating the trends in average
Regulatory & Development Authority is valid during the claims settlement time during the preceding five
year. The same is renewed for the year 2018-19. years is furnished below in the format required:
2. We confirm that all known and undisputed dues payable Age-wise Summary of Claims settled
to the statutory authorities have been duly paid. during the year
3. We confirm that the shareholding pattern and transfer
of shares during the year are in accordance with the
2013-14, 2014-15, 2015-16, 2016-17 &
statutory or regulatory requirements. 2017-18
4. We confirm that the funds of the holders of policies issued Age band No. of Claims Amount
in India have not been directly or indirectly invested (in ` Lakhs)
outside India. 30 DAYS 3044097 400564.48
5. We confirm that the required solvency margins have been 30 DAYS to 6 MONTHS 1244413 547773.87
maintained. 6 MONTHS TO 1 YEAR 120396 154287.65
6. We certify that the values of all the assets have been 1 YEAR TO 5 YEARS 78599 284482.58
reviewed on the date of the Balance Sheet and to the
MORE THAN 5 YEARS 21281 64483.95
best of our belief the assets set forth in the Balance Sheet
are shown in the aggregate amounts not exceeding their GRAND TOTAL 4508786 1451592.52
realizable or market value under the several headings- (Segment Wise Details attached)
“Loans”, “Investments”, “Agents balances”, “Outstanding
Premiums”, “Interest, Dividends and Rents outstanding”, (b) Details of payment to individuals, firms,
“Interest, Dividends and Rents accruing but not due”, companies and organizations in which
“Amounts due from other persons or Bodies carrying on
insurance business”, “Sundry Debtors”, “Bills Receivable”,
directors are interested is required to be
“Cash” and several items specified under “Other Account”. disclosed as per Management Report to be
7. The overall risk exposure for the risks accepted by us is furnished in the following format:
limited to ` 200 crores PML per risk except in respect of
certain risks in which cases there are exposures of ` 500 No. Name Entity in Interested Amount of
Crores PML per policy. The same has been approved which he is as payments during
by the Board. We have made adequate reinsurance interested the financial year
arrangements to mitigate the losses arising out of any (` In lakhs)
major claims. NIL NIL NIL
8. We have overseas operations in 28 countries. The foreign 10. We certify that the investments have been valued as per
branches have their own reinsurance arrangements the Accounting Regulations of the Insurance Regulatory
to protect their exposure. Over and above there is an and Development Authority and shown in the balance
excess of loss protection available, which takes care of sheet.
the exposure risk of the Company as a whole, including
11. All investment assets are reviewed periodically and assets
domestic and foreign branches. are classified into performing and non-performing based
The foreign branches/agencies generate enough revenue on IRDA norms.
in local currencies to meet their liabilities arising out of 12. It is hereby confirmed:
their operations. Hence there is no major currency risk in
the countries we operate. (i) That in preparation of financial statements, the
applicable accounting standards, principles and
As regards the country risk, by and large all the countries policies have been followed, except amortisation
in which we operate are politically stable. We also have of additional actuarial liability for Gratuity and
well defined acceptance limits for foreign operations, Pension as per I.R.D.A. circular no. IRDA/F&A/CIR/
which limits our exposure in these countries.
66
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
ACT/077/04/2016 dated 18.04.2016 and IRDA/F&A/ accounting records in accordance with the
LR/001/2016/6 dated 19.4.2016 applicable provisions of the Insurance Act 1938 and
Companies Act 2013 for safeguarding the assets
(ii) That the management has adopted accounting
of the Company and for preventing and detecting
policies and applied them consistently and made
fraud and other irregularities.
judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the (iv) That the management has prepared the financial
state of affairs of the Company at the end of the statements on a going concern basis.
financial year and of the operating loss of the
Company for the year except as mentioned in Para (v) That the management has ensured that the
12 (i) above. internal audit system commensurate with the size
and nature of business exists and is operating
(iii) That the management has taken proper and effectively.
sufficient care for the maintenance of adequate
Place: Mumbai
Date: May 11, 2018
67
Agewise Deptt wise Summary of Claims Settlement for the Period 2013-14
68
30 DAYS 30 DAYS TO 6 6 MONTHS TO 1 1 YEAR TO 5 YEARS MORE THAN 5 Grand Total
MONTHS YEAR YEARS
Row Labels
No. of Amount in No. of Amount in No. of Amount in No. of Amount in No. of Amount No. of Amount in
Claims Lakhs Claims Lakhs Claims Lakhs Claims Lakhs Claims in Lakhs Claims Lakhs
11 Fire 919 6524.21 3108 13018.82 1753 14714.76 2544 52593.72 175 923.63 8499 87775.14
21 Marine Cargo 7781 4106.04 8839 6425.78 3155 3747.80 7590 4760.16 52 187.12 27417 19226.90
22 Marine Hull 24 406.76 66 73.35 41 164.46 111 1166.26 30 3580.56 272 5391.39
31 Motor OD 153692 25023.11 311400 73983.65 46433 18672.86 15041 8349.55 403 337.33 526969 126366.51
32 Motor TP 6934 5735.59 6563 5813.07 5226 5861.84 17499 28035.21 17365 28418.81 53587 73864.53
33 Decline Risk Pool 243 31.29 348 159.35 194 225.04 26 34.78 3 1.59 814 452.05
THE NEW INDIA ASSURANCE CO. LTD.
34 Health Insurance 559850 137055.49 429881 137156.71 20280 7805.49 49727 117.26 174 76.20 1059912 282211.14
36 Liability 759 799.99 1096 1291.96 586 917.93 727 1180.37 91 101.19 3259 4291.46
38 Motor TP Non 2181 649.84 4093 2562.87 2143 3367.31 421 1005.15 0 0.00 8838 7585.17
Pool
39 TP Pool 3528 2633.06 4659 4451.07 6483 8832.25 26974 58303.94 1183 2750.83 42827 76971.15
42 Personal Accident 3514 2533.15 6953 4380.81 1512 1749.10 1400 561.96 45 40.96 13424 9265.97
43 Aviation 2 17.56 11 89.11 10 40.19 97 1069.66 45 -110.95 165 1105.57
44 Engineering 2448 1387.37 7824 4809.06 2339 2560.80 2367 6442.61 69 59.27 15047 15259.11
46 Traditional 7333 2152.65 6335 1761.55 1331 1953.47 1676 1756.73 41 -8.20 16716 7616.20
Business -
Miscellaneous
47 Rural Insurance - 15196 3220.38 21393 5388.67 6321 1617.89 4806 430.13 166 170.13 47882 10827.20
Miscellaneous
48 Misc - Non 2232 636.25 4272 1424.02 1296 1034.18 757 659.51 92 62.33 8649 3816.28
Traditional Business
50 Credit Shield 0 0.00 19 349.28 17 792.37 34 268.45 3 -5.36 73 1404.74
Insurance
Grand Total 766636 192912.73 816860 263139.14 99120 74057.72 131797 166735.47 19937 36585.46 1834350 733430.51
Annual Report 2017-18
Agewise Deptt wise Summary of Claims Settlement for the Period 2014-15
30 DAYS 30 DAYS TO 6 6 MONTHS TO 1 1 YEAR TO 5 YEARS MORE THAN 5 Grand Total
MONTHS YEAR YEARS
Row Labels
No. of Amount in No. of Amount in No. of Amount in No. of Amount in No. of Amount No. of Amount in
Claims Lakhs Claims Lakhs Claims Lakhs Claims Lakhs Claims in Lakhs Claims Lakhs
11 Fire 1090 5584.00 3519 32001.90 2109 34149.41 1451 53279.06 143 3044.96 8312 128059.33
21 Marine Cargo 8226 4377.96 7766 8221.98 2358 3500.08 1543 2474.44 52 -0.69 19945 18573.77
22 Marine Hull 28 4807.83 58 281.38 34 163.01 61 4401.02 13 56.98 194 9710.23
31 Motor OD 221436 36890.28 350007 93498.47 24751 17016.47 10665 6955.89 664 438.10 607523 154799.20
32 Motor TP 7435 7839.35 6657 7383.62 4584 6918.38 14418 27433.53 15244 27584.58 48338 77159.46
33 Decline Risk Pool 525 175.82 699 469.49 466 592.20 312 800.85 0 0.00 2002 2038.36
THE NEW INDIA ASSURANCE CO. LTD.
34 Health Insurance 932429 179295.75 373297 155166.32 34769 12616.35 7187 2246.89 147 101.12 1347829 349426.42
36 Liability 994 764.28 1207 1281.57 551 888.90 508 1291.82 89 134.83 3349 4361.39
38 Motor TP Non 3693 1679.76 6817 5672.55 5132 9565.28 4035 11344.30 0 0.00 19677 28261.89
Pool
39 TP Pool 2119 2456.11 1769 2345.99 2259 3778.65 20468 52222.59 3009 7800.76 29624 68604.09
42 Personal Accident 3546 2543.61 6826 5049.21 972 1686.85 435 769.24 40 70.03 11819 10118.95
43 Aviation 6 7.96 11 76.32 16 844.63 46 3114.09 16 107.58 95 4150.59
44 Engineering 1825 1520.31 6444 6468.13 3122 3671.34 1222 6237.14 42 164.47 12655 18061.39
46 Traditional 8269 3634.79 9029 9113.09 1954 3104.88 1141 3133.25 56 153.98 20449 19139.98
Business -
Miscellaneous
47 Rural Insurance - 15777 3682.47 19220 4479.81 3244 1007.46 1749 954.31 152 179.58 40142 10303.63
Miscellaneous
48 Misc - Non 2074 2046.11 4739 9528.92 1483 1405.36 669 925.37 66 54.77 9031 13960.52
Traditional Business
50 Credit Shield 0 0.00 19 52.54 10 162.09 43 -4.70 1 -5.70 73 204.23
Insurance
Grand Total 1209472 257306.37 798084 341091.29 87814 101071.33 65953 177579.08 19734 39885.36 2181057 916933.43
Annual Report 2017-18
69
Agewise Deptt wise Summary of Claims Settlement for the Period 2015-16
70
30 DAYS 30 DAYS TO 6 6 MONTHS TO 1 1 YEAR TO 5 YEARS MORE THAN 5 Grand Total
MONTHS YEAR YEARS
Row Labels
No. of Amount No. of Amount in No. of Amount No. of Amount in No. of Amount No. of Amount in
Claims in Lakhs Claims Lakhs Claims in Lakhs Claims Lakhs Claims in Lakhs Claims Lakhs
11 Fire 937 4164.03 2973 20156.77 1857 25184.45 7156 90785.30 555 3856.51 13478 144147.06
21 Marine Cargo 5920 4025.30 8850 7318.53 2149 3372.81 3416 5535.45 78 334.87 20413 20586.95
22 Marine Hull 16 129.09 59 1663.96 33 263.20 86 22620.32 38 -3540.69 232 21135.87
31 Motor OD 284472 49534.56 418863 122828.63 29771 22699.16 16269 10141.31 1269 659.93 750644 205863.58
32 Motor TP 7162 6599.68 7518 7998.04 5532 9309.85 13529 32108.04 13243 26887.00 46984 82902.60
33 Decline Risk Pool 561 321.33 893 772.53 796 1503.59 914 2923.69 0 0.00 3164 5521.14
THE NEW INDIA ASSURANCE CO. LTD.
34 Health Insurance 830892 294696.39 318166 150847.22 9237 5756.42 4439 11559.58 112 236.52 1162846 463096.12
36 Liability 906 917.12 1212 1368.62 559 994.67 597 2666.35 108 197.60 3382 6144.37
38 Motor TP Non 4591 2590.51 7984 6963.95 6836 13222.04 9256 29352.32 0 0.00 28667 52128.83
Pool
39 TP Pool 1186 1808.92 892 1167.85 874 1477.11 13633 40708.79 4564 13509.53 21149 58672.20
42 Personal Accident 4239 3891.77 7387 6807.41 1286 2402.56 753 1281.27 59 92.26 13724 14475.27
43 Aviation 8 20.08 17 80.38 14 1170.56 55 2986.60 59 964.66 153 5222.29
44 Engineering 1821 1810.49 5723 4646.54 1959 5212.28 13531 8136.02 968 106.11 24002 19911.45
46 Traditional 7927 11087.05 18614 11603.85 3432 3245.83 2185 6489.63 117 203.92 32275 32630.28
Business -
Miscellaneous
47 Rural Insurance - 13276 3350.97 21523 4872.68 3217 837.98 2249 1031.29 223 105.31 40488 10198.24
Miscellaneous
48 Misc - Non 2315 619.05 3927 1882.32 1192 1487.67 3337 1093.33 97 94.32 10868 5176.70
Traditional Business
50 Credit Shield 0 0.00 11 204.60 30 265.16 36 379.96 0 0.00 77 849.73
Insurance
Grand Total 1166229 385566.33 824612 351183.87 68774 98405.35 91441 269799.25 21490 43707.86 2172546 1148662.67
Annual Report 2017-18
Agewise Deptt wise Summary of Claims Settlement for the Period 2016-17
30 DAYS 30 DAYS TO 6 6 MONTHS TO 1 1 YEAR TO 5 YEARS MORE THAN 5 Grand Total
MONTHS YEAR YEARS
Row Labels
No. of Amount in No. of Amount in No. of Amount in No. of Amount in No. of Amount No. of Amount in
Claims Lakhs Claims Lakhs Claims Lakhs Claims Lakhs Claims in Lakhs Claims Lakhs
11 Fire 603 8155.47 2616 23843.27 2415 43041.33 1655 52756.40 283 2578.79 7572 130375.25
21 Marine Cargo 7157 3380.34 10899 11901.11 2519 4493.94 1453 6128.61 84 2226.70 22112 28130.69
22 Marine Hull 7 3.30 56 474.60 53 4433.14 93 6982.13 18 4814.77 227 16707.95
31 Motor OD 286597 52144.47 483980 146435.68 34082 28098.58 12624 9842.16 985 524.04 818268 237044.92
32 Motor TP 4264 4278.42 7834 8236.27 6858 12605.33 14052 39541.92 11373 28405.77 44381 93067.71
33 Decline Risk Pool 379 340.67 739 663.27 784 1428.27 1504 4885.19 0.00 0.00 3406 7317.40
THE NEW INDIA ASSURANCE CO. LTD.
34 Health Insurance 2210088 369841.44 409529 221872.25 46137 22794.02 3861 12578.78 168 79.98 2669783 627166.46
36 Liability 889 922.46 1133 1282.64 674 927.01 741 3533.31 166 249.90 3603 6915.31
38 Motor TP Non 2517 1599.21 8610 8269.98 8534 17704.81 14901 58034.47 0.00 0.00 34562 85608.47
Pool
39 TP Pool 506 753.17 474 688.37 536 1027.97 7940 29630.87 5368 22870.93 14824 54971.30
42 Personal Accident 5371 6529.53 8604 9390.52 1622 3150.19 666 1215.86 58 61.70 16321 20347.82
43 Aviation 3 5.66 14 82.55 15 147.12 43 1632.50 12 217.65 87 2085.47
44 Engineering 1377 793.61 5750 5103.77 2322 5177.09 1051 8452.72 38 41.58 10538 19568.78
46 Traditional 7961 9910.43 12945 12178.67 5389 5453.30 2700 7574.01 79 390.01 29074 35506.42
Business -
Miscellaneous
47 Rural Insurance - 12865 3157.77 27705 6999.06 4562 1028.35 2021 750.73 349 295.13 47502 12231.04
Miscellaneous
48 Misc - Non 2116 639.82 3850 2141.26 1315 1817.33 705 968.21 104 82.28 8090 5648.90
Traditional Business
50 Credit Shield 0.00 0.00 6 22.63 27 608.56 42 117.14 1 8.18 76 756.51
Insurance
Grand Total 2542700 462455.77 984744 459585.89 117844 153936.35 66052 244624.99 19086 62847.42 3730426 1383450.42
Annual Report 2017-18
71
Agewise Deptt wise Summary of Claims Settlement for the Period 2017-18
72
30 DAYS 30 DAYS TO 6 6 MONTHS TO 1 1 YEAR TO 5 YEARS MORE THAN 5 Grand Total
MONTHS YEAR YEARS
Row Labels
No. of Amount No. of Amount in No. of Amount No. of Amount in No. of Amount No. of Amount in
Claims in Lakhs Claims Lakhs Claims in Lakhs Claims Lakhs Claims in Lakhs Claims Lakhs
11 Fire 590 2750.23 2794 14613.40 2273 33367.04 1752 68914.41 265 1633.10 7674 121278.18
21 Marine Cargo 7212 3804.59 9969 10280.33 2988 4946.13 1729 8054.32 170 411.46 22068 27496.83
22 Marine Hull 4 27.69 50 2232.40 55 1122.99 97 9839.86 20 442.06 226 13665.00
31 Motor OD 226039 41978.79 567226 156383.60 45286 33522.92 13992 11375.68 1216 815.81 853759 244076.80
32 Motor TP 2957 2849.19 8837 8935.41 7190 13146.64 15382 47133.23 12154 31237.77 46520 103302.23
33 Decline Risk Pool 96 94.29 348 299.64 541 1027.28 1808 7230.32 3 -2.58 2796 8648.95
THE NEW INDIA ASSURANCE CO. LTD.
34 Health Insurance 2780074 326938.64 577020 292906.65 31802 26888.76 11175 5211.71 163 108.31 3400234 652054.07
36 Liability 403 419.62 1128 1411.10 805 1023.03 675 1915.68 214 471.48 3225 5240.90
38 Motor TP Non 1411 987.68 10039 9077.15 9454 19378.37 20378 84337.13 78 375.68 41360 114156.00
Pool
39 TP Pool 121 305.04 240 275.28 265 391.72 4013 13957.75 6452 27060.16 11091 41989.95
42 Personal Accident 5668 8963.77 13081 21922.90 2350 4859.45 787 1840.64 63 62.50 21949 37649.26
43 Aviation 13 1454.00 33 3434.78 25 313.54 45 670.86 12 1140.12 128 7013.30
44 Engineering 1197 758.39 5693 4447.17 2866 3733.25 1360 12278.47 41 52.05 11157 21269.33
46 Traditional 4923 5705.65 9614 9679.94 4309 6941.72 2919 8432.88 95 341.19 21860 31101.38
Business -
Miscellaneous
47 Rural Insurance - 11609 3016.63 34447 9669.86 8981 1643.63 1756 697.58 193 211.04 56986 15238.74
Miscellaneous
48 Misc - Non 1780 510.28 3872 2148.12 1132 1497.16 679 1581.53 138 121.70 7601 5858.79
Traditional Business
50 Credit Shield 0 0.00 22 56.14 74 484.02 52 1010.54 4 2.12 152 1552.82
Insurance
Grand Total 3044097 400564.48 1244413 547773.87 120396 154287.65 78599 284482.58 21281 64483.95 4508786 1451592.52
Annual Report 2017-18
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
R. Devendra Kumar and Associates A. Bafna & Co. NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
205, Blue Rose Industrial Estate, UG-250, The Dreams Mall 14/2, Western India House,
Near Petrol Pump, LBS Marg, Sir P.M. Road,
Western express highway Bhandup (West) Fort,
Borivali (E), Mumbai-400066 Mumbai - 400078 Mumbai 400001.
73
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
end restatement of these balances recorded in foreign currency as Our opinion is not modified in respect of these matters.
required under Accounting Standard-11 issued under section 133
of the Companies Act 2013, could not be ascertained. (Refer Note Other Matters
15 of Notes to accounts, in schedule 16B). a) We did not audit the financial statements of Forty Three
Overall impact of the above and the consequential effects Regional offices (including 9 LCO’s ), Four hundred and sixty
on Revenue Accounts, Profit and Loss Account, assets and Divisional offices, Nine Foreign Branches, Seven Foreign
liabilities and Reserve and Surplus as on March 31, 2018 are not Agency offices, Two Run off offices and one representative
ascertainable and cannot be commented upon. office,included in the financial statements of the Company
whose financial statements / financial information reflect total
Qualified Opinion assets of ` 4334856.34 lakhs as at March 31, 2018 and total
In our opinion and to the best of our information and according to revenues of ` 2679247.39 lakhs for the year ended on that
the explanations given to us except for the possible effects of the date, as considered in the financial statements. The financial
matter described in the Basis for Qualified Opinion paragraph, the statements/information of these offices except in case of
aforesaid standalone financial statements dealt with by this report Run-off and representative offices which have remained
read together with schedules, significant accounting policies and unaudited, have been audited by the other firm of auditors
disclosures, give the information required by the “Act, Rules and whose reports have been furnished to us, and our opinion in
Regulations” in the manner so required and give a true and fair view so far as it relates to the amounts and disclosures included
in conformity with the accounting principles generally accepted in in respect of these branches, is based solely on the report of
India as applicable to Non-Life Insurance Companies: such branch auditors.
(i) In the case of the Balance Sheet, of the state of affairs of the b) The actuarial valuation of liability in respect of claims Incurred
company as at March 31, 2018; But Not Reported(IBNR) and those Incurred but Not Enough
Reported (IBNER) as at March 31,2018, is as certified by
(ii) In case of revenue accounts of the Profit in Fire, Marine &
the Company’s Appointed Actuary and our opinion in so far
Miscellaneous Business for the year ended on that date;
as it relates to the amounts and disclosures related to such
(iii) In case of Profit and Loss Account of the Profit for the year liability, is based solely on such report.
ended on that date, and
Our opinion is not modified in respect of this matter.
(iv) In case of Receipt and Payments Account, of the receipts
and payments for the year ended on that date. Report on Other Legal and Regulatory Requirements
Emphasis of Matter As required by Section 143 (3) of the Companies Act 2013 and
Insurance Regulatory and Development Authority (Preparation of
We draw attention to the following Notes to Accounts: financial Statements and Auditors’ Report of Insurance Companies)
a) Note No. 3 in Schedule 16 B, regarding recognition of Regulations, 2002 and orders or direction issued by the Insurance
Reserve for Unexpired risk by 1/365 method as per the Regulatory and Development Authority, we report that:
approval of IRDAI in case of domestic business while the a) We have sought and except for the matters described in
implementation of systems and procedures to compute the Basis for Qualified Opinion paragraph and the matters
the same in case of Foreign business in accordance with related to vigilance department which are stated to be
1/365 method is pending and systems in case of domestic confidential ( Refer Note 23),obtained all the information and
business are being strengthened. explanations which to the best of our knowledge and belief
b) Note No.10 regarding deferment of additional gratuity liability were necessary for the purposes of our audit.;
pursuant to the amendment in the Payment of Gratuity b) Except for the possible effects of the matter described in
Act,1972 to the extent of ` 27001.78 lakhs and deferment of the Basis for Qualified Opinion paragraph above, in our
expenditure relating to additional liability towards pension on opinion, proper books of accounts have been maintained by
account of pay revision to the extent of ` 690.80 lakhs, as the Company, so far as it appears from our examination of
per the deferment permitted by the IRDAI those books and proper returns both audited and unaudited
c) Note No. 19 regarding outstanding dues from agent from Regional offices, Divisional Offices, branches and other
amounting to ` 2043.30 lakhs for more than 90 days for offices, not visited by us, have been received.
which the branch auditors have not been able to assess the c) The reports of the Regional Auditors consolidating the
repayment capacity of the agent while the management has Divisional Auditors report, Reports of foreign branches and
taken steps for recovery of these dues. foreign agency offices, audited under section143(8) of the
d) The company’s internal controls system and Internal audit Act by the branch auditors have been sent to us and have
specially in area of data input and validation in soft-wares, been properly dealt with by us in preparing this report in the
Reinsurance accounts, PMFBY and other Government manner considered necessary by us.
sponsored Health schemes requires strengthening. (Refer d) The Balance sheet, Revenue account, Profit and Loss
Note No. 20) account and the Receipts and Payments Account dealt with
e) ` 2171.34 Lakhs has been withheld / deducted by Govt of by the report are in agreement with the books of account and
Rajasthan under Bhamashah Scheme towards rejection with the returns received from offices not visited by us.
of claims under the scheme and related matters, since in e) In our opinion, the aforesaid standalone financial statements
the opinion of the management the same will be recovered. have been prepared in accordance with the requirements
(Refer Note No 24) of the Insurance Act, 1938 (4 of 1938), the Insurance
Regulatory and Development Act, 1999 (41 of 1999) and
74
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
the Companies Act, 2013 to the extent applicable and in the and Auditors) Rules, 2014, in our opinion and to the best of
manner so required; our information and according to the explanations given to
f) Except for the possible effects of the matter described in the us:
Basis for Qualified Opinion paragraph, in our opinion, the i) The company has disclosed the impact of pending litigations
aforesaid Standalone Financial Statements comply with the on its financial position in its financial statements – Refer
Accounting Standards specified under Section 133 of the Schedule 16 C to the standalone financial statements;
Act, read with Rule 7 of the Companies (Accounts) Rules, ii) The company has made provision, as required under
2014; the applicable law or accounting standards, for material
g) The matter described in the Basis for Qualified Opinion foreseeable losses on long term contracts. There are no
paragraph above, in our opinion, may not have an adverse outstanding derivative contracts at the Balance Sheet date.
effect on the functioning of the Company; iii) There were no amounts which were required to be
h) The qualification relating to the maintenance of accounts and transferred to the Investor Education and Protection Fund by
other matters connected therewith are as stated in the Basis the Company.
for Qualified Opinion paragraph above. n) Further on the basis of our examination of books and
i) On the basis of written representations received from the records of the company and according to the information and
directors as on March 31, 2018, and taken on record by the explanation given to us and to the best of our knowledge and
Board of Directors, none of the directors is disqualified as on belief, we certify that:
March 31, 2018, from being appointed as a director in terms i) We have reviewed the management report attached
of section 164(2) of the Act. with the Financial Statements and there are no
j) The accounting policies adopted by the company are apparent mistakes or material inconsistencies between
appropriate and in compliance with the applicable Accounting the management report and the standalone financial
Standards specified under Section 133 of the Act, read with statements;
Rule 7 of the Companies (Accounts) Rules, 2014 and with ii) Based on the management representation by officer
the Accounting Principles as prescribed in the Insurance of the company charged with compliance, nothing
Regulatory and Development Authority (Preparation of has come to our attention which causes us to believe
financial Statements and Auditors’ Report of Insurance that the company has not complied with the terms and
Companies) Regulations, 2002 and orders or direction issued conditions of registration as stipulated by IRDAI; and
by the Insurance Regulatory and Development Authority.
iii) No part of the assets of the policyholders’ funds has
k) The actuarial valuation of liability in respect of claims Incurred been directly or indirectly applied in contravention of
But Not Reported (IBNR) and those Incurred but Not Enough the provisions of the Insurance Act, 1938 (4 of 1938)
Reported (IBNER) as at 31st March 2018, have been duly relating to the application and investments of the
certified by the Company’s Appointed Actuary and relied policyholders’ funds.
upon by us. The Appointed Actuary has also certified that
the assumptions considered by him for such valuations are o) With respect to the adequacy of the internal financial controls
in accordance with guidelines and norms prescribed by the over financial reporting of the Company and the operating
Insurance Regulatory and Development Authority of India effectiveness of such controls, refer to our separate Report
(IRDAI) and the Actuarial Society of India in concurrence in “Annexure A”.
with the IRDAI. As required under section 143(5) of the Companies Act, 2013,
l) As per the information and explanations provided to us, based on our audit as aforesaid, we enclose herewith, as per
the investments have been valued in accordance with the “Annexure B”, the directions including sub-directions issued by the
provisions of the Insurance Act, the regulations and orders/ Comptroller & Auditor General of India, action taken thereon and
directions issued by IRDAI in this regard. the financial impact on the accounts and financial statements of
the Company.
m) With respect to the other matters to be included in the Auditor’s
Report in accordance with Rule 11 of the Companies (Audit
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
75
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
“ANNEXURE A” REFERRED TO IN THE INDEPENDENT AUDITOR’S REPORT ON THE STANDALONE FINANCIAL STATEMENTS
OF THE NEW INDIA ASSURANCE CO. LTD. FOR THE FINANCIAL YEAR 2017-18
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
1. We have audited the internal financial controls over financial reporting of THE NEW INDIA ASSURANCE CO LTD. (“the Company”)
as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that
date. These financial statements incorporated returns received:
a) From Forty three Regional offices (including 9 LCO’s ), Four hundred and Sixty Divisional offices audited by the other firms of
Auditors appointed by the Comptroller and Auditor General of India under section 139 of the Companies Act, 2013; and
b) From Nine Foreign Branches, Seven Foreign Agency offices audited by local auditors appointed by the company and unaudited
returns of three Run off offices and one representative office.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the“ Guidance Note”) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued
by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
5. Report of branch auditors relating to London Branch is not in the accordance with the Indian Law & regulations and therefore the
internal controls over financial reporting relating to London Branch has not been considered in this report and cannot be commented
upon.
6. Except for the possible effect of matters as stated in note No. 5, we believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified opinion on the Company’s internal financial controls system over financial reporting.
Qualified Opinion
9. According to the information and explanation given to us and based on our audit, the following internal control weaknesses of material
nature have been identified as at March 31, 2018:
76
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
a. Confirmation and reconciliation of various balances relating to co insurers, reinsurers, few bank accounts, inter office accounts
and other control accounts are pending and are at various stages.;
b. Inadequate controls are observed with regard to ageing of insurance receivables;
The Company’s internal control systems especially in area of data input and validation in various soft-wares and recording of intimated
claims at the offices of the company including internal audit require strengthening.
Further to above, the management of the company has appointed external consultant to assess the internal financial control
framework in the company. Though the interim report submitted by the consultants in case of certain processes does not identify
any serious issues, the final report is still awaited. Review of design and testing of the risk control matrix at Regional level/ HO level,
review and testing of entity level controls and final report is yet to be received.
10. A ‘material weakness’ is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the company’s financial statement will not be prevented or detected
on a timely basis.
11. In our opinion, except for the possible effects of the internal control weaknesses described above on the achievements of the
objectives of the control criterion, the company has maintained , in all material respects , adequate internal financial control over
financial reporting and such internal financial controls over financial reporting were operating effectively as of March 31, 2018,
based on “the internal control over financial reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of
Chartered Accountants of India”.
12. We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit
tests applied in our audit of the March 31, 2018 standalone financial statements of the Company, and these material weaknesses do
not affect our opinion on the Standalone financial statements of the Company except to the extent of our qualification as contained
in our separate report on the Standalone financial statements of the company.
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
77
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Sr. Directions under Section 143(5) Action taken and Financial Impact
No. of Companies Act 2013
1. Whether the Company has clear Company has clear title of lease/ free-hold properties except as below:
title/ lease deeds for freehold
and leasehold respectively? If not LAND:
please state the area of freehold 1. LEASEHOLD LAND:
and leasehold land for which tile/ i. 1 leasehold land book value ` 1.00 is under litigation and SLP is pending with the
lease deeds are not available? Hon'ble Supreme Court.
ii. 2 leasehold lands books value of ` 118.44 Lakhs where lease term has expired and
renewal process is pending with the concerned Govt. Authorities.
iii. 1 leasehold land consists of 123 tenements and 6 godowns with book value
` 3.42 Lakhs and lease period is 999 years. Redevelopment thereof is under
consideration.
iv. 1 Open plot is jointly owned by 4 PSU companies and the title deed is in the name
of GIC.
2. FREEHOLD LAND:
i. Land includes book value of ` 124.97 Lakhs for which deed of conveyance is yet to
be executed.
BUILDINGS:
1. Building includes book value of ` 2066.95 Lakhs, where title deeds are presently
not available/ registration formalities are yet to be completed.
2. 29 properties with total book value of ` 163.61 Lakhs, the title deeds are in the
process of being registered in the name of the company.
3. 3 Properties with book value of ` 332.48 Lakhs are received from Tariff Advisory
Committee & registration formalities are pending.
2. Whether there are any cases of According to the records and information provided to us, during the year, amount of
waiver/write off of debts/loans/ ` 164.63 Lakhs towards interest has been waived off in debentures/Loans. Settlement
interest etc., if yes, the reasons as per OTS.
there for and amount involved. The company has written Down investments of equity to the extent of ` 1526.22 Lakhs.
3. Whether proper records are There are no such cases.
maintained for inventories lying
with third parties & assets
received as gift/grant(s) from the
Govt. or other authorities?
Sub- directions issued by C&AG of India as applicable to The New India Assurance Company Limited for the year 2017-18
1. Number of titles of ownership The Central Government/State Government securities balances are tallied as per the
in respect of CGS/SGS/Bonds/ Books of Accounts. In case of Bonds/Debenture/ Equities/Preference Shares, there are 8
Debentures etc. available in Nos of Scrips of Bonds/debentures having face value of ` 6500580, 2 Scrips of preference
physical/demat form and out of Shares having face value ` 26000, and 9 scrips of Equity shares having Book Value of
these, number of cases which ` 841707 which are in shortage as per the records of custodian vis a vis books of accounts
are not in agreement with the of the Company. There are 106 Nos of scrips in equity having Market value ` 412.21
respective amounts shown in the lakhs and 1 scrip in preference share of face value ` 3600 which are in excess quantity as
Company’s books of accounts per custodian records vis a vis books of the company. The Company is in the process of
may be verified and discrepancy taking adequate steps for reconciliation and adjustment wherever required. The dividend
found may be suitably reported. received on such excess shares is shown as liability and taken to income after 3 years.
2. Whether stop loss limits have The investments of the Company are long term in nature and therefore Stop Loss
been prescribed in respect of the Policy is not applicable for the long term investments. As and when the Company
investments. If yes, whether or proposes to have a trading portfolio, it will frame Stop Loss Policy for trading portfolio
not the limit was adhered to. If no, at that time
details may be given.
78
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
3. Whether Company has carried The Company has continued its various level meetings with other PSU companies
out reconciliation exercise for for reconciliation and settlement of Coinsurance balances. In case of balances with
inter-company balances reflected PSUs, while the receivables have been brought down by ` 20939 lakhs during 2017-
in their financial statements with 18 as compared to 2016-17, the payable balances in respect of PSUs have also been
other PSU insurers and whether brought down by ` 8397 lakhs during 2017-18 as compared to 2016-17.
confirmation has been obtained During the year, through settlement at HO level, company has settled the receivable
from other PSU insurers for balances of ` 71842 lakhs and payable balances of ` 105971 lakhs.
balances due from them?
The balance appearing in the amount due to/ due from persons or bodies carrying on
insurance business including reinsurance business , terrorism Pool and Nuclear Pool
with GIC Re, are subject to confirmation/ reconciliation and consequential adjustments
if any. These balances include ` 200927.19 lakhs (Net) Dr. comprising of debit
balances of ` 435682.93 lakhs and credit balances of ` 234755.73 lakhs against
which party-wise balances in the records indicate (Dr.) of ` 329652.55 lakhs relating
to 1004 parties and (cr.) of ` 128725.35 lakhs relating to 877 parties. Precise gross
debit and gross credit balances against each of such parties and age- wise analysis of
these balances are also being compiled .There are some old cases including migration
differences in case of amounts receivables/payables for which sufficient records are
not available with respective technical department. The impact of the above, if any, on
the financial statements are unascertainable. However the company has maintained a
provision of ` 10414.56 Lakhs up-to 31.03.2018 towards doubtful debts as a prudent
measure.
The company has reduced its coinsurance balances from net of ` 14539 lakhs (Dr)
to net balance of ` 3313 lakhs(Dr) with other than PMFBY. In case of balances with
PMFBY the balances as at 31.03.2018 ` 48905 lakhs credit compared to a debit of
` 35695 lakhs as at 31.03.2018.
4a Whether the method of accounting In the F.Y. 2017-18, the company is implementing Pradhan Mantri Fasal BimaYojana
of premium and reported (PMFBY) in the following 4 states:
claims are as per conditions 1. Gujarat - Kharif 2017 season only.
of agreement/scheme relating
to Pradhan Mantri Fasal Bima 2. Rajasthan - Kharif 2017 season only.
Yojana 3. Uttar Pradesh - Kharif 2017 & Rabi 2017-18 seasons.
4. Tamil Nadu - Kharif 2017 & Rabi 2017-18 seasons.
The total net NIA share of Premium accounted for crop insurance business for the year
2017-18 is ` 1698.88 crores.
Claims paid during the year are ` 1159.79 crores for the states of Tamil Nadu and
Odisha for the year 2016-17. No claims have been reported as on 31.03.2018 for
2017-18 in respect of all the 4 states.
In case of Fasal Bima Yojna, Enrolment data and premium data as per Banks is
to be reconciled with data as per the Central/State Government portal. Accounting
of premium as well as reinsurance accounts , has been done based on portal data
after giving effect of reconcilable items. Since No claims have been reported and no
actual yield data is available relating to the year 2017-18 , provision for outstanding
claims has been made based on IBNR claims as assessed by the actuary. Necessary
adjustments relating to the above are to be carried out in due course. The company
is in the process of strengthening internal controls and the internal audit specially in
the area of PMFBY and other Government sponsored Health schemes to ensure the
compliance of laid down operational guidelines.
4b Whether the method of accounting In the F.Y. 2017-18, Company has implemented the RSBY Scheme in 6 states while
of premium and reported accounting the Gross Direct Premium of ` 10585 Lakhs. Claims paid during F.Y. 2017-
claims are as per conditions of 18 under RSBY Schemes are of ` 10685 Lakhs and that of Outstanding Claims are of
agreement/scheme relating to ` 2995 Lakhs. The company is in the process of strengthening internal controls and
Rashtriya Swasthya Bima Yojana the internal audit especially in the area of Government sponsored Health schemes to
ensure the compliance of laid down operational guidelines.
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
79
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (6) (b) OF
THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF THE NEW INDIA ASSURANCE COMPANY
LIMITED FOR THE YEAR ENDED 31 MARCH 2018
The preparation of financial statements of The New India Assurance Company Limited for the year ended 31 March
2018 in accordance with the financial reporting framework prescribed under the Insurance Act, 1938 read with the
Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of
Insurance Companies) Regulations, 2002 and the Companies Act, 2013 (Act) is the responsibility of the management
of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5)
of the Act are responsible for expressing opinion on the financial statements under section 143 of the Act based on
independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is
stated to have been done by them vide their Audit Report dated 11 May 2018.
I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section
143(6)(a) of the Act of the financial statements of The New India Assurance Company Limited for the year ended 31
March 2018. This supplementary audit has been carried out independently without access to the working papers of the
statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective
examination of some of the accounting records. On the basis of my audit nothing significant has come to my knowledge
which would give rise to any comment upon or supplement to statutory auditors' report.
For and on behalf of the
Comptroller and Audit General of India
(Roop Rashi)
Principal Director of Commercial Audit and
ex-officio Member, Audit Board-I, Mumbai
Place : Mumbai
Date : 4 July 2018
80
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Certificate for the year ended 31st March, 2018 as required by Schedule ‘C’ of Insurance
Regulatory & Development Authority Regulations, 2002 for Preparation of Financial
Statements and Auditor’s Report of Insurance Companies in case of The New India
Assurance Company Limited.
We certify that:
1 (a) We have verified Cash balances, to the extent considered necessary, and securities related to the Company’s Loans and
Investments, subject to paragraph (b) herein mentioned below, on following basis:
Sr.
Asset Nature of Verification
No.
i) Cash Physical verification, Management Certificate and Regional / Branch Auditor’s
reports.
ii) Investments Custodians’ Certificate (RBI, CCIL & SHCIL) and Management’s Certificate.
iii) Securities relating to loan Management’s Certificate.
(b) i) No confirmations were available from custodian in respect of following:
a) Investment in equity shares having book value of ` 3.12 lakhs are under objection.
b) Equity shares having book value amounting to ` 8.41 lakhs, Debentures/Bonds having face value ` 65 lakhs and
preference Shares having face value of ` 26000 for which no evidence of ownership was available.
ii) The number of equity shares, Preference shares, other Approved Securities and Debentures /Bonds actually held by
Stock Holding Corporation of India Ltd. (Custodian) on behalf of the Company are in excess of the number of equity
shares, Preference shares and Debentures/ Bonds held as per the books of the Company. The value of such excess as
on 31.03.2018 is ` 412.21 lakhs
(for listed equity shares market value is considered, for unlisted equity shares/preference shares, face value is
considered).
iii) Investment in Term Loans, Loans to State Government for the purpose of Housing & Fire Fighting Equipments,
Investments in Pass Through Certificates (PTC) and Balances on account of restructuring/rescheduling of debts are
subject to confirmations/ reconciliations.
iv) No confirmations were available in respect of foreign investments amounting to ` 6.07 lakhs.
2 To the best of our information and explanations given to us, the Company has not undertaken any trust as trustee.
3 No part of the assets of Policyholders’ funds has been directly or indirectly applied in contravention of the provision of the Insurance
Act, 1938 relating to the application and Investments of the Policy Holders’ funds.
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
81
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Fire Insurance Revenue Account for the year ended 31st March, 2018
As required by section 40C(2) of the Insurance Act 1938, we certify that, to the best of our knowledge and according to the information
and explanations given to us, and so far as appears from our examination of the Company's books of account, all expenses of
management, wherever incurred, whether directly or indirectly in respect of fire insurance business have been fully debited in the Fire
Insurance Revenue Account as expenses.
The schedules referred to above form integral part of the revenue account
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
82
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Marine Insurance Revenue Account for the year ended 31st March, 2018
As required by section 40C(2) of the Insurance Act 1938, we certify that, to the best of our knowledge and according to the information
and explanations given to us, and so far as appears from our examination of the Company's books of account, all expenses of
management, wherever incurred, whether directly or indirectly in respect of marine insurance business have been fully debited in the
Marine Insurance Revenue Account as expenses.
The schedules referred to above form integral part of the revenue account
Jayashree Nair S. N. Rajeswari
Company Secretary Chief Financial Officer
C. Narambunathan Hemant G. Rokade G. Srinivasan
Director, GM & FA Director Chairman-Cum- Managing Director
DIN No.08101846 DIN No.06417520 DIN No.01876234
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
83
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Miscellaneous Insurance Revenue Account for the year ended 31st March, 2018
As required by section 40C(2) of the Insurance Act 1938, we certify that, to the best of our knowledge and according to the information
and explanations given to us, and so far as appears from our examination of the Company's books of account, all expenses of
management, wherever incurred, whether directly or indirectly in respect of miscellaneous insurance business have been fully debited
in the Miscellaneous Insurance Revenue Account as expenses.
The schedules referred to above form integral part of the revenue account
Jayashree Nair S. N. Rajeswari
Company Secretary Chief Financial Officer
C. Narambunathan Hemant G. Rokade G. Srinivasan
Director, GM & FA Director Chairman-Cum- Managing Director
DIN No.08101846 DIN No.06417520 DIN No.01876234
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
84
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Profit and Loss Account for the year ended 31st March 2018
Current year Previous year
Particulars Schedule
` (000) ` (000)
1. Operating Profit / (Loss)
a. Fire Insurance - 4293655 (3466083)
b. Marine Insurance - 1106498 872848
c. Miscellaneous Insurance 4633672 (2976287)
2. Income from Investments
a. Interest Dividend and Rent (Gross) - Share Holders 8911477 8797258
b. Profit on Sale of Investment - Share Holders - 7460658 6420867
Less: Loss on Sale of Investment - Share Holders - 0 0
3. Other Income - Misc Receipts, Credit Balances Written Back 1036764 859585
- Interest on Refund of Income Tax 0 1325922
Total (A)=1+2+3 27442724 11834110
4. Provisions (Other Than Taxation)
a. Others - Amortisation Provision For Thinly - 32430 24627
Traded Shares - Shareholders”
b. For Doubtful Debts - Investments(Shareholders) - (54420) (8823)
c. For Doubtful Debts - Operations 0 129817
d. For Dimunition In Value Of Investments (Shareholders) - 28286 11556
5. Other Expenses
a. Other than those related To insurance business - 6190 0
b. Others - Expenses on Corporate Social Responsibility 135087 0
c. Others - Interest on Income/Service Tax 28443 8580
d. (Profit)/Loss on Sale Of Assets 16132 27784
e. Penalty 0 2000
Total (B)=(4+5) 192147 195541
Profit Before Tax (A-B) - 27250577 11638569
Provision For Taxation - Current Tax - 5149000 1615764
Deferred Tax 92379 (56510)
Profit After Tax 22009198 10079315
Transfer from General Reserves for Equalization / Contingency Reserves for 976658 129457
Foreign Branches
Appropriations
a. Proposed Final Dividend - (3090000) 0
b. Dividend Distribution Tax. - (629051) (10908)
c. Transfer to General Reserves - (19266804) (10197864)
d. Transfer to Equalization / Contingency Reserves for Foreign Branches - 0 0
Profit / (Loss) Carried Forward to The Balance Sheet - 0 0
Basic and diluted earnings per share (`) {Refer Note 9B to notes to accounts in 27.19 12.60
Schedule 16 B}
Significant Accounting Policies and Notes to Accounts 16
The schedules referred to above form integral part of the revenue account
Place: Mumbai
Date: May 11th 2018
85
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
86
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
87
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 2 - Claims Incurred for the year ended 31st March, 2018
Current year Previous year
Particulars
` (000) ` (000)
Schedule 2 - Fire
Claims Incurred (Net)
Claims Paid Direct 18704991 17248777
Add: Claims on Reinsurance Accepted 7552260 5879393
Less: Claims on Reinsurance Ceded 10767799 6403918
Net Claims Paid 15489452 16724252
Add:Claims Outstanding at End (Net) 27514412 27480750
Less :Claims Outstanding at Beginning (Net) 27480750 25393000
Foreign Exchange Fluctuation Relating to Non-Integral Foreign Operations (419097) 781685
Total Incurred Claims (Net) 15104017 19593687
Schedule 2 - Marine
Claims Incurred (Net)
Claims Paid Direct 4313446 4203888
Add: Claims on Reinsurance Accepted 127226 404976
Less: Claims on Reinsurance Ceded 1569002 993869
Net Claims Paid 2871670 3614995
Add:Claims Outstanding at End (Net) 4303618 4914244
Less :Claims Outstanding at Beginning (Net) 4914244 5041145
Foreign Exchange Fluctuation Relating to Non-Integral Foreign Operations 572 5324
Total Incurred Claims (Net) 2261616 3493418
Schedule 2 - Miscellaneous
Claims Incurred (Net)
Claims Paid Direct 151960444 132645141
Add: Claims on Reinsurance Accepted 3279459 2709916
Less: Claims on Reinsurance Ceded 21827404 10355005
Net Claims Paid 133412499 125000052
Add:Claims Outstanding at End (Net) 165382900 146725785
Less :Claims Outstanding at Beginning (Net) 146725785 132826443
Foreign Exchange Fluctuation Relating to Non-Integral Foreign Operations (470589) 582788
Total Incurred Claims (Net) 151599025 139482182
88
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
89
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule - 4
90
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule - 5
Share Capital
1. Authorised Capital
1,20,00,00,000 (Previous Year 30,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 6000000 3000000
each
2. Issued Capital
82,40,00,000 (Previous Year 20,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 4120000 2000000
each
3. Subscribed Capital
82,40,00,000 (Previous Year 20,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 4120000 2000000
each
4. Called up Capital
82,40,00,000 (Previous Year 20,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 4120000 2000000
each
Note : Of the above 79,22,98,732 shares are issued as fully paid up bonus shares by capitalisation of general
reserves.
SCHEDULE 5A
Pattern of Shareholding
Foreign 0 0.00 0 -
91
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 7
Borrowings
1. Debentures / Bonds 0 0
2. Banks 0 0
3. Financial Institutions 0 0
4. Others 0 0
Total 0 0
92
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
93
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
94
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
95
Schedules for the year ended 31st March, 2018
96
Schedule 10
Fixed Assets ` (000)
Gross Block Depreciation Fund Net Block
Opening Additions Deletions / * Closing Opening Additions Deletions / * Closing Closing Opening
Particulars
Balance. Adjustments Balance Balance. Adjustment Balance
01-04-2017 During 2017-2018 31-03-2018 01-04-2017 During 2017-2018 31-03-2018 31-03-2018 31-03-2017
Goodwill 0 0 0 0 0 0 0 0 0 0
Intangibles (Softwares) 1093955 1157790 (2901) 2254647 1060090 205670 (540) 1266300 988346 33865
Land Freehold 76116 0 0 76116 0 0 0 0 76116 76116
Leasehold Property 20786 262630 6039 277377 3609 2587 726 5469 271907 17177
THE NEW INDIA ASSURANCE CO. LTD.
Buildings 1880021 42620 2793 1919848 932778 7943 33 940688 979160 947243
Furnitures & Fittings 710167 49783 1228 758722 503901 30658 1704 532855 225867 206267
Information & 3516867 587251 51866 4052251 2700647 288415 18381 2970681 1081571 816220
Technology
Equipments
Vehicles 1382820 423808 265529 1541098 562630 159755 184743 537642 1003456 820190
Office Equipments 125341 5293 1796 128838 106897 6561 2122 111336 17502 18444
Other Assets # 400368 28068 8663 419773 261662 20349 6186 275825 143948 138706
Work in Progress 566898 0 235125 331773 0 0 0 0 331773 566898
Grand Total 9773338 2557243 335013 11760443 6132214 721938 213355 6640797 5119647 3641124
Previous Year 8395802 1915035 537498 9773338 5787750 448777 104313 6132214 3641124 2608052
* Includes foreign currency fluctuation.
# Other Assets includes Air Conditioner, Water Coolers, Television, Lifts & Cameras etc.
Annual Report 2017-18
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 11
2. Bank Balances
a. Deposit Accounts
With Banks 0 0
Provision made for bad and doubtful debts shown under Schedule 14.5 against assets in
Schedule 11
Total 113049 0
97
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
98
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 14
Provisions
1. a. Reserve for Un-Expired Risks 100201172 87883611
b. Premium Deficiency Reserve 0 0
2. Provision for Taxation (Net of Payment of Taxes) 0 0
3. Provision for Proposed Dividend 0
4. Provision for Dividend Distribution Tax 0 0
5. Others - Reserve for Bad and Doubtful Debts. 2827296 2717286
Provision for Diminution in value of Thinly Traded / Unlisted Shares 29916 63486
Provision for Wage Arrear 0 0
Provision for Leave Encashment 6651300 6682800
Total 109709684 97347183
Schedule 15
Miscellaneous Expenditure
1. Discount Allowed in Issue of Shares and Debentures 0 0
2. Others - Contribution to Pension Fund and Gratuity Fund 2769320 2213400
(Deferred Expenses to the Extent not Written Off)
Total 2769320 2213400
99
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Receipts & Payments Account / Cash Flow Statement for the period from 01/04/2017 to 31/03/2018
Current Year Previous Year
Particulars
` (000) ` (000)
A. Cash Flows from the operating activities:
1. Premium received from policyholders, including advance receipts 283541437 241479097
2. Other receipts 134284 265318
3. Payments to the re-insurers, net of commissions and claims (13924530) (15693945)
4. Payments to co-insurers, net of claims recovery (507545) (1907977)
5. Payments of claims (175936050) (152535971)
6. Payments of commission and brokerage (20650257) (14914208)
7. Payments of other operating expenses (35228138) (39560247)
8. Preliminary and pre-operative expenses 0 0
9. Deposits, advances and staff loans (182973) (34413)
10. Income taxes paid (Net) (4663534) 2782513
11. Service tax / GST paid (27249564) (23077869)
12. Other payments (784754) 1648335
13. Cash flows before extraordinary items 4548376 (1549368)
14. Cash flow from extraordinary operations 0 0
Net cash flow from operating activities 4548376 (1549368)
B. Cash flows from investing activities:
1. Purchase of fixed assets (2557243) (1915035)
2. Proceeds from sale of fixed assets 406645 384062
3. Purchases of investments (87382063) (34331236)
4. Loans disbursed 0 0
5. Sales of investments 53265428 29400240
6. Repayments received 268536 (376332)
7. Rents/Interests/ Dividends received 27708668 25431405
8. Investments in money market instruments and in liquid mutual funds 0 0
9. Expenses related to investments (460771) (297503)
Net cash flow from investing activities (8750801) 18295602
C. Cash flows from financing activities:
1. Proceeds from issuance of share capital 18725500 0
2. Proceeds from borrowing 0 0
3. Repayments of borrowing 0 0
4. Interest/dividends paid (7450244) (3019849)
Net cash flow from financing activities 11275257 (3019849)
D. Effect of foreign exchange rates on cash and cash equivalents, net 2946082 (4362071)
E. Net increase in cash and cash equivalents: 10018915 9364314
1. Cash and cash equivalents at the beginning of the year 80191755 70827441
2. Cash and cash equivalents at the end of the year 90210671 80191755
Jayashree Nair S. N. Rajeswari
Company Secretary Chief Financial Officer
C. Narambunathan Hemant G. Rokade G. Srinivasan
Director, GM & FA Director Chairman-Cum- Managing Director
DIN No.07628279 DIN No.06417520 DIN No.01876234
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
100
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 INDIAN
(`, 000)
Total Investment Income 5539433 2835245 436325 464147 378646 374432 814971 838579
Claims Paid Direct 12517064 12651233 2762628 2804607 1370041 1314341 4132669 4118948
Claims Paid Accepted 265063 515731 - 2219 53228 35294 53228 37513
Claims Paid Ceded 7330860 4453593 599241 371520 962536 621169 1561776 992690
Net Claim Paid 5451267 8713372 2163387 2435305 460734 728466 2624121 3163772
Cl O/S Claims Direct 33115367 29534522 1704826 2845264 6174321 7564859 7879148 10410123
Cl O/S Claims Accepted 1811469 1688519 16645 23628 419300 521264 435946 544892
Cl O/S Claims Ceded 16671423 15020087 369139 875391 4341543 5838536 4710682 6713927
Net Closing OutstandingClaim 18255413 16202954 1352333 1993501 2252079 2247587 3604412 4241088
Op O/S Claims Direct 29534522 25468509 2845264 3319790 7564859 2628312 10410123 5948102
Op O/S Claims Accepted 1688519 1540409 23628 10232 521264 283920 544892 294152
Op O/S Claims Ceded 15020087 13712269 875391 939255 5838536 927740 6713927 1866995
Net Opening OutstandingClaim 16202954 13296649 1993501 2390768 2247587 1984492 4241088 4375259
Incurred Claims Direct 16097909 16717246 1622190 2330080 -20496 6250888 1601694 8580968
Incurred Claims Accepted 388013 663841 -6983 15615 -48736 272639 -55719 288253
Incurred Claims Ceded 8982196 5761411 92989 307656 -534457 5531965 -441469 5839621
Net Incurred Claim 7503726 11619677 1522219 2038039 465225 991561 1987444 3029600
Commission Direct 1441878 1111701 494713 438267 72099 65025 566812 503292
Commission Accepted 33321 40728 1695 - 8361 9528 10057 9528
Commission Ceded 1726581 887716 71683 97107 84014 105187 155697 202294
Net Incurred Commission -251382 264713 424726 341160 -3554 -30634 421171 310525
Annual Report 2017-18
Foreign Taxes - - - - - - - -
Operating Expenses Related to Insurance 2592439 3099740 520326 621886 125315 56943 645641 678830
Premium Deficiency - - - - - - - -
Revenue Accounts Result Profit/ (loss) 4241027 -4878889 878701 486200 -32501 199198 846201 685398
101
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 INDIAN
102
(`, 000)
Total Investment Income 4016682 3655407 16879803 14071986 20896486 17727393 3637197 3758505
Claims Paid Direct 24535703 23639459 26767629 24070171 51303331 47709630 67413669 63866482
Claims Paid Accepted - - - 553713 - 553713 - -
Claims Paid Ceded 1596974 1207919 1759947 1423141 3356921 2631059 6554924 4968007
Net Claim Paid 22938729 22431540 25007681 23200744 47946410 45632284 60858745 58898476
Cl O/S Claims Direct 7849350 7434479 131957239 115374910 139806589 122809389 9952350 9303903
Cl O/S Claims Accepted -1 - - - -1 - - -
Cl O/S Claims Ceded 557784 925341 8098155 7400297 8655940 8325639 1193178 993597
Net Closing OutstandingClaim 7291564 6509137 123859083 107974613 131150648 114483750 8759172 8310306
Op O/S Claims Direct 7434479 6443556 115374910 103517467 122809389 109961023 9303903 8166225
Op O/S Claims Accepted - - - - - - - -
Op O/S Claims Ceded 925341 651915 7400297 5070286 8325639 5722200 993597 542786
Net Opening OutstandingClaim 6509137 5791642 107974613 98447181 114483750 104238823 8310306 7623438
Incurred Claims Direct 24950574 24630381 43349957 35927615 68300531 60557996 68062115 65004161
Incurred Claims Accepted -1 - - 553713 -1 553713 - -
Incurred Claims Ceded 1229417 1481345 2457805 3753153 3687222 5234498 6754505 5418818
Net Incurred Claim 23721156 23149036 40892152 32728176 64613308 55877211 61307610 59585343
Commission Direct 5673713 2369731 561899 - 6235612 2369731 5049781 3427085
Commission Accepted - - - - - - - -
Commission Ceded 251602 232334 264594 41625 516195 273959 384558 663167
Net Incurred Commission 5422112 2137398 297305 -41625 5719417 2095772 4665222 2763918
Annual Report 2017-18
Foreign Taxes - - - - - - - -
Operating Expenses Related to Insurance 6526450 7694266 9200060 8794387 15726510 16488653 10647209 11220091
Premium Deficiency - - - - - - - -
Revenue Accounts Result Profit/ (loss) -592315 -2678561 14811399 8485705 14219084 5807144 -13934263 -12923218
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 INDIAN
(`, 000)
Interest Dividend and Rent 111626 72869 152181 265988 215284 143282
Investment Provisions -329 -437 -134 696 86 439
Total Investment Income 231282 165278 286116 460848 399649 247497
Claims Paid Direct 355590 28910 140906 691258 3751243 1981531
Claims Paid Accepted - - 5159 17815 16717 80671
Claims Paid Ceded 23158 1446 14816 52285 203346 110509
Net Claim Paid 332432 27465 131249 656787 3564614 1951692
Cl O/S Claims Direct 576353 244035 968274 1730828 1825097 1471529
Cl O/S Claims Accepted - - - - - -
Cl O/S Claims Ceded 42332 70674 385432 314351 101757 87742
Net Closing OutstandingClaim 534021 173361 582843 1416476 1723340 1383787
Op O/S Claims Direct 359632 6623 1364573 1818735 1471529 1025895
Op O/S Claims Accepted - - - - - -
Op O/S Claims Ceded 32215 - 282137 250849 87742 30355
Net Opening OutstandingClaim 327417 6623 1082436 1567886 1383787 995539
Incurred Claims Direct 572311 266323 -255392 603350 4104810 2427165
Incurred Claims Accepted - - 5159 17815 16717 80671
Incurred Claims Ceded 33276 72120 118111 115787 217361 167896
Net Incurred Claim 539035 194203 -368344 505377 3904166 2339940
Commission Direct - - 402514 352039 290689 278077
Commission Accepted - - 598 1600 2860 14401
Commission Ceded - 13050 155409 38835 38945 32241
Annual Report 2017-18
103
* Employers Liability and Product / Public Liability figures for previous year are included in Other Liabilities
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 INDIAN
104
(`, 000)
Foreign Taxes - - - - - -
Operating Expenses Related to Insurance 110058 94023 542735 655882 651355 784281
Premium Deficiency - - - - - -
Revenue Accounts Result Profit/ (loss) 160022 -253291 1517183 988749 855656 -430962
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 INDIAN
(`, 000)
Foreign Taxes - - - - - -
Operating Expenses Related to Insurance 1184071 1312811 30208590 31972499 33446670 35751068
Premium Deficiency - - - - - -
Revenue Accounts Result Profit/ (loss) 792331 835490 5022441 -4236694 10109669 -8430186
105
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 FOREIGN
106
(`, 000)
107
108
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 FOREIGN
(`, 000)
* Employers Liability and Product / Public Liability figures for previous year are included in Other Liabilities
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 FOREIGN
(`, 000)
109
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 FOREIGN
110
(`, 000)
Total Investment Income 5965697 4433515 449942 503589 395160 439202 845103 942791
Claims Paid Direct 18285894 17248777 2940431 2888147 1373588 1315741 4314019 4203888
Claims Paid Accepted 7552260 5879393 32896 29357 94329 375619 127226 404976
Claims Paid Ceded 10767799 6403918 605802 372296 963200 621573 1569002 993869
Net Claim Paid 15070354 16724252 2367525 2545208 504718 1069787 2872243 3614995
Cl O/S Claims Direct 42440113 39365621 2276107 3511421 6248652 7637445 8524759 11148866
Cl O/S Claims Accepted 13142164 10995834 96064 86270 796744 817590 892808 903861
Cl O/S Claims Ceded 28067866 22495958 765036 1277964 4348913 5849966 5113949 7127930
Net Closing Outsatnding Claim 27514412 27865498 1607135 2319727 2696483 2605069 4303618 4924797
Op O/S Claims Direct 39050558 31930634 3492126 3877548 7637105 2868205 11129231 6745753
Op O/S Claims Accepted 10645538 10768204 85968 53931 812938 513296 898906 567227
Op O/S Claims Ceded 22215346 17702775 1263949 1338687 5849944 927919 7113893 2266606
Net Opening Outsatnding Claim 27480750 24996063 2314145 2592792 2600099 2453582 4914244 5046374
Incurred Claims Direct 21675449 24683765 1724411 2522020 -14865 6084981 1709547 8607001
Incurred Claims Accepted 10048886 6107023 42992 61696 78135 679913 121127 741610
Incurred Claims Ceded 16620318 11197101 106889 311573 -537831 5543620 -430942 5855193
Net Incurred Claim 15104016 19593687 1660515 2272144 601102 1221275 2261616 3493418
Commission Direct 3341040 3245925 570456 531760 75966 108780 646422 640540
Commission Accepted 1706838 1555311 22226 18839 69278 33047 91503 51886
Commission Ceded 2160481 1395193 86425 102257 85317 136303 171742 238560
Net Incurred Commission 2887397 3406042 506257 448342 59927 5523 566183 453866
Annual Report 2017-18
111
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 GLOBAL
112
(`, 000)
Investment Provisions 1653 6584 6494 25345 8147 31929 1400 6880
Total Investment Income 4296286 3655407 16879803 14071986 21176090 17727393 3638439 3819917
Claims Paid Direct 31999279 31930211 26767629 24070171 58766907 56000382 68917819 64948593
Claims Paid Accepted 131448 154367 8493 553713 139941 708080 - -
Claims Paid Ceded 2362531 1841840 1759947 1423141 4122479 3264981 6571031 4968007
Net Claim Paid 29768195 30242738 25016174 23200744 54784369 53443482 62346788 59980586
Cl O/S Claims Direct 15633340 13942227 131957239 115374910 147590578 129317137 10177223 9453208
Cl O/S Claims Accepted 117229 98388 - - 117229 98388 - -
Cl O/S Claims Ceded 2209358 1923878 8098155 7400297 10307513 9324175 1193178 993597
Net Closing Outsatnding Claim 13541211 12116738 123859083 107974613 137400295 120091351 8984045 8459611
Op O/S Claims Direct 13674866 11781801 115374910 103517467 129049776 115299268 9453068 8316578
Op O/S Claims Accepted 94985 63718 - - 94985 63718 - -
Op O/S Claims Ceded 1865621 1014316 7400297 5070286 9265918 6084602 993597 551915
Net Opening Outsatnding Claim 11904229 10831204 107974613 98447181 119878842 109278385 8459471 7764663
Incurred Claims Direct 33957753 34090636 43349957 35927615 77307710 70018251 69641974 66085223
Incurred Claims Accepted 153693 189037 8493 553713 162185 742751 - -
Incurred Claims Ceded 2706268 2751401 2457805 3753153 5164074 6504554 6770612 5409689
Net Incurred Claim 31405177 31528272 40900644 32728176 72305821 64256448 62871362 60675535
Commission Direct 8322340 5006829 561899 - 8884239 5006829 5448665 3719817
Commission Accepted 7945 1847 32765 - 40710 1847 - -
Commission Ceded 408747 415759 264594 41625 673341 457384 384558 663167
Net Incurred Commission 7921538 4592917 330070 -41625 8251608 4551292 5064107 3056650
Annual Report 2017-18
(`, 000)
Interest Dividend and Rent 142531 109857 169926 432174 220319 152252
Investment Provisions 101 78 113 1344 156 474
Total Investment Income 261757 201751 303614 746262 404615 262902
Claims Paid Direct 672065 435940 17609 1430365 3823086 2037878
Claims Paid Accepted 16 23 18271 17946 26827 91799
Claims Paid Ceded 23158 2106 14816 64006 203346 110510
Net Claim Paid 648923 433856 21063 1384305 3646566 2019168
Cl O/S Claims Direct 1575933 1371154 1202345 3960339 1884296 1534933
Cl O/S Claims Accepted 608 288 12526 10063 26084 23652
Cl O/S Claims Ceded 133918 89884 398612 421516 102796 89132
Net Closing Outsatnding Claim 1442622 1281558 816259 3548886 1807585 1469453
Op O/S Claims Direct 1262724 1109602 1479934 4254442 1532753 1073551
Op O/S Claims Accepted 530 315 9435 10609 23648 24180
Op O/S Claims Ceded 100270 20006 293956 294515 89132 30393
Net Opening Outsatnding Claim 1162984 1089912 1195413 3970535 1467269 1067338
Incurred Claims Direct 985273 697491 -259980 1136262 4174629 2499261
Incurred Claims Accepted 94 -5 21362 17401 29263 91271
Incurred Claims Ceded 56806 71984 119472 191007 217010 169250
Net Incurred Claim 928561 625502 -358091 962657 3986882 2421283
Commission Direct 154272 159724 449970 651928 339406 332452
Commission Accepted 60 119 572 1086 9770 25909
Commission Ceded 47 23328 156999 51273 39534 33440
Annual Report 2017-18
* Employers Liability and Product / Public Liability figures for previous year are included in Other Liabilities
113
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 GLOBAL
114
(`, 000)
Foreign Taxes 98 73 43 75 - -
Operating Expenses Related to Insurance 166053 171107 567480 735448 651355 784281
Premium Deficiency - - - - - -
Revenue Accounts Result Profit/ (loss) -719951 87202 1274192 794058 855656 -430962
SEGMENT REPORTING FOR THE PERIOD ENDED 31ST MARCH 2018 GLOBAL
(`, 000)
115
Shareholders' and Policyholders' Funds
116
Basis of Allocation of Investments
Particulars As at 31/03/2018 As at 31/03/2017
` (000) ` (000)
Policy Holders Fund
1 Outstanding Claims including IBNR & IBNER 197200929 179120779
2 Unearned Premium Reserve 100201172 87883611
3 Premium Deficiency Reserve 0 0
4 Catastroph Reserve 0 0
5 Other Liabilities Net of Other Assets :
Other Liabilities :
i Premium Received in Advance 1934671 1702021
ii Unallocated Premium 15834874 11034265
THE NEW INDIA ASSURANCE CO. LTD.
Schedule 16
Significant Accounting Policies and Notes forming part of Financial Statements as on 31st March, 2018
16 A. SIGNIFICANT ACCOUNTING POLICIES 4. Premium Received in Advance
Profit Commission under reinsurance treaties wherever • In respect of reinsurance accepted, advices received
applicable, is recognized on accrual. Any subsequent as of different dates of subsequent year up to the date
revisions of profit commission are recognized for in of finalisation of accounts or on estimation basis
the year in which final determination of the profits are • Provision for claims incurred but not reported (IBNR) and
intimated by reinsurers. provision for claims incurred but not enough reported
(IBNER).The said provisions have been determined
by Appointed Actuary, which is in accordance with
117
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
accepted actuarial practice, requirement of IRDA Interest Income is recognized on accrual basis on time
(Preparation of Financial Statements and Auditor’s proportion except income on non-performing assets is
Report of Insurance Companies) Regulations, 2002 recognized on realization.
and the master circulars issued in the context of Amount received towards compensation for future
preparation of financial statements and stipulations of loss of interest is recognised as income only to the
the Institute of Actuaries of India. extent attributable to the accounting year and balance
All the outstanding claims for direct business are provided net is kept in interest received in advance account for
of estimated salvage (if any). apportionment in the relevant year.
In respect of motor third party claims where court summons F Profit/Loss on realisation of investments is computed
have been served on the Company without adequate policy by taking weighted average book value as cost of
particulars to establish liability of the Company, provision is investments except:
made as under: • In respect of Government Securities Debentures/
• 100% of the estimated liability, where such claims are Bonds under Trading Portfolio, the profit/loss is
outstanding for more than one year. worked out specific scrip wise.
• 1/3rd of the estimated liability, for all such claims • In respect of Government Securities sold from
for which court summons have been served on the Investment Portfolio, the profit/loss is worked
Company during the year. out on first in first out basis (FIFO).
Interest on motor accident claims tribunal (MACT) claims is G The Company follows the prudential norms prescribed
provided based on the prevailing trends in the motor third by the Insurance Regulatory and Development
party claim awards. Authority as regards asset classification, recognition of
income and provisioning pertaining to loans/advances/
11. Salvage and Claim Recoveries debentures
Recoveries of claims and sale proceeds on disposal of H Investment in government securities, debt securities
salvage are accounted on realisation and credited to claims. and redeemable preference shares are considered as
held till maturity and valued at cost. However, in terms
12. Provisions, Contingent Liabilities & Contingent Assets
of Insurance Regulatory and Development Authority
Provisions involving substantial degree of estimation in Regulations the premium paid at the time of acquisition
measurement are recognized when there is a present obligation of securities is amortised over the residual period of
as a result of past events and it is probable that there will be an maturity.
outflow of resources and reliable estimate can be made of the
amount of obligation. Contingent Liabilities are not recognized I i. Investments in Mutual Funds are valued at Net
but are disclosed in the notes. Contingent Assets are neither Asset Value (NAV) as at the Balance Sheet date
recognized nor disclosed in the financial statements. and the difference between cost/book value and
NAV is accounted in Fair Value Change Account.
13. Loans and Investments In case of non-availability of latest NAV as at the
balance sheet date, investment is shown at cost.
A Loans are measured at historical cost subject to
impairment. Company reviews the quality of its loan ii. Investments in Venture Funds are valued at cost.
assets and provides for impairment if any. If there is reduction in NAV, the same is charged
to revenue and book value of investments is
B Short Term Money Market Instruments such as
reduced accordingly. Any appreciation in NAV
Commercial Papers and Certificate of Deposits are
to the extent of loss earlier recognised, is taken
shown at their discounted value and the difference
to revenue. Wherever Net Asset Value as on
between the acquisition cost and the redemption
Balance Sheet date is not available, latest
value is apportioned on time basis and recognised as
available Net Asset Value is considered.
accrued income.
J (i) In accordance with IRDA/F&I/INV
C Contracts for purchase and sale of shares, bonds,
CIR213/10/2013 dated 30th October 2013 for
debentures are accounted for as “Investments” as on
Valuation of Equity Portfolio, National Stock
date of transaction.
Exchange (NSE ) is considered as Primary
D The cost of investments includes premium on Stock Exchange and Bombay Stock Exchange
acquisition, brokerage, transfer stamps, transfer (BSE) as Secondary Stock Exchange.
charges, Securities Transaction Tax and is net of
Investment Portfolio in respect of equity/
incentive/ fee if any, received thereon.
equity related instruments is segregated into
E Dividend income (other than interim dividend) is actively traded and thinly traded as prescribed
accounted for as income in the year of declaration. by Insurance Regulatory and Development
Dividend on shares/interest on debentures under Authority Regulations. The shares are treated
objection/pending delivery is accounted for on as actively traded or thinly traded by taking into
realisation. Interim dividend is accounted for where consideration total traded transactions in the
the amount is received/credited in the account of the month of March on NSE and BSE.
company upto 31st March.
(ii) Actively traded equity/ equity related instruments
Dividend on foreign investments is accounted on are valued at the closing price at NSE or if the
gross basis. scrip is not traded at NSE, the scrip is valued at
the closing price at BSE. The difference between
118
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
weighted average cost and quoted value is II. Once the value of investment in listed equity/
accounted in Fair Value Change Account equity related instruments/ preference shares
Exchange traded funds are valued as applicable of a company is impaired in accordance with
to Equity portfolio. The difference between the the above mentioned policy, the reversal of
weighted average cost and the quoted value is such impairment losses are not recognised
accounted in Fair Value change account. in revenue/ profit and loss till such company
achieves a positive net worth as per the latest
(iii) Investments in equity shares of companies available published accounts immediately
outside India are valued at the last quoted price preceding the date of working out the reversal.
at the stock exchange of the respective Country. However, in respect of investments where
K Investment in thinly traded equity shares and unlisted the historical or weighted average cost is not
equity shares are shown at cost. However, difference available as mentioned in Policy No.13-L,
between cost and break-up value is provided for as reversal of impairment loss is carried out and
diminution in value. If the break-up value is negative recognised only to the extent of impairment
then the provision is made for the entire cost. Further, losses accounted after 31st March 2000.
if the published accounts of an unlisted Company are N REVERSE REPO transactions are treated as secured
not available for last three accounting years ending lending transactions and accordingly disclosed in the
on or immediately preceding the date of working out financial statements. The difference between total
diminution in value, then the provision is made for the consideration at the 1st and 2nd leg of the transaction
entire cost. is treated as interest income.
L In case of investment in listed and unlisted equity/ O “Collateralized Borrowing and Lending Obligation“
equity related instruments / preference shares where (CBLO), which is issued at discount to the face value,
the value has been impaired on or before 31.03.2000, is treated as money market instrument as per Reserve
the historical/weighted average costs are not available Bank of India Notification. Discount earned at the time
with the Company. As a consequence, the carrying of lending through CBLO is shown as income, which is
value of such investments as on 01.04.2000 is apportioned on time basis.
presumed to be the historical/ weighted average cost.
P Un-realised gains / losses arising due to changes in
M Investments in listed equity/ equity related instruments/ the fair value of actively traded listed equity shares
preference shares made in those companies, which are other than enumerated in Accounting Policy 13-L are
making losses continuously for last 3 years and where taken under the head “Fair Value Change Account”
capital is eroded, are considered to have impairment in and on realisation reported in profit and loss account.
value. Further, if the published accounts of a Company
are not available for last three accounting years ending Pending realisation, the credit balance in the “Fair
on or immediately preceding the date of working out Value Change Account” is not available for distribution.
impairment in value, it is presumed that the value 14. Foreign Currency Transactions
of investment is fully impaired and is written off to a
nominal value of ` 1/- per Company. • Reinsurance operations:
I. Valuation of such investments is done as under: Revenue transactions of re-insurance in foreign
currencies are converted at the average of buying and
i) In respect of actively traded equity selling rates of exchange of each quarter in which they
shares: - least of cost price, market price are accounted.
or break-up value provided break-up
value is positive. However, if the break- Monetary assets and liabilities of re-insurance in foreign
up value is negative the nominal value is currencies are converted at the closing rate.
taken at Re. 1/- per Company. • Foreign operations:
ii) In respect of other than actively traded • As per the Accounting Standard (AS) 11 “The
equity shares: - lower of cost price or Effects of Changes in Foreign Exchange Rates”,
break-up value provided break-up value foreign branches/agencies are classified as
is positive. However, if break-up value ‘non-integral foreign operations’.
is negative the nominal value is taken at
• The assets and liabilities (including contingent
Re.1/- per Company.
liabilities), both monetary and non-monetary
iii) In respect of preference shares, if the of the non-integral foreign operations are
dividend is not received for the last three translated at the closing rate,
years, such preference shares are written
• Income and expense items of the non-integral
down to a value which will bear to its
foreign operations are translated at the average
face value, the same proportion as value
exchange rate of the year.
taken/ which would have been taken for
writing down equity shares bears to the • Depreciation on fixed assets held in foreign
face value of the equity shares. However, branches and agencies is provided on written
if the equity shares are written down to down rupee value at the year-end at the rates
Re.1/- per Company, preference shares and in the manner as stated in “Depreciation”
are also written down to a nominal value policy stated herein below.
of Re.1/- per Company.
119
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
• All resulting exchange difference is accumulated All short term employee benefits are accounted on
in a foreign currency translation reserve until the undiscounted basis during the accounting period based on
disposal of the net investment. service rendered by the employees
• Foreign investments transactions during the year are 19. Expenses of Management-Basis of Apportionment
converted at the exchange rates prevailing as on the
last day of the month of purchase or sale. Expenses of management including provision for bad and
doubtful debts and exchange gain/loss, are apportioned to
• Other assets and liabilities in foreign currencies are the revenue accounts on the basis of net premium
converted at the average of buying and selling rates of
exchange prevailing at the year end. 20. Segregation of Policy Holders and Share Holders funds:
• The exchange gain/loss due to conversion of foreign Investment Assets includes Policyholders as well as Share
currencies other than relating to non-integral foreign holders. Investment assets are bifurcated at the end of each
operations is taken to revenue(s) account and profit quarter between Shareholders and Policyholders at ‘fund’
and loss account as applicable. level on notional basis in accordance with IRDAI guidelines.
120
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
121
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
122
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
b) Old credit balances written back in the Profit & Loss account includes ` 4008.45 lakhs [P.Y. ` 1298.16 lakhs (Debit)] and
credit of ` 13231.00 lakhs [P.Y. ` 6121.48 lakhs (Credit) based on information received from various offices and as compiled
by the Management.
a) Subsidiaries:
i) The New India Assurance Co. (T & T) Ltd. – Port of Spain, Trinidad & Tobago.
ii) The New India Assurance Co. (S.L.) Ltd. – Free Town, Sierra Leone.
iii) Prestige Assurance Plc. – Lagos, Nigeria
b) Associates:
i) India International Insurance Pte. Ltd., Singapore.
ii) Health Insurance TPA of India Ltd., Mumbai, India
123
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
124
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
(` in Lakhs)
II. Actual Returns for the year 2017-18 27,196 26,290 8,611 8,230 - -
125
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
IX. Basis used to determine the expected The expected rate of return on plan assets is based on the current
rate of return on plan assets portfolio of the assets, investment strategy and the market scenario,
in order to protect capital and optimize returns within acceptable risk
parameters, the plan assets are well diversified.
E. Accounting for Lease (AS-19)
The Company's Office Premises and Residential flats for employees are obtained on operating lease and are renewable /
cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual
agreements. Significant leasing arrangements are in respect of operating lease for premises. Aggregate lease rentals
amounting to ` 13632.24 lakhs (P.Y. ` 11313.03 lakhs) in respect of obligation under operating lease are charged to Revenue
Account.
F: Impairment of Assets (AS-28)
During the year, the Company has reviewed its fixed assets for impairment. In the opinion of the management no provision
for impairment loss is considered necessary. However, impairment assessment as required by AS-28 would be done in due
course.
10. a) With the amendment in the payment of Gratuity Act, 2018, the limit of payment of gratuity is enhanced from ` 10 lakhs to ` 20
lakhs with effect from March 28, 2018, resulting in to additional liability. In terms of requirement of the Accounting Standard
(AS-15) Employee Benefits, the entire additional liability of ` 33752.23 Lakhs for gratuity is required to be charged to the Profit
& Loss Account. However, vide circular communications ref IRDA/F&A/GNA/LR/002/2018-19/23 dated 01/05/2018, IRDAI has
permitted the amortization of expenditure relating to additional liability towards gratuity over a period of five years commencing
from FY 2017-18. Accordingly the company has recognized the additional liability and an amount of ` 6750.45 lakhs is charged
to the revenue in the current year and the balance amount remaining to be amortized in next years is ` 27001.78 lakhs.
b) The Pension Scheme 1995 has been extended to PSU officers and staff members who joined until 31.03.2010, by virtue of the
Gazette Notification no. 233(E), 234(E) and 235(E) dated 23.01.2016, the incremental liability towards pension arising out of
the above extension has been arrived at ` 1727.00 lakhs based on actuarial valuation.
In terms of requirement of the Accounting Standard (AS-15) Employee Benefits, the entire amount of ` 1727.00 lakhs for pension
is required to be charged to the Profit &Loss Account. However IRDA vide Circular ref IRDA/F&A/CIR/ACTS/077/04/2016
dated 18.04.2016 has permitted the amortization of expenditure relating to the additional liability over a period of five years
commencing from FY 2015-16 and accordingly an amount of ` 345.40 lakhs is charged to the revenue in the current year and
balance amount remaining to be amortized in next two years is ` 690.80 lakhs for pension.
11. The management is currently in the process of identifying enterprises which have been providing goods and services to the
Company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises
as at March 31, 2018 has not been made in the financial statements. However, in view of the management, the impact of interest, if
any, that may be payable in accordance with the provisions of the Act is not expected to be material.
126
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
12. "Foreign Exchange Reserve Account” is increased by ` 14584.04 Lakhs (Credit) due to depreciation of foreign currency under the
following heads (P. Y. ` 19047.08 Lakhs (Debit) consisting of the following.
(` in Lakhs)
13. Penalty
As per IRDAI Circular No 005/IRDA/F&A/CIR/MAY-09 dated May 07, 2009, below table mentions the details of
the penalty imposed by various regulators and Government authorities during the year:
Non- ` in Lakhs
No. Particulars compliance / Penalty Penalty Waived/
violation Penalty Paid
Awarded Reduced
1 Insurance Regulatory and Development NIL Nil Nil Nil
Authority / TAC
2 Service Tax Authorities Nil Nil Nil Nil
3 Income Tax Authorities Nil Nil Nil Nil
4 Any other Tax Authorities Nil Nil Nil Nil
5 Enforcement Directorate/ Adjudicating Authority/ Nil Nil Nil Nil
Tribunal or any Authority under FEMA
6 Registrar of Companies/ NCLT/CLB/ Nil Nil Nil Nil
Department of Corporate Affairs or any Authority
under Companies Act, 1956
7 Penalty awarded by any Court/ Tribunal for any Nil Nil Nil Nil
matter including claim settlement but excluding
compensation
8 Securities and Exchange Board of India Nil Nil Nil Nil
9 Competition Commission of India Refer note Nil Nil Nil
below
10 Any other Central/State/Local Government / Nil Nil Nil Nil
Statutory Authority
Note: The Company received an order from Competition Commission of India imposing a penalty of ` 25107 lakhs in 2015-16. The
Company contested against the order in Competition Appeal Tribunal and the Tribunal awarded penalty of ` 20 lakhs as against
` 25107 lakhs of CCI order. The penalty was paid in January 2017. CCI has appealed against the order of the Tribunal at the Apex
Court and the case has been admitted in the Apex Court in March 2017.
14. During the year the Company had fully reversed the Equalization Reserve in respect of London Branch which was required by the UK
Regulations for the time being in force. The same is now not required to be maintained by the Regulation. The closing balance as at
the end of 2016-17 stood at ` 8900.18 lakhs (GBP 11 million).
Further, in accordance with Oman Insurance Company Law, company has created contingency reserve for claims for Muscat agency
for 5 million Omani Riyal. The reserve stood at ` 8463.64 lakhs as on 31.03.2018 due to currency fluctuation.
15. a) The balance appearing in the amount due to/ due from persons or bodies carrying on insurance business including reinsurance
business, terrorism Pool and Nuclear Pool with GIC Re, are subject to confirmation/ reconciliation and consequential
adjustments if any. These balances include ` 200927.19 lakhs (Net) Dr. comprising of debit balances of ` 435682.93 lakhs
and credit balances of ` 234755.73 lakhs against which party-wise balances in the records indicate (Dr.) of ` 329652.55 lakhs
relating to 1004 parties and (cr.) of ` 128725.35 lakhs relating to 877 parties. Precise gross debit and gross credit balances
against each of such parties and age-wise analysis of these balances are also being compiled. These balances include old
cases including migration differences which supporting records are being identified and necessary action is being taken. The
impact of the above, if any, on the financial statements are unascertainable. However the company has maintained a provision
of ` 10414.56 Lakhs up-to March 31, 2018 towards doubtful debts as a prudent measure.
127
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
b) The company has continued to recognize Facultative inward reinsurance premium in cases where the premium payment
warranty period has expired and the company has continued to run the risk during the year. However the receivables on this
account amounting to ` 708.27 lakhs are subject to confirmation and subsequent adjustments if any required shall be carried
out in due course.
c) In case of Co-insurance balances, the reconciliation and settlement process to clear the balances is in progress, the Company
has continued its exercise of reconciliation and settlement with other Companies and have reduced the net receivable balances
without PMFBY (Pradhan Mantri Fasal Bima Yojna) from ` 14539 lakhs (March 2017) to ` 3313 lakhs as at March 31, 2018. In
case of balances with PSUs, while the receivables have been brought down by ` 20939 lakhs during 2017-18 as compared to
2016-17, the payable balances in respect of PSUs have also been brought down by ` 8397 lakhs during 2017-18 as compared
to 2016-17.
During the year 2017-18, the Company has settled the receivable balances of ` 71842 lakhs and payable balances of ` 105971
lakhs from the Corporate office as a special drive apart from the settlements at operating offices level. As on March 31, 2018,
there is a net Credit balance of ` 48904.50 lakhs with PMFBY comprising of ` 82898.89 lakhs (Dr) and ` 131804.39 lakhs (Cr);
and net debit balance of ` 3312.92 lakhs with other than PMFBY comprising of ` 19520.38 lakhs (Dr) and ` 16207.45 lakhs
(Cr). The net balance outstanding as on March 31, 2017 were ` 35694.27 lakhs (Dr) with PMFBY and ` 14538.99 lakhs (Dr)
without PMFBY.
d) The reconciliation of various accounts relating to inter-office accounts related to domestic and foreign operations amounting to
` 43332.42 lakhs (Debit), (P.Y. ` 25192.25 lakhs (Debit)), Control Accounts, treaty suspense account old balances appearing
in legacy software, sundries and suspense, few Bank Accounts, loans, other assets and other liabilities etc. is under progress.
The impact of the above, if any, on the financial statements are unascertainable.
e) In case of Fasal Bima Yojna, Enrolment data and premium data as per Banks is to be reconciled with data as per the Central/
State Government portal. Accounting of premium as well as reinsurance accounts, has been done based on portal data after
giving effect of reconcilable items. Since No claims have been reported and no actual yield data is available relating to the
year 2017-18 , provision for outstanding claims has been made based on IBNR claims as assessed by the Actuary. Necessary
adjustments relating to the above are to be carried out in due course.
f) In view of various accounts being reconciled and balances under confirmation, the effect of such pending reconciliation on
compliance of various provisions relating to TDS, service tax and GST and interest thereon has been ensured to the extent of
available information and necessary adjustments /payments of any liability arising out of such reconciliation is to be done in
due course.
g) The company has been undertaking restatements of monetary assets and liabilities denominated in Foreign currencies in
accordance with the accounting policy followed except for the balances in treaty suspense due to absence of adequate
details/reconciliation. The effect of such restatement on the balances of other debtors/creditors which are to be reconciled and
confirmed is to be ascertained in due course.
16. Reinsurance acceptance transactions pertaining to the year have been booked for advices received up to April 13, 2018.
17. Receipts & Payments Account / (Cash Flow Statement) have been drawn under “Direct Method” as required by Part I of Schedule
B of the regulation. However, the same is subject to reconciliation of various inter office and other accounts including few Bank
Accounts.
18. The company is in the process of updating the fixed asset register with reference to full particulars, quantitative details and location
thereof. Further, physical verification of fixed assets in respect of some locations is in progress.
19. The company at its Curacao Branch has a receivable from the agent amounting to Nafls 7669884 equivalent to ` 2800.26 lakhs as
at March 31, 2018 out of which an amount equivalent to Nafls 5596584 Equivalent to ` 2043.30 lakhs is due for more than 90 days.
The company has been taking efforts to recover the amount from the agent and is hopeful of recovery and signed an agreement in
this regard. There is no collateral in place. As a prudent measure a provision of Nafis. 1380455 equivalent to ` 504 lakhs as at March
31, 2018 is carried in the accounts
20. The company is in the process of strengthening internal controls and Internal Audit specially in area of data input and validation in
soft-wares , Reinsurance accounts, PMFBY and other Government sponsored Health schemes to ensure the compliance of laid
down operational guidelines.
21. In accordance with the provisions of the Companies Act, 2013, the Company had to spend an amount of ` 2281 lakhs for the financial
year 2017-18 towards Corporate Social Responsibility. During the year an amount of ` 1350.87 lakhs has been spent against the total
sanction of `1680.10 lakhs. The balance could not be spent as various projects are in the completion stage.
22. Unexpired premium reserve at revenue segment level is found to be sufficient to cover the expected claim cost as certified by the
appointed actuary and the claims related expenses as estimated by the management. Hence no premium deficiency reserve is
required to be provided during the year.
23. The company has a fraud monitoring cell which monitors the external frauds reported to the company. As per the assessment made
by the Cell, there were no matters related to external frauds reported during the year which required any adjustments to the financial
statements of the company. Matters related to employees of the company are dealt with by the vigilance department and are kept
confidential and not subjected to audit. In the opinion of the management there were no such matters that came to notice which
required either disclosure or adjustments to the financial statements of the company.
128
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
24. ` 2171.34 Lakh has been withheld / deducted by Govt of Rajasthan under Bhamashah Health Insurance Scheme towards rejection of
claims under the scheme and related matters, the company has since paid the underlying claims the company is in process of getting
the same refunded by the Government of Rajasthan and no provision is required against the same.
25. The Board of Directors at their meeting approved an Interim dividend of 75% during for FY 2017-18 which was duly paid in February
2018. Further a Final dividend of 100% of the paid up capital of the company subject to the approval of the members at the ensuing
Annual General Meeting. In terms of revised Accounting Standard (AS) 4 Contingencies and Events occurring after the Balance
Sheet date as notified by the Ministry of Corporate Affairs through the amendments to the Companies (Accounting Standard) Rules
2016, the company has not appropriated proposed dividend (including tax) amounting to ` 49668.78 lakhs from the Profit & Loss
Account for the year ended on March 31, 2018.
26. Pursuant to 1553rd Board Meeting held on July 10, 2017 the Board of directors recommended and the same was approved by the
shareholders in the Annual General Meeting held on August 2, 2017, the increase in authorised share capital, sub division of shares
and issue of bonus equity shares resulting in an increase in authorised numbers of shares from existing 3,000.00 lakhs to 12,000.00
lakhs, increase in issued numbers of shares from 2,000.00 lakhs to 8,000.00 lakhs and decrease in face value of shares from ` 10
to ` 5. As a result, the authorised share capital has increased from ` 30,000.00 lakhs to ` 60,000.00 lakhs, and the issued share
capital has increased from ` 20,000.00 lakhs to ` 40,000.00 lakhs. Subsequently in November 2017 the Company concluded its Initial
Public Offer of ` 9,58,582.27 Lakh in the month of November 2017 comprising fresh issue of 240 Lakh equity shares aggregating to
` 191716.45 lakhs and an offer for share of 960 lakhs equity shares by Promoter, Ministry of Finance, Government of India aggregating
to ` 766865.81 lakhs and the paid up capital has now become ` 41200.00 lakhs.
27. Previous year figures have been regrouped / rearranged, wherever necessary.
129
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
130
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
17 Performance Ratios
131
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
132
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
133
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
134
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
xvi) Available Solvency Margin (ASM) to Required Solvency Margin (RSM) Ratio (` in Lakhs)
Particulars Current Year Previous Year
a. Available Solvency Margin (ASM) 1373886.51 1113468.47
b. Required Solvency Margin (RSM) 532296.86 507353.03
ASM to RSM Ratio (Times) (a/b) 2.58 2.19
xvii)
NPA Ratio (` in Lakhs)
Particulars Current Year Previous Year
a. Total Investment Assets 3497161.33 2932276.89
b. Gross NPA 9198.50 10868.22
c. Net NPA 0.00 0.00
Gross NPA Ratio (%) 0.26 0.37
Net NPA Ratio (%) 0.00 0.00
135
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
19 Age wise analysis of outstanding claims as on 31.03.2018 (Gross Indian excluding provision for IBNR and IBNER)
Segment Less than 90 Days 90 Days to 6 Months 6 Months to 1 Year 1 Year to 2 Years
No Amount No Amount No Amount No Amount
(` in lakhs) (` in lakhs) (` in lakhs) (` in lakhs)
Fire 580 57,497.42 312 33,290.71 598 99,261.55 316 68,565.53
Marine Cargo 810 3,325.05 426 1,534.09 440 2,334.79 105 1,610.93
Marine Hull 35 2,192.29 23 1,328.76 42 8,132.64 70 37,765.17
Motor OD 43,189 25,242.50 6,253 7,639.73 3,842 5,260.03 512 1,103.17
Motor TP 7,757 39,035.31 8,971 42,914.64 16,935 83,461.58 28,619 1,46,676.44
Health 56,852 38,756.66 363 1,214.41 2,407 412.03 319 992.25
Liability 294 1,897.65 131 3,058.95 193 1,263.79 241 3,275.49
Personal Accident 1,963 4,587.67 888 2,508.60 648 1,428.16 107 148.09
Aviation 11 962.71 16 219.74 23 6,778.30 11 688.50
Engineering 780 3,610.09 307 5,488.12 276 9,257.77 69 6,269.18
Others 2,259 9,519.49 937 4,511.41 947 14,511.99 298 4,741.88
Total 1,14,530 1,86,626.85 18,627 1,03,709.15 26,351 2,32,102.63 30,667 2,71,836.64
20 Investment income (Net of Expenses) is apportioned between Revenue Accounts and Profit and Loss account in proportion to the
balance in the Shareholders' funds and Policyholders’ funds at the beginning of the year. The same is further apportioned to fire,
marine and miscellaneous Revenue Accounts in proportion to the technical reserve balance at the beginning of the year.
21 The UPR at a revenue segment level was found to be sufficient to cover the expected claims cost as certified by the Appointed
Actuary and the claim related expenses as estimated by the management . Hence no premium deficiency reserve is required to be
provided.
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
136
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
137
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
There are no specific points to be disclosed on Financial 9. (a) Ageing of claims indicating the trends in average
Statements of subsidiaries incorporated outside India in terms claims settlement time during the preceding five
of IRDAI regulations. Therefore, Management Report related years is furnished below in the format required::
to standalone accounts of the Holding Company alone are as Age-wise Summary of Claims settled during the year
under:
2013-14, 2014-15, 2015-16, 2016-17 & 2017-18
1. We confirm that the registration granted by the Insurance
Regulatory & Development Authority is valid during the Age band No. of Claims Amount
year. The same is renewed for the year 2018-19. (in ` Lakhs)
2. We confirm that all known and undisputed dues payable 30 DAYS 3044097 400564.48
to the statutory authorities have been duly paid.
30 DAYS to 6 MONTHS 1244413 547773.87
3. We confirm that the shareholding pattern and transfer
6 MONTHS TO 1 YEAR 120396 154287.65
of shares during the year are in accordance with the
statutory or regulatory requirements. 1 YEAR TO 5 YEARS 78599 284482.58
4. We confirm that the funds of the holders of policies issued MORE THAN 5 YEARS 21281 64483.95
in India have not been directly or indirectly invested GRAND TOTAL 4508786 1451592.52
outside India.
5. We confirm that the required solvency margins have been (b) Details of payment to individuals, firms, companies
maintained. and organizations in which directors are interested
6. We certify that the values of all the assets have been is required to be disclosed as per Management
reviewed on the date of the Balance Sheet and to the Report to be furnished in the following format:
best of our belief the assets set forth in the Balance Sheet
No. Name Entity in Interested Amount of
are shown in the aggregate amounts not exceeding their
which he is as payments during
realizable or market value under the several headings-
interested the financial year
“Loans”, “Investments”, “Agents balances”, “Outstanding
(` In lakhs)
Premiums”, “Interest, Dividends and Rents outstanding”,
“Interest, Dividends and Rents accruing but not due”, NIL NIL NIL
“Amounts due from other persons or Bodies carrying on
insurance business”, “Sundry Debtors”, “Bills Receivable”,
“Cash” and several items specified under “Other Account”. 10. We certify that the investments have been valued as per
the Accounting Regulations of the Insurance Regulatory
7. The overall risk exposure for the risks accepted by us is and Development Authority and shown in the balance
limited to ` 200 crores PML per risk except in respect of sheet.
certain risks in which cases there are exposures of ` 500
Crores PML per policy. The same has been approved 11. All investment assets are reviewed periodically and assets
by the Board. We have made adequate reinsurance are classified into performing and non-performing based
arrangements to mitigate the losses arising out of any on IRDA norms.
major claims. 12. It is hereby confirmed:
8. We have overseas operations in 28 countries. The foreign (i) That in preparation of financial statements, the
branches have their own reinsurance arrangements applicable accounting standards, principles and
to protect their exposure. Over and above there is an policies have been followed, except amortisation
excess of loss protection available, which takes care of of additional actuarial liability for Gratuity and
the exposure risk of the Company as a whole, including Pension as per I.R.D.A. circular no. IRDA/F&A/CIR/
domestic and foreign branches. ACT/077/04/2016 dated 18.04.2016 and IRDA/F&A/
The foreign branches/agencies generate enough revenue LR/001/2016/6 dated 19.4.2016
in local currencies to meet their liabilities arising out of (ii) That the management has adopted accounting
their operations. Hence there is no major currency risk in policies and applied them consistently and made
the countries we operate. judgments and estimates that are reasonable and
As regards the country risk, by and large all the countries prudent so as to give a true and fair view of the
in which we operate are politically stable. We also have state of affairs of the Company at the end of the
well defined acceptance limits for foreign operations, financial year and of the operating loss of the
which limits our exposure in these countries. Company for the year except as mentioned in Para
12 (i) above.
(iii) That the management has taken proper and
sufficient care for the maintenance of adequate
138
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
accounting records in accordance with the (v) That the management has ensured that the
applicable provisions of the Insurance Act 1938 and internal audit system commensurate with the size
Companies Act 2013 for safeguarding the assets and nature of business exists and is operating
of the Company and for preventing and detecting effectively.
fraud and other irregularities.
(iv) That the management has prepared the financial
statements on a going concern basis.
Place: Mumbai
Date: May 11, 2018
139
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
R. Devendra Kumar and Associates A. Bafna & Co. NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
205, Blue Rose Industrial Estate, UG-250, The Dreams Mall 14/2, Western India House,
Near Petrol Pump, LBS Marg, Sir P.M. Road,
Western express highway Bhandup (West) Fort,
Borivali (E), Mumbai-400066 Mumbai - 400078 Mumbai 400001.
To Auditor’s Responsibility
140
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
issued by the ICAI. The precise impact of which is not of expenditure relating to additional liability towards pension
ascertained. on account of pay revision to the extent of ` 690.80 lakhs, as
3. Balances due to/from persons or bodies carrying on per the deferment permitted by the IRDAI.
Insurance Business including d) The company’s internal controls system specially in area
reinsurers are subject to confirmations and reconciliation, of data input and validation in soft-wares , Reinsurance
the ageing of these balances and records relating to old accounts, PMFBY and other Government sponsored Health
balances are not available in the records of the company. schemes requires strengthening. (Refer Note No. 23 in
Balances of Inter office accounts, control accounts, few Bank Schedule 16 B)
accounts including those related to Pradhan mantri Fasal e) ` 2171.34 Lakh has been withheld / deducted by Govt. of
Bima Yojna , certain loans and other accounts at certain Rajasthan under Bhamashah Scheme towards rejection
offices are also pending for reconciliation/confirmation and of claims under the scheme and related matters, since in
consequential adjustments, effect of which, if any, is not the opinion of the management the same will be recovered.
ascertainable and cannot be commented upon. The impact (Refer Note No 27 in Schedule 16 B)
of the above, on year end restatement of these balances Our opinion is not modified in respect of these matters.
recorded in foreign currency as required under Accounting
Standard-11issued under section 133 of the Companies Act Other Matters
2013, could not be ascertained. (Refer Note 16 of Notes to
a) We did not audit the financial statements 3 subsidiaries
accounts, in schedule 16B);
and whose financial statements reflect total assets of
Overall impact of the above and the consequential effects ` 25669.52 lakhs as at 31st March 2018, total revenues
on Revenue Accounts, Profit and Loss Account, assets and of ` 22057.62 lakhs and net cash out flows amounting to
liabilities and Reserve and Surplus as on March 31, 2018 are not ` 6897.94 Lakhs for the year ended on that date, as
ascertainable and cannot be commented upon. considered in the consolidated financial statements. The
consolidated financial statements also include the Group’s
Qualified Opinion share of net profit of ` 12711 lakhs for the year ended 31st
In our opinion and to the best of our information and according March, 2018, as considered in the consolidated financial
to the explanations given to us except for the possible effects of statements, in respect of 2 associates, whose financial
the matter described in the Basis for Qualified Opinion paragraph, statements have not been audited by us and our opinion on
the aforesaid consolidated financial statements dealt with by this the consolidated financial statements, in so far as it relates
report read together with schedules, significant accounting policies to the amounts and disclosures included in respect of these
and disclosures, give the information required by the “Act, Rules subsidiaries and associates, and our report in terms of sub-
and Regulations” in the manner so required and give a true and sections (3) and (11) of Section 143 of the Act, in so far as it
fair view in conformity with the accounting principles generally relates to the aforesaid subsidiaries and associates, is based
accepted in India as applicable to Non-Life Insurance Companies: solely on the reports of the other auditors to the extent these
(i) in the case of the Balance Sheet, of the state of affairs of the were furnished to us.
company as at March 31, 2018; b) The actuarial valuation of liability in respect of claims Incurred
(ii) In case of revenue accounts of the Profit in Fire, Marine & But Not Reported(IBNR) and those Incurred but Not Enough
Miscellaneous Business for the year ended on that date; Reported (IBNER) as at March 31,2018, is as certified by
the Company’s Appointed Actuary and our opinion in so far
(iii) In case of Profit and Loss Account of the Profit for the year as it relates to the amounts and disclosures related to such
ended on that date, and liability, is based solely on such report.
(iv) In case of Receipt and Payments Account, of the receipts Our opinion is not modified in respect of this matter.
and payments for the year ended on that date;
Report on Other Legal and Regulatory Requirements
Emphasis of Matter
As required by Section 143 (3) of the Companies Act 2013 and
We draw attention to the following Notes to Accounts: Insurance Regulatory and Development Authority (Preparation of
a) Note No. 6 in Schedule 16 B, regarding recognition of financial Statements and Auditors’ Report of Insurance Companies)
Reserve for Unexpired risk by 1/365 method as per the Regulations, 2002 and orders or direction issued by the Insurance
approval of IRDAI in case of domestic business while the Regulatory and Development Authority, we report that:
implementation of systems and procedures to compute a) We have sought and except for the matters described in
the same in case of Foreign business in accordance with the Basis for Qualified Opinion paragraph and the matters
1/365 method is pending and systems in case of domestic related to vigilance department which are stated to be
business are being strengthened. confidential ( Refer Note 23),obtained all the information and
b) Note No. 22 in Schedule 16 B, regarding outstanding dues explanations which to the best of our knowledge and belief
from agent amounting to `2043.30 lakhs for more than 90 were necessary for the purposes of our audit.
days for which the branch auditors have not been able to b) Except for the possible effects of the matter described in
assess the repayment capacity of the agent while the the Basis for Qualified Opinion paragraph above, in our
management has taken steps for recovery of these dues. opinion, proper books of accounts have been maintained by
c) Note No.13 in Schedule 16 B, regarding deferments of the Company, so far as it appears from our examination of
additional gratuity liability pursuant to the amendment in the those books and proper returns both audited and unaudited
Payment of Gratuity Act, 1972 to the extent of ` 27001.78 from Regional offices, Divisional Offices, branches and other
lakhs and Note No. 13 in Schedule 16 B, regarding deferment offices, not visited by us, have been received.
141
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
c) The reports of the Regional Auditors consolidating the l) As per the information and explanations provided to us,
Divisional Auditors report, Reports of foreign branches and the investments have been valued in accordance with the
foreign agency offices, audited under section143(8) of the provisions of the Insurance Act, the regulations and orders/
Act by the branch auditors have been sent to us and have directions issued by IRDAI in this regard.
been properly dealt with by us in preparing this report in the m) With respect to the other matters to be included in the Auditor’s
manner considered necessary by us. Report in accordance with Rule 11 of the Companies (Audit
d) The Balance sheet, Revenue account, Profit and Loss and Auditors) Rules, 2014, in our opinion and to the best of
account and the Receipts and Payments Account dealt with our information and according to the explanations given to
by the report are in agreement with the books of account and us:
with the returns received from offices not visited by us. i) The company has disclosed the impact of pending
e) In our opinion, the aforesaid consolidated financial litigations on its financial position in its financial
statements have been prepared in accordance with the statements – Refer Schedule 16 C to the consolidated
requirements of the Insurance Act, 1938 (4 of 1938), the financial statements;
Insurance Regulatory and Development Act, 1999 (41 of ii) The company has made provision, as required under
1999) and the Companies Act, 2013 to the extent applicable the applicable law or accounting standards, for
and in the manner so required. material foreseeable losses on long term contracts.
f) Except for the possible effects of the matter described in the There are no outstanding derivative contracts at the
Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet date.
aforesaid Consolidated Financial Statements comply with iii) There were no amounts which were required to be
the Accounting Standards specified under Section 133 of the transferred to the Investor Education and Protection
Act, read with Rule 7 of the Companies (Accounts) Rules, Fund by the Company.
2014.
n) Further on the basis of our examination of books and
g) The matter described in the Basis for Qualified Opinion records of the company and according to the information and
paragraph above, in our opinion, may not have an adverse explanation given to us and to the best of our knowledge and
effect on the functioning of the Company. belief, we certify that:
h) The qualification relating to the maintenance of accounts and i) We have reviewed the management report attached
other matters connected therewith are as stated in the Basis with the Financial Statements and there are no
for Qualified Opinion paragraph above. apparent mistakes or material inconsistencies
i) On the basis of written representations received from the between the management report and the consolidated
directors as on March 31, 2018, and taken on record by the financial statements;
Board of Directors, none of the directors is disqualified as on ii) Based on the management representation by officer
March 31, 2018, from being appointed as a director in terms of the company charged with compliance, nothing
of section 164(2) of the Act. has come to our attention which causes us to believe
j) The accounting policies adopted by the company are that the company has not complied with the terms and
appropriate and in compliance with the applicable Accounting conditions of registration as stipulated by IRDAI; and
Standards specified under Section 133 of the Act, read with iii) No part of the assets of the policyholders’ funds has
Rule 7 of the Companies (Accounts) Rules, 2014 and with been directly or indirectly applied in contravention of
the Accounting Principles as prescribed in the Insurance the provisions of the Insurance Act, 1938 (4 of 1938)
Regulatory and Development Authority (Preparation of relating to the application and investments of the
financial Statements and Auditors’ Report of Insurance policyholders’ funds.
Companies) Regulations, 2002 and orders or direction issued
by the Insurance Regulatory and Development Authority. o) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating
k) The actuarial valuation of liability in respect of claims Incurred effectiveness of such controls, refer to our separate Report
But Not Reported (IBNR) and those Incurred but Not Enough in “Annexure A”.
Reported (IBNER) as at 31st March 2018, have been duly
certified by the Company’s Appointed Actuary and relied As required under section 143(5) of the Companies Act, 2013,
upon by us. The Appointed Actuary has also certified that based on our audit as aforesaid, we enclose herewith, as per
the assumptions considered by him for such valuations are “Annexure B”, the directions including sub-directions issued by the
in accordance with guidelines and norms prescribed by the Comptroller & Auditor General of India, action taken thereon and
Insurance Regulatory and Development Authority of India the financial impact on the accounts and financial statements of
(IRDAI) and the Actuarial Society of India in concurrence the Company.
with the IRDAI.
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
D.K.Gupta M.K. Gupta Pradeep J Shetty
Partner Partner Partner
Membership No. 009032 Membership No. 073515 Membership No. 046940
Place: Mumbai
Date: May 11th 2018
142
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
1. We have audited the internal financial controls over financial of the risks of material misstatement of the financial
reporting of THE NEW INDIA ASSURANCE CO LTD. (“the statements, whether due to fraud or error.
Company”) as of March 31, 2018 in conjunction with our 5. Report of branch auditors relating to London Branch is not
audit of the standalone financial statements of the Company in the accordance with the Indian Law & regulations and
for the year ended on that date. These financial statements therefore the internal controls over financial reporting relating
incorporated returns received: to London Branch has not been considered in this report and
a) From Forty three Regional offices (including 9 LCO’s), cannot be commented upon.
Four hundred and Sixty Divisional offices audited by 6. Except for the possible effect as stated in note No. 5 ,we
the other firms of Auditors appointed by the Comptroller believe that the audit evidence we have obtained is sufficient
and Auditor General of India under section 139 of the and appropriate to provide a basis for our qualified opinion
Companies Act,2013; and on the Company’s internal financial controls system over
b) From Nine Foreign Branches, Seven Foreign Agency financial reporting.
offices audited by local auditors appointed by the Meaning of Internal Financial Controls over Financial
company and unaudited returns of three Run off Reporting
offices and one representative office.
7. A company's internal financial control over financial reporting
Management’s Responsibility for Internal Financial Controls is a process designed to provide reasonable assurance
2. The Company’s management is responsible for establishing regarding the reliability of financial reporting and the
and maintaining internal financial controls based on “the preparation of financial statements for external purposes in
internal control over financial reporting criteria established accordance with generally accepted accounting principles. A
by the Company considering the essential components company's internal financial control over financial reporting
of internal control stated in the Guidance Note on Audit of includes those policies and procedures that (1) pertain to the
Internal Financial Controls over Financial Reporting issued maintenance of records that, in reasonable detail, accurately
by the Institute of Chartered Accountants of India”. These and fairly reflect the transactions and dispositions of the
responsibilities include the design, implementation and assets of the company; (2)provide reasonable assurance
maintenance of adequate internal financial controls that that transactions are recorded as necessary to permit
were operating effectively for ensuring the orderly and preparation of financial statements in accordance with
efficient conduct of its business, including adherence to generally accepted accounting principles, and that receipts
company’s policies, the safeguarding of its assets, the and expenditures of the company are being made only in
prevention and detection of frauds and errors, the accuracy accordance with authorizations of management and directors
and completeness of the accounting records, and the timely of the company; and (3) provide reasonable assurance
preparation of reliable financial information, as required regarding prevention or timely detection of unauthorized
under the Companies Act, 2013. acquisition, use, or disposition of the company's assets that
Auditors’ Responsibility could have a material effect on the financial statements.
3. Our responsibility is to express an opinion on the Company's Inherent Limitations of Internal Financial Controls over
internal financial controls over financial reporting based on Financial Reporting
our audit. We conducted our audit in accordance with the 8. Because of the inherent limitations of internal financial
Guidance Note on Audit of Internal Financial Controls Over controls over financial reporting, including the possibility
Financial Reporting (the“ Guidance Note”) and the Standards of collusion or improper management override of controls,
on Auditing, , to the extent applicable to an audit of internal material misstatements due to error or fraud may occur and
financial controls, both issued by the Institute of Chartered not be detected. Also, projections of any evaluation of the
Accountants of India. Those Standards and the Guidance internal financial controls over financial reporting to future
Note require that we comply with ethical requirements and periods are subject to the risk that the internal financial control
plan and perform the audit toobtain reasonable assurance over financial reporting may become inadequate because of
about whether adequate internal financial controls over changes in conditions, or that the degree of compliance with
financial reporting was established and maintained and if the policies or procedures may deteriorate.
such controls operated effectively in all material respects. Qualified Opinion
4. Our audit involves performing procedures to obtain audit 9. According to the information and explanation given to us and
evidence about the adequacy of the internal financial based on our audit, the following internal control weaknesses
controls system over financial reporting and their operating of material nature have been identified as at March 31,2018:
effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of a. Confirmation and reconciliation of various balances
internal financial controls over financial reporting, assessing relating to co insurers, reinsurers, few bank accounts,
the risk that a material weakness exists, and testing and inter office accounts and other control accounts are
evaluating the design and operating effectiveness of internal pending and are at various stages.;
control based on the assessed risk. The procedures selected b. Inadequate controls are observed with regard to
depend on the auditor’s judgment, including the assessment ageing of insurance receivables;
143
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
The Company’s internal control systems especially in area of of the objectives of the control criterion, the company has
data input and validation in various soft-wares and recording maintained , in all material respects , adequate internal
of intimated claims at the offices of the company including financial control over financial reporting and such internal
internal audit require strengthening. financial controls over financial reporting were operating
Further to above, the management of the company has effectively as of March 31,2018, based on “the internal
appointed external consultant to assess the internal financial control over financial reporting criteria established by the
control framework in the company. Though the interim report Company considering the essential components of internal
submitted by the consultants in case of certain processes control stated in the Guidance Note on Audit of Internal
does not identify any serious issues, the final report is still Financial Controls over Financial Reporting issued byte
awaited. Review of design and testing of the risk control Institute of Chartered Accountants of India”.
matrix at Regional level/ HO level, review and testing of 12. We have considered the material weaknesses identified
entity level controls and final report is yet to be received. and reported above in determining the nature, timing, and
10. A ‘material weakness’ is a deficiency, or a combination extent of audit tests applied in our audit of the March 31,
of deficiencies, in internal financial control over financial 2018 standalone financial statements of the Company,
reporting, such that there is a reasonable possibility that a and these material weaknesses do not affect our opinion
material misstatement of the company’s financial statement on the Standalone financial statements of the Company
will not be prevented or detected on a timely basis. except to the extent of our qualification as contained in our
separate report on the Standalone financial statements of
11. In our opinion, except for the possible effects of the internal the company.
control weaknesses described above on the achievements
For R. Devendra Kumar & Associates For A. Bafna& Co. For NBS & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Regn No. 110100W
Place : Mumbai
Date : May 11th 2018
144
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
ANNEXURE “B” Referred to in Para (Q) in Report on ither Legal and Regulatory Requirement referred
to in Independent Auditors Report of even date for the year 2017-18 on the Consolidated Accounts of
"The New India Assurance Company Limited"
Sr Directions under Section 143(5) of Companies Act 2013 Action taken and Financial Impact
No.
1 Whether the Company has clear title/ lease deeds for freehold Company has clear title of lease/ free-hold properties except as
and leasehold respectively? If not please state the area of below:
freehold and leasehold land for which tile/ lease deeds are not
LAND:
available?
1. LEASEHOLD LAND:
iv. 1 Open plot is jointly owned by 4 PSU companies and the title
deed is in the name of GIC.
2. FREEHOLD LAND:
BUILDINGS:
145
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Sub- directions issued by C&AG of India as applicable to The New India Assurance Company Limited
for the year 2017-18
1 Number of titles of ownership in respect of CGS/SGS/Bonds/ The Central Government/State Government securities balances
Debentures etc. available in physical/demat form and out of are tallied as per the Books of Accounts. In case of Bonds/
these, number of cases which are not in agreement with the Debenture/ Equities/Preference Shares, there are 8 Nos of
respective amounts shown in the Company’s books of accounts Scrips of Bonds/debentures having face value of ` 6500580,2
may be verified and discrepancy found may be suitably reported. Scrips of preference Shares having face value ` 26000, and 9
scrips of Equity shares having Book Value of ` 841707 which
are in shortage as per the records of custodian vis a vis books of
accounts of the Company.There are 106 Nos of scrips in equity
having Market value ` 412.21 lakhs and 1 scrip in preference
share of face value ` 3600 which are in excess quantity as per
cutodian records vis a vis books of the company.The Company
is in the process of taking adequate steps for reconciliation and
adjustment whereever required. The dividend received on such
excess shares is shown as liability and taken to income after 3
years.
2 Whether stop loss limits have been prescribed in respect of the The investments of the Company are long term in nature and
investments. If yes, whether or not the limit was adhered to. If no, therefore Stop Loss Policy is not applicable for the long term
details may be given. investments. As and when the Company proposes to have a
trading portfolio, it will frame Stop Loss Policy for trading portfolio
at that time
3 Whether Company has carried out reconciliation exercise for The Company has continued its various level meetings with other
inter-company balances reflected in their financial statements PSU companies for reconciliation and settlement of Coinsurance
with other PSU insurers and whether confirmation has been balances. In case of balances with PSUs, while the receivables
obtained from other PSU insurers for balances due from them? have been brought down by ` 20939 lakhs during 2017-18 as
compared to 2016-17, the payable balances in respect of PSUs
have also been brought down by Rupee Foradian 8397 lakhs
during 2017-18 as compared to 2016-17.
146
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
147
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ
WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF
THE NEW INDIA ASSURANCE COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2018
The preparation of consolidated financial statements of The New India Assurance Company Limited for the year ended
31 March 2018 in accordance with the financial reporting framework prescribed under the Insurance Act, 1938 read
with the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of
Insurance Companies) Regulations, 2002 and the Companies Act, 2013 (Act) is the responsibility of the management
of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5)
read with section 129(4) of the Act are responsible for expressing opinion on the financial statements under section 143
read with section 129(4) of the Act based on independent audit in accordance with the standards on auditing prescribed
under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 11 May 2018.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)
(a) read with section 129(4) of the Act of the consolidated financial statements of The New India Assurance Company
Limited for the year ended 31 March 2018. We conducted a supplementary audit of the financial statements of The
New India Assurance Company Limited and Health Insurance TPA of India Limited but did not conduct supplementary
audit of the financial statements of The New India Assurance Co. (T & T) Limited — Port of Spain, Trinidad & Tobago,
The New India Assurance Co. (S.L) Limited — Free Town, Sierra Leone, Prestige Assurance Plc. - Nigeria and India
International Insurance Pte. Ltd., Singapore for the year ended on that date. Further, section 139(5) and 143(6)(b)
of the Act are not applicable to The New India Assurance Co. (T & T) Limited- Pori of Spain, Trinidad & Tobago,
The New India Assurance Co. (S.L.) Limited Free Town, Sierra Leone, Prestige Assurance PLC - Nigeria and India
International Insurance Pte. Ltd., Singapore being entities incorporated in Foreign countries under the respective
laws, for appointment of their Statutory Auditor nor for conduct of supplementary audit. Accordingly, C&AG has neither
appointed the Statutory Auditors nor conducted the supplementary audit of these companies. This supplementary
audit has been carried out independently without access to the working papers of the statutory auditors and is limited
primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the
accounting records.
On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or
supplement to statutory auditors' report.
For and on behalf of the
Comptroller and Audit General of India
(Roop Rashi)
Principal Director of Commercial Audit and
ex-officio Member, Audit Board-I, Mumbai
Place : Mumbai
Date : 4 July 2018
148
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Consolidated Fire Insurance Revenue Account for the year ended 31st March, 2018
As required by section 40C(2) of the Insurance Act 1938, we certify that, to the best of our knowledge and according to the information
and explanations given to us, and so far as appears from our examination of the Company's books of account, all expenses of
management, wherever incurred, whether directly or indirectly in respect of fire insurance business have been fully debited in the Fire
Insurance Revenue Account as expenses.
The schedules referred to above form integral part of the revenue account
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
149
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Consolidated Marine Insurance Revenue Account for the year ended 31st March, 2018
As required by section 40C(2) of the Insurance Act 1938, we certify that, to the best of our knowledge and according to the information
and explanations given to us, and so far as appears from our examination of the Company's books of account, all expenses of
management, wherever incurred, whether directly or indirectly in respect of marine insurance business have been fully debited in the
Marine Insurance Revenue Account as expenses.
The schedules referred to above form integral part of the revenue account
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
150
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Consolidated Miscellaneous Insurance Revenue Account for the year ended 31st March, 2018
As required by section 40C(2) of the Insurance Act 1938, we certify that, to the best of our knowledge and according to the information
and explanations given to us, and so far as appears from our examination of the Company's books of account, all expenses of
management, wherever incurred, whether directly or indirectly in respect of miscellaneous insurance business have been fully debited
in the Miscellaneous Insurance Revenue Account as expenses.
The schedules referred to above form integral part of the revenue account
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
151
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Consolidated Profit and Loss Account for the year ended 31st March 2018
Current year Previous year
Particulars Schedule
` (000) ` (000)
1. Operating Profit / (Loss)
a. Fire Insurance - 4148952 (3377508)
b. Marine Insurance - 1167152 818488
c. Miscellaneous Insurance 4553603 (2734029)
2. Income from Investments
a. Interest Dividend and Rent (Gross) - Share Holders 9052571 8829362
b. Profit on Sale of Investment - Share Holders - 7476103 6420867
Less: Loss on Sale of Investment - Share Holders - 0 0
3. Other Income - Misc Receipts, Credit Balances Written Back 1020431 859585
- Interest on Refund of Income Tax 1324471
Total (A)=1+2+3 27418812 12141236
4. Provisions (Other Than Taxation)
a. Others - Amortisation Provision For Thinly - 32430 24627
Traded Shares - Shareholders”
b. For Doubtful Debts - Investments(Shareholders) - (51960) (8823)
c. For Doubtful Debts - Operations 0 129817
d. For Dimunition In Value Of Investments (Shareholders) - 28286 11556
5. Other Expenses (Other Than Those Related To Insurance Business) 0 0
a. Other than those related To insurance business - 6364 0
b. Others - Expenses on Corporate Social Responcibility 135087 0
c. Others - Interest on Income/Service Tax 28443 11467
d. (Profit)/Loss on Sale Of Assets 15991 27827
e. Penalty 2000
Total (B)=(4+5) 194641 198471
Profit Before Tax (A-B) - 27224171 11942764
Provision For Taxation - Current Tax - 5166412 1722152
Deferred Tax 165534 (59073)
Wealth Tax 0
Profit After Tax 21892226 10279685
Profit attributable to Minority Interest (6092) (44181)
Add : Share of Profit/(Loss) in Associate Enterprises 12711 224277
Transfer from General Reserves for Equalization / Contingency Reserves for 976658 129457
Foreign Branches
Appropriations 0 0
a. Proposed Final Dividend - 0 0
b. Dividend Distribution Tax. - (3090000) 0
c. Transfer to General Reserves - (629051) (10908)
d. Transfer to Equalization / Contingency Reserves for Foreign Branches - (19156452) (10578330)
e. Transfer to Consolidated Revenue Reserve 0 0
Profit / (Loss) Carried Forward to The Balance Sheet - 0 0
Basic and diluted earnings per share (`) {Refer Note 13 B to notes to accounts in 27.06 13.07
Schedule 16 B}
Significant Accounting Policies and Notes to Accounts 16
The schedules referred to above form integral part of the Profit and Loss Account
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
D.K. Gupta M.K. Gupta Pradeep J Shetty
Partner Partner Partner
Membership No. 009032 Membership No. 073515 Membership No. 046940
Place: Mumbai
Date: May 11th 2018
152
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
D.K. Gupta M.K. Gupta Pradeep J Shetty
Partner Partner Partner
Membership No. 009032 Membership No. 073515 Membership No. 046940
Place: Mumbai
Date: May 11th 2018
153
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Consolidated Schedule 1 - Premium Earned for the year ended March, 2018
Current year Previous year
Particulars
` (000) ` (000)
Schedule 1 - Fire
Premium Earned(Net)
Premium From Direct Business - in India 20825658 18242822
- outside India 7348454 8092307
Total 28174112 26335129
Add: Premium on Reinsurance Accepted 10431282 9290477
Less: Premium on Reinsurance Ceded 18976528 15417066
Net Premium 19628866 20208540
Adjustment for Change in Reserve for Un-Expired Risks (10839) 883626
Total Premium Earned (Net) 19639705 19324914
Schedule 1 - Marine
Premium Earned(Net)
Premium From Direct Business - in India 6000090 6100259
- outside India 561326 679725
Total 6561416 6779984
Add: Premium on Reinsurance Accepted 434179 361266
Less: Premium on Reinsurance Ceded 2813985 3424906
Net Premium 4181610 3716344
Adjustment for Change in Reserve for Un-Expired Risks 344091 (956771)
Total Premium Earned (Net) 3837519 4673115
Schedule 1 - Miscellaneous
Premium Earned(Net)
Premium From Direct Business - in India 200361862 166803842
- outside India 18474200 18152386
Total 218836062 184956228
Add: Premium on Reinsurance Accepted 3064965 4581850
Less: Premium on Reinsurance Ceded 35061090 26316500
Net Premium 186839937 163221579
Adjustment for Change in Reserve for Un-Expired Risks 12013223 7866247
Total Premium Earned (Net) 174826714 155355332
154
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Consolidated Schedule 2- Claims Incurred for the year ended 31st March, 2018
Current year Previous year
Particulars
` (000) ` (000)
Schedule 2 - Fire
Claims Incurred (Net)
Claims Paid Direct 19548408.17 17593591
Add: Claims on Reinsurance Accepted 7363129 5879393
Less: Claims on Reinsurance Ceded 11312942 6492659
Net Claims Paid 15598595 16980325
Add:Claims Outstanding at End (Net) 27804982 27694574
Less :Claims Outstanding at Beginning (Net) 27694574 25790294
Foreign Exchange Fluctuation Relating to Non-Integral Foreign Operations (393483) 781685
Total Incurred Claims (Net) 15315520 19666289
Schedule 2 - Marine
Claims Incurred (Net)
Claims Paid Direct 4385851 4467596
Add: Claims on Reinsurance Accepted 124786 404976
Less: Claims on Reinsurance Ceded 1628421 1090316
Net Claims Paid 2882216 3782256
Add:Claims Outstanding at End (Net) 4300707 4988162
Less :Claims Outstanding at Beginning (Net) 4988162 5208696
Foreign Exchange Fluctuation Relating to Non-Integral Foreign Operations 19444 15782
Total Incurred Claims (Net) 2214205 3577504
Schedule 2 - Miscellaneous
Claims Incurred (Net)
Claims Paid Direct 152482311 133116093
Add: Claims on Reinsurance Accepted 3278430 2709916
Less: Claims on Reinsurance Ceded 21909100 10309225
Net Claims Paid 133851641 125516784
Add:Claims Outstanding at End (Net) 165961301 147154754
Less :Claims Outstanding at Beginning (Net) 147154754 133352542
Foreign Exchange Fluctuation Relating to Non-Integral Foreign Operations (437091) 582788
Total Incurred Claims (Net) 152221098 139901785
155
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Consolidated Schedule 3- Commission for the year ended 31st March, 2018
Current year Previous year
Particulars
` (000) ` (000)
Schedule 3- Fire
Commission (Net)
Commission - Direct 3465108 3379901
Add : Commission on Reinsurance Accepted 1699784 1555311
Less : Commission on Reinsurance Ceded 2328362 1588432
Commission (Net) 2836530 3346780
Break-up of Commission Direct
Direct Commission 2647648 2642038
Direct Brokerage 683742 667098
Direct Corporate Agency Commission 133010 70765
Others - Other Channels 708 0
Total Commission 3465108 3379901
Schedule 3- Marine
Commission (Net)
Commission - Direct 672131 661702
Add : Commission on Reinsurance Accepted 90710 51886
Less : Commission on Reinsurance Ceded 194203 262671
Commission (Net) 568638 450918
Break-up of Commission Direct
Direct Commission 346387 369575
Direct Brokerage 325226 291670
Direct Corporate Agency Commission 518 457
Others - Other Channels 0 0
Total Commission 672131 661702
Schedule 3- Miscellaneous
Commission (Net)
Commission - Direct 17235324 11472227
Add : Commission on Reinsurance Accepted 636197 503513
Less : Commission on Reinsurance Ceded 2949578 2453031
Commission (Net) 14921943 9522709
Break-up of Commission Direct
Direct Commission 12832946 8457928
Direct Brokerage 2962340 2706321
Direct Corporate Agency Commission 279925 214367
Others - Other Channels 1160112 93611
Total Commission 17235323 11472227
156
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule - 4
157
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule - 5
Share Capital
1. Authorised Capital
1,20,00,00,000 (Previous Year 30,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 6000000 3000000
each
2. Issued Capital
82,40,00,000 (Previous Year 20,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 4120000 2000000
each
3. Subscribed Capital
82,40,00,000 (Previous Year 20,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 4120000 2000000
each
4. Called up Capital
82,40,00,000 (Previous Year 20,00,00,000 Equity Shares of `10 each) Equity Shares of ` 5 4120000 2000000
each
Note : Of the above 79,22,98,732 shares are issued as fully paid up bonus shares by capitalisation of general
reserves.
SCHEDULE 5A
Pattern of Shareholding
Foreign 0 0.00 0 -
158
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 7
Borrowings
1. Debentures / Bonds 0 0
2. Banks 0 0
3. Financial Institutions 0 0
4. Others 0 0
Total 0 0
159
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
160
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
161
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
PFPS and FITL PFPS amounting to ` 101572 (P.Y. ` 585452) and FITL short term loan
amounting to ` 1675 (P.Y. ` 1675) and direct term loans amounting to ` 6101 (P.Y. ` 6101 ) are
netted against interest suspense of an equal amount.
Assets in Schedule 9 shown after netting of following provisions
Direct term loans (Investments) 18115 18115
Bridge loan (Investments) 400 400
Term loans PFPS std.provision 0 0
Term loans PFPS 366485 503335
Short term loans (Investments) 83368 85067
Housing loans to state govts. - std.provision 1792 2191
Housing loans to state govts. 16573 16573
FFE loans to state govts. - std.provision 4 19
FFE loans to state govts. 2932 2932
Total 489669 628633
162
Consolidated Schedules for the year ended 31st March, 2018
Schedule 10
Fixed Assets ` (000)
Depreciation Fund Net Block
Opening Additions Deletions / * Closing Opening Additions Deletions / * Closing Closing Opening
Particulars
Balance. Adjustments Balance Balance. Adjustment Balance
01-04-2017 During 2017-2018 31-03-2018 01-04-2017 During 2017-2018 31-03-2018 31-03-2018 31-03-2017
Goodwill 156478 0 (2039) 158517 0 0 0 0 158517 156478
Intangibles (Softwares) 1097488 1166101 (1068) 2264657 1061585 206868 (31) 1268483 996174 35903
Land Freehold 76116 0 (185409) 261524 0 0 0 0 261524 76116
Leasehold Property 199389 263252 41908 420734 180244 3208 36489 146963 273771 19145
THE NEW INDIA ASSURANCE CO. LTD.
Buildings 2375563 42620 35208 2379700 962139 18155 3776 977089 1402612 1413424
Furnitures & Fittings 750609 50889 10787 789908 524818 32823 5181 551837 238070 225790
Information & 3565485 590229 56094 4097920 2743679 290407 22287 3010080 1087839 821807
Technology
Equipments
Vehicles 1428621 430351 277435 1583556 600390 165758 192095 573020 1010536 828231
Office Equipments 146896 5365 (2271) 153852 119310 8390 2211 125074 28779 27586
Other Assets # 400368 28068 8663 419773 261662 20349 6186 275825 143948 138706
Work in Progress 566898 0 235125 331773 0 0 0 0 331773 566898
Grand Total 10763911 2576875 474432 12861914 6453827 745959 268194 6928371 5933543 4310084
Previous Year 9739420 1926188 1058174 10607434 6204022 469740 219728 6453827 4310084 3535397
* Includes foreign currency fluctuation.
# Other Assets includes Air Conditioner, Water Coolers, Television, Lifts & Cameras etc.
Annual Report 2017-18
163
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 11
2. Bank Balances
a. Deposit Accounts
Total 0 81257284
Provision made for bad and doubtful debts shown under Schedule 14.5 against assets in
Schedule 11
Total ---- --
164
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
165
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 14
Provisions
1. a. Reserve for Un-Expired Risks 100873694 88590942
b. Premium Deficiency Reserve 0 0
2. Provision for Taxation (Net of Payment of Taxes) 111 69895
3. Provision for Proposed Dividend 0 0
4. Provision for Dividend Distribution Tax 0 0
5. Others - Reserve for Bad and Doubtful Debts. 2844762 3356673
Provision for Diminution in value of Thinly Traded / Unlisted Shares 29916 63486
Provision for Wage Arrear 0 0
Provision for Leave Encashment 6651300 6682800
Total 110399783 98763797
Schedule 15
Miscellaneous Expenditure
1. Discount Allowed in Issue of Shares and Debentures 0 0
2. Others - Contribution to Pension Fund and Gratuity Fund 2769320 2213400
(Deferred Expenses to the Extent not Written Off)
Total 2769320 2213400
166
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
D. Effect of foreign exchange rates on cash and cash equivalents, net 3662051 (4525005)
E. Net increase in cash and cash equivalents: 10557177 9095030
1. Cash and cash equivalents at the beginning of the year 81257284 72162254
2. Cash and cash equivalents at the end of the year 91814461 81257284
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
167
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Schedule 16
Significant Accounting Policies and Notes forming part of Consolidated Financial Statements as on 31st March, 2018
16 A. SIGNIFICANT ACCOUNTING POLICIES in the same manner as the company’s separate
financial statements. Except in case of the subsidiary
1. Principles of Consolidation: companies, where the accounts are made and
The consolidated financial statements relate to New India maintained in accordance with International Financial
Assurance Co Ltd , the holding company and its subsidiaries Reporting Standards (IFRS) as required under the
( referred to as “Group”) and associates. The consolidated local laws of the respective country, during the process
financial statements have been prepared on the following of consolidation, accounting adjustments have been
basis: made to align the accounts of the subsidiary company
• The financial statements of the company and its to confirm to the accounting policies followed by the
subsidiaries are combined on a line-by-line basis by holding company, however, following are the material
adding together the book values of like items of assets, differences with the accounting policies followed by
liabilities, income and expenses, after eliminating the the holding company as compared to the subsidiary
intra-group balances and intragroup transactions to companies combined in the consolidated financial
the extent possible and by following the consolidation statements :
procedures as laid down in Accounting Standard (AS) a. In accordance with IFRS, Insurance receivables
21- Consolidated Financial Statements. are recognized when due and measured at
• The difference between the cost of investment in the amortized cost, using the effective interest
subsidiaries, over the net assets in the subsidiaries, rate method. The carrying value of insurance
over the net assets at the time of acquisition of shares receivables is reviewed for impairment
in the subsidiaries is recognized in the financial whenever events or circumstances indicate that
statements as Goodwill or Capital Reserve as the the carrying amount may not be recoverable,
case may be. with the impairment loss recorded in the
statement of income.
• The difference between the proceeds from disposal
of investment in subsidiaries and carrying amount b. Deferred Acquisition cost Commissions
of its assets less liabilities as of the date of disposal and other acquisition costs that are related
of investment in subsidiaries is recognized in the to securing new contracts and renewing
consolidated statement of Profit and Loss being the existing contracts are capitalized as Deferred
profit or loss on disposal of investment in subsidiary. Acquisition Costs (DAC) if they are separately
identifiable, can be measured reliably and
• Minority interest’s share of net profit of consolidated it is probable that they will be recovered. All
subsidiary for the year is identified and adjusted other costs are recognized as expenses when
against the income of the group in order to arrive incurred. The DAC is subsequently amortized
at the net income attributable to the shareholders over the life of the contracts in line with premium
of the company. Minority interest’s share of net revenue using assumptions consistent with
assets of consolidated balance sheet is presented in those used in calculating unearned premium.
consolidated balance sheet separate from liabilities It is calculated by applying to the acquisition
and the equity of the company’s shareholders. expenses the ratio of unearned premium to
• Investment in Associate Companies has been written premium. The DAC asset is tested for
accounted under the equity method as per Accounting impairment annually and written down when it
Standard (AS) 23 - Accounting for investments in is not expected to be fully recovered.
associates in Consolidated Financial Statements. c. Insurance and investment contract of
• The company accounts for its shares in change in policyholders are charged for policy administration
net assets of the associates, post-acquisition, after services, investment management services,
eliminating unrealized profits and losses resulting from surrenders and other contract fees. These fees
transactions between the company and its associates are recognized as revenue over the period in
to the extent of its shares, through its profit and loss which the related services are performed. If the
account to the extent such change is attributable to fees are for services provided in future periods,
the associates’ Profit or Loss through its reserves for then they are deferred and recognized over those
the balance, based on available information. future periods;
• The difference between the cost of investment in the d. Reserve for unexpired risk and Premium
associates and the share of net assets at the time of deficiency reserve is calculated and recognized
acquisition of shares in the associates is identified as per 1/365 or 1/24 method or as required
in the financial statements as Goodwill or Capital under local laws.
Reserve as the case may be. e. Provision for claims incurred but not reported
• As far as possible, the consolidated financial (IBNR) and provision for claims incurred but
statements have been prepared using uniform not enough reported (IBNER) is accounted as
accounting policies for like transactions and other per liability adequacy test carried by actuary/
events in similar circumstances and are presented management assessment of such liability.
168
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
f. Property plant and equipment is shown at fair the relevant facts and circumstances as on the date of the
value on historical cost model except in case financial statements. Any revision to accounting estimates is
of NIA (T&T) Ltd., where fair value is based recognized prospectively in current and future periods.
on triennial valuation by external appraisers.
Depreciation on property plant and equipment 4. Revenue Recognition
is calculated and accounted for based on useful A. Premium
lives as assessed by the management which
Premium income is recognized on assumption of risk.
are different from those followed by the holding
A reserve for Unearned Premium for each segment,
company. Investment property is recognized as
representing that part of the recognized premium
per IFRS provisions.
attributable to the succeeding accounting periods,
g. Provisions related to post -employment benefits calculated on time apportionment basis is created.
to the staff are accounted for based on the This forms part of the un-expired risk reserves.
requirements of local laws;
Reinsurance premium is recognized as per the terms
h. Provision for taxation including deferred tax of the reinsurance contracts. A reserve for Unearned
is accounted as per local tax laws and in Premium for each segment, representing that part of
accordance with the provisions of IFRS. the recognized reinsurance premium attributable to
i. Statutory Reserve is created in accordance with the succeeding accounting periods, is also calculated
the requirements of local laws.. on time apportionment basis. This also forms part of
the un-expired risk reserves.
• The list of subsidiary companies and associates which
are included in the consolidation and the company Any subsequent revisions to or cancellations of
holdings are as under : premium are recognised in the year in which they
occur.
Sr. Country of
Name of the company Ownership % B. Commission
No. incorporation
Subsidiaries Commission Income on Reinsurance cessions is
1. The New India Assurance 83.89 Trinidad & recognized as income in the year in which reinsurance
Co. (Trinidad & Tobago) Tobago Premium is ceded.
Limited Profit Commission under reinsurance treaties
2. Prestige Assurance PLC 69.5 Nigeria wherever applicable, is recognized on accrual.
Nigeria Any subsequent revisions of profit commission are
3. The New India Assurance 100 Sierra Leone recognized for in the year in which final determination
Co. (Sierra Leone) Limited of the profits are intimated by reinsurers.
Associates
4. Indian International 20 Singapore 5. Premium Received in Advance
Insurance Pte. Ltd. Premium received in advance represents premium received
5. Health Insurance TPA of 23.75 India in respect of policies issued during the year, where the risk
India Limited commences subsequent to the balance sheet date.
169
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
• In respect of reinsurance accepted, advices received E Dividend income (other than interim dividend) is
as of different dates of subsequent year up to the date accounted for as income in the year of declaration.
of finalization of accounts or on estimation basis. Dividend on shares/interest on debentures under
objection/pending delivery is accounted for on
• Provision for claims incurred but not reported (IBNR) and realisation. Interim dividend is accounted for where
provision for claims incurred but not enough reported the amount is received/credited in the account of the
(IBNER). The said provisions have been determined company upto 31st March.
by Appointed Actuary, which is in accordance with
accepted actuarial practice, requirement of IRDA Dividend on foreign investments is accounted on
(Preparation of Financial Statements and Auditor’s gross basis.
Report of Insurance Companies) Regulations, 2002 Interest Income is recognized on accrual basis on time
and the master circulars issued in the context of proportion except income on non-performing assets is
preparation of financial statements and stipulations of recognized on realization.
the Institute of Actuaries of India. Amount received towards compensation for future
All the outstanding claims for direct business are loss of interest is recognised as income only to the
provided net of estimated salvage (if any). extent attributable to the accounting year and balance
In respect of motor third party claims where court is kept in interest received in advance account for
summons have been served on the Company without apportionment in the relevant year.
adequate policy particulars to establish liability of the F Profit/Loss on realization of investments is computed
Company, provision is made as under: by taking weighted average book value as cost of
• 100% of the estimated liability, where such claims are investments except:
outstanding for more than one year. • In respect of Government Securities/
• 1/3rd of the estimated liability, for all such claims Debentures/Bonds under Trading Portfolio, the
for which court summons have been served on the profit/loss is worked out specific scrip wise.
Company during the year. • In respect of Government Securities sold from
Interest on motor accident claims tribunal (MACT) Investment Portfolio, the profit/loss is worked
claims is provided based on the prevailing trends in out on first in first out basis (FIFO).
the motor third party claim awards. G The Company follows the prudential norms prescribed
by the Insurance Regulatory and Development
12. Salvage and Claim Recoveries Authority as regards asset classification, recognition
Recoveries of claims and sale proceeds on disposal of of income and provisioning pertaining to loans/
salvage are accounted on realisation and credited to claims. advances/debentures
H Investment in government securities, debt securities
13. Provisions, Contingent Liabilities & Contingent Assets
and redeemable preference shares are considered
Provisions involving substantial degree of estimation in as held till maturity and valued at cost. However, in
measurement are recognized when there is a present terms of Insurance Regulatory and Development
obligation as a result of past events and it is probable that Authority Regulations the premium paid at the time of
170
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
acquisition of securities is amortised over the residual value of such investments as on 01.04.2000 is
period of maturity. presumed to be the historical/ weighted average cost .
I i. Investments in Mutual Funds are valued at Net M Investments in listed equity/ equity related instruments/
Asset Value (NAV) as at the Balance Sheet date preference shares made in those companies, which
and the difference between cost/book value are making losses continuously for last 3 years and
and NAV is accounted in Fair Value Change where capital is eroded, are considered to have
Account. In case of non-availability of latest impairment in value. Further, if the published accounts
NAV as at the balance sheet date, investment of a Company are not available for last three accounting
is shown at cost. years ending on or immediately preceding the date of
ii. Investments in Venture Funds are valued at cost. working out impairment in value, it is presumed that
If there is reduction in NAV, the same is charged the value of investment is fully impaired and is written
to revenue and book value of investments is off to a nominal value of ` 1/- per Company.
reduced accordingly. Any appreciation in NAV I. Valuation of such investments is done as under:
to the extent of loss earlier recognised, is taken i) In respect of actively traded equity shares:
to revenue. Wherever Net Asset Value as on - least of cost price, market price or break-
Balance Sheet date is not available, latest up value provided break-up value is positive.
available Net Asset Value is considered. However, if the break-up value is negative the
J (i) In accordance with IRDA/F&I/INV/ nominal value is taken at Re. 1/- per Company.
CIR213/10/2013 dated 30th October 2013 for ii) In respect of other than actively traded equity
Valuation of Equity Portfolio, National Stock shares: - lower of cost price or break-up value
Exchange (NSE ) is considered as Primary provided break-up value is positive. However, if
Stock Exchange and Bombay Stock Exchange break-up value is negative the nominal value is
(BSE) as Secondary Stock Exchange. taken at Re.1/- per Company.
Investment Portfolio in respect of equity/ iii) In respect of preference shares, if the dividend
equity related instruments is segregated into is not received for the last three years, such
actively traded and thinly traded as prescribed preference shares are written down to a value
by Insurance Regulatory and Development which will bear to its face value, the same
Authority Regulations. The shares are treated proportion as value taken/ which would have
as actively traded or thinly traded by taking into been taken for writing down equity shares
consideration total traded transactions in the bears to the face value of the equity shares.
month of March on NSE and BSE. However, if the equity shares are written down
(ii) Actively traded equity/ equity related to Re.1/- per Company, preference shares are
instruments are valued at the closing price at also written down to a nominal value of Re.1/-
NSE or if the scrip is not traded at NSE, the per Company.
scrip is valued at the closing price at BSE. The II. Once the value of investment in listed equity/
difference between weighted average cost and equity related instruments/ preference shares
quoted value is accounted in Fair Value Change of a company is impaired in accordance with
Account the above mentioned policy, the reversal of
Exchange traded funds are valued as applicable such impairment losses are not recognised
to Equity portfolio. The difference between the in revenue/ profit and loss till such company
weighted average cost and the quoted value is achieves a positive net worth as per the latest
accounted in Fair Value change account. available published accounts immediately
(iii) Investments in equity shares of companies preceding the date of working out the reversal.
outside India are valued at the last quoted price However, in respect of investments where
at the stock exchange of the respective Country. the historical or weighted average cost is not
available as mentioned in Policy No.13-L,
K Investment in thinly traded equity shares and unlisted reversal of impairment loss is carried out and
equity shares are shown at cost. However, difference recognised only to the extent of impairment
between cost and break-up value is provided for as losses accounted after 31st March 2000.
diminution in value. If the break-up value is negative
then the provision is made for the entire cost. Further, N REVERSE REPO transactions are treated as secured
if the published accounts of an unlisted Company are lending transactions and accordingly disclosed in the
not available for last three accounting years ending financial statements. The difference between total
on or immediately preceding the date of working out consideration at the 1st and 2nd leg of the transaction
diminution in value, then the provision is made for the is treated as interest income.
entire cost. O “Collateralized Borrowing and Lending Obligation“
L In case of investment in listed and unlisted equity/ (CBLO), which is issued at discount to the face value,
equity related instruments / preference shares where is treated as money market instrument as per Reserve
the value has been impaired on or before 31.03.2000, Bank of India Notification. Discount earned at the time
the historical/weighted average costs are not available of lending through CBLO is shown as income, which
with the Company. As a consequence, the carrying is apportioned on time basis.
171
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
172
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Policy holders fund for this purpose consist of Estimated • Minimum Alternative Tax (MAT) paid in accordance
liability for outstanding claims including IBNR and IBNER, with the tax laws, which gives rise to future economic
unexpired risk reserve (URR), Premium deficiency (if any). benefits in the form of adjustment of future income tax
catastrophe reserve (if any) and Other Liabilities net of Other liability, is considered as an asset if there is convincing
Assets ( relating to policy holders) as per the guidelines of evidence that the Company will pay normal income tax
IRDAI; The residual consists of the Shareholder fund. on future income. Accordingly, MAT is recognized as an
asset in the Balance sheet when it is probable that the
23. Taxation. future economic benefit associated with it will flow to
• Tax expense for the year, comprises current tax and the Company and the asset can be measured reliably.
deferred tax. • A provision is made for deferred tax for all timing
• Current income tax expense comprises taxes on differences arising between taxable income and
income from operations in India and in foreign accounting income at currently enacted tax rates.
jurisdiction. Income tax payable in India is determined • Deferred tax assets are recognized only if there is
in accordance with the provisions of the Income Tax a virtual certainty backed by convincing evidence
Act 1961. Tax expense relating to foreign operations is that they will be realized and are reviewed for the
determined in accordance with tax laws applicable in appropriateness of their respective carrying values at
countries where such operations are domiciled. each balance sheet date.
173
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
174
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
8. (a) Provision for standard assets @ 0.40% amounting to ` 3715.15 lakhs (P.Y. ` 3730.22 lakhs) has been made as per Insurance
Regulatory and Development Authority guidelines on (i) Term Loan (PFPS/DTL), (ii) Debentures, (iii) Infrastructure Investments,
(iv) Bonds/Debentures of HUDCO, (v) Bonds/Debentures of Institutions accredited to NHB and (vi) Govt. Guaranteed Bonds/
Securities (vii) Housing and Firefighting Loans to State Governments (Viii) Debtors.
(b) The amount of total corporate debt/loans etc. restructured under various categories are being compiled during the year, the
Company has undertaken restructuring as under:
175
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Any excess collection 7185.41 1223.50 445.94 354.57 267.96 313.58 274.81 4305.04
of premium / tax or any
other charges which
is refundable to the
policyholders either as
terms of conditions of the
policy or as per law or as
may be directed by the
Authority but not refunded
so far
Cheques issued but 3728.48 60.24 161.07 102.03 94.73 106.16 206.48 2997.31
not encashed by the
policyholder / insured
Further as per the IRDA circular no IRDA/F&A/CIR/CPM/134/07/2015, Company has invested the above said total amount of
` 11731.51 lakhs (P.Y. ` 13875.41 lakhs) in fixed deposit and interest credited of ` 781.40 lakhs (P.Y. ` 0.20 lakhs) on such Fixed
deposit has been allocated to the fund amount.
11. Prior period items have been included in the respective heads amounting to ` 618.08(Debit) and ` 2585.30 (credit) [P.Y. ` 223.12
lakhs (Debit)] consisting of the following: -
(` in Lakhs)
176
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
177
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
no provisions have been made for the same. A demand of `45531.97 lakhs was raised for the Assessment year 2015-16.
iii. Deferred Taxes:
The major components of temporary differences resulting into deferred tax assets are as under:
II. Actual Returns for the year 2017-18 27,196 26,290 8,611 8,230 - -
178
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
E Net Asset / (Liability) recognized in Balance (11,946) (8,291) (40,47) (2,613) (66,513) (66,728)
Sheet
IX. Basis used to determine the expected The expected rate of return on plan assets is based on the current
rate of return on plan assets portfolio of the assets, investment strategy and the market scenario,
in order to protect capital and optimize returns within acceptable risk
parameters, the plan assets are well diversified.
E. Accounting for Lease (AS-19)
The Company's Office Premises and Residential flats for employees are obtained on operating lease and are renewable /
cancellable at mutual consent. There are no restrictions imposed by lease agreements. Lease terms are based on individual
agreements. Significant leasing arrangements are in respect of operating lease for premises. Aggregate lease rentals
amounting to ` 13632.24 lakhs (P.Y. ` 11313.03 lakhs) in respect of obligation under operating lease are charged to Revenue
Account.
F. Impairment of Assets (AS-28)
During the year, the Company has reviewed its fixed assets for impairment. In the opinion of the management no provision
for impairment loss is considered necessary. However, impairment assessment as required by AS-28 would be done in due
course.
179
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
13. a) With the amendment in The payment of Gratuity Act, 2018, the limit of payment of gratuity is enhanced from ` 10 lakhs to ` 20
lakhs with effect from March 28, 2018, resulting in to additional liability. In terms of requirement of the Accounting Standard
(AS-15) Employee Benefits, the entire additional liability of ` 33752.23 Lakhs for gratuity is required to be charged to the Profit
& Loss Account. However, vide circular communications ref IRDA/F&A/GNA/LR/002/2018-19/23 dated 01/05/2018, IRDAI has
permitted the amortization of expenditure relating to additional liability towards gratuity over a period of five years commencing
from FY 2017-18. Accordingly the company has recognized the additional liability and an amount of ` 6750.45 lakhs is charged
to the revenue in the current year and the balance amount remaining to be amortized in next years is ` 27001.78 lakhs.
b) The Pension Scheme 1995 has been extended to PSU officers and staff members who joined until 31.03.2010, by virtue of the
Gazette Notification no. 233(E), 234(E) and 235(E) dated 23.01.2016, The incremental liability towards pension arising out of
the above extension has been arrived at ` 1727.00 lakhs based on actuarial valuation.
In terms of requirement of the Accounting Standard (AS-15) Employee Benefits, the entire amount of ` 1727.00 lakhs for pension
is required to be charged to the Profit & Loss Account. However, IRDA vide Circular ref IRDA/F&A/CIR/ACTS/077/04/2016
dated 18.04.2016 has permitted the amortization of expenditure relating to the additional liability over a period of five years
commencing from FY 2015-16 and accordingly an amount of ` 345.40 lakhs is charged to the revenue in the current year and
balance amount remaining to be amortized in next two years is ` 690.80 lakhs for pension.
14. The management is currently in the process of identifying enterprises which have been providing goods and services to the
Company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such Micro, Small, and Medium Enterprises
as at March 31, 2018 has not been made in the financial statements. However, in view of the management, the impact of interest, if
any, that may be payable in accordance with the provisions of the Act is not expected to be material.
15. "Foreign Exchange Reserve Account” is increased by ` 14584.04 Lakhs (Credit) due to depreciation of foreign currency under the
following heads (P. Y. ` 19047.08 Lakhs (Debit)) consisting of the following:
(` in Lakhs)
16. Penalty
As per IRDAI Circular No 005/IRDA/F&A/CIR/MAY-09 dated May 07, 2009, below table mentions the details of
the penalty imposed by various regulators and Government authorities during the year:
` in Lakhs
Non-
No. Authority Compliance/ Penalty
Penalty
Violation Penalty Paid Waived/
Awarded
Reduced
1 Insurance Regulatory and Development NIL Nil Nil Nil
Authority / TAC
2 Service Tax Authorities Nil Nil Nil Nil
3 Income Tax Authorities Nil Nil Nil Nil
4 Any other Tax Authorities Nil Nil Nil Nil
5 Enforcement Directorate/ Adjudicating Authority/ Nil Nil Nil Nil
Tribunal or any Authority under FEMA
6 Registrar of Companies/ NCLT/CLB/ Nil Nil Nil Nil
Department of Corporate Affairs or any Authority
under Companies Act, 1956
7 Penalty awarded by any Court/ Tribunal for any Nil Nil Nil Nil
matter including claim settlement but excluding
compensation
8 Securities and Exchange Board of India Nil Nil Nil Nil
180
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
181
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
20. Receipts & Payments Account / (Cash Flow Statement) have been drawn under “Direct Method” as required by Part I of Schedule
B of the regulation. However, the same is subject to reconciliation of various inter office and other accounts including few Bank
Accounts.
21. The company is in the process of updating the fixed asset register with reference to full particulars, quantitative details and location
thereof. Further, physical verification of fixed assets in respect of some locations is in progress.
22. The company at its Curacao Branch has a receivable from the agent amounting to Nafls 7669884 equivalent to ` 2800.26 lakhs as
at March 31, 2018 out of which an amount equivalent to Nafls 5596584 Equivalent to ` 2043.30 lakhs is due for more than 90 days.
The company has been taking efforts to recover the amount from the agent and is hopeful of recovery and signed an agreement in
this regard. There is no collateral in place. As a prudent measure a provision of Nafls. 1380455 equivalent to ` 504 lakhs as at March
31, 2018 is carried in the accounts
23. The company is in the process of strengthening internal controls and Internal Audit specially in area of data input and validation in
soft-wares , Reinsurance accounts, PMFBY and other Government sponsored Health schemes to ensure the compliance of laid
down operational guidelines.
24. In accordance with the provisions of the Companies Act, 2013, the Company had to spend an amount of ` 2281 lakhs for the financial
year 2017-18 towards Corporate Social Responsibility. During the year an amount of ` 1350.87 lakhs has been spent against the total
sanction of ` 1680.10 lakhs. The balance could not be spent as various projects are in the completion stage.
25. Unexpired premium reserve at revenue segment level is found to be sufficient to cover the expected claim cost as certified by the
appointed actuary and the claims related expenses as estimated by the management. Hence, no premium deficiency reserve is
required to be provided during the year.
26. The company has a fraud monitoring cell which monitors the external frauds reported to the company. As per the assessment made
by the Cell, there were no matters related to external frauds reported during the year which required any adjustments to the financial
statements of the company. Matters related to employees of the company are dealt with by the vigilance department and are kept
confidential. In the opinion of the management there were no such matters that came to notice which required either disclosure or
adjustments to the financial statements of the company.
27. ` 2171.34 Lakh has been withheld / deducted by Govt of Rajasthan under Bhamashah Health Insurance Scheme towards rejection of
claims under the scheme and related matters, the company has since paid the underlying claims the company is in process of getting
the same refunded by the Government of Rajasthan and no provision is required against the same.
28. The Board of Directors at their meeting approved an Interim dividend of 75% during for FY 2017-18 which was duly paid in February
2018. Further a Final dividend of 100 % of the paid up capital of the company subject to the approval of the members at the ensuing
Annual General Meeting. In terms of revised Accounting Standard (AS) 4 Contingencies and Events occurring after the Balance
Sheet date as notified by the Ministry of Corporate Affairs through the amendments to the Companies (Accounting Standard) Rules
2016, the company has not appropriated proposed dividend (including tax) amounting to ` 49668.78 lakhs from the Profit & Loss
Account for the year ended on March 31,2018.
29. Previous year figures have been regrouped / rearranged, wherever necessary.
182
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
183
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
184
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
185
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
186
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
187
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
xvi) Available Solvency Margin (ASM) to Required Solvency Margin (RSM) Ratio (` in Lakhs)
Particulars Current Year Previous Year
a. Available Solvency Margin (ASM) 1373886.51 1113468.47
b. Required Solvency Margin (RSM) 532296.86 507353.03
ASM to RSM Ratio (Times) (a/b) 2.58 2.19
xvii)
NPA Ratio (` in Lakhs)
Particulars Current Year Previous Year
a. Total Investment Assets 3497161.33 2932276.89
b. Gross NPA 9198.50 10868.22
c. Net NPA 0.00 0.00
Gross NPA Ratio (%) 0.26 0.37
Net NPA Ratio (%) 0.00 0.00
188
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
19. Age wise analysis of outstanding claims as on 31.03.2018 (Gross Indian excluding provision for IBNR and IBNER)
Segment Less than 90 Days 90 Days to 6 Months 6 Months to 1 Year 1 Year to 2 Years
No Amount No Amount No Amount No Amount
(` in lakhs) (` in lakhs) (` in lakhs) (` in lakhs)
Fire 580 57,497.42 312 33,290.71 598 99,261.55 316 68,565.53
Marine Cargo 810 3,325.05 426 1,534.09 440 2,334.79 105 1,610.93
Marine Hull 35 2,192.29 23 1,328.76 42 8,132.64 70 37,765.17
Motor OD 43,189 25,242.50 6,253 7,639.73 3,842 5,260.03 512 1,103.17
Motor TP 7,757 39,035.31 8,971 42,914.64 16,935 83,461.58 28,619 1,46,676.44
Health 56,852 38,756.66 363 1,214.41 2,407 412.03 319 992.25
Liability 294 1,897.65 131 3,058.95 193 1,263.79 241 3,275.49
Personal Accident 1,963 4,587.67 888 2,508.60 648 1,428.16 107 148.09
Aviation 11 962.71 16 219.74 23 6,778.30 11 688.50
Engineering 780 3,610.09 307 5,488.12 276 9,257.77 69 6,269.18
Others 2,259 9,519.49 937 4,511.41 947 14,511.99 298 4,741.88
Total 1,14,530 1,86,626.85 18,627 1,03,709.15 26,351 2,32,102.63 30,667 2,71,836.64
For R. Devendra Kumar & Associates For A. Bafna & Co. For NBS & Co
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 114207 W Firm Reg. No. 003660C Firm Reg. No. 110100W
Place: Mumbai
Date: May 11th 2018
189
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Proxy form
[Pursuant to Section 105 (6) of the Companies Act, 2013 and Rule 19 (3) of the Companies (Management and Administration) Rules, 2014 – Form
No. MGT-11]
Registered address
DP ID
I / We, being the member(s) of.............................................................................................shares of the above named company, hereby
appoint
Address : ........................................................................................................................................................................................................................
.................................................................................................................. Signature :
Address : ........................................................................................................................................................................................................................
.................................................................................................................. Signature :
Address : ........................................................................................................................................................................................................................
.................................................................................................................. Signature :
190
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
to be held on Monday, July 30, 2018 at 3.00 pm IST at the Walchand Hirachand Hall, Indian Merchant Chambers Bldg,
IMC Marg, Churchgate, Mumbai, Maharashtra 400020, India and at any adjournment thereof in respect of such resolutions as
are indicated below:
Resolution Resolution
number
1 Adoption of financial statements
2 Declaration of dividend on equity shares
3 To appoint a Director in place of Shri G Srinivasan, Chairman-cum-Managing Director (DIN: 01876234), who retires by
rotation and being eligible, offers himself for re-appointment.
4 To authorize the Board of Directors to fix the remuneration of Auditors to be appointed by the C&AG for the year 2018-
19.
5 To Note the Appointment of Shri P. Ramana Murthy (DIN 07815852 ) as Ex-Officio Director
6 To Note the Appointment of Shri Neelam Damodharan (DIN 07759291 ) as Ex-Officio Director
7 To Note the Appointment of Smt Papia Sengupta (DIN 0701564 ) as Ex-Officio Director
8 To Note the appointment of Shri S.K. Chanana (DIN 00112424), a Non Executive Independent Director
9 To Note the appointment of Shri Samir Kumar Banerjee (DIN 01987541), a Non Executive Independent Director
10 To Note the appointment of Shri Kuldip Singh (DIN 02905840), a Non Executive Independent Director
11 To Note the appointment of Mr. C. Narambunathan (DIN 08101846), a Whole Time Director
Notes
This form, in order to be effective, should be duly stamped, completed, signed and deposited at the registered office of the Company, not less than 48 hours
before the Annual General Meeting (on or before July 28, 2018, 3.00 pm IST).
191
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Attendance slip
Joint Holders
I/We certify that I/We am a member / proxy / authorized representative for the member of the Company.
I/We hereby record my/our presence at the 99th Annual General Meeting of the Company at the Walchand Hirachand Hall, Indian Merchant
Chambers Bldg, IMC Marg, Churchgate, Mumbai, Maharashtra 400020, India, on Monday, July 30, 2018, at 3.00 p.m. IST.
…………………………..………………………...............…………
Signature of the member /Joint member (s) / proxy
Note: Please fill up this attendance slip and hand it over at the entrance of the meeting hall at the registration desk. Members are requested to bring
their copies of the Annual Report to the AGM.
192
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
E-VOTING PARTICULARS
EVEN User ID Password/PIN
(Electronic Voting Event Number)
Note: Please read instructions given in the Annexure: Instructions for e-voting (Voting through electronic means) to the Notice of the 99th Annual
General Meeting of the Company, carefully before voting electronically. The e- voting time commences from July 25, 2018 at 9.00 a.m. IST and ends
on July 29, 2018 at 5.00 p.m. IST. The e- voting module shall be disabled by NSDL for voting thereafter.
Member Name:
Address:
Dear member,
Pursuant to the provisions of Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules,
2014, substituted by Companies (Management and Administration) Amendment, 2015 and Regulation 44 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the Company is pleased to provide e-voting facility to the members to cast their votes
electronically on all resolutions set forth in the Notice convening the 99th Annual General Meeting to be held on Monday, July 30, 2018, at
3.00 p.m. IST. The Company has engaged the services of the National Securities Depository Limited (NSDL) to provide the e-voting facility.
The Notice is displayed on the Company's website, and on the website of NSDL, www.nsdl.co.in.
E-voting particulars
The e-voting facility will be available during the following voting period:
https://www.evoting.nsdl.com
2. Click on Shareholder-Login.
3. If you are already registered with NSDL for e-voting, log in using your existing User ID and Password.
193
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal
Computer or on a mobile.
1. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholders’ section.
2. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shown on the screen.
3. Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing
IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step
2 i.e. Cast your vote electronically.
4. Your User ID details are given below:
194
THE NEW INDIA ASSURANCE CO. LTD. Annual Report 2017-18
Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal
Computer or on a mobile.
1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, click on Active Voting
Cycles.
2. After click on Active Voting Cycles, you will be able to see all the companies “EVEN” in which you are holding shares and whose
voting cycle is in active status.
3. Select “EVEN” of company for which you wish to cast your vote.
4. Now you are ready for e-Voting as the Voting page opens.
5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast
your vote and click on “Submit” and also “Confirm” when prompted.
6. Upon confirmation, the message “Vote cast successfully” will be displayed.
7. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.
8. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
195