Key aspects of New India Assurance include being the largest nationalized general insurance company in India based on gross premium collection, including its foreign operations. The company has a widespread network of over 2395 offices in India and operates in 25 other countries through branches, agencies, subsidiaries, and associates. Its London branch has been operating for over a century and has a desk at Lloyd’s. New India Assurance offers a wide array of insurance products across various categories, such as Motor Insurance, Health Insurance (including mediclaim policies for individuals, families, senior citizens, critical illnesses, and specific needs), Travel Insurance (covering overseas travelers for business and leisure, as well as specific plans for employment and studies abroad), Rural Insurance (including policies for livestock, agriculture, and personal accidents in rural areas), Fire Insurance, Marine Insurance, Liability Insurance, Engineering Insurance, Aviation Insurance, Personal Accident Insurance, Home Insurance, and Business and SME Insurance (including policies like fire, burglary, and money insurance). CRISIL has rated New India Assurance with AAA/Stable rating, indicating the highest level of financial strength, and AM Best Company has also rated it with A- (Excellent – Stable Outlook), making it the only direct Indian insurer with this rating. The company has been a market leader in the non-life insurance segment in India for over four decades and has a significant presence in the international market, receiving numerous awards for its performance and services in the insurance sector.
Latest News on New India Assurance
On October 8, 2025, insurance agents and associations are likely to raise the issue of Goods and Services Tax (GST) with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry.
The insurance industry in India is facing a significant issue related to the Goods and Services Tax (GST) and Input Tax Credit (ITC). Private insurers have reduced distributor payouts by 15-18% to offset the loss of ITC, following the GST exemption on life and health insurance premiums. This move is expected to have a significant impact on agents, brokerages, and individual advisors, particularly small and independent operators. The reduction in payouts will directly cut into their working capital, leading to reduced take-home income and morale, especially in smaller towns and rural markets.
The current GST framework, if left unadjusted, may set a precedent where insurers maintain profitability by squeezing distribution costs rather than improving efficiency. Industry associations and agents are likely to take up the issue with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry. The President of the General Insurance Agents Federation Integrated stated that the change will shrink access to insurance, which is against the Prime Minister’s vision of Insurance for All by 2047.
In contrast, Life Insurance Corporation (LIC) and other public sector insurers have decided to maintain existing commission structures, even as they pass the full GST relief to policyholders. LIC plans to offset the impact through higher policy sales and new product pricing. Public sector general insurers, including New India Assurance, Oriental Insurance, United India Insurance, and National Insurance, have also opted against cutting commissions, choosing instead to absorb the ITC loss.
Private insurers, on the other hand, are passing on the ITC burden to agents because their business models and cost structures leave little room to absorb additional expenses. The removal of ITC has raised operating costs by roughly 2-3% of premiums, and private companies must adhere to stricter IRDAI Expense of Management (EoM) caps. Absorbing this loss would directly dent profitability and risk regulatory breaches. Several private general and standalone health insurers, including Tata AIG, Aditya Birla Health Insurance, Niva Bupa, Care Health, and ICICI Lombard, have implemented revised commission structures, making payouts inclusive of 18% GST, which means distributors will bear the tax cost.
Privatization of general insurers gets a reboot following FDI cap increase.
The Indian government is set to restart the process of privatizing a state-run general insurer in the next financial year. This decision comes after the Parliament passed a bill to increase the foreign direct investment (FDI) limit in the insurance sector to 100%. The government is expecting more players to show interest in the privatization process, which could lead to better valuations. The privatization process is part of the government’s plan to reduce its stake in state-owned general insurers to below 51%, as announced by Finance Minister Nirmala Sitharaman in her 2021-22 budget speech.
There are four public sector general insurers in India, but only one, New India Assurance, is profitable. The other three, National Insurance, United India Insurance, and Oriental Insurance, are loss-making, despite showing some improvement. The government will conduct a performance review of these companies after the December quarter results, which will help determine the next course of action.
The privatization process is expected to be influenced by the financial health of the chosen company. Private sector interest may be higher for companies with better financials. For example, Oriental Insurance has significant losses of around ₹8,293 crore on its balance sheet, while United India Insurance has reported a turnaround in 2024-25, posting a net profit of ₹154 crore. National Insurance, on the other hand, reported a loss of ₹284 crore for the September quarter.
The Insurance Regulatory and Development Authority of India (IRDAI) requires all insurance companies to maintain a surplus of 1.5 times their liabilities at all times. The solvency margin, which is the minimum margin of assets required by an insurer in excess of its liabilities, is a key indicator of an insurer’s financial health. The government may need to infuse capital into the loss-making insurers to make them more attractive to private investors.
The government’s decision to increase the FDI limit in the insurance sector to 100% is expected to attract more foreign investment and improve the competitiveness of the sector. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which was passed by Parliament, also gives more power to the IRDAI to regulate the insurance sector. Overall, the government’s plan to privatize a state-run general insurer is expected to lead to more efficient and competitive insurance services in the country.
Privatization of general insurers gets a reboot following FDI cap increase
The Indian government plans to restart the process of privatizing a state-run general insurer in the next financial year. This decision comes after Parliament passed a bill allowing for 100% foreign direct investment (FDI) in the insurance sector. The government aims to attract more private players and achieve better valuations for the insurer. Currently, only one of the four public sector general insurers, New India Assurance, is profitable, while the other three – National Insurance, United India Insurance, and Oriental Insurance – are struggling with losses.
The government will conduct a performance review of the four state-run insurance firms after the December quarter results and hold further intergovernmental discussions. There is a possibility of capital infusion in the loss-making insurers, and the government will assess which firms have the potential to turn around on their own. The privatization process is expected to be more attractive to private players due to the increased FDI limit and the improved regulatory framework.
The financial health of the loss-making insurers is a concern, with Oriental Insurance reporting losses of around ₹8,293 crore and a solvency margin ratio of -1.01. United India Insurance Company has made a turnaround, posting a net profit of ₹154 crore, but still has losses of ₹3,297 crore. National Insurance reported a loss of ₹284 crore for the September quarter, with a solvency ratio of -0.75. The Insurance Regulatory and Development Authority of India (IRDAI) requires insurance companies to maintain a surplus of 1.5 times their liabilities at all times.
The government’s plan to privatize a state-run general insurer is part of its broader strategy to reduce its stake in public sector enterprises. In 2021, Finance Minister Nirmala Sitharaman announced the government’s intention to privatize two public sector banks and one general insurance company. The General Insurance Business (Nationalisation) Amendment Act, notified in August 2021, paved the way for reducing the government’s stake in state-owned general insurers to below 51%. The government hopes that the increased FDI limit and improved regulatory framework will attract more private players and lead to better valuations for the insurer.
India’s largest general insurance company is considered ‘too big to fail’, yet it struggles to generate profits.
New India Assurance, a state-owned insurance company, has been designated as a “Domestic Systemically Important Insurer” (D-SII) by regulators for the fourth consecutive year. This designation recognizes the company’s significant role in India’s financial system and its potential to cause widespread impact if it were to experience financial difficulties. New India Assurance is one of the largest insurers in India, providing coverage for a wide range of risks, including government hospitals, oil rigs, rural crops, and industrial accidents.
However, despite its importance, the company has been operating with a combined ratio of 117% since 2015, meaning that for every Rs 100 it earns in premiums, it spends Rs 117 on claims and expenses. This is a concerning trend, as a sustained combined ratio above 100% indicates that the company is not generating sufficient revenue from underwriting to cover its expenses. While the company does generate investment income, which helps to offset some of the losses, its chronic underpricing of risk has led to significant financial leaks.
The company’s financial performance is not unique among public-sector insurers in India. United India Insurance, for example, has a 10-year average combined ratio of 129%, indicating even more severe financial challenges. The Insurance Regulatory and Development Authority (Irdai) has designated New India Assurance as a D-SII due to its scale and systemic exposure, rather than its financial performance. This designation is a recognition of the company’s importance in the Indian financial system, rather than a reward for excellence.
New India Assurance’s financial struggles are a concern, given its significant role in the Indian economy. The company has been in operation since 1919 and has a long history of providing insurance coverage to a wide range of industries and individuals. Its financial health is closely tied to the health of the Indian economy, and any significant difficulties experienced by the company could have far-reaching consequences. As such, regulators and policymakers will likely continue to closely monitor the company’s financial performance and take steps to ensure its stability and viability.
Compare United India Mediclaim with New India Mediclaim to find the better policy – The Shillong Times
When it comes to selecting a mediclaim policy in India, two of the leading public sector insurers, United India and New India Assurance, are often considered. Both companies offer comprehensive health insurance policies that cater to individual and family needs, but there are notable differences in coverage, features, benefits, and premiums. Here’s a comparison of the two:
United India Mediclaim Policy
- Sum insured: Rs. 1 lakh to Rs. 10 lakh
- Coverage: Inpatient hospitalization, room rent, ICU charges, surgeon and anaesthetist fees, day care treatments, AYUSH coverage, and domiciliary hospitalization
- Entry age: 18 years to 65 years for adults; 91 days to 18 years for children
- Renewability: Lifetime renewability
- Pre-existing diseases: Covered after 4 years of continuous policy renewal
- Network hospitals: Over 7,000 hospitals across India
- Add-ons: Critical illness cover and personal accident riders
New India Mediclaim Policy
- Sum insured: Rs. 1 lakh to Rs. 15 lakh
- Coverage: Hospitalization expenses, ICU charges, surgeon fees, day care procedures, ambulance charges, AYUSH treatment, and organ donor expenses
- Entry age: 18 years to 65 years for adults; 3 months to 25 years for dependent children
- Renewability: Lifetime renewability
- Pre-existing diseases: Covered after 4 years of continuous coverage
- Network hospitals: Over 6,000 hospitals nationwide
- Add-ons: Top-up plans and senior citizen options
Comparison
- Sum insured range: United India (Rs. 1 lakh to Rs. 10 lakh) vs. New India (Rs. 1 lakh to Rs. 15 lakh)
- Room rent limit: Both offer 1% of sum insured per day for normal rooms and 2% for ICU
- Day care treatments: Both cover over 140 procedures
- Ambulance charges: Both cover, but New India has a sub-limit
- AYUSH treatment: Both cover
- Organ donor expenses: Both cover
- Pre-existing disease cover: Both cover after 4 years
- Co-payment: Both have 10% to 20% co-payment for entry after age 60
- Network hospitals: United India has over 7,000 hospitals, while New India has over 6,000
- Policy type options: Both offer individual and family floater options
- Add-ons and riders: United India offers critical illness and personal accident riders, while New India offers top-up plans and senior citizen options
Premium Comparison
- For a 35-year-old individual seeking Rs. 5 lakh coverage, United India’s premium is approximately Rs. 6,000 to Rs. 7,000 annually, while New India’s premium is approximately Rs. 5,800 to Rs. 6,800 annually.
Customer Service and Claim Settlement
- Both companies have a high claim settlement ratio (over 90%) and offer cashless facilities at network hospitals.
- Support is available through toll-free numbers, branch office assistance, and TPA helplines.
Which Policy to Choose?
- Choose United India Mediclaim if you prefer a wider hospital network, optional riders like critical illness or personal accident, or flexible sum insured upgrades.
- Choose New India Mediclaim if you are cost-sensitive, need higher coverage beyond Rs. 10 lakh, or prefer policies with flexibility for children up to 25 years under floater plans.
Ultimately, the better policy depends on individual or family requirements, and factors such as sum insured, network hospitals, premium affordability, add-on availability, and service record should be carefully considered.
Stock Market Updates for New India Assurance
Recent Updates
Non-life insurers record 2% premium growth in September, Bajaj Allianz General Insurance leads the way
The non-life insurance sector in India has reported a modest 1.94% year-on-year growth in gross direct premium to Rs 23,430 crore in September. This growth was driven primarily by an increase in standalone health insurance premiums. The largest general insurer, New India Assurance, saw a 3.5% rise in premiums, while ICICI Lombard General Insurance reported a 6.2% increase. Other state-owned insurers, such as United India Insurance and Oriental Insurance, also reported significant growth, with increases of 23.36% and 4.45%, respectively.
Private general insurers, including Bajaj Allianz General and HDFC Ergo, also reported varying degrees of growth, with Bajaj Allianz General seeing a 31.35% increase and HDFC Ergo experiencing a decline of 3.78%. Standalone health insurers, such as Niva Bupa Health Insurance and Star Health and Allied Insurance, reported growth of 1.45% and 3.36%, respectively.
The government’s recent clarification on Goods and Services Tax (GST) has also had an impact on the industry. Premiums for individual life and health insurance policies are now exempt from GST, making them more affordable for individuals and families. However, this exemption does not apply to group insurance policies, which are typically offered by employers to their employees. Reinsurance services, which insurers purchase to protect themselves, are also exempt from GST.
However, insurers will face a significant adjustment regarding Input Tax Credit (ITC). They will no longer be able to claim ITC for essential input services such as agent commissions, brokerage, and administrative services. This change may have a significant impact on the industry, as insurers will need to adjust their business models to account for the loss of ITC. Overall, the non-life insurance sector is experiencing moderate growth, driven primarily by increases in standalone health insurance premiums, and is adapting to changes in the tax landscape.
The Supreme Court has upheld the ‘pay and recover’ method in motor accident claims, allowing claimants to receive compensation first and then permitting insurance companies to pursue recovery from the liable party.
The Supreme Court of India has made a significant ruling in the case of K. Nagendra v. New India Assurance Co. Ltd., reaffirming the principle of victim-centric justice in motor accident compensation. The court held that an insurer cannot deny compensation to accident victims merely because the vehicle was operating beyond its route permit. This decision emphasizes that technical policy violations cannot override the social justice embedded in the Motor Vehicles Act, 1988.
The case involved a tragic motor accident where a bus was operating outside its sanctioned route permit, resulting in fatalities. The dependents of the deceased filed a claim for compensation, which was awarded by the Motor Accidents Claims Tribunal (MACT). The insurer challenged this finding, arguing that the route-permit violation constituted a fundamental breach of policy conditions, relieving it of any responsibility to indemnify the insured or pay compensation to the victims.
The Supreme Court upheld the High Court’s approach, delivering a detailed analysis that reaffirmed the principles of social justice, statutory liability, and contractual balance under the Motor Vehicles Act, 1988. The court’s reasoning centered on ensuring that technical breaches, such as route-permit violations, do not defeat the primary objective of motor insurance to safeguard the rights of accident victims.
The court categorically held that an insurer cannot escape liability to third parties merely because the vehicle was operating outside its sanctioned route. It emphasized that the object of compulsory third-party insurance is rooted in social welfare, and any interpretation that frustrates this intent would be contrary to the spirit of the law.
The court also reaffirmed the “pay and recover” principle, directing the insurer to first pay the compensation to the victims and thereafter recover the amount from the vehicle owner if a breach of policy terms is established. This approach strikes a fair balance between protecting the rights of third parties and safeguarding the insurer’s contractual interests.
The judgment is a significant step towards practical justice, as it ensures that accident victims are not left uncompensated due to disputes between owners and insurers. At the same time, it reinforces contractual accountability, allowing insurers to recover paid sums from owners who breach permit conditions. This dual balance of justice for victims and fairness for insurers strengthens the integrity of India’s motor accident compensation system.
The Supreme Court’s decision relies on established precedents, including National Insurance Co. Ltd. v. Swaran Singh, New India Assurance Co. Ltd. v. Kamla, and S. Iyyapan v. United India Insurance Co. Ltd. These precedents collectively affirm that statutory liability toward third-party victims cannot be negated by procedural or technical infractions, and that the insurer’s recourse lies in recovery from the insured, not in denial of payment to victims.
In conclusion, the Supreme Court’s ruling in K. Nagendra v. New India Assurance Co. Ltd. is a significant reaffirmation of victim-centric justice in motor accident compensation. The “pay and recover” principle ensures that accident victims receive prompt compensation, while also safeguarding the insurer’s contractual interests. This judgment strengthens the integrity of India’s motor accident compensation system, emphasizing the social welfare intent behind the Motor Vehicles Act, 1988.
Rising Health Insurance Complaints in India: Key Data Insights
Complaints against health insurers in India are on the rise, indicating growing consumer awareness and the importance of effective grievance redressal mechanisms. According to Insurance Samadhan, a grievance platform, there was a 45% increase in complaints in Q2 2025 compared to the previous quarter, with 974 cases involving claims worth over ₹119 crore. The majority of these grievances (67.5%) related to health insurance, followed by life insurance (25.5%) and general insurance (6.9%). Endowment policies were the most commonly mis-sold products, often leaving policyholders with reduced returns or penalties.
The Council of Insurance Ombudsman (CIO) data for FY2023-24 provides further insight into the sector’s challenges. The ombudsman received the highest number of complaints against Star Health & Allied Insurance, with 13,308 cases, mostly regarding partial or complete claim rejection. Other insurers with high complaint volumes included CARE Health Insurance, Niva Bupa, and public sector insurers National Insurance and The New India Assurance. Star Health’s complaint volume was significantly higher than its peers, with 63 complaints per lakh policyholders.
Experts attribute the high complaint volume to mis-selling, driven by aggressive agent commissions and sales targets. Many consumers are sold unsuitable policies, which can lead to higher premiums or outright rejections due to pre-existing conditions. The data highlights the need for consumers to proactively evaluate their coverage and understand complaint mechanisms to ensure adequate protection. Additionally, the trend of Indians first experiencing insurance through employer-provided group health policies, and then purchasing retail policies triggered by claims or life events, emphasizes the importance of early adoption and careful policy selection.
The increasing complaints against health insurers in India underscore the need for improved grievance redressal mechanisms and consumer awareness. As the insurance sector continues to grow, it is essential for consumers to be aware of their rights and options for resolving disputes. By understanding the common issues and challenges in the sector, consumers can make informed decisions and ensure they have adequate protection. Ultimately, the rising complaints against health insurers in India highlight the need for a more transparent and consumer-centric approach to insurance sales and claims settlement.
Non-life insurers record 5% premium growth in June, data reveals
The Indian general insurance industry has witnessed a mixed performance in terms of premium growth, with some insurers reporting significant increases while others saw declines. New India Assurance, the largest general insurer, led the pack with a 10.6% year-over-year (YoY) increase in premiums to Rs 3,328 crore. This growth is notable, given the current market conditions.
Other state-owned insurers also reported strong growth, with United India Insurance seeing an 11.4% YoY rise in premiums, National Insurance posting a 26% growth, and Oriental Insurance’s premiums rising by 13.5%. These numbers indicate a positive trend among public sector general insurers.
In contrast, the second-largest general insurer, ICICI Lombard General Insurance, reported a 10.4% decline in premiums to Rs 1,987 crore. This decline is a significant setback for the company, which had been performing well in previous quarters.
Among private general insurers, Bajaj Allianz General reported an impressive 17% YoY growth in premiums to Rs 1,445 crore. This growth is a testament to the company’s strong distribution network and product offerings. On the other hand, HDFC Ergo saw a decline of 17.4% in premiums to Rs 870 crore, which is a concerning trend for the company.
Overall, the general insurance industry has shown a mixed performance, with some insurers reporting strong growth while others struggled to maintain their premium base. The growth of state-owned insurers is a positive sign, while the decline of some private insurers is a cause for concern. The industry’s performance will be closely watched in the coming quarters to see if the growth momentum can be sustained.
The premium growth of general insurers is an important indicator of the industry’s health, and the current trends suggest that the industry is facing challenges. However, with the government’s initiatives to increase insurance penetration and the growing awareness among consumers, the industry is expected to grow in the long term. The companies that are able to adapt to the changing market conditions and offer innovative products will be better positioned to capitalize on the growth opportunities.
A seven-year-old merger plan for struggling insurance companies is being revived.
The Indian government is considering restructuring its three weak general insurance companies, National Insurance, Oriental Insurance, and United India Insurance. The goal is to limit the number of state-owned companies in non-strategic sectors, such as general insurance, to one or two. The options being discussed include merging two of the companies with the listed and profitable New India Assurance, merging all three, or merging only two and preparing the third for privatization.
The discussions are at an early stage, and any decision will follow a deeper study of each insurer’s solvency profile, integration challenges, and the fiscal implications of further capital support. The government’s plan to restructure the insurance sector is part of its broader policy to reduce the number of state-owned companies in non-strategic sectors.
The three weak general insurers have been struggling with low solvency ratios and dependence on regulatory forbearance, despite reporting profits in some quarters. United India Insurance, National Insurance, and Oriental Insurance have solvency ratios of -0.65, -0.75, and -1.03, respectively, which are below the minimum 1.5x set by the insurance regulator.
In contrast, New India Assurance has a solvency ratio of 1.87x and has reported significant profits in recent years. The company’s strong financial position makes it a potential merger partner for the weaker insurers. The government’s plan to restructure the insurance sector is also driven by the need to prepare public sector insurers for increased competition from private sector players, following the opening up of the sector to 100% foreign direct investment.
Industry experts believe that consolidation is necessary to strengthen the sector and limit future fiscal exposure. They suggest that merging the weaker insurers could create a stronger, larger entity that can compete with private sector players. However, they also caution that privatization should not be an immediate focus, given the low level of insurance penetration in the country.
The restructuring plan is part of a broader effort to reshape India’s public sector, including the banking sector. The government has already begun consolidating public sector banks, and similar efforts are expected in the insurance sector. The goal is to create stronger, more efficient entities that can compete with private sector players and provide better services to customers.
Treatment up to ₹5 lakh; Norka Care health insurance launched; Registration still open
The Government of Kerala has launched a health and accident insurance scheme called Norka Care, which is now active and covering over 4 lakh Malayalis. The scheme, implemented in association with New India Assurance, provides medical coverage of up to ₹5 lakh and accidental death coverage of up to ₹10 lakh. The insurance policy is available to both domestic and overseas Malayali expatriates, and individuals up to the age of 70 years can enroll.
As of October 31, a total of 1,02,524 families have already enrolled in the scheme, and those who have registered are now covered under the policy. The registration deadline has been extended till November 30, allowing more people to join the scheme. To register, individuals can submit their applications through the Norka Roots website or via the Norka Care mobile app. Those who haven’t obtained an NRK card can apply for one and receive an e-card within 24 hours, which can then be used to register for Norka Care.
The insurance policy provides comprehensive coverage, including treatment for Ayush up to ₹50,000 and cataract surgeries up to ₹30,000, even without hospitalization. Pre-existing diseases are also covered, and there is no waiting period for claims. A family consisting of parents and two children can get coverage for an annual premium of ₹13,411. Once the application is submitted and payment is made online, the Norka Care e-card will be issued immediately, which can be used whenever medical treatment is required.
The Norka Care scheme is a significant initiative by the Government of Kerala to provide health and accident insurance coverage to Malayalis, both within the state and outside. With its comprehensive coverage and affordable premium, the scheme is expected to benefit a large number of people. Interested individuals can register for the scheme by November 30 and avail of the benefits of Norka Care. The scheme is a testament to the government’s commitment to providing social security and welfare to its citizens, particularly those living outside the state.
Sharp premium drop hits general insurers in August; New India Assurance down 47% MoM
The Indian insurance sector experienced a decline in premium collections in August, with several leading insurers reporting sharp drops on a month-on-month (MoM) basis. In the general insurance segment, New India Assurance saw the steepest decline, with premiums falling 47% MoM to ₹2,197 crore. However, the company attributed this drop to the timing of policy receipts, citing the receipt of a quarterly installment of a government health policy in the previous month. Despite this, New India Assurance reported an 8.67% growth in premiums on a year-on-year (YoY) basis and a 14.66% growth up to the month on a YoY basis.
Other insurers also reported declines in premium collections. ICICI Lombard saw a 12% MoM decline in premiums to ₹2,182 crore, while Go Digit General Insurance registered a 16% MoM drop to ₹738 crore. Health insurers Niva Bupa Health Insurance and Star Health Insurance also reported contractions, with premiums declining 4% and 6% MoM, respectively.
This decline comes after a period of steady expansion in the insurance sector, with many insurers reporting strong inflows in July. In fact, New India Assurance, ICICI Lombard, Go Digit, Niva Bupa, and Star Health all posted double-digit MoM growth in July, highlighting a sharp contrast with the August figures. The decline in premium collections may be a temporary blip, and the sector is expected to continue growing in the long term. The insurance sector’s performance is closely watched, as it is a key indicator of the overall health of the economy. The decline in August may be attributed to various factors, including seasonal fluctuations and changes in policy receipts. However, the sector’s growth on a YoY basis suggests that it is still on a positive trajectory.
Motor Accident: Insurer Must Pay Compensation Even If Route Permit Violation Occurs, Can Recover From Owner – Supreme Court
The Supreme Court of India has ruled that insurance companies cannot deny compensation to accident victims simply because the vehicle involved was not following its permitted route. This decision was made in the case of K Nagendra v The New India Insurance Co Ltd, where a bus had strayed from its sanctioned route at the time of a fatal accident. The insurer, The New India Insurance Company Limited, had challenged the High Court’s direction to pay compensation first and later recover from the owner. However, the Supreme Court dismissed the appeal, stating that the “pay and recover” direction was justified.
The Court emphasized the social purpose of motor vehicle insurance, which is to provide compensation to victims of accidents, regardless of the circumstances. Denying compensation on technical grounds, such as route permit violation, would be “offensive to the sense of justice.” The Court noted that the purpose of an insurance policy is to shield the owner or operator from direct liability in the event of an unforeseen incident. To deny compensation to victims or their dependents simply because the accident occurred outside the bounds of the permit would be unfair.
The Court also held that the insurance policy must be used within the strict corners of the law. While the insurer has a contractual obligation to pay compensation, it is also entitled to recover the amount from the vehicle owner if the accident occurred outside the bounds of the policy. The “pay and recover” approach ensures that victims are not left without remedy due to disputes between insurers and vehicle owners.
The Supreme Court relied on several previous judgments, including National Insurance Co. Ltd. v. Swaran Singh, New India Assurance Co. v. Kamla, and Parminder Singh v. New India Assurance Co. Ltd, to reaffirm the principle of “pay and recover.” The Court directed that the insurer must first satisfy the compensation awarded to the victims or their dependents and thereafter recover the amount from the vehicle owner. This approach balances the need for payment of compensation to victims with the interests of the insurer. The judgment emphasizes the importance of providing compensation to accident victims, regardless of the circumstances, and ensures that insurers are held accountable for their contractual obligations.
The Madras High Court has ruled that a borrower of a vehicle is equivalent to the owner in terms of liability and therefore, cannot claim compensation for an accident. According to the Motor Vehicles Act, when a person borrows a vehicle, they assume the responsibilities and liabilities associated with its ownership, at least in the context of accidents. This means that if the borrower is involved in an accident, they cannot seek compensation as they would be considered the owner of the vehicle for the purposes of the Act. The court’s decision effectively places the borrower in the shoes of the owner, making them responsible for any damages or liabilities arising from the accident, rather than allowing them to claim as a third party might.
The Madras High Court has ruled that a person who borrows a vehicle from its owner cannot claim compensation similar to a third party. This decision was made by Justice R Poornima of the Madurai bench, who referenced a Supreme Court case, Ramkhiladi and another Vs. United India Insurance Company and another. In that case, the court held that a claim petition under Section 163A was not maintainable by a borrower or permissible user of a vehicle against the owner or insurer of the vehicle.
The current case involved an appeal by the New India Assurance Company against an order from the Motor Accidents Claims Tribunal (MACT), which directed the insurance company to pay a compensation of Rs. 3,93,500 to the wife of a deceased man. The claimant’s husband had been driving his brother’s car, which was insured with the company, when it capsized and he sustained fatal injuries.
The insurance company argued that the accident occurred due to the husband’s rash and negligent driving, and that he could not be regarded as a third party since he was the brother of the vehicle’s owner and was driving the vehicle. The company also argued that the tribunal had failed to consider that the deceased was not a paid driver and was therefore not eligible for compensation under the Workman’s Compensation Act.
The court noted that the deceased had stepped into the shoes of the owner when he borrowed the vehicle, and that compensation could not be claimed. The court allowed the insurance company’s appeal and set aside the order of the MACT, citing the Supreme Court’s decision in the Ramkhiladi case. The court’s decision emphasizes that a person who borrows a vehicle from its owner takes on the same responsibilities and liabilities as the owner, and cannot claim compensation as a third party.
The court’s ruling is significant, as it clarifies the legal position on compensation claims in cases where a person borrows a vehicle from its owner. The decision will likely have implications for similar cases in the future, where the issue of compensation claims by borrowers or permissible users of vehicles is disputed. The case highlights the importance of understanding the legal relationships between vehicle owners, borrowers, and insurers, and the potential consequences of accidents involving borrowed vehicles.
Can Insurers Reject Claims for Vehicle Overloading: Punjab State Commission Provides Answer
The Punjab State Consumer Disputes Redressal Commission has partly allowed an appeal filed by a truck owner, Baldev Singh Bhatti, against United India Insurance Company Limited. The appeal was filed after the District Consumer Disputes Redressal Commission, Malerkotla, dismissed the complaint. The truck owner had purchased a Tata Prima LX 3125 K8X4 BS-IV truck, which was insured for an insured declared value of Rs. 35,00,000 under a comprehensive policy. On October 2, 2020, the vehicle collided with another truck, causing significant damage. The claim was registered with the insurer, but it was declared as “No Claim” due to overloading.
The State Commission, comprising Hon’ble Mrs. Justice Daya Chaudhary and Ms. Simarjot Kaur, reviewed the pleadings and documents and referred to the Top Court’s ruling in Ashok Kumar v. New India Assurance Co. Ltd. The Court had reiterated the principle that in cases of overloading, insurance claims cannot be repudiated entirely but must be settled on a non-standard basis at 75% of the admissible claim. Applying this ratio, the State Commission held that United India Insurance had erred in repudiating the claim outright.
The Commission directed the insurer to settle the claim on a non-standard basis by paying 75% of the assessed loss, which was Rs. 5,15,000 as recommended by the surveyor. The appeal was thus partly allowed, with the order of the District Commission set aside. The ruling reaffirms that insurers cannot reject claims outright merely on the ground of overloading if the accident itself is unrelated to the alleged breach.
The truck owner had argued that the vehicle was carrying only 300 CFT of goods, which was within the permissible limit, and that the insurer had arbitrarily repudiated the claim. The insurer, however, maintained that the truck carried 500 CFT of material and alleged that the complainant’s documents were forged. The State Commission noted that the allegation of overloading could not be brushed aside, but the correct course in law was to restrict liability to 75% of the assessed damages.
The judgment is significant as it clarifies the law on insurance claims in cases of overloading. The Top Court’s ruling in Ashok Kumar v. New India Assurance Co. Ltd. has been reaffirmed, which held that insurance claims cannot be repudiated entirely in cases of overloading, but must be settled on a non-standard basis at 75% of the admissible claim. The judgment will have implications for insurance companies and policyholders, and will provide guidance on how to handle claims in cases of overloading.
NIACL AO result 2025 has been announced and is available at newindia.co.in, with a direct link provided for access.
The New India Assurance Company Limited (NIACL) has announced the results of the Administrative Officers (Generalists and Specialists) (Scale-I) posts for the year 2025. Candidates who appeared for the Phase-I online examination, which was conducted on September 14, 2025, can now check their results on the official website, newindia.co.in. The recruitment drive aims to fill 550 Assistant Officer posts.
The shortlisted candidates who have cleared the Phase-I examination will now have to appear for the Main examination, scheduled to take place on October 29, 2025. The company has advised candidates to keep visiting the Recruitment section of their website for further details and updates. The call-letters indicating the date and venue of the Phase-II examination will be available for download shortly.
To download the AO Prelims result 2025, candidates can follow these simple steps:
1. Visit the official website, newindia.co.in
2. Go to the Recruitment section and click on “RECRUITMENT OF ADMINISTRATIVE OFFICERS 2025”
3. Click on the AO result 2025 link
4. The result will appear on the screen
5. Download and take a printout for future reference
Alternatively, candidates can also use the direct link to access the AO Prelims result 2025. The company has advised candidates to regularly check the official website for updates and details regarding the recruitment process. The Main examination is scheduled to take place on October 29, 2025, and candidates are advised to be prepared for the next stage of the selection process. With 550 Assistant Officer posts up for grabs, this recruitment drive offers a great opportunity for candidates to join the New India Assurance Company Limited.
Gallagher has created India’s first pandemic insurance, which utilizes parametric triggers. This insurance was launched by New India Assurance and is reinsured by Munich Re.
The Phoenix Mills Ltd, a leading Indian company, has become the first insured in the country to be covered against business interruption losses due to pandemic or epidemic outbreaks. The policy, which includes loss of revenue and additional expenses, is based on parametric triggers and empowers the company’s various business verticals to maintain operational continuity and financial stability in the face of any unforeseen global health crises. The company’s experience during the last pandemic, which led to zero revenue and substantial fixed costs, prompted them to seek innovative insurance solutions.
Gallagher, a leading risk management and insurance broking firm, structured and placed a tailored risk solution for the Indian market, bridging global reinsurance capacity with local insurance needs. The policy is reinsured by Munich Re’s Epidemic Risk Solutions team, which provides swift and transparent payouts based on predefined triggers. New India Assurance, the country’s largest non-life insurer, has officially issued the first Pandemic Insurance policy for Phoenix Mills Ltd under a Non-Damage Business Interruption (NDBI) package program.
The policy marks a new chapter in innovative risk management for India and provides the company with the assurance that it is better equipped and more resilient to face future pandemic-related disruptions. The ceremonial handover of the policy was attended by a distinguished senior delegation from Munich Re, New India Assurance, Gallagher Insurance Brokers, and Phoenix Mills Ltd, underscoring the strategic significance and collaborative spirit driving this groundbreaking initiative.
The introduction of this policy is a significant step towards addressing the insurance protection gap for epidemic-related risks in India. It is designed to provide swift financial protection when outbreaks disrupt business operations, allowing businesses to recover faster from catastrophic communicable disease outbreaks. The policy combines the power of parametric with innovation to provide a pioneering solution for pandemic risk management in India.
Insurance premium collections rose in August, driven by Bajaj Allianz and New India Assurance.
The Indian general insurance sector experienced modest year-on-year growth in premium collections for August, according to data from the General Insurance Council. However, several major players reported significant sequential declines in premiums compared to July.
ICICI Lombard General Insurance saw a 2.1% year-on-year increase in gross direct premium underwritten, reaching ₹2,182 crore. Nonetheless, its premiums dropped 12% compared to the previous month. New India Assurance reported an 8.7% annual increase, with premiums totaling ₹2,197 crore, but experienced a substantial 47% month-on-month decline, the steepest among major insurers.
Star Health and Allied Insurance’s premium rose 1.9% year-on-year to ₹1,426 crore. In contrast, Go Digit General Insurance achieved a 13.6% annual jump, with premiums reaching ₹738 crore, but slipped 16% on a sequential basis. Bajaj Allianz General Insurance posted the strongest annual growth, with premium collections up 18.8% year-on-year at ₹2063.2 crore.
The declines in premiums for several major insurers may indicate a slowdown in the Indian general insurance sector. The significant drop in premiums for New India Assurance, in particular, may be a cause for concern. Despite the year-on-year growth, the sequential declines suggest that the sector may be experiencing a temporary downturn.
Overall, the data from the General Insurance Council highlights the mixed performance of Indian general insurers in August. While some insurers reported strong annual growth, others experienced substantial sequential declines. The sector’s performance will be closely watched in the coming months to determine if the declines are a one-time phenomenon or a sign of a larger trend. The Indian general insurance sector will need to adapt to changing market conditions to maintain growth and stability.
New India Assurance Co. Ltd., Oman Receives Times of Oman Best Brand in Customer Experience Award
New India Assurance Co. Ltd., Oman, has been awarded the prestigious Times of Oman Best Brand in Customer Experience Award in the insurance category at the Oman CX Awards 2025. This award recognizes the company’s commitment to delivering exceptional service and customer satisfaction across the Sultanate. The award ceremony was attended by prominent figures, including His Highness Sayyid Mohammed Bin Salem Al Said and Mr. Ahmed Essa Al Zadjali, CEO of Muscat Media Group.
Mr. Majid Abdul Rahim Jaffer Al Bahrani, the visionary leader of New India Assurance, Oman, expressed his gratitude to customers and partners for voting for the company. Mr. Gaurav Sharma, Chief Operating Officer of New India Assurance, Oman Operations, received the award on behalf of the company and stated that it is a testament to the exceptional service delivered by the team.
The Oman CX Awards 2025 celebrated excellence across 35 product and service categories, with winners determined through nationwide consumer voting. The event highlighted the critical role customer experience plays in brand reputation and long-term success. New India Assurance has been at the forefront of customer-centric innovations, including the launch of a state-of-the-art Customer Care Centre in December 2024, which offers direct call lines and WhatsApp support to enhance client accessibility and responsiveness.
This recognition comes as New India Assurance celebrates its 50th year of operations in Oman, reflecting the enduring trust and confidence of its customers. The company continues to set industry benchmarks, and this award is a testament to its commitment to delivering exceptional service and customer satisfaction. New India Assurance, Oman, is operated by M/s. Abdul Aziz & Bros LLC, and its services can be found on their official website or by contacting their Customer Care Centre at +968 2483 8800.
The award is a significant achievement for New India Assurance, Oman, and demonstrates the company’s dedication to providing exceptional customer experience. The company’s customer-centric approach has been recognized by its customers and partners, who have voted for it as the Best Brand in Customer Experience under the Insurance category. As the company continues to grow and expand its services, it remains committed to delivering exceptional service and customer satisfaction, setting industry benchmarks, and maintaining the trust and confidence of its customers.
FM asks state-run general insurers to develop innovative products
Finance Minister Nirmala Sitharaman recently reviewed the performance of public sector general insurance companies (PSGICs) and emphasized the need for innovative insurance products tailored to emerging risks. The meeting, attended by top officials from the finance ministry and PSGICs, discussed key performance indicators such as premium collections, insurance penetration, and density. Sitharaman directed the companies to develop products that address new risks, including cyber fraud, and to diversify their portfolios to meet evolving consumer needs.
The review highlighted the importance of robust underwriting practices and portfolio optimization to ensure profitability and financial stability. The companies were instructed to align their combined ratios with global industry benchmarks. The meeting noted that the total premium collected by PSGICs has increased significantly, from Rs 80,000 crore in 2019 to Rs 1.06 lakh crore in 2025. The overall general insurance industry also reported growth, with total premium collections reaching Rs 3.07 lakh crore in FY 2024-25.
Despite the growth, general insurance penetration in India remains relatively low at 1% of GDP, compared to a global average of 4.2% in 2023. Insurance density has improved, increasing from $9 in 2019 to $25 in 2023. Sitharaman stressed the need for PSGICs to improve both penetration and density to provide wider financial protection. The companies have shown a significant turnaround, with all of them becoming profitable again. Oriental Insurance and National Insurance started posting quarterly profits in 2023-24 and 2024-25, respectively, while United India Insurance posted a profit in Q3 of 2024-25 after a gap of 7 years. New India Assurance has consistently maintained its position as a market leader and has been making profits regularly.
The minister’s directives aim to enhance the competitiveness and sustainability of PSGICs, ensuring they remain relevant in a rapidly evolving market. By developing innovative products and improving their underwriting practices, the companies can better address emerging risks and increase insurance penetration in India. The growth of the general insurance industry and the turnaround of PSGICs are positive signs, but there is still a need to improve penetration and density to provide adequate financial protection to the population.
Top insurance companies have successfully leveraged technology to revolutionize their approach to customer service, setting a new standard for the industry.
SBI General Insurance has emerged as the top performer in the motor insurance category. The company, which has partnered with 21 original equipment manufacturers (OEMs) for motor insurance, reported a moderate increase in the segment in the financial year 2024. Notably, it settled 2,70,716 motor own damage claims, with over 7,148 claims for four-wheeler private cars being resolved through its “fast lane method,” which allows for spot settlement of minor damages.
According to Naveen Chandra Jha, Managing Director and CEO of SBI General Insurance, both health insurance and motor insurance are under-penetrated markets that offer opportunities for growth. The company’s strong performance in the motor insurance category can be attributed to its strategic partnerships with OEMs and its efficient claims settlement process.
The New India Assurance and ICICI Lombard General Insurance have been jointly ranked second in the motor insurance category. Girija Subramanian, Managing Director and Chairman of The New India Assurance, attributes the company’s strong performance to its long-standing presence across the country, particularly in Tier I-IV towns. The company’s extensive network of agents and intermediaries, including brokers, motor insurance service providers, web aggregators, and insurance marketing firms, has played a crucial role in generating large volumes of business.
However, Subramanian notes that the automobile industry has experienced muted growth in the financial year 2025, with a decline in sales of private cars and commercial vehicles. This has had a negative impact on the company’s business figures, which have only recently started to pick up during the festival season. Despite this, the company remains optimistic about achieving double-digit growth in the motor insurance business by the end of the year. The New India Assurance works with 2,500 garages for cashless claims, which has helped to streamline its claims settlement process and improve customer satisfaction. Overall, the motor insurance category is expected to continue growing, driven by increasing demand for vehicle insurance and the introduction of new products and services by insurers.
NIACL AO prelims result 2025 is available at newindia.co.in. The scorecard PDF can be downloaded directly from the website.
The New India Assurance Company Limited (NIACL) has announced the results of the Administrative Officer (AO) recruitment examination 2025. Candidates who took the Phase 1 (Preliminary) examination on September 14, 2025, can now check their results on the official website, newindia.co.in. Those who have qualified will proceed to the Phase 2 (Mains) examination, scheduled for October 29, 2025.
To check the results, candidates can follow these steps: visit the official website, navigate to the “Recruitment: Administrative Officers 2025” section, click on the “AO Result 2025 (Prelims)” link, and search for their roll number in the result PDF. The PDF can be downloaded and saved for future reference.
For candidates who have qualified, it’s essential to note the important instructions for the mains exam. They must reach the exam center on time, as entry will close 30 minutes before the exam begins. They must also carry a valid government-issued photo ID proof along with their admit card. Additionally, they should avoid carrying restricted items like mobile phones, electronic devices, or notes, as there will be no storage facility for such belongings at the venue.
The call letters for the mains exam will be available for download three to four days before the examination date. Candidates are advised to regularly visit the official website for updates on admit cards, results, and examination instructions. The NIACL AO mains exam is a crucial step in the recruitment process, and candidates must be well-prepared to succeed.
The results of the prelims exam mark an important milestone in the selection process, and candidates who have qualified can now focus on preparing for the mains exam. With the exam scheduled for October 29, 2025, candidates have ample time to revise and practice, increasing their chances of success. By following the instructions and staying updated on the official website, candidates can ensure a smooth and successful examination process.
The government is considering a merger of state-owned general insurance companies.
The Indian government is contemplating a significant move to merge four state-owned general insurance companies into a single entity. The companies in question are New India Assurance, National Insurance, Oriental Insurance, and United India Insurance. The primary objective behind this proposed merger is to create a robust general insurance giant that can effectively compete with private players in the market.
This consolidation is envisioned to mirror the success of the Life Insurance Corporation of India (LIC), which has established itself as a formidable entity in the life insurance sector. By merging these four companies, the government aims to enhance the reach and expansion of general insurance services across the country, potentially leading to increased penetration and accessibility of insurance products for the populace.
According to sources privy to the matter, the discussions regarding the merger are still in their preliminary stages. One of the critical aspects being evaluated is how the General Insurance Corporation (GIC) will manage the crop insurance business under the new structure. This consideration is crucial, as crop insurance is a significant component of general insurance, especially given India’s agrarian economy.
Despite the significance of this development, the Finance Ministry has chosen not to comment on the matter at this juncture. When approached for a response, the ministry did not respond to the email query, suggesting that the discussions are either too premature or sensitive to be publicly disclosed at this point.
The potential merger of these state-owned general insurance companies into a single entity could have far-reaching implications for India’s insurance landscape. It could lead to a more competitive market, improved services, and possibly better premiums for policyholders. However, the success of such a merger would depend on various factors, including the structural and operational integration of the companies, the retention of talent, and the ability to compete effectively with private sector players.
As the Indian government continues to explore this proposal, it will be essential to monitor the developments closely. The creation of a strong, state-owned general insurance giant could be a pivotal moment in the evolution of India’s financial services sector, with potential benefits for both the industry and the insuring public. However, the path ahead will require careful planning, strategic decision-making, and a deep understanding of the complexities involved in merging large and complex organizations.
NIACL AO Result 2025 has been declared and is available at newindia.co.in, a direct link to download the scorecard is provided.
The New India Assurance Company Limited (NIACL) has released the scorecard for its 2025 Administrative Officer (AO) Scale-I recruitment. Candidates who participated in the selection process can now check their individual scores on the official website at newindia.co.in. To access the scorecard, candidates need to log in using their roll number and date of birth.
The NIACL AO recruitment is a significant opportunity for candidates to join a leading government-owned general insurance provider. The company has a strong reputation across the country and is one of the five insurance companies in India fully owned by the government. Founded in 1919 and based in Mumbai, NIACL was nationalized in 1973 and has a strong presence both nationally and internationally.
The official dates for the NIACL AO Exam 2025 have been announced. The Phase-I online exam is scheduled to take place on September 14, 2025. Candidates who pass this phase will be eligible for the Phase-II exam, which is scheduled for October 29, 2025. To check their results, candidates can follow these steps: visit the official website, click on the link for the NIACL AO Result 2025, enter their login details, and submit. The result will be displayed on the screen, and candidates can download or print a copy for their records.
It is essential for candidates to check their results carefully and verify all the details. The NIACL AO recruitment is a competitive process, and candidates who pass the exams will be selected for the Administrative Officer Scale-I position. The company offers a range of benefits and opportunities for career growth, making it an attractive option for candidates looking to join the insurance sector. With the release of the scorecard, candidates can now assess their performance and prepare for the next phase of the recruitment process.