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.
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Latest claim settlement ratio of health and general insurers released by IRDAI in 2026: Acko, Aditya Birla, Galaxy lead; Shriram, IFFCO Tokio fall below 90%
When it comes to health and general insurance policies, policyholders expect prompt claim settlements from insurers in times of emergency. The real test of any insurance policy lies in how fairly and quickly claims are settled. To gauge an insurer’s efficiency, checking the claim settlement ratio is a reliable way. The Insurance Regulatory and Development Authority of India (IRDAI) releases a list of claim settlements by all health and general insurance companies every year.
According to the latest figures for FY 2024-25, the claim settlement ratio of various insurers has been revealed. Among private general insurers, Acko General Insurance took the lead with 99.98% of claims paid within 3 months, followed by Reliance General Insurance Co. Ltd. with a ratio of 99.32%. On the other hand, Kshema General Insurance Co. Ltd. had the lowest claim settlement ratio of 26.88% among private sector insurers.
Among public insurers, The Oriental Insurance Co. Ltd. settled 90.17% of its claims within 3 months. The New India Assurance Co. Ltd. and National Insurance Co. Ltd. had a claim settlement ratio of 91.75% and 91.79%, respectively.
In the standalone health insurance sector, Aditya Birla Health Insurance Co. Ltd., Galaxy Health Insurance Co. Ltd., Narayana Health Insurance Co. Ltd., and Niva Bupa Health Insurance Co. Ltd. each reported a 100% claim settlement ratio, with all claims settled within three months.
The claim settlement ratio refers to the percentage of claims that an insurer pays or settles out of the total number of claims it receives during a certain period. For instance, a health insurance company with a claim settlement ratio of 95% typically pays around 95 of every 100 claims it receives.
It’s essential for policyholders to check the claim settlement ratio of their insurer to ensure they are getting fair and prompt claim settlements. The IRDAI’s annual list of claim settlements provides a reliable source of information for policyholders to make informed decisions. By checking the claim settlement ratio, policyholders can gauge their insurer’s efficiency and make informed decisions about their insurance policies.
In conclusion, the claim settlement ratio is a crucial factor to consider when choosing a health or general insurance policy. Policyholders should check the claim settlement ratio of their insurer to ensure they are getting fair and prompt claim settlements. The IRDAI’s annual list of claim settlements provides a reliable source of information for policyholders to make informed decisions about their insurance policies.
Centre approves wage, pension revisions for PSGICs, NABARD and RBI.
The Indian government has approved a long-pending wage revision for Public Sector General Insurance companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). The revision will benefit approximately 46,322 employees, 23,570 pensioners, and 23,260 family pensioners across these organizations. The wage revision for PSGIC employees will be effective from August 1, 2022, with an overall hike in the wage bill of 12.41%. The revision includes an enhancement in the National Pension System (NPS) contribution from 10% to 14% for employees who joined after April 1, 2010.
The PSGICs that will be affected by this revision include National Insurance Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd., United India Insurance Company Ltd., General Insurance Corporation of India, and Agricultural Insurance Company Ltd. The total outgo for the wage revision will be approximately Rs 8,170.30 crore, which includes Rs 5,822.68 crore towards arrears, Rs 250.15 crore for NPS, and Rs 2,097.47 crore for family pension.
In addition to the wage revision, the government has also approved a pension revision for retirees of NABARD and the Reserve Bank of India (RBI). The pension revision for NABARD retirees will bring their basic pension and family pension on par with that of ex-RBI NABARD retirees. The revision will benefit around 3,800 serving and former employees, with an additional annual wage bill of around Rs 170 crore and a total payment of arrears amounting to around Rs 510 crore.
The pension revision for RBI retirees will result in an enhancement of basic pension by a factor of 1.43, leading to a substantial improvement in their monthly pension. The revision will benefit a total of 30,769 beneficiaries, comprising 22,580 pensioners and 8,189 family pensioners, with a total financial implication of Rs 2,696.82 crore. The government has stated that these revisions are aimed at improving the welfare of employees and retirees in these organizations.
Top Insurers With Maximum Grievances Revealed By Insurance Ombudsman: All You Need To Know
The Council of Insurance Ombudsman Annual Report 2023-24 has revealed a significant rise in complaints against health insurance companies in India. The report shows that the total number of complaints against health insurance companies increased by 21.7% in FY 2023-24, with 31,490 complaints, compared to 25,873 in FY 22-23. Private insurers accounted for the majority of complaints, with 26,064 grievances, while public sector insurers had 5,298 complaints.
Star Health & Allied Insurance topped the list with the highest number of complaints, with 13,308 grievances, of which 10,196 were related to claim repudiations. Other top insurers with high complaint numbers included CARE Health Insurance, Niva Bupa Health Insurance, National Insurance, and New India Assurance. The report also highlights that claim repudiation is the most common grievance, with the majority of complaints falling under this category.
The Insurance Regulatory and Development Authority of India (IRDAI) has responded to the rising dissatisfaction by mandating every insurer to appoint an Internal Ombudsman (IO) to review cases up to Rs 50 lakh that remain unresolved after 30 days or are rejected by insurers. However, experts argue that the independence of the IO is questionable since they report to the insurer’s top management, which may raise concerns about fairness and impartiality.
The report emphasizes the need for stronger accountability, transparency, and consumer protection in the health insurance sector. Policyholders are advised to look beyond premiums when buying health insurance and consider critical factors such as claim settlement ratio, repudiation rates, grievance redressal track record, and customer service quality. The IRDAI’s initiative to appoint an Internal Ombudsman is a step towards addressing the rising complaints, but its effectiveness and independence remain to be seen.
The Council for Insurance Ombudsmen (CIO) plays a crucial role in providing an alternative grievance redressal platform for policyholders. The CIO functions under the IRDA Act, 1999, and the Redressal of Public Grievances Rules, 1998, and is designed to provide a speedy and cost-effective mechanism to resolve disputes against insurance companies, intermediaries, or brokers. The report highlights the need for informed choices and stronger regulation to restore policyholder trust in the health insurance sector.
Centre approves wage, pension revisions for PSGICs, NABARD and RBI
The Indian government has approved a long-awaited wage revision for Public Sector General Insurance companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). This revision will benefit approximately 46,322 employees, 23,570 pensioners, and 23,260 family pensioners across these organizations. The wage revision for PSGIC employees will be effective from August 1, 2022, and will result in a 12.41% increase in the overall wage bill, with a 14% hike in basic pay and dearness allowance.
The revision also includes an increase in the National Pension System (NPS) contribution from 10% to 14% for employees who joined after April 1, 2010. Family pension has been revised to a uniform rate of 30% from the date of publication in the official gazette, benefiting 14,615 family pensioners. The total outgo for this revision is estimated to be Rs 8,170.30 crore, which includes arrears of wage revision, NPS contributions, and family pension.
In addition to the wage revision, the government has also approved a pension revision for retirees of NABARD and the Reserve Bank of India (RBI). For NABARD, the hike in pay and allowances is approximately 20% for all Group ‘A’, ‘B’, and ‘C’ employees, effective from November 1, 2022. This will benefit around 3,800 serving and former employees. The pension revision for NABARD retirees who were originally recruited by NABARD and retired before November 1, 2017, has been brought on par with that of ex-RBI NABARD retirees.
The government has also approved the revision of pension and family pension to the retirees of the RBI, which will result in an effective enhancement of basic pension by a factor of 1.43 for all retirees. This revision will benefit a total of 30,769 beneficiaries, comprising 22,580 pensioners and 8,189 family pensioners. The total financial implication for this revision is estimated to be Rs 2,696.82 crore, which includes a one-time expenditure of Rs 2,485.02 crore towards arrears and a recurring annual expenditure of Rs 211.80 crore.
The PSGICs that will be affected by this revision include National Insurance Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd., United India Insurance Company Ltd., General Insurance Corporation of India, and Agricultural Insurance Company Ltd. The wage and pension revisions are expected to improve the financial well-being of the employees and retirees of these organizations.
11.6k cr pay day at PSU insurers, RBI
The Indian government has approved a retrospective wage and pension reset for employees of public sector general insurers, the Reserve Bank of India (RBI), and the National Bank for Agriculture and Rural Development (Nabard). The total payout is estimated to be around Rs 11,640 crore. The majority of this amount, Rs 8,170 crore, will go to state-owned general insurers, followed by the RBI at Rs 2,697 crore and Nabard at Rs 773 crore.
The payout for public sector general insurers includes Rs 5,823 crore in arrears, Rs 250 crore for the National Pension System (NPS), and Rs 2,098 crore for family pensions. This will benefit around 43,247 employees and 14,615 family pensioners across six insurance companies: National Insurance, New India Assurance, Oriental Insurance, United India Insurance, General Insurance Corporation of India (GIC), and Agriculture Insurance Company of India Limited (AICIL).
However, the financial health of these insurers is a concern, with three of them – National Insurance, Oriental Insurance, and United India Insurance – failing to meet the minimum solvency margin of 1.5 as of March 31, 2025. Only New India Assurance met this requirement, with a solvency margin of 1.9. This raises the possibility of the government providing budgetary capital infusion to fund the higher wages.
There is speculation that the government may link this support to reforms that make the public sector undertakings (PSUs) more sustainable. In the past, the government has tied budgetary support to reforms, and there is a possibility that it may announce consolidation of PSU insurers or sell stakes in these companies to improve their financial health. The government’s decision to approve the wage and pension reset is expected to have significant implications for the insurance sector and the overall economy.
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The Finance Minister has instructed insurers to innovate and develop new products that address emerging risks.
Finance Minister Nirmala Sitharaman recently met with public sector general insurance companies to discuss their performance and future strategies. The meeting, attended by Financial Services Secretary M Nagaraju, aimed to address the need for innovation and diversification in the insurance sector. Sitharaman emphasized the importance of developing new products to mitigate emerging risks such as cyber fraud, which is becoming increasingly prevalent.
The Minister highlighted the need for robust underwriting, portfolio optimization, and aligning combined ratios with global benchmarks to ensure long-term financial sustainability. She encouraged insurers to leverage data analytics and artificial intelligence (AI) to develop precise pricing and claims models, enabling improved risk assessment. This will help insurers to better manage their risks and provide more accurate quotes to policyholders.
Sitharaman also stressed the need to increase insurance penetration and density in India. Currently, insurance penetration in India stands at 1% of GDP, significantly lower than the global average of 4.2%. However, there has been some improvement in insurance density, which has increased from $9 in 2019 to $25 in 2023. The Minister urged insurers to step up their adoption of digital tools to improve their reach and services.
The public sector general insurance companies, including New India Assurance, United India Insurance, and Oriental Insurance, among others, were asked to diversify their portfolios to meet evolving consumer demands. By developing innovative products and leveraging technology, these insurers can better serve their customers and stay competitive in the market. Overall, the meeting aimed to encourage public sector insurers to modernize and expand their services, ultimately contributing to the growth of the Indian insurance sector. By doing so, the government hopes to increase insurance coverage and provide greater financial protection to citizens.
Centre Considers Significant Overhaul of Public Sector General Insurers, Including Merger or Privatization Options
The Union finance ministry is considering major restructuring options for three public sector general insurance companies in India: National Insurance Company, Oriental Insurance Company, and United India Insurance Company. The potential options include merging two of these companies with New India Assurance, a profitable and listed insurer, merging all three state-owned entities, or merging two while preparing the third for privatization. This move aligns with the government’s policy to limit state presence in non-strategic sectors to one or two companies.
The three targeted insurers continue to face financial difficulties, with low solvency ratios and significant undercapitalization. For instance, United India Insurance reported a profit of ₹154 crore in FY25 but had a solvency ratio of -0.65, while National Insurance posted a loss of ₹483 crore in FY25 and a loss of ₹284 crore in Q2 FY26. In contrast, New India Assurance is a profitable entity, reporting a profit of ₹988 crore in FY25 and maintaining solvency ratios above the 1.5x threshold.
The consolidation plan is seen as a way for public sector insurers to enhance efficiency and customer focus to compete effectively in a market that is opening up to foreign direct investment (FDI). The Indian insurance sector is expected to undergo significant changes, with potential consolidation, market restructuring, and changes in the operational landscape for public sector insurers.
The discussions around restructuring are significant, with a potential impact on the Indian insurance sector. Investors are likely to watch New India Assurance’s role and the overall competitive dynamics. The government’s move to consolidate the public sector insurers is expected to lead to a more efficient and competitive market, with a reduced presence of state-owned companies in non-strategic sectors.
The key terms related to the news include restructuring, merger, privatization, solvency profile, and solvency ratio. The solvency ratio is a critical measure of an insurer’s ability to meet its financial obligations, and a ratio below 1.5 indicates potential financial weakness. The government’s decision to consolidate the public sector insurers is expected to have a significant impact on the Indian insurance sector, with a rating of 7/10.
Odisha government to release standard operating procedure for expediting accident insurance claims settlement
The Odisha State Road Transport Corporation (OSRTC) has empanelled five leading insurance companies to provide coverage for road accidents. These companies include New India Assurance Co Ltd, Iffco-Tokio General Insurance, Oriental Insurance Co Ltd, United India Insurance Co Ltd, and Go Digit General Insurance. Initially, Go Digit General Insurance was the primary service provider, but New India Assurance Co Ltd and Oriental Insurance Co Ltd have since taken over claim settlements.
As of the latest data, a total of Rs 6.77 crore worth of claims have been filed, with Rs 1.45 crore already settled. The state government is closely monitoring the resolution of pending claims to ensure a faster settlement process. According to officials, the government is committed to providing timely compensation to the families of accident victims.
To streamline the claims process, the government has launched an Electronic Detailed Accident Report (e-DAR) portal. This online platform, developed in consultation with insurance companies, will provide instant access to road accident data, enabling faster compensation claims for the families of accident victims. The portal is expected to improve the efficiency of the claims process and reduce the burden on vehicle owners and accident victims.
The Transport department has urged vehicle owners to obtain insurance for their vehicles or renew their existing policies to avoid legal and financial complications. This move is intended to benefit road accident victims and ensure that they receive timely compensation. By promoting insurance coverage, the government aims to reduce the financial burden on accident victims and their families. Overall, the initiative is expected to improve road safety and provide support to those affected by accidents in Odisha.