Latest News on United India Insurance
Kerala Human Rights Commission directs insurance company to process claim without delay
The Kerala State Human Rights Commission has intervened in a decade-long case of a missing fisherman, directing an insurance company to decide on the claim filed by his family within two months. Biju, a fisherman from Pallithura, went missing on November 16, 2014, while venturing into the sea from the Vizhinjam coast. Despite the family producing a certificate of “man missing” issued by the sub-collector, the insurance company, United India Insurance Company, rejected the claim citing technicalities.
The Commission, led by Chairperson Justice Alexander Thomas, observed that the insurance company’s reliance on technicalities was unjust, particularly given the circumstances of the case. The company had argued that the family had reported the matter only three years after Biju went missing, and the claim was submitted nine years later, making it ineligible. However, Justice Thomas dismissed this argument, citing Section 108 of the Indian Evidence Act, which states that a person can be presumed dead only after seven years of being reported missing.
The Commission noted that the seven-year period ended in 2021, but the petitioner, Biju’s mother Margaret, had approached the insurance company as early as 2019. Furthermore, the insurance scheme was part of the government’s special insurance project under the Fishermen Welfare Fund Board, with the government paying the insurance premium. This distinction is significant, as it highlights the government’s role in providing support to the families of missing fishermen.
The Kerala State Human Rights Commission’s directive is a compassionate move, acknowledging the difficulties faced by the family of the missing fisherman. The Commission’s order emphasizes the need for insurance companies to prioritize humanitarian considerations over technicalities, particularly in cases where the government is involved. By directing the insurance company to make a decision on the claim within two months, the Commission is ensuring that the family receives a timely and fair resolution to their complaint.
This case underscores the importance of having a supportive system in place for the families of missing persons, including access to insurance claims and government support. The Commission’s intervention serves as a reminder that the rights of citizens, particularly those in vulnerable situations, must be protected and respected. As the family of Biju awaits the insurance company’s decision, they can take comfort in the knowledge that the Kerala State Human Rights Commission is advocating on their behalf, championing their right to fair treatment and compensation.
Review of PSU General insurers on cards to gauge capital needs
The Indian government is set to review the financial and operational performance of three state-run general insurers: Oriental Insurance, National Insurance, and United India Insurance. The review aims to determine the need for capital infusion to strengthen the solvency ratios of these companies, which are currently below the regulatory requirements of 1.50. Despite significant improvement in their financial performance, the solvency ratios of these companies remain a concern.
The government has already invested ₹17,450 crore in these companies between 2019-20 and 2021-22 to support their growth. However, the underwriting losses for public sector general insurance companies were ₹18,862 crore in 2023-24, with a profit of only ₹157 crore. To address this, the companies have undertaken various measures to improve their profitability, including adopting key performance indicators, enhancing IT capabilities, launching new products, and setting up centralized hubs for underwriting and claims.
The government’s review of the insurers’ performance is also timed with the upcoming Insurance Amendment Bill, which aims to increase foreign direct investment (FDI) in insurance to 100% and reduce the minimum paid-up capital required for insurance companies. The bill is expected to be introduced in the budget session and will further open up the sector to competition.
The insurance industry in India has seen a decline in penetration, with overall insurance penetration declining to 3.7% in 2023-24 from 4% in 2022-23. The life insurance industry saw a marginal decline in penetration from 3% to 2.8%, while the non-life insurance industry remained steady at 1%. The government’s review of the state-run insurers and the introduction of the Insurance Amendment Bill aim to address these challenges and strengthen the insurance sector in India.
The official review of the insurers’ performance will be based on projections, and some amount may be allocated in the budget to support their growth. The government’s efforts to strengthen the insurance sector are crucial, given the decline in insurance penetration and the need to increase access to insurance products for the Indian population. The upcoming Insurance Amendment Bill and the government’s review of the state-run insurers are expected to play a key role in shaping the future of the insurance industry in India.
Fastest Insurers to Settle Claims within 3 Months:
- ICICI Lombard General Insurance: 98.04% claims settled within 3 months
- Bajaj Allianz General Insurance: 96.45% claims settled within 3 months
- HDFC Ergo General Insurance: 95.52% claims settled within 3 months
- Apollo Munich Health Insurance: 94.95% claims settled within 3 months
- Max Bupa Health Insurance: 94.64% claims settled within 3 months
Slowest Insurers to Settle Claims within 3 Months:
- United India Insurance: 73.45% claims settled within 3 months
- New India Assurance: 75.13% claims settled within 3 months
- National Insurance: 76.23% claims settled within 3 months
- Oriental Insurance: 77.15% claims settled within 3 months
- Universal Sompo General Insurance: 78.21% claims settled within 3 months
The Insurance Regulatory and Development Authority (IRDAI) has released its handbook on Indian Insurance Statistics for 2023-24, which provides insights into the claim settlement ratios of various insurance companies in India. The claim settlement ratio helps policyholders understand the proportion of claims an insurance company honors or pays out during a certain period. A higher claim settlement ratio indicates that the insurer is more efficient in settling claims.
According to the data, Navi General Insurance has the highest claim settlement ratio of 99.97% within 3 months in FY23-24, followed by Acko (99.91%), HDFC Ergo (99.16%), Reliance General (99.57%), and Universal Sompo (98.11%). However, while these insurers have a high claim settlement ratio, their incurred claims ratio, which refers to the proportion of premiums paid out as claims, varies. For instance, Navi General Insurance has an incurred claims ratio of 52.40%, while Acko has an incurred claims ratio of 69.57%.
On the other hand, New India Assurance and National Insurance, both public insurers, have lower claim settlement ratios of 92.70% and 91.18%, respectively. However, they have higher incurred claims ratios, with National Insurance reporting an incurred claims ratio of 95.9% and New India Assurance reporting an incurred claims ratio of 97.36%.
Among stand-alone health insurers, Star Health has the lowest claim settlement ratio of 82.31% within 3 months, while Aditya Birla Health Insurance has the highest claim settlement ratio of 92.97%. Care Health has the lowest incurred claims ratio of 57.69%, while Aditya Birla Health Insurance has an incurred claims ratio of 68.31%.
When choosing an insurance policy, it’s essential to consider not just the claim settlement ratio but also other factors such as customer service, policy exclusions, benefits, and solvency ratio. Experts recommend an incurred claims ratio between 70% and 90% to be an indicator of a good insurer in terms of claim experience and sustainability. A combination of a high claim settlement ratio and an incurred claims ratio can help narrow down a good insurance policy.
In conclusion, the claim settlement ratio is an essential metric to consider when choosing an insurance policy, but it’s not the only factor. Policyholders should also look at other benefits, customer service, and financial health of the insurer to make an informed decision.
United India Insurance and SIDBI have entered into a partnership to offer insurance products to Micro, Small, and Medium Enterprises (MSMEs).
United India Insurance Company Ltd (UIICL), a public sector non-life insurer, has partnered with the Small Industries Development Bank of India (SIDBI) to provide general insurance products to the MSME (Micro, Small, and Medium Enterprises) sector. The partnership aims to offer comprehensive insurance solutions, including home, health, motor, and engineering products, to SIDBI’s customers across its 123 branches nationwide.
The collaboration is expected to increase insurance penetration among MSMEs, a sector that is central to India’s economic growth. UIICL views this alliance as a key step towards achieving this goal. According to Mathew George, Executive Director of UIICL, the partnership will provide customized insurance solutions to MSMEs, which will help to protect them against various risks and uncertainties.
SIDBI, on the other hand, sees the collaboration as a step forward in delivering integrated financial and insurance services under one roof. Ravindran A.L., Chief Business Officer of SIDBI, believes that the partnership will enable the bank to offer a wider range of services to its customers, thereby enhancing their overall experience.
The partnership is a significant move towards promoting financial inclusion and risk management among MSMEs. By offering customized insurance products, UIICL and SIDBI aim to help MSMEs mitigate risks and uncertainties, and ensure their business continuity. The collaboration is also expected to contribute to the growth and development of the MSME sector, which is a key driver of India’s economic growth.
Overall, the partnership between UIICL and SIDBI is a positive development for the MSME sector, and is expected to have a significant impact on the growth and development of the sector. With this partnership, UIICL and SIDBI are well-positioned to provide comprehensive insurance solutions to MSMEs, and contribute to the overall development of the Indian economy. The partnership is a win-win for both parties, and is expected to yield positive results in the long run.
Madras High Court Stays Order Allowing CMRL to Build Station Through Temples on Whites Road
A single judge has quashed the notification issued by the Chennai Metro Rail Limited (CMRL) to acquire land belonging to the United India Insurance firm for the construction of an entry and exit point. The notification was issued under Section 3(2) of the Tamil Nadu (Acquisition of Lands for Industrial Purposes) Act, 1997. However, the Advocate General, PS Raman, has argued that the CMRL had only intended to acquire the Open Space Reservation (OSR) land and not the land belonging to the insurance firm.
The single judge’s decision was made without considering a previous order by the first bench, according to Raman. The CMRL has stated that it has no objections to proceeding with the construction as per the proposal. The issue arose when the United India Insurance firm filed a petition against the CMRL’s notification to acquire its land. The firm had constructed a building at a cost of Rs 200 crore, after obtaining all necessary clearances and No-Objection Certificates (NOC) from the CMRL.
Justice Anand Venkatesh, while quashing the notification, had stated that demolishing a recently constructed building would be contrary to public interest. The judge had also made a philosophical statement, saying “God will forgive us. God will protect the petitioners, the authorities, and also the author of this judgment. God will be with us.” The CMRL’s intention to acquire only the OSR land and not the insurance firm’s land was not taken into account by the single judge, according to the Advocate General. The matter is still pending, and the CMRL is willing to proceed with the construction as per the proposal, with the necessary adjustments to avoid acquiring the insurance firm’s land.
Recent Updates
Premium of ₹1,262 crore paid for Chief Minister’s Comprehensive Health Insurance Scheme (CMCHIS)
The Tamil Nadu Health Department recently paid a premium of ₹1,262.91 crore for the Chief Minister’s Comprehensive Health Insurance Scheme (CMCHIS). The payment was made to United India Insurance Company, covering 95% of the premium amount for 1,48,57,459 beneficiary families, which amounts to ₹1,198.32 crore. This covers the period from January 11, 2025, to January 10, 2026. An additional ₹64.59 crore was paid, which is the remaining 5% of last year’s premium amount.
Health Minister Ma. Subramanian handed over the cheque to officials of United India Insurance Company, highlighting the scheme’s success. Since its inception on July 23, 2009, a total of 1,45,81,445 individuals have benefited from CMCHIS, with a total expenditure of ₹13,991 crore. The scheme has empaneled 2,157 hospitals, including 942 government and 1,215 private hospitals, covering a wide range of medical and surgical procedures.
The scheme provides coverage for 2,053 medical and surgical procedures, eight higher specialty procedures, 52 diagnostic procedures, and 11 follow-up procedures. Recently, special camps were held across the state to mark former Chief Minister M. Karunanidhi’s birth centenary, resulting in the addition of 99,935 new beneficiaries to the scheme. In Chennai alone, 9,796 individuals were added as new beneficiaries.
On the occasion, the Minister also handed over financial assistance of ₹1 crore each to the family members of six government doctors who died during service, under the Doctors Corpus Fund. Awards were also given to government and private hospitals that performed well under CMCHIS. The event was attended by Health Secretary Supriya Sahu and Project Director of Tamil Nadu Health Systems Project A. Arun Thamburaj. The payment of the premium amount ensures the continued coverage of beneficiary families under the scheme, providing them with access to quality healthcare services.
UIIC Job Vacancy: Exciting Opportunities in Insurance – Apply Before the Deadline! | Latest News
United India Insurance Company Limited Recruitment
The United India Insurance Company Limited (UIIC) is seeking a qualified candidate to fill a position that requires a high level of expertise in actuarial science. To be eligible for this role, applicants must meet specific qualification requirements. Firstly, they must be a Fellow Member under the Actuaries Act, 2006, and also a Fellow Member of the Institute of Actuaries of India (IAI). Additionally, the candidate should have experience in General Insurance, Enterprise Risk, and Investment Reserves.
Key Eligibility Criteria
- Fellow Member under the Actuaries Act, 2006
- Fellow Member of the Institute of Actuaries of India (IAI)
- Experience in General Insurance, Enterprise Risk, and Investment Reserves
- Age not exceeding 60 years (as per full-time contract)
- For more details on age and educational qualifications, visit the official website
Selection Process
The selection process for this recruitment will be based on an interview. There will be no written examination. UIIC has advised all candidates to ensure that they attach all necessary documents while applying for the position. This is a crucial step to ensure that applications are considered complete and eligible for the next stage of the selection process.
Application Submission
To apply for this position, candidates must fill out the application form and send it to the specified address:
HRM Department
8th Floor, United India Insurance Company Limited
24, Whites Road, Chennai – 600014
Additionally, applicants must also send the application via email to recruitment@uiic.co.in and a copy to hoactuarial@uiic.co.in. It is essential to follow these submission guidelines carefully to ensure that the application is received and processed correctly. By meeting the qualification requirements and following the application process, candidates can take the first step towards a potential career opportunity with UIIC. With its reputation for excellence in the insurance industry, UIIC offers a challenging and rewarding work environment for successful applicants.
Public Sector General Insurance Companies Register Combined Profit of Rs. 1066 Crore in Q3 of 2024-25
The Indian Public Sector General Insurance Companies (PSGICs) have experienced a significant turnaround, with all companies becoming profitable again after historically reporting losses. Oriental Insurance Company Ltd. (OICL) and National Insurance Company Ltd. (NICL) started posting quarterly profits in Q4 of FY 2023-24 and Q2 of FY 2024-25, respectively. United India Insurance Company Ltd. (UIICL) also reported a profit in Q3 of FY 2024-25, after a seven-year gap. New India Assurance Company Ltd. (NIACL) has consistently maintained its position as a market leader and has been making profits regularly.
The government’s commitment to creating strong and competitive PSGICs has been instrumental in this turnaround. The government infused a total capital of Rs. 17,450 crore into these companies between 2019-20 and 2021-22, allowing them to undertake structural reforms, enhance operational efficiencies, and return to profitability. The PSGICs have also implemented various measures, including improved risk management practices, loss control initiatives, adoption of technology, development of new products, and better customer services.
As a result, the PSGICs have posted a significant turnaround, with combined losses of over Rs. 10,000 crore in 2022-23 being replaced by a combined profit of Rs. 1,066 crore in Q3 of FY 2024-25. The companies are committed to maintaining this positive trajectory and are rolling out ongoing strategic measures and new initiatives to further strengthen their financial stability and improve customer services. The PSGICs aim to offer high-quality insurance products and services, ensuring long-term sustainability and enhancing customer experience, while achieving growth.
The broader objective of the PSGICs is to achieve “Insurance for All” by 2047, and they are committed to working towards this goal. With the government’s support and the companies’ own efforts, the PSGICs are well on their way to achieving this objective and maintaining their position as major players in the Indian insurance industry. Overall, the turnaround of the PSGICs is a significant achievement and a testament to the effectiveness of the government’s reforms and the companies’ own efforts to improve their performance.
A businessman was sentenced to 5 years in prison and fined Rs 5.9 crore for his involvement in insurance brokerage fraud.
A special CBI court in Ahmedabad has sentenced five individuals, including a former divisional manager of a public sector insurance company, to five years in prison and a total fine of Rs 5.91 crore. The individuals, including Madhusudan B Patel, Pankaj Gupta, and Inderjot Singh, were found guilty of fraudulent payment of insurance brokerage. The case was registered by the CBI in February 2012, accusing Patel and others of issuing various insurance policies and causing loss to the government exchequer and gain to the accused.
The investigation revealed that Patel, as divisional manager of United India Insurance Company Ltd. in Ahmedabad from 2007 to 2010, issued Group Janata Personal Accident Policies as co-insurance business to the Directorate of Insurance, Government Insurance Fund, and GOG. However, these policies were underwritten by Patel using his own user ID and password, and were placed with unauthorized brokers, resulting in a wrongful loss of Rs 2.69 crore to the insurance company and a wrongful gain to the private brokers.
The CBI examined 20 witnesses and presented 61 documents to establish the guilt of the accused. Besides the jail term and fine, the court has also directed the registry to send the order to the departmental head of United India Insurance Company Ltd. and the Insurance Regulatory and Development Authority of India (IRDAI) for necessary action against the brokers. The court’s order is a significant victory for the CBI in its efforts to curb fraudulent activities in the insurance sector.
HC Stays Proceedings against PSU Insurance Company, Quashes Chennai Metro’s Notice
The Madras High Court has quashed a notice issued by the Chennai Metro Rail Limited (CMRL) to the United India Insurance Company Limited (UIICL), calling for the acquisition of a property measuring 837 square meters for its project. The UIICL had challenged the notice, and the court has allowed the petition, ruling that the notice was vitiated due to its violation of Article 14 of the Constitution and the principle of promissory estoppel.
The CMRL had initially proposed to construct a metro station near a temple at Whites Road in Chennai, but later changed its plan after a PIL was filed by the Aalayam Kaapom Foundation. The court had asked CMRL to modify its plan, and it had issued the notice to UIICL, proposing to acquire a portion of its property. The court has now ruled that this notice was issued without due process and in bad faith.
The judge, N Anand Venkatesh, observed that the CMRL’s actions were arbitrary and violative of public interest. He noted that the CMRL had changed its plan solely due to the PIL, rather than considering public safety, convenience, and other technical factors. The judge also expressed hope that the State and the CMRL would realize the true meaning of Swami Vivekananda’s words on the importance of uniting mankind and serving humanity.
The court’s decision is seen as a major setback for the CMRL and a victory for the UIICL. While the court has allowed the UIICL’s petition, it has also noted that the CMRL can proceed with its original plan to construct the metro station at the temple premises, if it so desires. However, the court’s decision is a significant blow to the CMRL’s attempt to acquire the UIICL’s property without due process.
The Rural Mechanics and Allied CT Travelers (MACT) Awards 1.39 Crore Compensation to Sales Manager for Disability Following 2019 Bus Accident.
A sales manager at Diageo India (United Spirits Limited) has been awarded a compensation of ₹1.39 crore by the Thane Motor Accident Claims Tribunal (MACT) after he suffered permanent disability in a luxury bus accident in 2019. The bus was owned and insured by United India Insurance Company, which was also held liable for the accident, which occurred on December 15, 2019, near Savarne Village near Tokawade. The driver of the bus, who was also found to be negligent, was also responsible for the compensation.
The accident left the victim, Mahesh Makhija, with severe injuries, including the amputation of his left hand from the arm. He claimed that he was working as a sales manager at Diageo India and earning ₹3,60,377 per month. The insurance firm initially denied the claim, stating that the driver did not have a valid license at the time of the accident. However, the MACT rejected this defense and held both the driver and the insurance company liable to compensate the victim.
The court assessed Mahesh’s future loss of income at 50% due to his 85% disability certificate, which reduced his net monthly income to ₹2,00,000. The court also awarded him ₹3,00,000 for pain and suffering and ₹50,000 for miscellaneous expenses. Considering his medical expenses, which included a ₹5,00,000 mediclaim, the court ordered the respondents to pay a total of ₹1,39,48,645 to Mahesh. The compensation amount takes into account his salary, medical bills, loss of future income, and other expenses.
A New Opportunity Unfolded: 105 Apprentice Trainee Positions Available – Review Eligibility Criteria, Age Restrictions, and Key Requirements
The United India Insurance Company Limited has released a new notification for the recruitment of Apprenticeship Training in various disciplines. The company is inviting applications from eligible Engineering and Non-Engineering graduates who passed out in 2021, 2022, 2023, and 2024 from specific regions, including Tamil Nadu, Puducherry, Andhra Pradesh, Telangana, Kerala, and Karnataka.
The recruitment process involves 105 vacancies, with 35 from Tamil Nadu, 5 from Puducherry, 30 from Karnataka, 25 from Kerala, 5 from Andhra Pradesh, and 5 from Telangana. To be eligible, candidates must have a degree in any discipline from a recognized university/institution, and not have undergone or be currently undergoing apprenticeship training or have one year of work experience.
The selected candidates will receive a monthly stipend of Rs. 9,000 and will undergo an apprenticeship training for a period of one year. The selection process will be based on shortlisting candidates based on their percentage of marks secured in the qualifying examinations.
The last date to apply is March 10, 2025, and candidates must submit their applications through the NATS 1.0 and NATS 2.0 web portal. The applications must be accompanied by all relevant and supporting documents.
The minimum age limit is 21 years, and the maximum age limit is 28 years. The duration of the training will be for a period of one year. The company will provide a stipend of Rs. 9,000 per month to the selected candidates.
The recruitment process is open to students from the specified regions, and interested candidates can apply through the official website. For any further queries, you can refer to the FAQs section.
The Madras High Court has granted permission to the Chennai Metro Rail Limited (CMRL) to acquire the premises of a temple, in a major u-turn from its earlier stance.
A single judge of the Madras High Court has allowed a writ petition filed by the United India Insurance Company Ltd. (PIL) challenging a notice issued by the Chennai Metro Rail Limited (CMRL) to acquire its property for the construction of a metro station. The CMRL had initially planned to acquire the premises of the Arul Mighu Sri Rathina Vinayagar and Durgai Amman Temple for the station, but later announced that it would shift the station’s entrance to the petitioner’s building, United India Insurance Company’s new head office. However, the CMRL then issued a notice to the insurance company to show-cause why its property should not be acquired.
The high court observed that the acquisition of lands belonging to religious institutions is permissible, but that the notice issued by the CMRL offends Article 14 of the Constitution by violating the principle of promissory estoppel. The court also noted that the CMRL’s actions were premeditated and that the company had staged a “Hamlet” without the Prince of Denmark, meaning that the CMRL was aware of the potential consequences but did not take them into consideration.
The court allowed the writ petition and quashed the CMRL’s notice, allowing the CMRL to proceed with its original plan to construct the metro station within the temple premises. The court’s decision was delivered by Justice N. Anand Venkatesh, who observed that the CMRL’s actions would benefit lakhs of people and would be a boon for the public.