The Oriental Insurance Company

The Oriental Insurance Company Limited
Company typeCentral Public Sector Undertaking
IndustryInsurance
Founded12 September 1947; 77 years ago (1947-09-12) in Mumbai, India
Headquarters
New Delhi
,
India
Key people
Sh. R. R. Singh
(Chairman & MD)
Ms Yogita Arora
(Appointed Actuary)
Products
RevenueIncrease ₹15,992 crore (US$1.9 billion) (2022-23)[1]
Increase ₹−3,374 crore (US$−390 million) (2022-23)[1]
Increase ₹−4,968 crore (US$−580 million) (2022-23)[1]
Total assetsIncrease ₹35,167 crore (US$4.1 billion) (2022-23)[1]
OwnerGovernment of India
Number of employees
8,281 (2022-23)[1][2]
Websiteorientalinsurance.org.in/en/home

The Oriental Insurance Company Ltd. (OICL) is an Indian public sector insurance company owned by the Government of India and administered by the Ministry of Finance. Headquartered in New Delhi, the company has 29 regional offices and more than 2,000 active branches nationwide. It also has branches in Nepal, Kuwait, and Dubai that together yielded a Gross Premium of ₹377.70 crore (US$44 million)[3] during the year 2022-23. It recorded a gross premium of ₹15,993 crore (US$1.9 billion)[4] in the financial year 2022–23.

It has over 1,343 direct customer interaction and policy issuance branches, over 49,305 agents (99.93% of whom are individuals), and 447 insurance brokers besides 11,005 Point of Salespersons (direct) and 1,731 Motor Insurance Service Providers across India, Bancassurance partnerships with 19 banks enable policy sales and services through bank branches, besides four web aggregators and an online portal for policy purchases, renewals, and claim tracking, helping extend the Company's reach beyond physical offices.[2]

History

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OICL was incorporated at Mumbai on 12 September 1947. The company was a wholly owned subsidiary of The Oriental Government Security Life Assurance Company Ltd and was formed to carry out general insurance business. Following the nationalisation of the life insurance business and the formation of the Life Insurance Corporation of India under statutory law, the company became a subsidiary of the Life Insurance Corporation of India from 1956 to 1973 (until the general insurance business was nationalized in the country). Following the nationalisation of the general insurance industry by the General Insurance Business (Nationalisation) Act, 1972 (GIBNA), the Government of India transferred all the shares it held of the general insurance companies to the General Insurance Corporation of India (GIC). OICL became one of the four subsidiaries of GIC, with its headquarters in New Delhi.[5]

With the General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) coming into force on March 21, 2003, GIC ceased to be a holding company of its subsidiaries. The ownership of the four erstwhile subsidiary companies and the General Insurance Corporation of India was vested with the Government of India. All company shares held by the GIC were transferred to the central government.[5]

OICL made a modest beginning with a first-year premium of ₹99,946 (US$1,200) in 1950. The company's goal was “service to clients”, and achievement was helped by the strong traditions built up over time.[6]

From less than a lakh at its inception, the gross premium figure stood at ₹15,993 crore (US$1.9 billion) in FY 2022–23.[4]

Corporate Governance

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OICL has constituted the following Committees as part of its Corporate Governance structure.[7]

Board Committees as per the Companies Act, 2013

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  • Audit Committee
  • CSR Committee[4]

Board Committees as per the IRDAI regulations

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The following Board Committees have been constituted following the provisions of the IRDA Corporate Governance Regulations, 2016:

  • Investment Committee
  • Risk Management Committee
  • Policyholders' Protection Committee[4]

Board Committees as per the Government guidelines

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  • Property Review Committee
  • Remuneration Committee[4]

Other Board Committees

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  • The Information Technology Committee
  • Appeal and Memorial Committee
  • Human Resources Committee[4]

Overall Performance

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The company's overall operational performance resulted in an operational loss of ₹2,604.12 crore (US$300 million) in 2022-23 as against ₹3,025.25 crore (US$350 million) in 2021-22, thus recording a decrease of ₹421.13 crore (US$49 million). The net incurred claims ratio increased to 112.14% in 2022-23 from 110.80% in 2021-22.

The profits generated by the sale of investments increased by ₹329.16 crore (US$39 million), though the income from interest, dividends, and rent increased by ₹149.92 crore (US$18 million). The management expenses increased by ₹1,949.16 crore (US$230 million) mainly on account of wage revision (₹2,425 crore (US$280 million)). This, coupled with underwriting losses, resulted in a loss before tax of ₹4,956.23 crore (US$580 million) during 2022-23 compared to a loss before tax of ₹3,146.87 crore (US$370 million) during the previous year, after taking into account both operating profit and investment income.[8]

Subsidiaries and Joint Ventures

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OICL also has two Joint Ventures/associate companies.[9]

OICL has one wholly-owned subsidiary, The Industrial Credit Company Limited, with a paid-up capital of ₹5 lakh (US$5,900).[10]

OICL also holds a stake in the following companies:

  • Health Insurance TPA of India Limited (Total Paid-up Share Capital: ₹120 crore (US$14 million) - Oriental's stake: 23.75%);
  • India International Insurance Pte Ltd. Singapore (Total Paid-up Share Capital: S$5 crore (US$37.31 million) - Oriental's stake: 20%).

See also

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References

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  1. ^ a b c d e "The Oriental Insurance Company Financial Statements". orientalinsurance.org.in.
  2. ^ a b "Public disclosure by insurer as per IRDAI's Circular IRDAI/F&A/CIR/MISC/256/09/2023 dated 30/09/2021 (FORM NL-41 OFFICES INFORMATION AS AT 31st March 2023)". orientalinsurance.org.in/. The Oriental Insurance Company Limited. 27 June 2023. Retrieved 1 February 2024.
  3. ^ "Annual Report 2022-23: Foreign Operations". orientalinsurance.org.in/. The Oriental Insurance Company Limited. 29 May 2023. p. 20. Retrieved 1 February 2024. The Company's foreign operations in Nepal, Dubai and Kuwait together yielded a Gross Direct Premium of ₹377.70 crore (US$44 million) during the year 2022-23 as against ₹309.47 crore (US$36 million) during the previous year. The Net Premium was at ₹360.34 crore (US$42 million) as against ₹294.07 crore (US$34 million) last year. The net Incurred Claims during this year in respect of foreign operations were ₹241.28 crores with a net Incurred Claims Ratio of 66.96 % (₹93.30 crore (US$11 million) with a net Incurred Claims Ratio of 31.72 % for the last year). Our foreign operations had finally resulted in a net surplus of ₹2.47 crore (US$290,000) as against a net surplus of ₹115.49 crore (US$14 million) during the previous year.
  4. ^ a b c d e f "Annual Report 2022-23: Chairman's Statement". orientalinsurance.org.in/. The Oriental Insurance Company Limited. 29 May 2023. p. 12. Retrieved 1 February 2024. The financial results for 2022-23 reflect that the company registered growth of 14.07 % on a gross basis with a premium of ₹15,993 crore (US$1.9 billion) as against ₹14,020 crore (US$1.6 billion) during the FY 2021-22, whereas the Net premium was ₹14,339 crore (US$1.7 billion) in the year 2022-23 as against ₹12,300 crore (US$1.4 billion) during the FY 2021-22 thus registering a growth rate of 16.58 %.
  5. ^ a b "History in Brief". www.gicre.in/en/. General Insurance Corporation of India. Retrieved 2 February 2024.
  6. ^ "Profile". orientalinsurance.org.in/en/. The Oriental Insurance Company Limited. Retrieved 2 February 2024.
  7. ^ "Annual Report 2022-23 - Board Committee Details during the Financial Year 2022-23". orientalinsurance.org.in/en/. The Oriental Insurance Company Limited. 29 May 2023. pp. 30–42. Retrieved 2 February 2024.
  8. ^ "Annual Report 2022-23: Operating Results, Overall Performance". orientalinsurance.org.in/. The Oriental Insurance Company Limited. 29 May 2023. pp. 19–20. Retrieved 2 February 2024.
  9. ^ "Annual Report 2022-23: Details of Subsidiary/Joint Ventures/Associate Companies". orientalinsurance.org.in/. The Oriental Insurance Company Limited. 29 May 2023. p. 23. Retrieved 2 February 2024.
  10. ^ "THE INDUSTRIAL CREDIT COMPANY LIMITED". The Economic Times. 2 February 2024. Retrieved 2 February 2024.
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