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The Oriental Insurance Company
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$1.8 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] HistoryOICL 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$1.8 billion) in FY 2022–23.[4] Corporate GovernanceOICL has constituted the following Committees as part of its Corporate Governance structure.[7] Board Committees as per the Companies Act, 2013
Board Committees as per the IRDAI regulationsThe following Board Committees have been constituted following the provisions of the IRDA Corporate Governance Regulations, 2016:
Board Committees as per the Government guidelines
Other Board Committees
Overall PerformanceThe 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$38 million), though the income from interest, dividends, and rent increased by ₹149.92 crore (US$17 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$570 million) during 2022-23 compared to a loss before tax of ₹3,146.87 crore (US$360 million) during the previous year, after taking into account both operating profit and investment income.[8] Subsidiaries and Joint VenturesOICL 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$5,800).[10] OICL also holds a stake in the following companies:
See alsoExternal links
References
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