Your Directors takes immense pleasure in submitting their 111th Annual Report and the Audited Statement of Accounts

for the financial year ended 31st March 2018.

SUMMARISED FINANCIAL RESULTS AS ON 31ST MARCH 2018

Particulars Fire Marine Misc Total

Gross Direct Gross Direct Premium
Income - India CY 901.79 207.85 15083.90 16193.54
PY 912.26 235.63 13089.65 14237.54
(% Growth) CY -1.15 -11.79 15.24 13.74
PY 1.74 -8.79 20.96 18.88
Gross Direct Premium Income - Outside India CY 14.96 6.49 28.67 50.12
PY 14.76 5.04 25.02 44.82
(% Growth) CY 1.36 28.77 14.59 11.83
PY 17.14 -1.95 -0.60 4.45
Gross Direct Premium Income - Total CY 916.75 214.34 15112.57 16243.66
PY 927.03 240.67 13114.67 14282.36
(% Growth) CY -1.11 -10.94 15.23 13.73
PY 1.96 -8.67 20.91 18.83
Reinsurance Premium Accepted India CY 149.28 5.64 150.18 305.10
PY 158.98 7.26 118.71 284.95
Outside India CY 1.10 0.00 0.77 1.87
PY 1.47 0.03 0.69 2.19
Total CY 150.38 5.64 150.95 306.97
PY 160.45 7.29 119.40 287.14
Reinsurance Premium Ceded India CY 372.12 68.25 4633.13 5073.50
PY 305.63 88.26 3605.98 3999.87
Outside India CY 3.96 0.51 7.67 12.14
PY 7.14 0.21 6.67 14.02
Total CY 376.08 68.76 4640.80 5085.64
PY 312.77 88.47 3612.65 4013.89
Net Premium India CY 678.95 145.24 10600.95 11425.14
PY 765.61 154.63 9602.38 10522.62
(% Growth) CY -11.32 -6.07 10.40 8.58
PY 3.23 -11.16 -6.04 -5.50
(% to Gross Premium) CY 75.29 69.88 70.28 70.55
PY 83.92 65.62 73.36 73.91

1 ANNUAL REPORT 2017-18

Net Premium Outside India CY 12.10 5.98 21.77 39.85
PY 9.09 4.86 19.04 32.99
(% Growth) CY 33.11 23.05 14.34 20.79
PY -18.12 -5.45 -10.48 -12.12
(% to Gross Premium) CY 80.88 92.14 75.93 79.51
PY 61.59 96.43 76.10 73.61
Total Net Premium CY 691.05 151.22 10622.72 11464.99
PY 774.70 159.49 9621.42 10555.61
(% Growth) CY -10.80 -5.19 10.41 8.62
PY 2.91 -10.99 -6.05 -5.53
(% to Gross Premium) CY 75.38 70.55 70.29 70.58
PY 83.57 66.27 73.36 73.91
Addition/Reduction in Un-expired Risk Reserve & PDR CY 16.18 -8.17 190.45 198.46
PY 10.94 -13.31 -245.65 -248.02
(% to Net Premium) CY 2.34 -5.40 1.79 1.73
PY 1.41 -8.35 -2.55 -2.35
Earned Premium CY 674.87 159.39 10432.27 11266.53
PY 763.76 172.80 9867.05 10803.61
Incurred Claims Net CY 864.01 77.13 11929.49 12870.63
PY 396.55 117.09 9993.00 10506.64
(% to Earned Premium) CY 128.03 48.39 114.35 114.24
PY 51.92 67.76 101.28 97.25
Commission Net CY 91.14 18.77 990.45 1100.36
PY 103.84 22.89 841.50 968.23
(% to Earned Premium) CY 13.50 11.78 9.49 9.77
PY 13.60 13.25 8.53 8.96
Expenses of Management CY 175.37 13.46 2690.43 2879.26
PY 197.13 24.14 2431.79 2653.06
(% to Earned Premium) CY 25.99 8.44 25.79 25.56
PY 25.81 13.97 24.65 24.56
Other Income(-)/Outgo(+) CY -0.02 -0.01 0.24 0.21
PY -0.02 0.00 0.55 0.53
Underwriting Results CY -455.63 50.04 -5178.34 -5583.93
PY 66.26 8.68 -3399.79 -3324.85
(% to Earned Premium) CY -67.51 31.39 -49.64 -49.56
PY 9.16 7.92 -34.54 -30.78
Investment Income - Policy Holders CY 266.99 52.50 2468.14 2787.63
PY 307.91 57.86 2612.36 2978.13
Operating Results CY -188.64 102.54 -2710.20 -2796.30
PY 374.17 66.54 -787.41 -346.70
Investment Income - Share Holders CY 716.86
PY 767.84

ANNUAL REPORT 2017-18 2

 Total Investment Income CY 3504.49
PY 3745.97
Provision for Doubtful Debts/Investment CY 23.78
Written off/Amortization PY 8.38
Other Income less Outgo CY -79.25
[includes `16.64 crore ( `355.50 crore) excess
expenses over allowable limits) PY -363.52
Profit/Loss Before Tax CY -2182.47
PY 49.24
Provision for Tax CY 0.00
PY 0.00
Tax Adjustment for Earlier years CY -11.74
PY 3.37
Profit/Loss After Tax CY -2170.73
PY 45.87
Proposed Dividend CY 0.00
PY 0.00
Dividend distribution Tax CY 0.00
PY 0.00
Transfer to General Reserves CY -2170.73
PY 45.87

* CY stands for Current Year

PY stands for Previous Year

3 ANNUAL REPORT 2017-18

CAPITAL & FUNDS:

Policyholders' Funds

Sl. Particulars Amount Amount

(` in '000) (` in '000)
31.03.2018 31.03.2017
1 Estimated liability for outstanding claims (including IBNR/IBNER) 13,83,40,498 10,42,61,017
2 Unexpired Risk Reserve 5,49,16,334 5,22,51,702
3 Premium deficiency, if any 5,80,000 12,60,100
4 Catastrophe Reserve 16,564 16,574
Others:
5 Premium received in advance 9,10,816 13,74,436
6 Unallocated Premium 69,93,326 53,93,244
7 Balance due to other insurance companies (including pools) 3,14,60,945 1,86,43,370
8 Balance due to other Members of Third Party Pool (IMTPIP) - -
Less:
9 Outstanding Premium 3,390 6,045
10 Due from other entities (insurance companies including pools) 3,30,66,111 2,73,61,551
11 Balance with Terrorism Pool 84,77,085 76,06,673
12 Balance with Motor Third Party Pool - -
TOTAL 19,16,71,897 14,82,26,174

Shareholders' Funds/Net Worth

Sl. Particulars Amount Amount

(` in '000) (` in '000)
31.03.2018 31.03.2017
1 Share Capital 10,00,000 10,00,000
2 General Reserve 1,66,06,244 3,83,14,426
3 Less: Miscellaneous Expenditure (to the extent not written off) - 15,22,026
TOTAL 1,76,06,244 3,77,92,400

The total assets of the Company amounted to `34782.60 crore in the financial year 2017-18 as against
`32397.36 crore in the previous year.

ANNUAL REPORT 2017-18 4

NET INCURRED CLAIMS:
The overall Net Incurred Claim has gone up from
97.25% in 2016-17 to 114.24% in 2017-18 with a
decrease in Net Retained Premium as % to GDPI
from 73.91% in the last fiscal to 70.58% in the
current fiscal.
EXPENSES OF MANAGEMENT:
Total expenses of management for the fiscal
2017-18 was `2879.26 crore as against `2653.06
crore in 2016-17.
COMPLIANCE WITH SECTION 40C:
The limitation of expenses of management for the
financial year 2017-18 was computed and certified
by the Statutory Auditors of the Company, in
accordance with the Insurance Regulatory and
Development Authority of India (Expenses of
Management of Insurers transacting General or
Health Insurance Business) Regulations, 2016,
which is as follows:

Particulars F.Y. 2017-18 F.Y. 2016-17

Allowable limit of expenses 4857.21 4310.47
Actual expenses (inclusive of operating
expenses & commission on direct business & 4407.80 4459.06
on re-insurance accepted)
Difference (-)449.41 148.59
Segmental excess charged to shareholder's
account in accordance with revised regulations 16.64 355.50
(details furnished below)

The segmental deviations, as charged to Profit and Loss Account for the financial year 2017-18 & financial
year 2016-17 in accordance with Regulation 13 of the aforesaid Regulations, has been stated as follows:

Deviation pertaining to segment F.Y. 2017-18 F.Y. 2016-17

Fire Nil 25.16
Marine 7.57 10.44
Miscellaneous 9.07 319.90
Total amount charged to profit & loss account 16.64 355.50

The Company has recorded a Net Loss Before Tax amounting to `2182.47 crore in the current year as
against Net Profit Before Tax of `49.24 crore in the previous year.

DIVIDEND:

The Board of Directors has not recommended any dividend for the financial year 2017-18.

5 ANNUAL REPORT 2017-18

COMPLIANCE OF SOLVENCY MARGIN
REQUIREMENTS:
The solvency ratio of the Company as at 31st March
2018 is 1.55 as against 1.90 as at 31st March 2017.
Required Solvency Margin as per
IRDAI Regulations 4049.00
Available Solvency Margin 6290.00
RATING FROM A.M. BEST:
The Company has been rated 'B++ (Good)' for
financial strength which reflects negative outlook
and 'bbb' for long-term issuer credit rating which
also reflects negative outlook by A.M. Best, an
international rating agency.
RATING FROM CRISIL LIMITED:
CRISIL has reaffirmed the 'AAA/Negative' rating
for the financial strength of National Insurance
Company Limited which reflects the "Highest"
financial strength to meet the policyholder
obligations.
Further, in respect of unsecured non-convertible
debentures issued by the Company to the tune of
`895 crore, CRISIL has reaffirmed its rating as
'CRISIL AAA/Negative' which reflects the highest
degree of safety in regard to timely servicing of
financial obligations with lowest credit risk.
RATING FROM ICRA LIMITED:
Towards the aforesaid unsecured non-convertible
debentures, ICRA has reaffirmed the rating as
'ICRA AA+ (Stable)' which reflects the highest
degree of safety in regard to timely servicing of
financial obligations with lowest credit risk.
FOREIGN EXCHANGE EARNINGS AND
OUTGO:
The earnings and outgo of the Company in foreign
exchange is given below-
Earnings `1,47,63,36,842/-
Outgo `41,18,39,494/-
INVESTMENT:
The total investments in India as on 31st March 2018
was `21,493 crore as against `19,296.28 crore as on
ANNUAL REPORT 2017-18
31st March 2017. During the year, the Company
added `2,293.46 crore to its investment corpus as
against `2,153.78 crore (including investments out
of the proceeds from the issue of non-convertible
debentures to the tune of `895 crore) in the
previous year.
Investments in socially-oriented sectors which
includes central and state government securities,
government guaranteed bonds, infrastructure
bonds, loans to HUDCO and various state
governments for housing and firefighting
equipment amounted to `10,131.29 crore as on 31st
March 2018 as against `9,402.21 crore as on 31st
March 2017.
The aggregate book value of equity investments in
India as on 31st March 2018 amounted to
`7,430.16 crore as against the last year's figure of
`5,750.38 crore. The fair value of these
investments as on 31st March, 2018 was
`11,268.30 crore.
Investment written off/down during the year was
`7.33 crore as against the last year's figure of
`3.90 crore.
The Company continued to operate actively in the
secondary market. The profit earned on sale and
redemption of securities during the year was
`1976.38 crore as against last year's figure of
`2,389.43 crore. The total investment Income
(inclusive of profit on sale/redemption) during the
year was `3,388.98 crore as against `3,672.43
crore in the previous year. The yield on investment
without profit for 2017-18 was 6.91% as against
7.04% in the previous year whereas the yield on
investment with profit for 2017-18 was 16.58% as
against 20.16% in the previous year.
The Company has followed the norms prescribed
by IRDAI relating to classification of Loans and
Debentures and provision for Non-Performing
Assets (NPA). The gross NPA percentage to total
investment as on 31st March, 2018 is 0.39% as
against 0.44% in the previous year. During the
current year, the Gross NPA was reduced by `1.54
crore due to recoveries from state government,
liquidation proceeds and one-time settlement
under CDR/BIFR, etc.
6
REINSURANCE:
The international trend was that leading upto the
April 2017 renewals, reinsurers who were eagerly
looking forward for rating stabilization have had
their hopes dashed yet again in the 1st January
2017 renewal season thanks to profitable results
and over supply of capital from both traditional
reinsurers and capital markets.
It would therefore appear that the pain threshold to
force a market pricing stabilization has not yet been
reached even though rate reductions moderated.
The April 2017 renewal season largely followed the
direction set at the 1st January 2017 with risk-
adjusted rate reductions continuing to moderate.
In the Indian Market, GIC Re continued to be the
market leader with foreign reinsurer branches
continuing with a tough stance on excess of loss
pricing.
Property proportional treaties saw reductions in
Commissions in 2017-18 as also widening of loss
participation clause.
Territorial restrictions were imposed with Nepal
Territory being excluded from the Property Surplus
Treaty thus Company had to arrange Nepal Risk
cum CAT XOL Treaty to protect our Nepal business
operations in view of the exclusion of Nepal
territory from the Property Surplus and XOL
treaties.
The Indian Market also saw withdrawal of Inter
Group Treaty capacity from certain classes of
business thus leading to increased purchase of
protection.
Even though the Indian Market in 2016-17 was free
from natural catastrophe events except for the
vardah cyclone which had minimal impact on the
Company, the adverse balance on account of the
past CAT losses as also several large risk losses
affecting the company's property surplus treaties,
the placement of proportional treaties in 2017-18
continued to be a challenge despite GIC Re, the
National Reinsurer, taking substantial lines. In turn,
GIC Re leveraged their continued support for the
proportional treaties by ensuring their leadership in
the Risk and CAT Excess of Loss Programmes of
the company. The other fall-out of the past Risk and
CAT losses was the increased rates in the Risk XL
7 ANNUAL REPORT 2017-18
and the CAT XL as also affecting the
reinstatements in the upper CAT layers.
Based on the modelling reports, increased limits
were bought in our excess of loss protection which
reflected our Company's business growth and
exposure levels.
In order to maintain the solvency position, the
Company renewed the Motor Quota Share and
Health Quota Share treaties with GIC Re.
With the empanelment of the Public Sector
General Insurance Companies for administering
the Pradhan Mantri Fasal Bima Yojana (PMFBY) in
2016-17, in order to enable the Company to
participate in PMFBY tenders of various states,
Agriculture Quota Share Treaty was arranged with
protection of Net Retained portion with Stop Loss
Treaty. Even though GIC Re provided substantial
Quota Share and Stop Loss support, capacity for
this class of business continued to remain
challenging.
Consequent to arranging suitable reinsurance
protection at optimum rates, our net retained
premium within the company has gone down from
73.91% in 2016-17 to 70.58% in 2017-18.
TECHNO MARKETING:
The financial year 2017-18 came with a growth in
large number of new projects which was otherwise
sluggish in almost all sectors including
infrastructure, energy, etc. for the past few years.
Techno marketing department with the help of
strong reinsurance support gained many
significant entries into number of new projects.
Infra, energy projects growth is expected to
improve in the near future also. Keeping the
possibility of major infra projects getting
implemented during the financial year 2018-19, we
have prepared ourselves with underwriting
capacity and good rapport from domestic and
international reinsurance market.
We have also maintaining direct relationship with
the major clients so that we tap the potential in the
profitable property portfolio by adapting various
tactical measures including conducting road
shows, seminars, risk inspection etc. We have also
developed a strong data base for various mega risk
policy throughout the country. Techno Marketing
department has retained all the major operational
renewal during the financial year 2017-18.
MARINE INSURANCE (MARINE CARGO, HULL,
OIL & ENERGY):
Non-life insurance trace its origin to Marine
Insurance, the oldest form of Insurance, it is
governed by International Laws and Practice.
Marine Cargo Insurance relates to insurance of
goods or merchandise in transit. Since the
introduction of pricing decontrol in 1994, there has
been a gradual fall in the overall premium in Marine
Cargo. Further, the overall slowdown of
infrastructure projects coupled with the increasing
practice of self insurance by large Cargo Insurance
buyers, has contributed to decline in revenues for
insurance across the globe.
The second component of marine insurance is
marine hull which pertains to insurance of ships,
boats, barges etc. is limited only to the coastal
areas of India thereby does not have universal
appeal as compared to the other branches of
insurance. Here too de-tariffing in 2005, adversely
affected market dynamics, drastically pulling down
the rates, market correction has commenced and
the pricing trends have become stable today. It is
mostly a flat market and the rates do not face
frequent fluctuation.
The subject itself is complex therefore a sound
technical knowledge and regular updating on
International laws & practice is required for
handling even the day-to-day activities and
therefore, risk perception and experience based
exposure analysis, forms the bulwark of
underwriting.
Marine department at Head Office underwrites the
transit of goods (marine cargo), hull and machinery
of the vessels, oil & energy-exploration, offshore
construction and port operation. The department
also handles the facultative reinsurance
requirements and assists the Reinsurance
underwriting team in designing the required
treaties for marine and energy.
Even in today's decontrolled and competitive
market, this department has the glory of being
insurer to a few prestigious international clients,
which has helped to carve our footprints in the
global market also.
ANNUAL REPORT 2017-18
During the year 2017-18, Marine department
contributed `207.78 crore of premium with Incurred
Claim Ratio of 59% producing `64.03 crore
operating surplus.
To augment the knowledge base of officials
working in the Company's marine department
nationwide, Head Office Marine department has
taken up the task of knowledge building and
sharing information through workshops and
seminars, specifically designed to cater to the
Regional/Zonal business requirements. One
workshop for cargo at Bangalore and one training
at New Delhi has been conducted. The
training/workshop led by specialized faculty from
the industry was welcomed by the participants.
This will be an ongoing process.
MOTOR TP CLAIMS:
The management of Motor TP Claims remained an
area of extreme focus in the year 2017-18 through
review of high value claims, physical verification of
cases, reinvestigation of old injury cases and
settlement through various Alternate Dispute
Resolution Mechanism by undertaking a special
action plan. This exercise has helped in the overall
settlement of 60082 cases. With an emphasis on
cases pending over 5 years, we have been able to
reduce the pendency by 8.66%.
During the year, priority was given for higher
disposal of cases through Lok Adalats and the
steps were taken to maximize it for which action
plan was drawn and it is effectively implemented by
regular participation in the Lok Adalats at Tribunals,
High Courts and Supreme Court. Five National
Mega Lok Adalats were held under the aegis of
National Legal Service Authority (NALSA) with the
initiative and inspiration from Department of Financial
Services, Ministry of Finance, Government of India
and it was held in all Tribunals/High Courts and
Supreme Court of India on 08.04.2017, 08.07.2017,
09.09.2017, 09.12.2017 and 10.02.2018. The overall
settlement of Motor TP Cases through Lok Adalats/
Conciliation Proceedings were 25109 numbers
amounting to `411.66 crore compared to 20729
cases which were settled in the last year. There has
been approximately 19% increase in the settlement
of overall cases through Lok Adalat and conciliation
proceedings. The preparedness and commitment
of our Company could be evident from the
8
achievement of such magnitude as the settlement
had been the highest since its inception.
Three Motor TP workshop-cum-meetings were
held at Dehradun on 14-15 July 2017 for North
Zone, 28-29 July 2017 in Aurangabad for West
Zone and on 18-19 August, 2017 in Ranchi for East
and South Zones where various interactive
sessions were held with the Motor TP Claim
handling officers coming from all Regional Offices
across India which included issues concerning
timeline management, curtailing delay in filing of
appeal and how to manage recovery in pay and
recover cases. After an interactive session with the
participants, an action plan was made to
implement the same and to effectively manage the
Motor TP Cases so that the overall pendency is
reduced. Motor TP performance review meeting-
cum-training for all Divisional/Regional TP
Coordinators were held specifically for Bihar,
Odisha, Tamil Nadu and North East Region
respectively where the pendency of cases was high.
Motor TP Hubs have been created during the last 5
years to deal with cases in a focused and effective
manner. Presently, 22 such Hubs are functioning at
major centers in India viz., Agra, Ahmedabad,
Allahabad, Baroda, Bangalore, Belgaum, Chennai,
Gulbarga, Hubli, Hyderabad, Indore, Jabalpur, Jaipur,
Jammu, Kolkata, Ludhiana, Meerut, Mumbai,
Puducherry, Vellore and Vijayawada. In addition,
there are plans to open more number of TP hubs,
where concentration of cases are high and it will
also continue to be a focus area in the next financial
year.
Age-wise analysis of Outstanding Suit (MACT only) cases as on 31st March 2018
Period of pendency
Cases pending for less than 3 months
Cases pending over 3 months up to 6 months
Cases pending over 6 months up to 1 year
Cases pending over 1 year up to 3 years
Cases pending over 3 years up to 5 years
Cases pending for more than 5 years
Total
9 ANNUAL REPORT 2017-18
A National Legal Vertical Cell which was opened in
Delhi in 2015-16 to look after Consumer Cases,
Motor TP Cases and all other legal matters in the
courts of Delhi including NCDRC and Supreme
Court have now been functioning effectively with
good settlement ratio and success rate in appeals
in higher forums.
The in-house 4 days training programme on "Motor
TP Claims Management" was held at our corporate
training programme centre NCIL, Kolkata for the
East Zone officers dealing in cases at the
operating/regional offices. 90 officers from 3 ROs
were trained during the year to enhance their skill
and efficiency in effective handling of the Motor TP
claims. It has been planned to complete the
training of the officers in the remaining ROs in the
next year.
The backlog of pending cases further reduced from
137262 to 132738 through effective settlement of
more than reported with settlement ratio at 31.16%.
The Incurred Claim Ratio on GDPI (without IBNR
as on 31st March, 2018 stood at 64%.
During the financial year 2018-19, priority will be
accorded for higher disposal rate of settlement of
cases through Lok Adalats, appropriate
investigation & handling of high value cases,
human capital deployment, development of skill &
efficiency of human resources, creation of Motor
TP Hubs and by giving special attention to
Divisional Offices where concentration of Motor TP
Claims are high.
(Amount ` in Crore)
Nos. Outstanding Amount
(without IBNR)
5369 188.11
5838 294.32
10502 411.33
35367 1344.94
20543 906.68
55119 1140.26
132738 4285.64
HEALTH INSURANCE MANAGEMENT:
The strategy of the Company during the financial
year continues to aim at robust growth in overall
Health Segment with greater focus on the Retail
and Government Health segments, combined with
caution to put Corporate Group Health insurance in
a sustainable trajectory. The effort was to maintain
the existing Group Health business with the
necessary price correction and to promote retail
business by motivating the agency force. Company
was active in consolidating the Government/Mass
Health Insurance market, which contributed a
steady premium flow during the fiscal, and assisted
in the growth of the portfolio, despite maintaining
controls employed in the Group Health Insurance
business.
Premium Growth
In the back drop of our stress on consolidation and
sustainability, the Company could still achieve a
moderate growth of 12.5% with a total health
premium of `5334 crore and an accretion of `595
crore. The share of Health Insurance Premium for
the financial year is 33% of the Total GDPI of the
Company, making it the second largest portfolio.
Government business showed an accelerated
growth of 52%, Retail segment grew at the rate of
5% and the Group Health business was maintained
at the same level as the previous fiscal.
Initiatives taken during the year
In order to cater to the evolving customer
requirements, the Health Department, in close
coordination with the Product Development
Department undertook initiatives to develop new
products, as well as redesign some existing
products. Top-Up policies are being finalized, and
those pertaining to Travel Insurance are being
redesigned. Moreover a new policy for Senior
Citizens is also on the anvil.
A new Critical illness policy named as "National
Critical Illness Policy", has already been approved
the Regulator and it is expected to be launched in
the near future. The new product aims at extending
coverage to many more Critical Ailments than what
is currently available, and will be in addition to the
existing Critical Illness Policy offered by the
Company.
The year saw new processes and systems being
ANNUAL REPORT 2017-18
put in place for the direct payment of health claims,
involving less manual interventions for registering
of claims, and their disposal. This was achieved
despite several IT challenges in the wake of
consolidation and migration to core solution
platform.
The Company continued to be active in serving the
less privileged sections of society through its
participation in various Government Health
Schemes. This includes the Mahatma Jyotibha
Phule Jeevan Arogya Scheme in Maharastra, The
Swasthya Saathi Scheme in West Bengal,
Mukhyamantri Kisan Suraksha Bima Yojana in UP
(a Group Personal Accident cum Medical
Scheme), Biju Krishak Kalyan Yojana in Odhisa,
and ongoing RSBY schemes.
Claims Control & TPA Management
Implementation of the direct payment system, in
compliance with the provisions of the IRDAI (Third
Party Administrators) Regulation 2016, has
enhanced the data purity pertaining to the
department. The department is looking forward to
have a system, allowing real time access to the
TPA data, put in place, which would bring in more
efficiency and better control.
The year saw Company setting stringent measures
in granting approval for underwriting Group Health
Insurance business the authority for which stood
solely vested with its Head Office Health
Department. The measures included price
correction on renewals, cautious approach while
allowing add on covers, greater scrutiny for
migrated accounts, and restricting unnecessary
enhanced exposure in this segment.
Enrolling more Health Service Providers in to our
Preferred Provider Network (PPN) and fixing
mutually agreed PPN rates have also been
pursued vigorously during the period, with the help
of the various PPN committees in select cities. This
has helped in bringing in uniformity and parity in the
prices of various treatment protocols.
Monthly Structured Meetings with the TPAs
arranged at the Regional as well as operating office
levels could redress most of the issues related to
policy servicing and claims control. Through such
regular meetings, the progress and performance of
TPAs were also monitored, and corrective
10
measures suggested, wherever required. Portfolio
analysis of various Client accounts was conducted
to periodically assess the progress of current
Group Accounts.
Similarly Health Audit Teams formed in the
Regional Offices have been conducting regular
inspections of the Third Party Administrators to
report on any deficiencies, deviations, violations
and the like. Through this exercise the Company
has been able to recover substantial amounts on
account of claims wrongly processed and excess
amounts admitted.
The Claims control and the TPA management
effected through the various measures could bring
down the Net Incurred Claim Ratio to 116% from
128% as recorded in 2016-17.
Customer Service
The customers who avail the Health Insurance
services of our Company is significantly high
compared to the total customer base of the
Company. However, through our large network of
offices and intermediaries, we could service our
clients in a highly satisfactory manner. The
grievances received through Grievance portal
and Customer Redressal Management
department of the Company /Ministry of
Finance/IRDAI portal are attended on a day to
day basis and redressed as per the terms and
conditions of the concerned policy and in tune
with the Grievance Redressal Policy of the
Company.
PRADHAN MANTRI FASAL BIMA YOJANA
(PMFBY):
The Company in the first year of empanelment i.e.
2016-17, participated in the bidding process and
became successful implementer of the Scheme in
states like West Bengal, Bihar, Maharashtra and
Assam. In the current year, the Company emerged
as successful bidder in four states namely
11
Telangana, West Bengal, Maharashtra and Orissa
during Khariff season and also emerged as
successful bidder in five states namely Manipur,
Andaman and Nicobar Islands, Maharashtra,
Andhra Pradesh and Orissa in Rabi Season.
In the financial year 2017-18:
(i) The Company has underwritten total
premium of `1556.69 crore including Co-
Insurance share of `306 crore from The
New India Assurance Co. Ltd. and also
shared Co-Insurance Premium of `211.25
crore to New India.
(ii) The Company has settled `28.89 crore of
claims in the states of Maharashtra, Orissa
and Assam.
FOREIGN OPERATIONS:
The Company has operations in Nepal only.
Nepal:
Nepal operations is conducted through our
controlling office and 2 Branch offices which
are located at Kathmandu i.e., Kathmandu
Branch I and Kathmandu Branch II - the other 4
are located in Birganj, Biratnagar, Nepalganj
and Pokhra. Sub Branch offices are located at
Janakpur, Hetauda, Narainghat and Butwal.
As in the earlier years, Nepal Office has shown
satisfactory growth even in the past fiscal.
Hong Kong:
Hong Kong Branch has stopped accepting
new business since 18th February, 2002. The
run-off operations are being handled by New
India who continues to service existing policies
and claims.
The working result of the foreign operations for
the year 2017-18 is as follows:
ANNUAL REPORT 2017-18
FOREIGN BRANCH RESULTS : (` in crore)

Particulars Nepal Hongkong Total

2017-18 2016-17 2017-18 2016-17 2017-18 2016-17

Gross Direct Premium 50.13 44.82 0.00 0.00 50.13 44.82
Net Premium 39.86 32.99 0.00 0.00 39.86 32.99
Net Incurred Claims 26.93 -17.63 -0.31 -0.44 26.62 -18.07
Net Commission -1.16 -0.77 0.00 0.00 -1.16 -0.77
Expenses of Management 10.85 12.04 0.05 0.75 10.90 12.79
Decrease(-)/Increase(+) in 3.44 1.24 0.00 0.00 3.44 1.24
Reserve for Unexpired Risk
Investment and other Income 8.76 5.88 0.51 0.09 9.27 5.97
Foreign Exchange Gain/Loss* 0.00 0.00 -0.65 -0.54 -0.65 -0.54
Net Profit (+)/Loss (-) 8.57 43.99 0.12 -0.76 8.69 43.23

* Exchange Gain for Nepal Branch is `0.186 crore, which has been transferred to Foreign Exchange Translation
Reserve as per the requirements of AS-11 issued by ICAI.

MARKETING: ensured that the channels especially the individual

During the year, efforts were made to strengthen
the areas relating to marketing including the
distribution channels, marketing force and
business segments through several strategies. In
view of the slow growth in the corporate business
segment, more emphasis was given on the retail
segment, which involved energizing the Agency
channel, focus on local level tie-ups,
Bancassurance and retail broking.
Business Development from Agency Channel
agency force is maintained in a structured and
organized manner in accordance with IRDAI
regulations.
The Company has further recruited about 4,364
agents during the financial year 2017-18 and had
also carried out a special drive for appointment of
agents. Besides as per practice the Company had
also conducted felicitation of Star performers with a
view to encourage the agency force and to
recognize their efforts.

Individual Agents contributes the majority of
Premium gained by NIC. Presently, about 37% of
the total premium gained by the Company in the
financial year 2017-18 has been procured through
the Individual Agency channel & the current
strength of individual agents in NIC stands at about
60,769.
NIC at the very start of the financial year 2017-18
had adopted and implemented NICL (Payment of
Commission or Remuneration or Reward to
Insurance Agents and Insurance Intermediaries)
Guidelines, 2017 & NICL (Appointment of
Insurance Agents) Policy, 2017 based on the IRDAI
regulations for the same. These Policies have
To ensure a steady business retention & an
increase of the premium especially in the retail
sector procured through this channel NIC had
launched reward schemes on Motor, Health & Non-
Motor Non-Health portfolios in accordance with the
regulatory & Company guidelines.
Steps were taken to further improve the Agents
Business Portal to make it more user-friendly and
the efforts have provided us positive results, the
premium procured through Agents Business
portals for the financial year 2017-18 stands at
`204.63 crore and the number of agents using the
portals has also increased steadily.
NIC had also conducted Agency Coordinators'

ANNUAL REPORT 2017-18 12

Meet at various levels to keep the coordinators
updated on the latest improvements and strategies
to be adopted for further developing the agency
force.
Business Associates
In accordance with the NICL (Contractual
Appointment of Business Associates) Scheme,
2016, the Company has appointed on contract
basis 34 eligible retired development officers as
Business Associates in the financial year 2017-18.
The appointment of the retired Development
Officers as Business Associates has ensured a
retention of the premium that NIC gathers from its
Development Officers. The scheme also in turn
enables retention of the agents and other business
channels that were originally sourced and
maintained by such retired development officers.
Insurance Marketing Firm (IMF)
Till 31st March 2017, IRDAI had registered 114
IMFs. National Insurance had tied up with 9 IMFs
till 31st March 2017. As on 31st March 2018, IRDAI
has 211 registered IMFs. During the financial year
2017-18, we have tied up with 15 more IMFs. Thus
till 31st March 2018, we have tied up with 24 IMFs.
We are emphasizing to Regional In-charges and
Regional agency coordinators to create awareness
amongst Division / Branch / Business Centre In-
charges and officers about this new channel and to
support IMFs by provide training on underwriting of
products. Our target for FY 2018-19 is to tie up with
20 more IMFs.
Corporate Agents
In the year 2015, IRDAI issued the new
regulations for corporate agents. Under new
regulations, all existing corporate agents were
required to obtain fresh registration from IRDAI if
they were to continue solicitation of insurance
business after 31st March 2016. Many existing
corporate agents did not register themselves under
new regulations and ceased to operate as
corporate agents.
National Insurance had tied up with 17 corporate
agents till 31st March, 2017 out of which 10 were
banks and 7 other than banks. During the financial
2017-18, 3 more banking corporate agents and 4
non-banking tied up with us. Thus till 31st March,
13
2018, we have tied up with 24 corporate agents.
Our target for the financial year 2018-19 is to tie up
with 10 more corporate agents other than banks.
Point of Sales Persons
In the year 2017, IRDA made revised regulations
on POS persons relaxing norms for appointment
for solicitation of pre-underwritten simple
insurance products. We have got approval of
Motor insurance and PA products for sale through
this new channel. We also enabled our IT system
for appointment of POS persons and underwriting
Motor products both in our operating offices and
also through POS portal. In the month of March'18,
we piloted this project in Bangalore Regional Office
and appointed 15 POS persons and could
successfully issue POS policies.
In the financial year 2018-19, we need to appoint
300 POS persons and bring few more POS
products on POS Portal.
Digital Marketing
Digital Marketing is a new and emerging area in
Insurance. In the recent past, this department has
been opened to exploit of the gradually increasing
marketing of e-business. As its first venture, this
department has set up interface with Policy Bazaar,
one of the largest web aggregator for General
Insurance. In a period of less than 3 months, we
have procured a business of about `17 crore
through this channel.
As subsequent steps, this department is going to
set up interfaces with a series of Web Aggregators
and Brokers through portals.
Further, the department has also initiated a major
project of building a Common Business Portal
(CBP) for all categories of intermediaries. This
would eventually replace all existing individual
portals which had been facing serious problems
during their operations.
Business Centers
A large number of Business Centers have been
opened by the Company in line with Financial
Inclusion and Geographical representation need of
an emerging market. This has helped new towns
being better serviced and represented. The
Agency Business Portals also further enhanced
the reach of the Business Centers by allowing
ANNUAL REPORT 2017-18
agents to service clients from deeper rural areas.
There were 2 Business Centers upgraded to
Branch Office during financial year 2017-18. The
premium earned by the Business Centers in the
financial year 2017-18 is `553.10 crore as against
`534.19 crore in 2016-17. An exercise has also
been initiated for restructuring of BCs and unviable
BCs are being identified.
Insurance on Wheels
Insurance on Wheels ('IOW') is an important
initiative taken to reach out to customers at their
doorstep. In the current year, there were 16
Insurance on Wheels operational in various
Regional Centres. More than 15,000 policies were
issued by IOW. The premium from this source
during the year 2017-18 was `1237.39 lacs.
KPA Fixation and RO In-charges Performance
Review Meets
(b) NICL is the leader in PMSBY (Pradhan Mantri
Meets for Regional In-charges for performance
review were held and their KPAs were finalised.
Further, in order to focus on the marketing
strategies and the corporate goals, structured
review meetings of Divisional In-charges and
Branch In-charges were held for all Regional
Offices across the Country in which there was
participation by the Head Office officials.
Social Sector - Government of India initiatives
(a) National Insurance Company Ltd. in the first
year of empanelment i.e. 2016-17, participated
in the bidding process for PMFBY (Pradhan
Mantri Fasal Bima Yojana) and became
successful implementer of the scheme in
states like West Bengal, Bihar, Maharashtra
and Assam. In the current year, the Company
emerged as successful bidder in four states
namely Telangana, West Bengal, Maharashtra
and Orissa during Kharif season and also
emerged as successful bidder in five states
namely Manipur, Andaman and Nicobar Islands,
Maharashtra, Andhra Pradesh and Orissa in
Rabi Season. In Financial Year 2017-18.
(i) The Company has underwritten in PMFBY
total premium of `1,556.69 crore including
Co-Insurance share of `306 crore from
New India Assurance Co. Ltd and also
shared Co-Insurance Premium of ` 211.25
crore to New India.
(ii) The Company has settled `28.89 crore of
claims in the states of Maharashtra, Orissa
and Assam.
Suraksha Bima Yojana). We have tied-up
with more than 200 banks pan India. These
comprise of 4 PSU Banks, 2 Private Banks, 34
Regional Rural Banks and 165 Regional
Cooperative Banks. Numbers of lives covered
by NIC under this scheme exceeds 3 crore
which is 33% of the total lives covered under
the scheme. Premium generated under the
scheme is `36.73 crores till the end of
March'18. The PMSBY claim settling Hubs
across the country have settled 99% of claims
received. The number of claims settled during
the FY 2017-18 is 3721 and claim paid amount
is `73.54 crore.

Rural & Social Sector obligations and achievements with details in the year 2017-18:

Year Total Gross Gross % of Rural Total no. of Lives covered % of social
Premium Premium u/w business to lives covered in Social sector lives
underwritten in India in Rural Areas Total GDPI by the Sector to Total lives
(` in crore) (` in crore) Company (in no.) (in nos.) covered
1 2 3 4 5 6 7
2017-18 16193.55 2088.56 12.90% 22636317 3361035 14.85%

ORGANISATIONAL SET UP:

Total number of ROs, DOs, BOs & Business Centres as on 31st March 2018 :

Regional Offices Divisional Offices Branch & DABs Business Centres Total
33 377 584 748 1742

ANNUAL REPORT 2017-18 14

ACTIVITIES OF THE STRATEGIC ALLIANCE
DEPARTMENT:
As on 31st March 2018, the total premium from the
Strategic Alliances with Maruti, Hero MotoCorp,
Tata Motors, Honda Cars, Nissan and
Bancassurance business & PMSBY is `3077 crore
as compared to premium of `2676 crore in the
financial year 2016-17. The contribution of
Strategic Alliance business to the total GDPI of the
Company in the financial year 2017-18 was around
18.73%.
The two major tie-ups with automobile
manufactures, namely Maruti (since 2002) and
Hero MotoCorp (since 2004), have generated a
premium of `1439 crore and `811 crore respectively
during the financial year 2017-18. The TMI tie-up
has generated a premium of `352 crore.
IRADI introduced the concept of MISP (Motor
Insurance Service Provider) w.e.f 1st Nov 2017,
which has been successfully implemented by us.
The Bancassurance business has generated a
premium of `268 crore during the financial year
2017-18. Currently we have tie-up with fourteen
banks. The two major banks which contributed to
the most of the Bancassurance business continue
to be Bank of India and Bank of Baroda. Out of
`268 crore Bancassurance premium, these two
banks have contributed premium of `255 crore.
Health is the major portfolio under Bancassurance
and the Co-branded Health Insurance Portfolio of
these banks has grown to `148 crore during the
financial year 2017-18.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) -
This Scheme has been launched by Hon'ble Prime
Minister of India Shri Narendra Modi and we are
privileged to serve the citizens of India under this
scheme. We have tie-up with more than 200 banks
pan India. These comprise of 4 PSU Banks, 2
Private Banks, 34 Regional Rural Banks and 165
Regional Cooperative Banks. Numbers of lives
covered by NIC under this scheme exceeds 3
crores which is 33% of the total lives covered under
the scheme. Premium generated under the
scheme is `36.73 crore till the end of March 2018.
The PMSBY claim settling Hubs across the country
have settled 99% of claims received. The number
15
of claims settled during the financial year 2017-18
is 3721 and claim paid amount is `73.54 crore.
During the financial year 2017-18, the Strategic
Alliances Management department has
undertaken a number of new initiatives, which are
as follows:
1. Structural strengthening of Maruti business
continues with focus by Maruti business
NATMAR Hubs. The 17 SAATH (Strategic
Alliance Auto Tie-up Hub) Offices handle all Tie-
up business and 19 NATMAR Hub handle only
Maruti business.
2. As per directives of IRDAI, successfully
developed and implemented MISP (Motor
Insurance Service Provider) concept for motor
dealers.
3. Successful advancement & improvement of
Online Claim Management (OCM) for Hero
MotoCorp, Honda Cars and Tata motors.
4. Dealer meetings were conducted for Hero
MotoCorp renewal business in various Regions
to increase our renewal penetration.
5. Continuous monitoring of 18 PMSBY claim
settling HUBs across the country for speedy
settlement of Public Sector Bank claims.
6. Zonal Level Tie-up meets for RO coordinator
were held - one for South & West and another
for North & East.
7. New tie-up with Himachal Pradesh co-operative
Bank under Bancassurance segment.
PUBLICITY ACTIVITIES:
IDENTIFYING THE CORRECT TG: The most
important determinant while deciding ad
spend for any media planner is TG
classification as per NCCS (New Consumer
Classification System) segments. To avoid
spillage in terms of audience profile, it is
important to first determine the target audience
segment and its potential to purchase the
product being advertised.
For the specific purpose of our media plan the
primary target segment within the Universe
can be primarily narrowed to NCCS A, B 20- 44
years Male / Female - Urban, Semi urban.
ANNUAL REPORT 2017-18
As per various segmentation, the concentration/ time spent per media vehicle is as given below-

MEDIA REACH Universe URBAN (ALL) RURAL (ALL) NCCS A, B

NCCS age group
A, B, C, D, E 20-44 years
12+years
Nos of Households (Est Mn) 962 325 637 130
TV (Satellite only) 50 % 73 % 38 % 89 %
Print 31 % 48 % 23 % 64 %
Radio 8% 11 % 6% 14 %
Internet 5% 10 % 2% 18 %
Cinema 3% 6% 2% 9%

NCCS segments - dependant on 2 variables - Education of chief wage earner and number of consumer durables in the
Household: Source IRS 2014.
MEDIA VEHICLES
Primary Campaign drivers -
1. Electronic (Television and Radio)
2. Print ( Newspapers and Magazines)
Secondary or Support Medium -
3. OOH (Hoardings and Display) both Conventional and non conventional
4. Digital Media (Internet & Social Networking sites & Apps)
Tertiary Medium-
1. Public Relations measures - Event Sponsorships, Banner displays and Annuals (Calendar 2017,
Diary 2017 & Greeting Cards).
2. Publicity programs through Agents (PATP).
3. Brand Vehicles and Promotions of product through publicity vans for doorstep delivery of services
& communication, Insurance on Wheels.
4. Co- branding for strategic alliances products at POP/ Dealer outlets.
5. Insurance Awareness campaigns in schools and public platforms, CSR.
6. SMS and Electronic Direct Mailers.
But effectively, Print, Digital and Electronic campaigns will be the framework of Head Office Corporate
publicity and the same campaigns can be sustained at the ground level by OOH media, Event brand
association, awareness programmes and Publicity through Agents (PATP) by the Regional Offices.

ANNUAL REPORT 2017-18 16

 BUDGETARY DISTRIBUTION 2017-18
TOTAL PUBLICITY BUDGET 2017-18: Rs.50 crore
ACTIVITY FLOW 2017-18
It is recommended to launch a Corporate Brand
campaign in TV by the end of the 1st quarter and
sustain it with a mix of Product and corporate ads in
the next 3 quarters uniformly. The support to the TV
campaign would be a spin-off of the same
communication in Print, Radio, Digital and OOH
media.
MEDIA PLAN - CORPORATE
CREATIVE DESIGNS-It is recommended to utilise
the services of reputed and accreditated
advertising agencies for designing our creative's
on a case to case basis. We could also invite ideas
from our employees on creative designs.
As there is no panel of advertising agencies at the
moment, it is recommended that we brief atleast 5
reputed advertising agencies who have handled
our creative work or called for briefing in the past to
present creative options on the following -
17
i) TV Commercial - Corporate and Product
ii) Adaptation to Print and OOH
iii) Calendar concepts
iv)Diary concepts
As per practice the selection of the best creative
would be by a committee of atleast 3 General
Managers to be nominated by CMD.
The brief would only include presentation of
creative options by the advertising agencies and
NOT media costs. As per practice, Media releases
would be done after direct negotiation with Media
Houses.
The production of the TV commercial will have to
be executed and supervised by the agency whose
creative would be selected based on the process of
selection. The modalities of production of TVC will
be put up separately by the department.
The selected creative for TVC can be developed
ANNUAL REPORT 2017-18
and adapted suitably for both print and digital
campaigns. OOH activity and customer contact
programmes through awareness camps and
through our agent force must be continued across
the year to have any impact at ground level. It is
also proposed that we advertise through Digital
Cinema in Multiplexes etc also which is an
upcoming and popular mode.
PRODUCTS to be advertised - indicative list
1. Private Car Package Policy
2. Motor Add-ons-NCB Protect/Engine
Protect/Invoice Protect / Nil Depreciation
3. Householders' Insurance
4. National Mediclaim / Medilcaim Plus
5. National Parivar Mediclaim / Parivar Plus
6. Personal Accident Policy
7. Long Term Two Wheeler Policy
8. Fire & Property Insurance
9. Liability Insurance
10. Industrial Insurance policies
11. Shopkeepers Insurance, and others
A. PUBLICITY ACTIVITY REPORT 2017-18
The Publicity activities for the year 2017-18 were
primarily focussed on sustaining our previous
years' advertising campaigns and had primarily
emphasised on establishing the 'NATIONAL'
BRAND NAME as well as to stress on our best-
selling retail products. It was our primary effort to
establish our BRAND in the mind of the consumer
for top of mind recall, with an image of a trusted
company bearing a legacy of 110 years, providing
diverse non life insurance solutions for every
segment and setting standards of excellence.
Identifying the target customer and his preferred
medium for delivering an effective communication
designed to not only reach but also get adequate
recall is the genesis of the publicity strategy. The
effort was in selection of the correct and effective
mode of communication. The target parameters
were identifying the target customer and his
preferred media vehicle and to ensure maximum
reach at lowest spend for the best possible Return
on Investment (ROI).
ANNUAL REPORT 2017-18
The electronic medium was our campaign
spearhead primarily on Television and Radio FM
considering audience preference for this medium.
Television & Radio FM spots were bought on
package basis, which helped in both getting
economical rates as well as a wider spread
increasing effective reach.
The industry accepted BARC Ratings were
referred to at the time of execution of campaign, for
selection of TV channels based on viewership and
NCCS profiling of the audience. Our primary thrust
area were News and Current Affairs - Hindi and
English channels as per individual ratings. The
national level channels where our campaign was
executed were India TV, Aaj Tak, India News, News
18 India, India News - UP, ABP News, News Nation,
in the Hindi news genre, Republic TV, NDTV 24x7,
Times Now SD + HD, India Today TV, CNN News
18 in the English News Genre.
Radio FM channels are considered primarily as a
medium for building frequency of the corporate
brand to a varied audience in the urban and semi-
urban market. The effective reach of this media is
phenomenal considering that any NCCS segment
can be targeted with the flexibility to choose the
audience in sync with the programme contents and
timing. Today, especially amongst the urban
insurable audience, Radio FM channels play a very
important part for targeted reach and delivery of
communication to any identified TG. The various
listenership surveys available for FM Radio ratings
and including RAM (conducted for TAM by Nielsen
Media Research & IMRB International and is an
industry accepted and credible survey agency of
audience preferences), IRS and IPSOS surveys for
our TG / SEC groups in the metros for listenership
preferences.
Although the ratings are indicative considering the
sample size and listener age groups, selection of
channel depends on merit and the strength of their
presence in each city. Our main focus was to target
the prime time listenership ie Morning Prime Time
and Evening Prime Time with a targeted socio-
economic / gender profile presence in Non-Prime
time bands.
We have advertised in leading national level Radio
FM channels covering approx. 52+ cities across
the country. The channels utilized during our
18
campaign were namely Radio Mirchi, Red FM,
Radio City, Fever FM, Big FM, My FM & Radio One.
B. PRINT MEDIA
This medium is quite important in view of its reach
and retention value. In spite of the onslaught of the
Electronic Media, print media continues to be the
second largest medium in the country. Though the
growth of this media is comparatively slower, the
vernacular dailies have maintained a steady
upward trend. One of the main reasons for this is
the higher rates of literacy across the country and
the prevalence of mainline publications increasing
the number of editions for higher geographical
penetration. This allows us to reach the remotest
corners and to a wider audience.
The Indian vernacular newspaper market remains
very strong and in this changing paradigm we
selected our ad vehicle effectively for greater reach
at prudent costs.
The selection of newspapers and magazines was
made from a pool of identified publications having
extensive All India / Regional reach as certified by
ABC (Audit Bureau of Circulations) and IRS (Indian
Readership Survey) figures. The short list
parameters were based on circulation, readership,
geographical spread and demographics and those
with effective CPM (Cost per Thousand Medium),
which would comprise the broad pool for selection
Positioning is very important to get visibility in
newspaper and so while RHS is compulsory, we
also ensured that the advertisement is placed on
the Right Hand Side of selected page as best
suited with the pagination options.
Innovative size and placement options were also
be looked at for higher impact and frequency. For
the first time we went for front page innovations
during our 111 Foundation Day ad campaign,
which included C-on-C Jacket placements as well
as front page - half page vertical ads or L - Bands
for impact advertising. Even for AFR / HYFR our
ads appeared in half page vertical size for greater
visibility. The rates were negotiated for effective
pricing.
The major print media campaigns included -
Foundation Day campaign spanning one month
Dec 17 to Jan 18 in all major newspapers namely
Malayalam Manorama, Hindustan Times,
19
Hindustan, Dainik Bhaskar, Divya Bhaskar, Indian
Express, Financial Express, Loksatta, Jansatta,
Ananda Bazar Patrika, The Telegraph, Hindu,
Hindu Business Line, Prajyavani, Deccan Herald,
Eenadu, Daily Ajit, Asomiya Pratidin, Sambad,
Bartaman, Times of India, Economic Times, Nav
Bharat Times, Maharashtra Times, Ei Samay,
Vijaya Karnataka, Dainik Jagran and Daily Thanthi.
Apart from front page advertisements in all the
above mentioned papers in various innovative
sizes / positions, we also released the iconic
advertisement titled "INSURANCE OF INDIA"
integrating the Times of India Mast head for the
Kolkata edition of TOI.
The other major campaign in the print media was
during the Union Budget 2018. Our advertisement
appeared in all major financial dailies namely
Business Standard, Mint, Financial Express and
Hindu Business Line.
C. CINEMA
The entire cinematic experience for the urban
cinema goer has undergone a tremendous change
after the advent of Multiplexes. And with this the
approach of advertisers towards cinema has also
changed. Now it is being viewed as an important
part of any media plan as it affords targeted
advertising to a captive viewer primarily the youth
and urban milieu.
As a pilot project in select cities, we forayed into
this field by advertising in select multiplexes to
gauge audience feedback and based on the same
we could plan an all India campaign the following
year. The cinemas used for the pilot project
included Cinepolis, SRS Cinemas, Bioscope,
Regent Fun and Mukti World.
D. DIGITAL MEDIA
Advertising on the internet is the fastest way to
reach our potential and existing client base at
negligible cost. Nowadays it has been
revolutionised by the sheer reach of this media as
not only computers but hand held smart phones
and tablets have brought the internet to the palm of
the consumer. It is a 24x7 repeat media which is
fast replacing the conventional modes as a cost
effective and cheap form of communication without
any spillage or overflow.
ANNUAL REPORT 2017-18
Infact with the advent of 4G connectivity, not only
will reach amongst consumers increase
tremendously over a short time frame, but also the
fact that innovative advertising in the form of video
content delivery will be accelerated. All Mobile
service providers are targeting new consumers
and hence from an advertisers point of view
eyeball share in this medium is growing at a very
fast pace.
Social Media, Apps and e-Commerce dominate
the share of the internet users pie and conventional
website surfing is also maintaining traction. As the
penetration of this medium increases in our target
segments, we utilise digital media for targeted
advertising. The top segments of usage is
Corporate presence, Services, Navigation,
Portals, Distributed Content, Social Media,
Entertainment, Retail, News and Business.
Ratings of sites are done on the basis of
COMSCORE based on UVs (Unique Vistors and
other parameters). Our selection of Digital Media
vehicles would be based on such ratings also. Our
campaign was run on the following leading sites
and apps during this year - TimesofIndia.com,
EconomicTimes.com, NavBharat Times.com,
IndianExpress.com, FinancialExpress.com,
India.com, ZeeNews.com, DNAIndia.com,
MoneyControl.com, IndiaToday.in, Aajtak.in,
DainikJagran.com, Bloombergquint.com,
ABP.com among others.
E. OOH MEDIA
Out of Home Media (OOH) has transformed from
the earlier traditional modes of Hoardings and Bill
Boards to new age digital and unconventional
modes. While urban OOH is closely aligned with
the urban transport offering various options on
advertising. Rural OOH is still growing but it is still
conventional in nature compared to urban OOH.
Digital technology is transforming the way OOH
display is served to the consumer / audience.
While Regional Offices were advised to take the
lead in Outdoor advertising across the country HO
outdoor activity would primarily concentrate on
urban mass transport systems like Airport &
Railway advertising. Buses, Metro Trains and
other good OTS/visibility and clutter free - high
footfall outdoor branding avenues which are
innovative and unique for maximum visibility
ANNUAL REPORT 2017-18
maybe utilized.
Other ideas such as Branding of our own office
properties with Glow Signs, Neon Signs, Ad
Balloons, LED Clocks, Portico branding etc were
explored. This would be long term low cost venture
as most of our properties are located in high
visibility areas where commercial ad space cost is
very high.
The main OOH projects taken up were Traffic
Kiosks branding all over Kolkata city, Kolkata
Airport Trollies, Branding area around Head Office
with pole kiosks, Mega pylons and complete digital
branding of Kolkata Airport, Digital screens in
railway stations near ticketing counters All India 10
states. Major Regional Office initiatives included
Metro Pillars at Jayanagar, Bengaluru, Tamil Nadu
State Transport Bus panels, Coimbatore, CSTA
Bus panels, Kolkata and KSRTC bus panelks,
Kerala, Hyderabad Railway Stations HD screens
display boards, Hubli Railway Station backlit
boards, Chennai Airport Trollies, Vizag Railway
Station display, RK Beach Centre Poles, Vizag,
Guwahati Airport Trollies, Red Buses panels,
Bangalore, Airport display, Coimbatore.
F. EVENT SPONSORSHIPS
Brand Association with niche and well attended
events can create a good brand image. This year
NIC has sponsored major cultural events in with
national level / local luminaries in the field of art,
culture, social work, sports etc. as well as events
with a high degree of popularity and footfall. Brand
Association as Insurance Partner with premium
events helped build our brand signature in front of
both the niche as well as cross target segments.
Events organized by Chambers of Commerce and
Merchants Chambers, popular media houses etc
gave us a target segment for augmenting our
corporate portfolio and therefore remained a high
focus area as well.
For effective customer contact events with
activation were utilized as they were suited to get
effective publicity mileage at low cost. Wherever
we displayed our banners as a P.R. measure, an
effort was made to get presentation time / agents
desk in front of the audience also.
Some of the major events where we participated
during the year included -
20
ABP Ajeyo Awards 2017, Radio One Next Nandini
Awards 2017, Osmania University Global
Conference, Indian Express Technology Senate,
NIPM Kerala HR Conclave 2017, ASSOCHAM
National Insurance Conclave on the Changing
Dynamics of Insurance and Insurance Awards
2017, SIP Academy Abacus - Prodigy 2017, 10th
Insurance Summit - Indian Chamber of
Commerce, 48th SKOCH Summit Mumbai, Dun &
Bradstreet Insurance Summit, Confederation of
Indian Industries 19th Insurance Summit, Indian
Express Wellbeing Seminar, PHD Chamber of
Commerce Health Seminar, FICCI Business
Interactive with Nepal PM, 1st Youth National Men's
and Women's Boxing Championship, Delhi Boxing
Federation of India, Automobile Association of
Eastern India Tridhara Car Rally 2017, Merchant
Chamber of Commerce & Industry-MCCI India
Economic Forum, Uttar Dakshin Classical Music
Festival at Bengaluru and Delhi, Times Shera Barir
Shea pujo & Times Sharad Sreshtho 2017 Durga
Puja Awards, ASSOCHAM 10th Global Insurance
Summit, XIMB - Bhubaneswar Fest Xpressions 17,
Corporate Governance Summit - Gatekeepers of
Governance by Excellence Enablers, SUR Girija
Devi Music festival Kolkata, Bengal Sports Motor
Club Car Rally 2017 Kolkata - Shantineketan, 47th
Inter District & 66th Kerala State TT Championship,
MCCI General insurance Forum 2017, 15th
National Insurance CAR Treasure Hunt - Kolkata
on Wheels, Bengal Chamber - India International
Mega Trade Fair 2017, 11th India Rendezvous by
Asia Insurance Review, Jangalmahal, on the Move
MOTOR RALLY - Kolkata to Jangalmahal Car
Rally, Chaitanya Mahaprabhu Birth Anniversary,
Gaudiya Mission, ICC FINTECH 2017, 5th Insurers
Conclave at Jamia Hamdard Deemed University
Delhi, 14th IBAI Brokers Summmit, Hyderabad, 10th
Auto Summit at Delhi by FADA, Calcutta Heritage
Hunt 2018 - Car treasure Hunt, PGDM Annual
Culture and Techno Management Fest -
MANTHAN 2018 by NIA, BMSC 6th Indo- Bhutan
Friendship Car Rally 2018, Ilead College Fest
ManageIndia 2018, National Insurance &
ASSOCHAM Health and Wellness Summit and
Awards.
G. CALENDAR 2018 & OTHER ANNUALS
As the calendar is a corporate statement and also
21
publicity for the Company for one whole year, due
emphasis was given to the quality of paper, binding
etc. apart from aesthetics in design for the Annuals.
The themes featured for the current exercise were-
Type I - Theme Calendar 2018 - Forgotten &
Traditional Indian Sports & Games
Type II - Executive Diary 2018 - Theme - Yoga for
Wellness
Type III - Date Calendar 2018 - The Date calendar
was also printed in higher quantity for mass
distribution effective as a low cost publicity tool.
The Date Calendar 2018 was designed in-house.
Annual RO Publicity In-Charges' Conference
A one-day Publicity Conference with Regional
Publicity In-charges' to address the various issues
including IRDAI regulations, financial guidelines,
Publicity policy, identifying and selection of sites /
events etc. was held at Raichak, West Bengal in
August 2017.
SPECIAL INITIATIVE
Kolkata Marathon 2018 in association with
Kolkata Police
NIC participated as exclusive sponsors as per
proposal in this regard from KOLKATA TRAFFIC
POLICE, Government of West Bengal. The event
was held as scheduled on 7th January 2018 where
more than 10,000 people participated alongwith a
host of dignitaries and celebrities. West Bengal
Government and Kolkata Police event, there was
huge media coverage across all platforms (OOH /
Print / Digital / TV etc) and the resultant spinoff
publicity to our brand as exclusive sponsor was
tremendous. Needless to mention, this exclusive
event went a long way to increase our brand
awareness through association. As an exclusive
partnership and branding opportunity the long term
association with such a mega event carrying an
important public safety message is bound to give
us great recall.
CUSTOMER RELATIONSHIP MANAGEMENT:
Customer Relationship Management (CRM) is the
strongest and the most efficient approach in
creating and maintaining relationships with
customers. The Company has adopted NICL Policy
for Protection of Policyholders Interests - 2018 in
ANNUAL REPORT 2017-18
line with the mandate of IRDAI under IRDAI agent.portal@nic.co.in is available to the agents to
(Protection of Policyholders' Interests) solve their various IT related issues.
Regulations, 2017. The Citizens' Charter of the Grievances registered in Centralised Public
Company has also been updated during the year in Grievance Redress and Monitoring System
accordance with the said Regulations. (CPGRAMS) portal of DARPG, Government of
To maintain better relations with the customers, a India as well as through the National Consumer
dedicated team of grievance redressal officers Helpline portal of Ministry of Consumer Affairs,
continuously monitors the grievances received and Food and Public Distribution, Government of India
ensures its speedy disposal. An updated list of are also redressed through the respective
Regional Grievance Officers along with their mechanisms.
contact information is available on our website for Grievances received through Social Media
the convenience of the customers. Platforms like Facebook and Twitter are also
A dedicated toll free number 1800-345-4033 and a resolved and such resolutions are provided to the
mail id customer.relations@nic.co.in as Single customers at the same Social Media Platform
Point of Contact (SPOC) are available for wherever feasible.
customers to lodge their complaints. Also, a In order to update our CRM team on the latest
grievance portal called Centralised Grievance initiatives in the area, an all India Meet was
Monitoring System (CGMS) is available on the arranged on 3rd and 4th August 2017 at Udaipur.
Company's website inter-linked with the Integrated Regular training sessions are conducted at our
Grievance Management System of IRDAI, where Training Centre at Narendrapur for sensitising our
customers can directly register their grievances. Officers on the grievance redressal policy of the
Further, a dedicated mail id customer. portal@nic. Company.
co.in has been made available to customers for During the year 2017-18, 6962 grievances were
addressing technical issues in buying/renewing reported against which 6892 were resolved,
policies online. Similarly, another dedicated mail id thereby achieving a resolution ratio of 98.67%.
ON-LINE GRIEVANCE REDRESSAL STATISTICS FOR THE YEAR 2017-18
Number of Number of Number of Number of Grievance Grievance
grievances grievances grievances grievances resolution resolution
outstanding reported during redressed outstanding ratio during ratio during
as on 2017-18 during as on 2017-18 2016-17
01/04/2017 2017-18 31/03/2018 (%) (%)
23 6962 6892 93 98.67 99.61
DEPARTMENT AND CAUSE WISE ANALYSIS OF GRIEVANCE FOR THE YEAR 2017-18
Sl. Causes of complaint Health Motor Property Others Total
No. Insurance
1. Amount in dispute 750 244 54 36 1084
2. Delay in Claim Settlement/Payment 2089 611 51 239 2990
3. Claim Repudiation 412 76 10 43 541
4. Non-Issuance of Policy/Health Card 582 247 5 29 863
5. Policy renewal related 371 102 1 18 492
6. Others 532 304 0 156 992
Total 4736 1584 121 521 6962

ANNUAL REPORT 2017-18 22

ii) Issuance of Documents

Number of Number of Number of Number of Documentation Documentation

documents documents documents documents ratio ratio
reported incepted issued during pending during during
pending as on during 2017-18 as on 2017-18 2017-18
01/04/2017 2017-18 31/03/2018 (%) (%)
Nil 2,63,80,487 2,63,80,487 Nil 100 100

HUMAN RESOURCES : HUMAN RESOURCES DEVELOPMENT:

1. Class wise employees strength as on 31st Training at NCIL/RTCs
March 2018:
Training is a key process in Human Resource
Class No. of employees Development, attuning the Officers and employees
I 5932 to identify the Goals of Corporate Management and
II Marketing 470 consolidating Company's achievements to
furtherance. During the fiscal 2017-18, the
Administration 197 Company's HR Development Planning was geared
III 5796 towards consolidation and enhancing the skills of
IV 1045 its existing workforce through intensive skill
Total 13440 development training and recruitments to achieve
the corporate objective of effective HR Asset
2. Net addition to the work force of the augmentation. The key HRD focus remained on
Company: strengthening the marketing and distribution
systems, setting new service standards of
Out of which excellence for the customer and Suitable and
Class Total SC ST OBC GEN PWD Ex-Serv. effective redeployment of existing and new
I 176 30 13 48 79 6 - members to the workforce.
II - - - - - - - Suitable initiatives have been taken for proper skill
development and motivation within the
III 1 1 - - - - - organization with a view to enhance productivity
IV 5 3 1 - 1 - - and increase the skill sets of the individual on a
Total 182 34 14 48 80 6 - professional level. We have focused on leadership
and managerial training as a key area for our
officers in the middle management. For other
Welfare of SC/ST/OBC/PWD/ex-Servicemen employees and officers, domain knowledge,
The guidelines on reservation of posts, relaxation workplace effectiveness and optimum skill
and concession for SC/ST/OBC/Ex- Servicemen in engagement were considered priority areas.
recruitment are being followed. There are also Recruitment
reservation/relaxation in some promotional posts
for SC/ST/PWD. Pre-promotion training programmes During 2017-18, National Insurance conducted
are being conducted for SC/ST /OBC employees/ recruitment of 205 Generalist Administrative
officers. Pre-recruitment training programmes are Officer (Scale-I).
also being conducted for SC/ST/OBC Candidates. Overall Performance of CTC/RTC & ATCs
The officers and employees have been sent for during 2017-18:
training at National Insurance Academy (NIA), As part of the regular activities, officers from all
Pune and College of Insurance at Mumbai in which over the country were nominated to Managerial
the participation of employees from SC/ST/OBC Skill Development Training Programme (MSDP) at
categories was adequate. NIA, Pune and College of Insurance, Mumbai.

23 ANNUAL REPORT 2017-18

 National Insurance Academy Class -I Officers 637
(NIA), Pune MSDP Programme 172

College of Insurance, Mumbai MSDP Programme 218

Other -
External Training Programme 6

Training at NC IL/RTC’s Class

l – I Officers at NCIL 968
At RTCs – Class -I
l 1502
Class - II 15
Class -III 1425
Class -IV 31

NICEGRF (NATIONAL INSURANCE COMPANY
EMPLOYEES' GRIEVANCE REDRESSAL
FORUM):
Internal Grievances of all sections of employees
were redressed through this forum. A total of 2
cases were escalated to NICEGRF Stage 3 from
the ROs in 2017-18.
RIGHT TO INFORMATION:
The Indian Constitution guarantees the 'Right to
Freedom of Speech and Expression' to all its
citizens under Article 19(A). The Right to
Information Act, 2005 is recognized under this
Article with an objective to provide a practical
regime of right to information to empower its
citizens, promote transparency and accountability
in the working of Government. Right to Information
Act mandates timely response to the citizen's
request for information.
We have designated CAPIOs at each Branch
Office, CPIOs at all Divisional Offices, Regional
Offices and Head Office to deal with the
applications and appeals under RTI Act, 2005.
There is full fledged RTI Cell with a senior officer as
CPIO at the Head Office. In addition to the RTI
Applications/Appeals filed through conventional
modes, there is an increase in the number of online
applications/appeals for which the nodal officer is
the single contact point in our Company who then
forwards them to concerned CPIOs/FAA. In order
to get a more uniform and clear approach in dealing
with RTI matters an all India meeting of Regional
CPIOs and FAAs was held in Goa on 15th and 16th
December, 2017. The day to day problems faced
by different CPIOs/FAAs were also addressed
individually thereby making best efforts to resolve
their issues related to RTI matters. Regular
interactive sessions on RTI related matters are
incorporated in various training programmes
conducted at our training centre at Narendrapur.
In our constant endeavour to provide information to
citizens in line with the spirit of law, the officials
dealing with RTI matters are being updated
constantly with the latest decisions and judgments
of the CIC, High Courts and the Supreme Court.

The statistics for the 2017-18 along with comparative figures for the year 2016-17 are given hereunder:-

Sl. APPLICATIONS 2017-18 2016-17

1. No. of requests received 1828 1427
2. No. of cases where information was provided 1695 1320
3. No. of cases where information was denied 115 102

ANNUAL REPORT 2017-18 24

 FIRST APPEALS 2017-18 2016-17
1. No. of appeals received 245 213
2. No. of appeals accepted 229 203

3. No. of cases where appeal was rejected 15 10

4. Appeals pending at the close of fiscal 1 0
SECOND APPEALS/COMPLAINTS WITH CIC 2017-18 2016-17
1. No. of Appeals/complaints 58 28
2. Decisions upholding the contention of CPIO 30 12
3. Decisions upholding the contention o f appellant 28 16

THE SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013:
National Insurance is committed to the aim of
creating better and safe working environment for
the employees.
The Company has reconstituted the 'Internal
Complaints Committee' in compliance with the
"Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013"
on 25th January 2017. At present, the Internal
Complaints Committee (ICC) comprises of the
following members:
1. Smt. C. Sridevi, Chief Manager, Head Office
as Presiding Officer
2. Shri Raj Sharma, Manager, Head Office as
Member (Legal)
3. Smt. Mamta Lepcha, Manager, Head Office
as Member
4. Ms. Paramita Chaudhuri as Third Party
Representative (NGO)
Further Internal Complaints Committee as per the
provisions of the Act have been constituted and are
in place in 24 Regional Offices across the country.
In various training programmes at the Company's
Training Centre at NCIL, Narendrapur, continuous
efforts are on for sensitizing the employees both
men and women - new recruits as well as existing
as to what constitutes harassment, how the
complete structure works as also the confidentiality
aspect which are critical in such cases.
Two lady officers were also nominated and have
attended the 28th National Meet of the WIPS -
Women in Public Sector, held in Guwahati on the
12th & 13th of February 2018.
The number of complaints received, pending and
disposed off as on the 31st May, 2018 is detailed
herein below-

Period No. of cases No. of cases No. of

registered disposed off pending cases
11.04.2014 to 31.12.2014 03 03 00
01.01.2015 to 31.12.2015 05 05 00
01.01.2016 to 31.12.2016 04 04 00
01.01.2017 to 31.03.2017 03 02 01
01.01.2018 to 31.03.2018 01 00 01
Total 16 14 02

25 ANNUAL REPORT 2017-18

The period wise details of the cases are mentioned
below-
Number of cases pending from 0 to 6 months: 1
l
Number
l of cases pending from 6 months to 1
year: 1
Number of cases pending above 1 year: 0
l and the Board is kept informed.
The proceedings are in process for the pending 2
(two) cases and the Committee will ensure
expeditious resolving of the pending complaints.
ENTERPRISE RISK MANAGEMENT (ERM):
The significance of implementing Enterprise Risk
management (ERM) in the Company was
recognized early in this decade, when a business
risk assessment was carried out with the
assistance of BSI in the year 2010. Top executives
brainstormed and identified 215 raw business risks
to attain Company's strategic business goals,
profitability, customer service, growth of retail
business and international expansion. After
screening and clubbing similar business risks and
prioritization, the group identified 14 major risks
keeping in view its probability of occurrence, its
impact on business and control functions in
existence.
The risks identified include pricing, aging
employees, leadership, poverty of knowledge,
work culture, financial strength and solvency,
decision making, tie-ups, marketing channels,
underwriting, claims management, growth of non-
profitable business amongst others.
As a measure of enterprise wise level of risk
identification, creation of risk register, fixing of
tolerance limits, creation of awareness and
institutionalizing risk management across the
organization, the Company had selected M/s.
Pricewaterhouse Coopers as Risk Management
Consultant.
The Consultant has submitted the Risk Registers
for the identified departments. The consultant has
also submitted a Draft ERM Policy, and this Policy
along with Risk Registers have received the
approval of the Board. The ERM Department has
also recognized the need for reviewing the Risks
and thereby amending the Risk Registers, work for
which is planned in the ensuing financial year.
ANNUAL REPORT 2017-18
As a part of the Risk Management process, and to
comply with the IRDAI guidelines, the Company
has already a Board approved Anti-Fraud Policy
that addresses all the issues connected to the
dealing of fraud in the organization. Quarterly
report on frauds is obtained from operating offices
The Company has also constituted a "Fraud
Monitoring Cell" at Head Office in November 2017,
with the following main functions:
(a) Overall monitoring of implementation of the
Anti-Fraud Policy of the Company.
(b) Gathering and collating of information,
periodically, for internal and external frauds.
(c) Suggest methods, from time to time, to
improve effectiveness of Fraud Management
in the Company.
(d) Coordinate with GI Council for information
sharing through FRM Portal.
(e) Examine and extract mails relating to frauds
received in our dedicated id faf@nic.co.in.
(f) Coordinate with Regions/IA&ID/Vigilance to
obtain periodic reports of suspected/
established fraud, both, internal and
external.
(g) Assist for reporting frauds to the Risk
Management Committee/Board and
Regulator.
(h) Deal with cases reported under the 'Whistle
Blower Policy 2017'.
(i) Any other function, relating to fraud
management, that needs attention.
To enhance transparency within the Organization,
the Company's Board also passed a "Whistle
Blower Policy, 2017" in its 374th meeting held on
13th October 2017, which is now in place and
encourages internal customers to report
irregularities, whilst maintaining their confidentiality.
In addition, the Company has an Anti-Money
Laundering Policy, an Internal Audit and Vigilance
machinery to ensure internal discipline. Over and
above, the Company has Board approved
Underwriting Policy, Health Underwriting Policy
2017 & Reinsurance Policy that lays down the
26
broad framework of business acceptance in the
organization and dealing with different business
risks.
ESTATE ACTIVITIES:
Estate department is responsible for general
management of estate of the Company which
includes substantial Company owned as well as
leased properties. It deals with the allocation of
residential and commercial spaces, fixation of rent,
lease agreement, revenue realization, handing
over / taking over of the premises, litigations on
estate matters, putting up of proposal for
procurement of new immovable properties etc.
At the beginning of the financial year 2017-18 our
Company was having 33 Regional Offices, 357
Divisional Offices, 604 Branches including Direct
Agent's Branches and 747 Business Centres. Most
of these offices were operating from leased
premises.
Keeping in mind the need for declustering of offices
particularly at Metro cities and major cities, during
the year 2017-18, we have affected 105 leases for
office premises, which includes renewal of lease,
City Property Location
Mumbai Adarsh, Spring Mill Compound, Bhoiwada,
Dr.G.D.Ambedkar Road, Dadar (E).
Mumbai GIC Staff Quarters,Megathane,Building
No.11,Near Tata Power, Borivali (E)
Mumbai GIC Staff Quarters,
Building No.164, New Tilak Nagar, Chembur.
Kolkata Amber Apartments, 27/1, R.S.Khetri Road,
New Alipore, Kolkata.
Total
Total amount of purchase/acquisition made for
immovable properties during the financial year
2017-18 was for `3,18,00,999/-.
Office premises measuring built up area of 17574
sq. ft. purchased in Regency Plaza, Lucknow in FY
2016-17 is earmarked for accommodation of
Lucknow Regional Office. For the purpose of
interior furnishing of the newly acquired office
space, the Lucknow Regional Office has initiated
the necessary tendering process.
27
hiring of new premises and shifting of premises.
Rental outgo on lease for office premises during
the last two years is as under:
F.Y. 2016-17: `76.32crore
F.Y. 2017-18: `82.97crore
By shifting of Rajnandgaon Divisional Office to our
Company owned premises we shall save
`2,70,000/- on lease rent per year.
Till March, 2018 our Company possesses 25 office
premises, 579 flats and 3 vacant lands at 145
locations pan India. The plot of land jointly
purchased with GIC & three other PSGICs located
at Ahmedabad is meant for construction of office
premise. The Company is also in possession of two
vacant lands at Bokaro city, one is for construction
of office premise and the other is for construction of
residential/staff quarters.
During 2017-18, Estate department has acquired
the following immovable properties of erstwhile
Tariff Advisory Committee (TAC) through
Insurance Regulatory and Development Authority
Flat No. Average value of the
property (`)
A-511 2,00,46,950.00
11/205 48,78,094.00
5280 28,06,120.00
6A 40,69,835.00
3,18,00,999.00
Office premises at Core-III, SCOPE Minar, Delhi
having a super built up area of 24576 sq. ft.
purchased in the financial year 2016-17 for
accommodation of Delhi Regional Office-II, Delhi
Regional Office-III (DRO-III), Motor OD Hub and
National Legal Vertical (NLV) is now being
considered for housing of Delhi Regional Office-II,
Delhi Regional Office-III and NLV to match with the
available carpet area. Interior furnishing of the
premises is in progress, under supervision of
ANNUAL REPORT 2017-18
NBCC, from 3rd week of June, 2018, to be
completed in next 3-4 months.
In order to ensure effective utilization of vacant
office space which remained unutilized for a long
period, the Department leased out 612 sq. ft. of
office premises on the third floor of National
Insurance Building, 8 India Exchange Place,
Kolkata, to Health Insurance TPA of India Limited
for operation of their Branch Office in Kolkata for a
period of fifteen years effective from August 2017.
The new Corporate Office building of National
Insurance Company Limited is under construction
on a plot of land admeasuring 2.251 acres acquired
in 2014 from the Government of West Bengal at a
lease premium of `29.26 crore at Financial Hub,
New Town, Rajarhat, Kolkata. The project has
been entrusted to National Buildings Construction
Corporation Limited, New Delhi at an estimated
cost of `327.62 crore The Twin Tower plan of the
building shall consist of Tower-I (Front Tower:
G+17) and Tower-II (Rear Tower: G+14).The
construction work commenced in Aug-Sept 2017
and as on date the two level basement of both the
towers is under progress.
RESEARCH & DEVELOPMENT ACTIVITIES:
The Research and Development department has
continued with its efforts to develop innovative
products and revision of existing products keeping
in view the insurance regulations, emerging market
realities, Govt. of India initiatives and distribution
channel wise requirements.
In financial year 2017-18 the following products are
filed by R&D dept.-
a. New Health Products - National Super Top Up
Mediclaim Policy,
b. Revised Health Product - Pravasi Bharatiya
Bima Yojana 2017
c. New Motor Add-ons - Road Side Assistance
(Add-on to Private Car Package Policy)
d. New Crop Insurance Products as per
Government of India initiatives
1. Restructured Weather Based Crop
Insurance Scheme (RWBCIS)
2. CSC RWBCIS
e. New Misc. Product - Title Insurance Policy
ANNUAL REPORT 2017-18
f. Distribution Channel Specific Products
1. For Point of Sale (POS) channel - 19
numbers of Retail Policies (Rural products
and Motor add-ons)
In the year 2017-18, the department has received
approval for some product filed in previous fiscal,
and has implemented them in collaboration with the
user department and IT Dept.
National Critical Illness Policy
l
Motor Add-ons (6 nos.)
l
Also the Department has set a target of filing new
Senior Citizen Mediclaim Policy, reviewing the
existing Overseas Travel Policy, cobranded health
policies and package policies and introduction of a
few more new add-on covers for Motor policies and
Fire & Engineering policies.
OFFICIAL LANGUAGE IMPLEMENTATION:
As per Annual Programme of the Home Ministry,
Government of India, National Insurance Company
Limited is committed to promote Hindi as official
language in all its offices and accordingly doing
everything possible for its implementation
according to the guidelines of Government of India.
During 2017-18, in addition to the 03 Hindi
workshops organized at Head Office level, a total
no. of 67 such workshops were organized in our
various offices throughout the country. In such
workshops approximately 1700 employees
participated and they were trained to do more and
more of their official works on computers in Hindi
with the help of Unicode. Financial Services
Department, Government of India, inspected our
Gorakhpur DO, Jaipur RO and Head Office. Official
Language Committee of the Parliament also
inspected the works done in official language in our
Dharamshala BO, Bikaner DO and Vijaywada DO.
Both these types of inspection appreciated the
implementation of official language in our offices
and we were advised to take necessary steps
towards the shortcomings as pinpointed by them.
A total no. of 26 issues of the House Magazine of
our Head Office and our ROs were published
during this period in which the creativity and other
activities of our employees were highlighted. The
magazines of DRO-I and Pune Regional Office
were awarded by their respective TOLICs.
28
Besides, some magazines of our ROs were also
widely appreciated.
14th September was celebrated as Hindi Day and
14th September to 21st September 2017 as Hindi
Week in all our BOs, DOs, ROs and Head Office.
On this occasion several competitions were
organized for Hindi & Non Hindi employees in
which employees participated with great
enthusiasm and got the prizes.
To maintain the quality of translation work, a five
day Translation Training programme was
organized by the Central Translation Bureau in the
month of April, 2017 for our translators working in
our ROs. On 16 -17th March, 2018 an all India Hindi
Conference was also organized in Goa for our OL
Officers in which CMD shield was given for the best
OL implementation and publication of best house
magazines in A,B & C regions:
Implementation of OL:
'A 'Region - Jodhpur RO
'B' Region - Chandigarh RO
'C' Region - Kochi RO
Publication of House Magazine:
'A' Region - DRO -I
'B' Region - Baroda RO
'C' Region - Guwahati RO
Shri A.K. Acharya, General Manager (OL),
suggested implementing Official Language in our
offices more vigorously in 2018-19.
Our Company website has fully been made
bilingual and arrangements for making most of our
policies and insurance products bilingual are in the
final stage. As per rules of Official Language of the
Government of India, Company is taking care of all
other heads too in respect of implementation of
Official Language and that is the reason the efforts
of our Company are continuously being
appreciated.
IT INITIATIVES TO IMPROVE BUSINESS
PROCESS:
We could improve upon our endeavor to provide
v 24X7 Live Online Chat has gained high
customer service through various portals, core
insurance solution and Office-on-wheels as well
as communication channels through 24x7 Live
29
Chat Service, SMS Services and Toll Free
Number for Customers.
Implementation of Core Insurance Solution
The highly integrated Core Insurance
?
solution EASI has been rolled out at all
Offices of our Company except for eight
Offices, which also shall be rolled out into
EASI during 2018-19.
One Business Centre alone remains to be
?
rolled out into EASI, which also shall be rolled
out into EASI during 2018-19.
Online Portals
The 24x7 online Customer Portal for
?
issuance of new policies and renewal of
existing policies has generated Premium
Income of `118.5 crore in 2017-18 as
compared to ` 53.37 crore in 2016-17.
The Premium growth through Online
?
Customer Portal has been 122.02% over the
Premium earned from Online Channel in
2016-17.
The Policies issued through Online System
?
are integrated with the Policy database of the
Operating Office selected by the Customer.
The Agents Portal has generated Premium
?
Income of `231.30 crore in 2017-18 as
compared to `84.09 crore in 2016-17 which is
a growth by 175% during the year.
The aggregate Premium Income from all
?
Online Portals during 2017-18 was `422.85
crore, showing significant utilization of Online
Channels.
Financial Inclusion
Business Centers are operating across India
?
from relatively remote locations through web-
based applications.
Office-on-wheels i.e. fully equipped Mobile
?
Vans in several cities are operative since
2012 to facilitate easy access to customers.
Customer Communication Interface
?
usage for current and potential customers for
assisting them in the process of using Online
ANNUAL REPORT 2017-18
 Customer Portal as well as any other transactions, claim intimation, appointment
communication or clarification. of surveyors, renewal alerts, and grievance
Toll-Free Number is also consistently used
? status alerts etc.
by the Customers for communicating on new VIGILANCE:
and existing policies as well as other issues.
The year 2017-18 witnessed a lot of Vigilance
E-SMS Alerts and emails are pushed to
? activities concerning both Preventive and Punitive
Customers successfully utilizing our Online Vigilance. Periodic Inspection of 9 Regional Offices
Portal. was done in a time bound manner. These events
Our own Contact Centre with 100 seats to
? sent signals across the Organization that
start with is being set-up. irregularities had be avoided by cautious
IT Infrastructure Underwriting and prudent Claims management.

Digital Signature on the printed policy

?
The major thrust area for Vigilance was - Scrutiny of
document (HSM Device) is under Audit Reports and expeditious follow up of those
implementation. Audit queries which had Vigilance angle. There
was also a conscious effort to speed up Disciplinary
New Edge Cisco Routers with Security
? Proceedings by talking to the Disciplinary
Bundle installed at 975 Offices. Authorities and eliminating unnecessary delay in
Cisco Nexus Core Switches were installed in
? the Hearing of Inquiries.
Data Centre and Disaster Recovery Centre.
Vigilance Department examined more than 200
Conventional Modems installed at around
? complaints and disposed them promptly. As for
286 offices for bandwidth upgrade to 2 Mbps. Disciplinary Proceedings, 12 cases were disposed
Latest All Flash Array Storage has been
? within timeline. As on 31st March 2018, 19 cases
augmented for most efficient storage including 34 employees were pending, out of which
optimization at Data Centre, Disaster 3 cases are pending for more than 1 year.
Recovery Centre and Near Centre. The Field Vigilance Officers representing 29
Latest Backup equipment and solution are
? Regions did a satisfactory Surveillance assignment
installed and commissioned to replace the with 247 Surprise Inspections conducted for
old Setup at Data Centre and Disaster Operational Offices-DO/BO/Business Centres.
Recovery Centre.
Vigilance department conducted 2 Workshops for
Latest SAN Switch has been procured and
? Vigilance Officers at Jodhpur and Narendrapur.
installed for connectivity between servers These Training sessions gave them opportunities
and storage at Data Centre, Disaster to hone their skills and perform well in their field.
Recovery Centre and Near Centre. Vigilance activities played a proactive role in
Latest IBM Power 8 server has been
? assisting the Management in weeding out
procured and installed at Data Centre and persistent financial irregularities seen in some of
Disaster Recovery Centre for handling our the operational Offices.
quickly expanding Data Base requirements
The Vigilance Awareness Week Programmes
Centralized Renewal Notices conducted all over the country by our Vigilance
Centralized Renewal Notices are being sent
? Cells in coordination with the respective Regional
to all customers from Centralized location. Offices were very purposeful in disseminating the
CVC Theme for the year- 'My Vision- Corruption
Renewal alerts are also going through email
? free India'. These activities had the participation of
and SMS. Students in large numbers and it was a fillip to the
SMS Gateway cause of spreading the CVC message-'Need for a
corruption free India'. Vigilance Department has
SMS alerts are being sent at different levels
? been committed to the routine activities throughout
for different applications like online
the year without any let up.

ANNUAL REPORT 2017-18 30

INTERNAL AUDIT AND INSPECTION ACTIVITIES:
Objectives of Internal Audit
Our Internal Audit System is an important part of
Corporate Governance & Risk Management of the
Company. It is robust commensurate with the size
and nature of the business and is designed to carry
out inspection of the operating offices in order to
achieve following broad objectives.
To check reliability and integrity of the financial
l Centres, Branch offices, Divisional offices,
and operating records and ascertain that control
over such record keeping and reporting are
adequate and effective.
To check the effectiveness of systems
l The findings of the Internal Audit are placed before
established by the management for day to day
operations and suggest measures to improve
process of governance.
To assist the Management in developing and
l during the fiscal year 2017-18:
Regular Audits Technical Audits TPA (Units) Audit
703 515 29
Improvements in system and operations are
carried out regularly based on Internal Audit
findings. Compliance of Audit queries is an integral
part of overall control mechanism in the Company.
The outstanding queries are periodically
Outstanding as on Identified during
31st March 2017 the year
7163 3498
Investment function Audit:
As per the guidelines of IRDAI, concurrent audit of
investment operation of the insurer has to be
conducted by an external CA firm if the corpus is
more than `1000 crore and the Quarterly report is
to be sent to IRDAI. Accordingly, the concurrent
Audit of Investment operation is conducted by an
external audit firm and quarterly report duly
certified by the Concurrent Auditor is placed before
the Audit Committee and sent to IRDAI. Further, as
per guidelines of IRDAI, the Investment Risk
Management Systems and Processes shall be
implemented and the review of the implementation
31
establishing adequate internal control
measures.
To monitor compliance with laws, regulations,
l
internal policies, plans, procedures &
instructions and report on deviations thereof.
In pursuance of the same, Internal Audit and
Inspection Department, conducted various types of
audit viz. Technical/Transaction Audit of Business
Regional offices and various departments of Head
office, TPA Audits, Claims Hub Audits, Special
Audits and pre-incentive Audits of performance of
Development officers during the year under review.
the Audit Committee periodically for their review
and directives.
The following numbers of Audits were performed
Incentive Audits Special Audits
214 54
monitored at various stages of compliance level
and emphasized for early resolution.
During the fiscal year 2017-18, status of queries
raised, resolved and outstanding is as under:
Resolved/dropped Outstanding as on
during the year 31st March 2018
6367 4294
is to be certified once in two financial years by an
external CA firm. In compliance thereof, M/s. K.C
Bhattacherjee & Paul, Chartered Accountants,
have reviewed and certified the implementation of
the same vide their report dated 02nd February,
2018.
Re-insurance function Audit:
As per the advice of Audit Committee, the
Concurrent Audit for Reinsurance Accounts
Department was commenced through an
independent Chartered Accountant Firm since
November, 2015 and the same is still continuing.
ANNUAL REPORT 2017-18
Earnest actions were also initiated for compliance
of the Inspection Report (IR) issued by CAG and a
good number of IR paras were disposed off during
the fiscal year 2017-18. Simultaneously, Action
taken Notes (ATN) in respect of CAG paras were
also submitted through the Department of
Financial Services to accelerate disposal of the
same. IR paras dropped during the fiscal year
2017-18 are as follows:

Part-II(Paras) Part-II(Sub-paras) Amount involved

(Rs.in lakhs)
25 26 5112

IRDAI COMPLIANCE DEPARTMENT: presented at the Regional Office In-charges' Meet.

The Compliance department at Head Office is the
SPOC between IRDAI and the Company. We
comply with the Authority's regulations/ circulars/
guidelines and submit various IRDAI requirements
of monthly, quarterly, half yearly and annual
returns and other information as and when
required by IRDAI. We constantly liaison with
various departments for timely submission of
reports which are required by IRDAI. The reports
include periodical as well as random requirements.
IRDAI's Circulars/Guidelines/Regulations are
circulated among the departments regularly.
Exposure drafts are studied and our responses
and suggestions are given to IRDAI as per their
timelines.
Extra caution and care is taken while uploading
Non-life Public disclosure forms in the website of
the Company after thorough examination and
vetting.
Compliance department made presentations on
various non compliance issues and penalties
levied by the Regulator in the last 3 years among
all General Insurance Companies. The same was
This was done with a view to sensitize the
Operating Office heads on Compliance and
adhering to IRDAI regulations and also to avoid
penalties.
WHISTLE BLOWER POLICY:
The Company has put in place a Board approved
'Whistle Blower Policy' in compliance with the
IRDAI Guidelines on Corporate Governance with
the objective of reporting of any serious
irregularities or unfair practice or misconduct or
illegal activities occurring in the Company for better
transparency and governance. The Whistle Blower
Policy is also displayed on the website of the
Company.
PARTICULARS OF EMPLOYEES UNDER
C O M PA N I E S ( A P P O I N T M E N T A N D
REMUNERATION) RULES, 2014:
The name of top 10 employees in terms of
remuneration drawn along with other particulars as
prescribed under Rule 5(2) & Rule 5(3) of the
Companies (Appointment and Remuneration)
Rules, 2014) as on 31st March, 2018 is mentioned
below-

Sl. Name of the employee Designation Total

Remuneration
(`)
1. Shri Prasun Kumar Sarkar General Manager & Appointed Actuary 61,74,204.00
2. Shri Subhas Chandra Mitra Development Officer, Grade-I, Marketing 31,97,060.20
3. Shri Suresh Nandikeshwar Hegde Development Officer, Grade-I, Marketing 29,48,373.85
4. Shri Suresh Kumar Pawaiya Development Officer, Grade-I, Marketing 28,14,160.80
5. Shri K. Santosh Shetty Development Officer, Grade-I, Marketing 27,16,752.80
6. Shri Achintya Chatterjee Development Officer, Grade-I, Marketing 26,97,069.20

ANNUAL REPORT 2017-18 32

 Sl. Name of the employee
7. Shri Surendra Venkappa Machakanur
8. Shri B. Venkatramana Mallya
9. Shri Melwyn Johnson Peris
10. Shri Behari Lal Warikoo
PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS UNDER SECTION 186 OF THE
COMPANIES ACT, 2013:
The Company has not made any loans,
guarantees or investments pursuant to the
provisions of Section 186 of the Companies Act,
2013.
RELATED PARTY TRANSACTIONS:
During the financial year 2017-18, the Company
has entered into a related party transaction with
our Associate Company 'Health Insurance TPA of
India Limited' on arms length basis in compliance
with the provisions of Section 188 of the
Companies Act, 2013. The details are disclosed in
Form AOC-2 appended as Annexure-D to this
Report.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 134(5) of the Companies Act,
2013, the Directors hereby confirm that -
i) in preparation of the Annual Accounts for
the financial year ended 31 March 2018,
st
the applicable accounting standards had
been followed along with proper
explanation relating to material
departures, if any,
ii) they have selected such accounting
policies and applied them consistently
and made judgements and estimates that
are reasonable and prudent so as to give a
true and fair view of the state of affairs of
the Company at the end of the financial
year and of the profit or loss of the
Company for that period,
iii) they had taken proper and sufficient care
for the maintenance of adequate
Designation Total
Remuneration
(`)
Development Officer, Grade-I, Marketing 26,41,771.05
Development Officer, Grade-I, Marketing 26,14,271.80
Development Officer, Grade-I, Marketing 25,83,643.01
Development Officer, Grade-I, Marketing 24,40,362.85
accounting records in accordance with the
provisions of the Companies Act, 2013 for
safeguarding the assets of the Company
and for preventing and detecting fraud and
other irregularities,
iv) they had prepared the annual accounts on
a going concern basis; and
v) they had devised proper systems to
ensure compliance with the provisions of
all applicable laws and that such systems
were adequate and operating effectively.
SUBORDINATED DEBT:
The Company has listed its Non-convertible
Debentures on BSE Limited & National Stock
Exchange of India Limited. The interest on
debentures for the first year was due for payment
@8.35% p.a. on `895 crore on 27th March, 2018.
Record Date of 12th March, 2018 was fixed for the
purpose of payment of interest to the debenture
holders whose names appeared in the beneficiary
position of National Securities Depository Limited
(NSDL) and Central Depository Services (India)
Limited (CDSL). Accordingly, an interest
amounting to `74,73,25,000/- was paid to the 139
number of debenture holders on 27th March 2018.
As per the requirement of SEBI, Credit Rating in
respect of the debt securities were obtained from
two premier credit rating agencies of India, CRISIL
Limited and ICRA Limited, who have reaffirmed the
rating as "AAA Negative" and "AA+ Stable"
respectively to the debt instrument of the
Company.
SBICAP Trustee Company Limited is the
Debenture Trustee for non-convertible debentures
and the details are as follows-
33 ANNUAL REPORT 2017-18
 Contact person Shri Ajit Joshi
Designation Company Secretary & Compliance Officer
Official Address Apeejay House, 6th Floor, 3, Dinshaw Wachha Road, Churchgate, Mumbai- 400020
Telephone (022) 4302-5555
Fax (022) 2204-0465
Email corporate@sbicaptrustee.com
Website www.sbicaptrustee.com

RCMC Share Registry Private Limited is the Registrar & Transfer Agent (RTA) for non-convertible
debentures and the details are as follows-

Contact person Shri Ravinder Dua

Designation Manager (Systems)
Official Address B-25/1, OKHLA Industrial Area Phase II, New Delhi- 110020
Telephone (011) 2638-7320
Fax (011) 2638-7322
Email rdua@rcmc.com
Website www.rcmcdelhi.com

CONSOLIDATED FINANCIAL STATEMENTS: effectively for ensuring the accuracy and

Your Company's Board of Directors is responsible
for the preparation of the consolidated financial
statement of the Company including its Associate
Companies in terms of the requirement of Section
129 read with Rule 5 of the Companies (Accounts)
Rules, 2014 and in accordance with the applicable
Accounting Standards. The consolidated financial
statements are appended and forms part of this
Report.
The respective Board of Directors of the Company
and of its Associates is responsible for
maintenance of adequate accounting records in
accordance with the provisions of the Act for
safeguarding the assets and for preventing and
detecting frauds and other irregularities; the
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and the design,
implementation and maintenance of adequate
internal financial controls, that were operating
completeness of the accounting records, relevant
to the preparation and presentation of the financial
statements that give a true and fair view and are
free from material misstatement, whether due to
fraud or error, which have been used for the
purpose of preparation of the consolidated
financial statements.
CORPORATE GOVERNANCE:
Insurance Regulatory and Development Authority
of India vide circular ref. no. IRDA /F&A/ GDL/ CG/
100/05/2016 dated 18th May 2016 has amended
the Corporate Governance Guidelines for insurers
in India in line with the changes brought about by
the Companies Act, 2013. It also combines the
stipulations regarding the Corporate Governance
practices, appointment of Managing Director/Chief
Executive Officer/Whole-time Director and other
Key Management Persons well as the appointment
of statutory auditors of insurers.

ANNUAL REPORT 2017-18 34

Board of Directors
The changes in directorship of the Company is as follows-
Sl. Name of the Director
1. Shri K. Sanath Kumar
2. Shri M. Vasantha Krishna,
General Manager
3. Shri Rakesh Kumar,
General Manager
4. Shri John Pulinthanam,
General Manager
5. Shri Ravi Krishan Takkar,
Managing Director and Chief
Executive Officer, UCO Bank
6. Shri Sivaraman Mahadevan,
Part-time Non-official Director
7. Shri Sudhakar Pahi,
Part-time Non-official Director
8. Shri B.N. Narasimhan,
General Manager
Designation
Chairman-cum-Managing Director
Whole-time Director
Whole-time Director
Regularized as Whole-
time Director at the 110th
AGM held on 22.09.2017
Regularized as Independent
Director at the 110th
AGM held on 22.09.2017
Additional Director
(Independent)
Additional Director
(Independent)
Whole-time Director
Tenor
18.02.2016 to 30.04.2018
04.02.2015 to 31.03.2018
15.05.2017 to 31.05.2017
20.06.2017 to present
03.02.2017 to present
29.09.2017 to present
29.09.2017 to present
11.05.2018 to present

The Board conveyed their sincere appreciation for
the valuable contributions made by the outgoing
members during their tenure as Directors of the
Company.
The Ministry of Finance has assigned an additional
charge of the post of officiating Chairman-cum-
Managing Director of the Company jointly to Shri
John Pulinthanam and Shri B.N. Narasimhan,
General Managers & Directors with effect from 11th
May 2018 for a period of three months in the place
of Shri K. Sanath Kumar, ex-CMD.
Shri K. Sanath Kumar has retired from the services
of the Company on 30th April 2018 on attaining the
age of superannuation and during his tenure National
Insurance has witnessed his dynamic leadership
which steered the organisation to the path of rapid
growth resulting in higher visibility of the Company
in the competitive general insurance industry.

Changes in Key Managerial Personnel as per Companies Act, 2013:

Sl. Name of the Director Date of Appointment & Designation Date of Cessation
1. Shri K. Sanath Kumar Appointed as Chairman-cum- Retired on 30.04.2018
Managing Director on 18.02.2016
2. Shri M. Vasantha Krishna, Appointed as Whole-time Director Retired on 31.03.2018
General Manager on 04.02.2015
3. Shri Rakesh Kumar, Appointed as Whole-time Director Retired on 31.05.2017
General Manager on 15.05.2017
4. Shri John Pulinthanam, Appointed as Whole-time Director _
General Manager on 20.06.2017

35 ANNUAL REPORT 2017-18

 Sl. Name of the Director Date of Appointment & Designation Date of Cessation
5. Shri B.N. Narasimhan, Appointed as Whole-time Director _
General Manager on 11.05.2018
6. Smt. M. Sashikala, Appointed as Chief Financial Officer Transferred to GIC Re
General Manager on 01.12.2015 on 27.12.2017
7. Shri P. Vijaya Kumar, Appointed as Chief Financial Officer _
General Manager on 27.12.2017

Changes in Key Management Persons as per IRDAI Guidelines:

Sl. Name of KMP Date of Appointment & Designation Date of Cessation

1. Shri K. Sanath Kumar Appointed as Chairman-cum-Managing Retired on 30.04.2018
Director on 18.02.2016
2. Shri M. Vasantha Krishna, Joined as General Manager on
General Manager 19.01.2015 and Retired on 31.03.2018
appointed as Whole-time
Director on 04.02.2015
3. Shri Rakesh Kumar, Appointed as Whole-time Retired on 31.05.2017
General Manager Director on 15.05.2017
4. Shri John Pulinthanam, Appointed as Whole-time _
General Manager Director on 20.06.2017
5. Shri B.N. Narasimhan, Appointed as Whole-time _
General Manager Director on 11.05.2018
6. Smt. M. Sashikala, Appointed as General Manager Transferred to GIC Re
General Manager on 30.05.2014 on 27.12.2017
Appointed as Chief Financial
Officer on 01.12.2015
7. Shri K.B. Vijay Srinivas, Appointed as General Manager Transferred to
General Manager on 10.08.2015 United India Insurance
on 29.06.2018
8. Smt. Shobha G. Reddy, Appointed as General Manager _
General Manager on 09.07.2018
9. Shri S.K. Samantaray, Appointed as General Manager _
General Manager on 09.07.2018
10. Shri Ravi, General Manager Appointed as General Manager _
on 09.07.2018
11. Smt. Sophia Singh, Appointed as General Manager _
General Manager on 09.07.2018

ANNUAL REPORT 2017-18 36

 Sl. Name of KMP Date of Appointment & Designation Date of Cessation
12. Shri P. Vijaya Kumar, Appointed as General Manager _
General Manager on 09.07.2018
Appointed as Chief Financial _
Officer on 27.12.2017
Appointed as Chief Investment upto 21.08.2017
Officer on 22.09.2016
13. Smt. Sunita Tuli Nagpal, Appointed as Chief Investment Officer _
Deputy General Manager on 22.08.2017
14. Smt. Anita Das, Appointed as Chief Compliance _
Chief Manager Officer of IRDAI on 03.07.2017

NUMBER OF BOARD & COMMITTEE the Board on the date of adoption of this Report is
MEETINGS CONDUCTED DURING THE as follows:
FINANCIAL YEAR 2017-18:
Category Number of
Statement showing number of Board & Committee Directors
meetings held during the financial year 2017-18 is
appended as Annexure-E to this Report. Executive Director 2
COMPOSITION OF THE BOARD: Non-Executive Director-
The Board of the Company comprises of Executive Government
l Nominee Director 1
and Non-Executive Directors. The composition of Independent
l Director 3

REMUNERATION TO DIRECTORS & KEY MANAGEMENT PERSONS (KMPS) :

Chairman-cum-Managing Director as per Central Government norms.

Executive Directors & KMPs
Non-executive Directors
as per Company norms.
Sitting fees is paid for attending the meeting of Board & sub-
committees of the Board as per Government norms i.e.,
`20,000/- per Board Meeting & `10,000/- per Committee
Meeting. However, no sitting fee is paid to the government
nominee director and Independent director representing bank.
The sitting fees paid to Shri Sivaraman Mahadevan and Shri
Sudhakar Pahi, Part-time Non-Official Directors for the financial
year 2017-18 is `2,70,000/- each (includes 5 Board Meetings &
17 sub-Committee meetings).

CODE OF CONDUCT: A N N U A L D E C L A R AT I O N MADE BY

The Company has formulated a Code of Conduct
for Board of Directors and Senior Management, in
compliance with Regulation 17(5) of SEBI (Listing
Obligations and Disclosure Requirements)
Regulations, 2015 as a measure towards good
corporate governance. The Code of Conduct is
also displayed on the website of the Company.
INDEPENDENT DIRECTORS:
During the financial year 2017-18, the Company
has received annual declarations from Shri Ravi
Krishan Takkar, Shri Sivaraman Mahadevan and
Shri Sudhakar Pahi, Independent Directors of the
Company in terms of the provision of Section
149(7) of the Companies Act, 2013.

37 ANNUAL REPORT 2017-18

SEBI GUIDELINES: Committee meetings were held during the year
As the Company has listed its Non-convertible 2017-18.
Debentures on BSE Limited & National Stock During the year, the Remuneration Committee has
Exchange of India Limited, we need to comply with been re-constituted by the Board and the
the provisions of Securities and Exchange Board of Committee on the date of adoption of this Report
India (Listing Obligations and Disclosure comprises of the following members-
Requirements) Regulations, 2015 as contained in Shri Ravi Krishan Takkar (Chairman)
l
Chapter III & V. We are also complying with some of
the provisions as contained in Chapter IV of the Ms. Bhumika Verma
l
SEBI Regulations, 2015 as a measure towards Shri Sivaraman Mahadevan
l
good corporate governance and for better
transparency to the stakeholders of the Company. Shri Sudhakar Pahi
l

CORPORATE SOCIAL RESPONSIBILITY: STAKEHOLDERS RELATIONSHIP COMMITTEE:

The Corporate Social Responsibility Committee In line with the provisions of Regulation 20(1) of
has been re-constituted by the Board and SEBI (Listing Obligations and Disclosure
comprises of the following members as on the date Requirements) Regulations, 2015 and Rules made
of adoption of this Report- there under, the Company has constituted a
'Stakeholders Relationship Committee' of the
Shri John Pulinthanam (Chairman)
l Board comprises of the following members:
Shri B.N. Narasimhan
l Shri Sudhakar Pahi (Chairman)
l
Ms. Bhumika Verma
l Shri John Pulinthanam
l
Shri Sivaraman Mahadevan
l Shri B.N. Narasimhan
l
Shri Sudhakar Pahi
l Ms. Bhumika Verma
l
The Company has been taking keen initiative in Shri Sivaraman Mahadevan
l
implementing its CSR activities in line with the
provision of Section 135 of the Companies Act, The Committee will specifically look into the
2013 and Rules made thereunder. The Annual mechanism of redressal of grievances of
Report detailing the CSR activities during the shareholders, debenture holders and other
financial year 2017-18 is appended as Annexure-F security holders. No meeting was held during the
to this Report. year 2017-18.

AUDIT COMMITTEE: STATUTORY AUDITORS:

The Audit Committee has been re-constituted by M/s. S. Ghose & Co. LLP, Chartered Accountants
the Board and comprises of the following members and M/s. Saha Ganguli & Associates, Chartered
as on the date of adoption of this Report- Accountants were re-appointed as Statutory
Auditors of the Company for the financial year
Shri Ravi Krishan Takkar (Chairman)
l 2017-18 by the Comptroller & Auditor General of
Ms. Bhumika Verma
l India in terms of Section 139 of the Companies Act,
2013. The Auditors were also appointed/re-
Shri Sivaraman Mahadevan
l
appointed for various Regional offices, Operating
Shri Sudhakar Pahi
l offices and foreign branches. The Board of
REMUNERATION COMMITTEE: Directors convey their sincere appreciation to the
Auditors for their valuable guidance and support.
Remuneration Committee was constituted by the
Company in the year 2008 for determining the SECRETARIAL AUDITOR:
Performance Linked Incentive of Chairman-cum- In terms of the provision of Section 204 of the
Managing Director which is based on the Ministry's Companies Act, 2013, M/s. H.M. Choraria & Co.
Performance Evaluation Matrix. Two Remuneration (CP-1499), Practicing Company Secretaries,

ANNUAL REPORT 2017-18 38

Kolkata has been re-appointed as the Secretarial
Auditor to conduct Secretarial Audit of the
Company for the financial year 2017-18. The
EXPLANATION ON THE COMMENTS MADE BY THE SECRETARIAL AUDITOR IN THEIR REPORT
DATED 19TH JULY 2018:
Sl. Comments made by Secretarial Auditor
1. The company had only one Independent
director up to 28th September, 2017 as against
the requirement of minimum two directors
pursuant to the provisions of sub-section(4) of
section 149 of the Companies Act, 2013, read
with Rules prescribed under the laws,
However, it was informed that the company
had made representations to the Ministry, to
nominate the director.
2. The company has listed its debt securities on
NSE and BSE with effect from 07.04.2017 and
10.04.2017 respectively. We understand that
the Company is also complying with Chapter
IV of the LODR Regulations though it is not
applicable to them, beside the applicable
Regulations as laid down in Chapter V of the
SEBI (LODR) Regulations, 2015, save and
except, the annual and half-yearly financial
results of the company along with limited
review were not declared within 60 & 45 days
respectively. It was noted that the same was
published pursuant to the IRDAI Guidelines
and subsequently sent to the Stock
Exchanges.
INTERNAL AUDITOR:
Shri M.K. Roy, Chief Manager (IA&ID) was
appointed as an Internal Auditor of the Company on
26th June 2016 in compliance with the provision of
Section 138 of the Companies Act, 2013 & Rules
made thereunder.
Consequent to the transfer of Shri M.K. Roy has
been promoted as Deputy General Manager and
transferred to Estate Department, Head Office,
Shri Rajeev Gupta, Chief Manager, FCA, presently
posted at Internal Audit and Inspection department
at Head Office has been appointed as an Internal
Auditor of the Company on 23rd April 2018 in
compliance with the above provision.
39
Secretarial Audit Report in Form MR-3 for the
financial year 2017-18 is appended as
Annexure-G to this Report.
Management's Reply
The Ministry vide their order dated 29th September
2017 has appointed two Independent Directors on
the Board of the Company with immediate effect.
It is submitted that the Board has adopted the
annual financial results for the year ended 31st
March 2017 and audited half-yearly financial
results ended 30th September 2017 at its meeting
held on 3rd July 2017 & 6th December 2017
respectively.
The said results were published in newspapers as
per IRDAI Regulations & uploaded on the
Company's website.
DETAILS OF PERFORMANCE OF PERSONAL
LINES INSURANCE:
The performance of Personal Lines Insurance is
detailed and shown in Annexure-H to this Report.
EXTRACT OF ANNUAL RETURN:
In accordance with Section 134(3)(a) of the
Companies Act, 2013, an extract of the Annual
Return in Form MGT-9 is appended as Annexure-I
to this Report.
AUDIT BY COMPTROLLER AND AUDITOR-
GENERAL OF INDIA
The Board of Directors convey their sincere thanks
to the Comptroller and Auditor-General of India, the
ANNUAL REPORT 2017-18
Chairman of the Audit Board, Principal Director of
Commercial Audit and ex-officio Member, Audit
Board-II, Kolkata for their valuable guidance and
co-operation.
PLACEMENT OF ANNUAL REPORT BEFORE
THE PARLIAMENT
The Annual Report & Accounts of the Company will
be placed before both the Houses of the Parliament
under Section 394 of the Companies Act, 2013.
The Annual Report of our Company for the financial
year 2016-17 along with the Directors' Report has
been laid in the Rajya Sabha and Lok Sabha as
under:
Rajya Sabha - 19th December 2017
Lok Sabha - 22nd December 2017
ACKNOWLEDGEMENT
The Board of Directors wishes to place on record
their appreciation for the commendable work done
by the officers and other classes of employees
comprising of development officers and staff at all
levels in rendering efficient services to the
For and on behalf of the Board of Directors
(John Pulinthanam)
Officiating Chairman-cum-Managing Director (Joint in-charge)
Kolkata
19th July 2018
ANNUAL REPORT 2017-18
policyholders thereby contributing to the
performance of the Company. The Directors also
deeply appreciate the confidence reposed in the
Company by a wide spectrum of its existing as well
as the new client base and the debenture holders.
The Directors acknowledge the excellent support
extended by overseas Reinsurers and the General
Insurance Corporation of India (GIC Re) as the
National Reinsurer in placement of Company's
Reinsurance business.
The Directors would also like to place on record
their gratitude and deep appreciation of the support
and guidance received from the senior officials of
the Insurance Division, Ministry of Finance,
Department of Financial Services, Government of
India and General Insurers' (Public Sector)
Association of India (GIPSA), General Insurance
Council of India, Securities and Exchange Board of
India (SEBI), Stock Exchanges, Depositories,
Credit Rating Agencies, Debenture Trustee,
Registrar & Transfer Agent and from the Insurance
Regulatory and Development Authority of India
(IRDAI) in the management of the affairs of the
Company.
(B.N. Narasimhan)
40
 ANNEXURE – A

COMPLIANCE CERTIFICATE
(In compliance with Regulation 17(8) of SEBI (LODR) Regulations, 2015)

We do hereby certify that-

A. We have reviewed the financial statement and the cash flow statement for the financial year 2017-18
and that to the best of our knowledge and belief:

(1) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
(2) these statements together present a true and fair view of the listed entity's affairs and are in
compliance with existing accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during
the relevant year which are fraudulent, illegal or violative of the listed entity's code of conduct.

C. We accept the responsibility for establishing and maintaining internal controls for financial reporting and
that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to
financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the
design or operation of such internal controls, if any, of which they are aware and the steps they have
taken or propose to take to rectify these deficiencies.

D. We have indicated to the auditors and the Audit committee

(1) Significant changes in internal control over financial reporting during the year;
(2) Significant changes in accounting policies during the year and that the same have been disclosed
in the notes to the financial statements; and
(3) instances of significant fraud of which they have become aware and the involvement therein, if any,
of the management or an employee having a significant role in the listed entity's internal control
system over financial reporting.

(P. Vijaya Kumar) (John Pulinthanam) (B.N. Narasimhan)

Chief Financial Officer Chief Executive Officer

19th July 2018

41 ANNUAL REPORT 2017-18

 ANNEXURE – B

CEO & CFO CERTIFICATION

(In compliance of the IRDAI circular dated 28th January, 2010)

We do hereby certify that to the best of our knowledge & belief the financial results for the year ended 31st
March 2018 as placed before the Board of Directors of the Company do not contain any false or
misleading statement or figures. Further, to the best of our knowledge & information the said financial
statements do not omit any material fact which may make the statement(s) or figures contained therein
misleading.

(P. Vijaya Kumar) (John Pulinthanam) (B.N. Narasimhan)

Chief Financial Officer Chief Executive Officer

19th July 2018

ANNEXURE – C

CERTIFICATION FOR COMPLIANCE OF THE CORPORATE GOVERNANCE GUIDELINES

(In compliance of the IRDAI circular dated 29th January, 2010)

I, Rina Madia, hereby certify that the Company has complied with the Corporate Governance Guidelines for
Insurance Companies, as amended from time to time, and nothing has been concealed or suppressed.

(Rina Madia)
Company Secretary

ANNUAL REPORT 2017-18 42

 ANNEXURE – D
FORM NO. AOC -2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014.
Form for Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred
to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arms length transaction under third
proviso thereto for the financial year 2017-18.
1. Details of contracts or arrangements or transactions not at Arm's length basis.

SL. Particulars Details

No.
a) Name (s) of the related party & nature of relationship Nil
b) Nature of contracts/arrangements/transaction Nil
c) Duration of the contracts/arrangements/ transaction Nil
d) Salient terms of the contracts or arrangements or transaction including the value, if any Nil
e) Justification for entering into such contracts or arrangements or transactions' Nil
f) Date of approval by the Board Nil
g) Amount paid as advances, if any Nil
h) Date on which the special resolution was passed in General meeting as required Nil
under first proviso to section 188
2. Details of contracts or arrangements or transactions at Arm's length basis.
SL.No. Particulars Details
a) Name(s) of the related party & Health Insurance TPA of India Limited (HITPA)
Nature of relationship HITPA is an Associate Company of National Insurance
Company Limited.
b) Nature of contracts/ Leasing of office premises on 3rd floor of National Insurance
arrangements/ transaction Building (Ruby House), 8, India Exchange Place, Kolkata w.e.f.
1st August 2017
c) Duration of the contracts/ 15 years (5+5+5) with 25% increment at the end of every five
arrangements/transaction year.
d) Salient terms of the contracts Lease Agreement has been executed registered. The Lessee
or arrangements or transaction (HITPA) paid 50% of the stamp duty on the original and
including the value, if any duplicate lease. The monthly rent is `79,000/- plus KMC tax &
surcharge and electricity charges for an area of 612 sq. ft. on
proportionate basis.
e) Date of approval by the Board The approval from the Board was not required as the
transaction was on arm's length basis.
However, the members of the Audit Committee have approved
the leasing of said office premises through circular resolution
dated 19th May 2017.
The circular resolution was ratified by the members of the Audit
Committee at their meeting held on 3rd July 2017.
f) Amount paid as advances, if any 3 months basic rent (@ `105 per sq. ft. per month) total
`192780/- being payable in advance as security deposit, which
will be refundable, without any interest on termination of lease.

43 ANNUAL REPORT 2017-18

 ANNEXURE – E
STATEMENT SHOWING THE NUMBER OF BOARD/COMMITTEE MEETINGS HELD DURING
THE FINANCIAL YEAR 2017-18 AND ATTENDANCE OF THE DIRECTORS/MEMBERS THEREAT
1. BOARD MEETING
No. of meetings held: 7

Date of Meetings
Name of the Directors
03/07/2017 22/08/2017 13/10/2017 06/12/2017 13/02/2018 27/02/2018 22/03/2018
Shri K. Sanath Kumar, CMD Present Present Present* Present Present Present Present
Ms. Bhumika Verma,
Absent Absent Present* Present Present* Absent Present*
Government Nominee
Shri M. Vasantha Krishna,
Present Present Present Present Present Present Present
Whole-time Director
Shri John Pulinthanam,
Present Present Present Present Present* Present Present
Whole-time Director
Shri Ravi Krishan Takkar,
Present Present Present* Present Present Present Present
Independent Director
Shri Sivaraman Mahadevan,
Independent Director - - Present Present Present Present Present*
(appointed on 29/09/2017)
Shri Sudhakar Pahi,
Independent Director - - Present Present Present Present Present
(appointed on 29/09/2017)
Shri Rakesh Kumar,
Whole-time Director
- - - - - - -
(from 15/05/2017 to
31/05/2017)

*(Attended through Video Conference)

No. of meetings held: 5

Date of Meetings
Name of the Members
03/07/2017 22/08/2017 06/12/2017 27/02/2018 22/03/2018
Shri Ravi Krishan Takkar (Chairman) Present Present Present Present Present
Ms. Bhumika Verma Absent Absent Present Absent Present*
Shri M. Vasantha Krishna
Present Present - - -
(ceased on 23/11/2017)
Shri Sivaraman Mahadevan
- - Present Present Present*
(w.e.f. 23/11/2017)
Shri Sudhakar Pahi
- - Present Present Present
(w.e.f. 23/11/2017)
*(Attended through Video Conference)

ANNUAL REPORT 2017-18 44

 No. of meetings held: 4

Date of Meetings
Name of the Members
21/06/2017 13/10/2017 06/12/2017 27/02/2018
Shri K. Sanath Kumar (Chairman) Present Present* Present Present
Ms. Bhumika Verma Present Present* Present Absent
Shri M. Vasantha Krishna Present Present Present Present
Shri John Pulinthanam (w.e.f. 26/07/2017) - Present Present Present
Shri Ravi Krishan Takkar (w.e.f. 23/11/2017) - - Present Present
Shri Sivaraman Mahadevan (w.e.f. 23/11/2017) - - Present Present
Shri Sudhakar Pahi (w.e.f. 23/11/2017) - - Present Present
Smt. M. Sashikala (ex-Chief Financial Officer-
Present Present Present -
ceased on 27/12/2017)
Shri Prasun Kumar Sarkar (Appointed Actuary) Present Absent Present Present
Shri P. Vijaya Kumar Present - - Present
(Chief Financial Officer- w.e.f. 27/12/2017) (as CIO) (as CFO)
(Chief Investment Officer- ceased on 21/08/2017)
Smt Sunita Tuli Nagpal - Present Present Present
(Chief Investment Officer-w.e.f. 22/08/2017)
Shri J. Sengupta, Chief Risk Officer Present Present Present Present
*(Attended through Video Conference)

4. RISK MANAGEMENT COMMITTEE (Mandatory)

No. of meetings held: 4
Date of Meetings
Name of the Members
21/06/2017 13/10/2017 06/12/2017 27/02/2018
Shri K. Sanath Kumar (Chairman) Present Present* Present Present
Ms. Bhumika Verma Present Present* Absent Absent
Shri M. Vasantha Krishna Present Present Present Present
Shri John Pulinthanam (w.e.f. 26/07/2017) - Present Present Present
Shri Sivaraman Mahadevan (w.e.f. 23/11/2017) - - Present Present
Shri Sudhakar Pahi (w.e.f. 23/11/2017) - - Present Present
Shri J. Sengupta (Chief Risk Officer) Present Present Present Present
*(Attended through Video Conference)

45 ANNUAL REPORT 2017-18

5. POLICYHOLDER PROTECTION COMMITTEE (Mandatory)
No. of meetings held: 4

Date of Meetings
Name of the Members
21/06/2017 13/10/2017 06/12/2017 27/02/2018
Shri K. Sanath Kumar Present Present* Present Present
Ms. Bhumika Verma (Chairperson) Present Present* Absent Absent
Shri M. Vasantha Krishna Present Present Present Present
Shri John Pulinthanam (w.e.f. 26/07/2017) - Present Present Present
Shri Sivaraman Mahadevan (w.e.f. 23/11/2017) - - Present Present
Shri Sudhakar Pahi (w.e.f. 23/11/2017) - - Present Present
*(Attended through Video Conference)

6. HR COMMITTEE
No. of meetings held: 1
Date of Meeting
Name of the Members
22/08/2017
Shri K. Sanath Kumar (Chairman) Present

Ms. Bhumika Verma Absent

Shri M. Vasantha Krishna Present

Shri John Pulinthanam (w.e.f. 26/07/2017) Present

Shri Sivaraman Mahadevan (w.e.f. 23/11/2017) -

Shri Sudhakar Pahi (w.e.f. 23/11/2017) -

7. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE (Mandatory)

No. of meetings held: 3
Date of Meetings
Name of the Members
03/07/2017 06/12/2017 27/02/2018
Shri K. Sanath Kumar (Chairman) Present Present Present
Ms. Bhumika Verma Absent Present Absent
Shri M. Vasantha Krishna Present Present Present
Shri John Pulinthanam (w.e.f. 26/07/2017) - Present Present
Shri Sivaraman Mahadevan (w.e.f. 23/11/2017) - Present Present
Shri Sudhakar Pahi (w.e.f. 23/11/2017) - Present Present

ANNUAL REPORT 2017-18 46

8. IT COMMITTEE
No. of meetings held: 5

Date of Meetings
Name of the Members
27/06/2017 22/08/2017 06/12/2017 13/02/2018 27/02/2018
Shri K. Sanath Kumar (Chairman) Present Present Present Present Present
Shri Ravi Krishan Takkar
Present Present Present Present Present
(w.e.f. 21/06/2017)
Shri M. Vasantha Krishna Present Present Present Present Present
Shri John Pulinthanam
- Present Present Present* Present
(w.e.f. 26/07/2017)
Shri Sivaraman Mahadevan
- - Present Present Present
(w.e.f. 23/11/2017)
Shri Sudhakar Pahi
- - Present Present Present
(w.e.f. 23/11/2017)
*(Attended through Video Conference)

9. NOMINATION & REMUNERATION COMMITTEE (Mandatory)

No. of meetings held: 2

Date of Meetings
Name of the Members
22/08/2017 13/02/2018
Shri Ravi Krishan Takkar (Chairman w.e.f. 26/07/2017) Present Present
Shri K. Sanath Kumar (w.e.f. 26/07/2017) Present Present
Ms. Bhumika Verma Absent Present*
Shri Sivaraman Mahadevan (w.e.f. 23/11/2017) - Present
Shri Sudhakar Pahi (w.e.f. 23/11/2017) - Present

*(Attended through Video Conference)

10. REMUNERATION COMMITTEE

No. of meetings held: 2

Date of Meetings
Name of the Members
13/02/2018 22/03/2018
Shri Ravi Krishan Takkar (w.e.f. Chairman-26/07/2017) Present Present
Ms. Bhumika Verma Present* Present*
Shri Sivaraman Mahadevan (w.e.f. 23/11/2017) Present Present*
Shri Sudhakar Pahi (w.e.f. 23/11/2017) Present Present
*(Attended through Video Conference)

11. No meetings of Property Review Committee and Stakeholders Relationship Committee took
place during the year 2017-18.

47 ANNUAL REPORT 2017-18

 ANNEXURE - F
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES
1. A brief outline of the Company's CSR Policy, including overview of projects or programs
proposed to be undertaken and a reference to the web-link to the CSR policy and projects of
programs.
As a responsible Corporate, National Insurance believes in contributing to the community at large
through initiatives which will have Social, Economic and Environmental impact. Accordingly, the
Company's CSR policy has been formulated wherein all activities as enlisted in Schedule VII of the
Companies Act are incorporated. In our CSR Policy the following have been kept as the focus areas –
? ? Education/Literacy Enhancement & Vocational training.?
? Sanitation & drinking water projects including rain water harvesting.
? ? Healthcare/Medical Facility.
? ? Welfare & Rehabilitation of underprivileged & differently abled persons.
? ? Environment Protection.
? ? Relief to victims of natural calamities/disasters.
? Any other area of contemporary importance.
The CSR Policy and Projects undertaken by the Company are displayed on the website of the
Company at www.nationalinsuranceindia.com.
Overview of the projects or programs undertaken during the financial year 2017-18:
a. Salt Lake City Prayasam – Community Kitchen Project :
The Salt Lake City Prayasam is an NGO and partner of UNICEF engaged from the past 20 years in
fulfilling the right to education, health needs and holistic development of less privileged children in
West Bengal. The Company has provided funds for setting up of Community Kitchen- Prasad at
the premises of the NGO Prayasam's administrative office to provide low cost nutritious food to the
children in nearby 12 Communities.
b. Ramakrishna Mission Ashrama, Cherrapunji- Computed Radiography System:
The Ramakrishna Mission, Cherrapunji is a branch of renowned philanthropic organization
founded by the patriotic saint Swami Vivekananda, headquartered at Belur Math, West Bengal.
They are engaged in rendering multifarious services in the field of education, health care and
social upliftment for more than 86 years in Cherrapunji. The Company has provided for the
Cherrapunji Ashrama - one computed radiography system for providing medical services to the
underprivileged people.
c. Hare Krishna Community, Rajasthan- RO & Solar Power System:
The Hare Krishna Community is a Charitable Trust engaged in running college and open school at
Hare Krishna Gurukul, Village Karola, District Tonk Rajasthan providing education along with food
and boarding facility to the underprivileged and poor children free of cost. The Company has
sponsored installation of 1 (one) RO system at Gurukul to provide safe drinking water and 1 (one)
solar power system for reducing the electricity expenses of the Gurukul.
d. Heritage Farmers Welfare Trust, Hyderabad- Heritage Mobile Veterinary Clinic:
The Heritage Farmers Welfare Trust is engaged in providing veterinary services to the
marginalized rural farmers, conducting vaccination, organizing health camps and
distributing medicines at the doorstep of dairy farmers free of cost. The Company has
sponsored 1 (one) vehicle to provide veterinary services for the welfare of animals and
cattle owners.

ANNUAL REPORT 2017-18 48

e. Medical College Hospital, Kottayam- Trolley & Wheelchair for Hospital:
The Medical College Hospital at Kottayam is one of the leading Government Hospitals in Kerala.
They cater to a large number of patients in and around Kottayam and are supposed to be the
busiest hospital. The Company has sponsored 10 (ten) trolleys and 10 (ten) wheel chairs for
catering to the increasing number of patients at the hospital.
f. Siruthuli, Coimbatore- Desilting & cleaning of water inlets:
Siruthuli is a Public Charitable Trust which is engaged in activities aiming for clean and green city
by creating awareness and sensitizing the people living in Coimbatore towards the protection of
environment. They are working for desilting and cleaning the water tanks in the Coimbatore
Region and we have sponsored for desilting and cleaning of 3 inlet channels in the Valankulam
Tank with a view to increase the capacity of the tank thereby improving water supply, sanitation,
etc.
g. Pasumai Ulagam, Tamil Nadu- Renovation of Schools:
Pasumai Ulagam is a society registered under the Tamil Nadu Societies Registration Act, 1975.
We have provided financial assistance for improving the infrastructure of the schools through the
implementing agency, Pasumai Ulagam, which has effectively implemented the civil work and
renovation of the following two schools-
1. Government Higher Secondary School, B.P. Agraharam
2. Panchayat Union Middle School, Sivagiri
h. Sri Ramakrishna Ashrama Charitable Hospital, Thiruvananthapuram- Equipments for Gynecological
and Minor Operation Theatre:
Sri Ramakrishna Ashrama Charitable Hospital located at Sasthamangalam, Thiruvananthapuram
has started its services in the year 1937 and gradually it has grown into a multi-specialty hospital. It
is well-known for its sympathetic services in a highly subsidized rates for the economically
backward sections living in Thiruvananthapuram and surrounding areas. We have sponsored
various equipments for gynecological and minor operation theatre of the hospital.
i. Ananda Marga Pracaraka Samgha, Ananda Nagar, West Bengal - Bridge cum Check Dam
Ananda Marga Pracaraka Samgha, a public charitable society registered under the West Bengal
Societies Registration Act, 1961 is engaged in facilitation towards enhanced status of Societal
Human Development Indexes. The aim of the organisation is to provide relief and succor to the
hapless, underprivileged, deprived and wretched sections of the society. We have provided
financial assistance for the construction of bridge-cum check dam across Goyai river at Dimdiha-
Ghaghra village with a view to minimize the water crisis in the region.
j. Friends of Tribals Society (FTS)- OTS & Digital Van:
The Friends of Tribal Society is registered under West Bengal Societies Registration Act,
headquartered at Kolkata is working in the field of education, rural development, livelihood,
conservation and environment. We have sponsored the following two projects of FTS-
1. 2 (two) Digital Vans to provide basic computer education to the people living in tribal and rural
areas.
2. Renewal of the existing project for 250 One Teacher Schools (OTS) for providing basic level
education upto Class III in tribal areas and backward villages for the upliftment of Tribals in the
States of West Bengal, Bihar, Jharkhand and Odisha.
k. Guild of Service (Central) Seva Samajam, Chennai- Computers for education and training
The Guild of Service Seva Samajam is a social welfare organization at Chennai which runs a

49 ANNUAL REPORT 2017-18

 project called Nutrition on Wheels and the Company has sponsored 6 (six) computers to provide
computer education and training to women belonging to poor families.
l. Ramakrishna Mission Tuberculosis Sanatorium, Ranchi- Beds for TB Patients
The Ramakrishna Mission Tuberculosis Sanatorium, an affiliated branch centre of the
Ramakrishna Mission is a premier institution in Eastern India serving patients suffering from
Tuberculosis (TB) across the country. The Sanatorium has a capacity of 200 beds out of which 150
beds are exclusively for Tuberculosis patients. Out of 150 beds, 70 beds are being sponsored by
the Government of India. We have renewed the project for the third year and provided financial
assistance for 40 (forty) number of beds for the patients suffering from TB. They are being
provided residential & radical treatment for a period of six months along with nutritious food and
required diet in a healthy environment free of cost.
m. Ramakrishna Mission- Project Gadadhar Abhyudaya Prakalpa- Educational & development
programme
The Ramakrishna Mission– a worldwide philanthropic organization founded by Saint Swami
Vivekananda for overall welfare of the mankind is headquartered at Belur Math, West Bengal. The
Mission runs a project named Gadadhar Abhyudaya Prakalpa (GAP) for providing for holistic
development of underprivileged children. It is a composite programme having different activities
for physical, mental and intellectual development. We have renewed the project for the third year
and provided financial assistance & support for 30 GAP units.
n. Ramakrishna Sarada Mission, Kolkata- Education & Vocational Training
The Ramakrishna Sarada Mission is engaged in various social activities such as providing
education to the poor children, self-help group for needy women, charitable dispensary, etc. We
have renewed the project for the third year and provided financial assistance for the following 2
(two) projects-
1. Nivedita Vidyapeeth– It is a free primary school which provides free education along with
books, notebooks, uniforms and mid-day meals to the poor children in Dakshineshwar area
upto class IV. Apart from regular studies they are also taught discipline and moral values.
Financial help is also provided to meritorious girl students to continue their studies. We have
provided financial assistance for the education, mid-day meal, study material etc. for 90
children.
2. Bhagini Nivedita Nari Kalyan: It is a Self-help Group for the local needy ladies who come to
the mission to learn the art of making handicraft items such as soft toys, crochet, jute bags,
jewellery making, paper quilling, etc. SHG provides raw material and training free of cost to a
group of 40 women and we have provided financial assistance for the running of this Self Help
Group.
o. The Rotary Club of South Central, Kolkata- Construction of Tube wells:
The Rotary Club of Calcutta South Central is an NGO engaged in humanitarian community
services operating in West Bengal under Rotary International District. The Club's focus area
includes providing clean and safe drinking water by boring deep tube wells in the rural sector. As
per the studies and reports of the Jadavpur University, NABARD, etc. ground water in 12 districts
and 11 blocks in the State of West Bengal are found to be contaminated with arsenic.
Our Company has sponsored the construction of 6 (six) tube wells as proposed by the Rotary Club
which will benefit around 5000 people including women, children and old people.
Initiative at Company's level under CSR Plan
Adoption of Schools: The Company through its Regional Offices has adopted the following 3
(three) schools during the year-

ANNUAL REPORT 2017-18 50

 1. Punitnagar Primary School, Vadodara for the benefit of 335 students.
2. M.E.S. Girls High School, Mogalwada, Vadodara for the benefit of 1800 students.
3. Government High School, Aroor, Kerala for the benefit of 128 students.
Adoption of Village: The Company through its Regional Offices has adopted 1 (one) village i.e.
Buta Singh Wala situated in Mohali, Punjab thereby benefiting 2263 inhabitants.
2. The Composition of the CSR Committee:
The CSR Committee comprises of the following Members as at 31st March, 2018-
? Shri K. Sanath Kumar (Chairman)
? Shri M. Vasantha Krishna
? Ms. Bhumika Verma
? Shri John Pulinthanam
? Shri Sivaraman Mahadevan
? Shri Sudhakar Pahi
3. Average Net Profit of the Company for last three financial years:
Net Profit as per Section 135 of the Companies Act, 2013
? Financial Year 2016-17: (-) `214.50 crore (R/off)
? Financial Year 2015-16: (-) `21.50 crore (R/off)
? Financial Year 2014-15: `994.15 crore (R/off)
Total Net Profit of the immediately preceding three financial years: `758.15 crore
l
Average Net Profit: `252,71,80,000/-
4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above):
2% of the Average Net Profit: `5,05,43,600/-
5. Details of CSR spent during the financial year 2017-18:
(a) Total amount to be spent for the financial year (Budget): `17,77,79,566/-
(`5,05,43,600 + `12,72,35,966 /-)
(b) Amount unspent (unallocated amount c/f to F.Y. 2018-19): `12,00,15,095/-
(c) Manner in which the amount spent during the financial year 2017-18 is detailed below-

(1) (2) (3) (4) (5) (6) (7) (8)

Sl. CSR Sector in Projects or programs Amount of Amount Cumulative Amount spent
Project or which the (1) Local area or outlay spent on the projects expenditure Direct or
activity project is other (budget) or programs upto to the through
identified covered (2) Specify the State project or Sub-heads: reporting implementing
and district where programs (1) Direct period (i.e. agency
projects or programs wise expenditure on 31.03.2018)
was undertaken (in `) projects (in `)
or programs
(2)
Overheads
(in `)

51 ANNUAL REPORT 2017-18

A. Projects completed [approved by the Board in the F.Y. 2015-16] :
1(a) Sponsored Promoting In Chennai, 3,00,000 73,718 2,96,382
educational Education Tamil Nadu (It includes
program for an unutilized (2,22,664
children of amount of +73,718)
domestic ` 3,618)
workers in Through
slums areas of Implementing
Chennai. Agency,
Concern India
(b) Sponsored Promoting In Chennai, 4,00,000 97,383 3,69,334
Foundation,
vocational Vocational Tamil Nadu (It includes
NGO, Chennai,
training program Training an unutilized (2,71,951
Tamil Nadu.
and special amount of +97,383)
education for `30,666)
psycho-social
impaired adults
& children.
2. Sponsored Promoting In Lathikata, 5,04,000 4,25,000 5,00,000 Through
construction of Education & Sundargarh District, (It includes Implementing
2 rooms & 2 Sanitation Odisha an unutilized (75,000+ Agency,
toilets for amount of 4,25,000) Radhakrishna
blind girls. `4,000) Drustihin
Vidhyalaya,
Lathikata,
Sundargarh
District,
Bhubaneshwar,
Odisha.
Sub-total (A) 12,04,000 5,96,101 11,65,716

B. Ongoing Projects [approved by the Board in the F.Y. 2015-16]:

3. Sponsored Promoting In Ahmednagar, 75,00,000 - - Equipments will
audio visual Education Maharashtra be directly
equipments delivered to the
such as schools identified
desktops, LCD in Ahmednagar.
projector and
screen to 100
primary schools
identified in
Ahmednagar.
4. Sponsored 2 Promoting In Pune, 5,18,80,000 40,48,680 40,48,680 Through
medical Health Care Maharashtra Implementing
equipments, Agency,
2 vehicles and B J Government
setting up of Medical College
2 Kidney and Sassoon
Transplant General
Operation Hospitals,
Theatres. Pune,
Maharashtra.
Sub-total (B) 5,93,80,000 40,48,680 40,48,680

ANNUAL REPORT 2017-18 52

C. Projects completed [approved by the Board in the F.Y. 2016-17]:
5. Sponsored Promoting In the states of 50,00,000 12,50,000 50,00,000 Through
250 OTS for Education West Bengal, Implementing
providing Jharkhand, Odisha (37,50,000+ Agency, Friends
primary and Bihar 12,50,000) of Tribals Society,
education to Kolkata.
the tribal and
rural children.
6. Sponsored 30 Promoting In the states of 1,85,07,000 92,53,500 1,85,07,000 Through
GAP Units of Education & Assam, Gujarat, Implementing
Ramakrishna Health Care Jharkhand, (92,53,500+ Agency,
Mission for Karnataka, 92,53,500) Ramakrishna
holistic Kerala, Madhya Mission, Belur
development of Pradesh, Math, District
under privileged Maharashtra, Howrah,
children. Odisha, Tamil Nadu, West Bengal.
Uttar Pradesh,
Uttarakhand &
West Bengal
7. Sponsored 40 Promoting In Ranchi, 50,00,000 25,00,000 50,00,000 Through
beds for the Health Care Jharkhand Implementing
treatment of including (25,00,000+ Agency,
patients preventive 25,00,000) Ramakrishna
suffering from health care Mission
Tuberculosis Tuberculosis
primarily from Sanatorium,
tribal/adivasi Ranchi,
communities. Jharkhand.
8. Sponsored 1 Promoting In Guwahati, 8,00,000 8,00,000 8,00,000 Through
B-scan Health Care Assam Implementing
ultrasound including Agency,
machine which preventive Sri Sankaradeva
helps in health care Nethralaya,
ultrasonic Guwahati.
ocular
investigation
before
Cataract
surgery.
9. Sponsored the Promoting In Dakshineshwar 4,10,000 2,05,000 4,10,000 Through
running of Education West Bengal Implementing
Nivedita (2,05,000+ Agency,
Vidyapeeth 2,05,000) Ramakrishna
School Sarada Mission,
comprising of Kolkata,
90 children. West Bengal.
10. Adoption of Promoting In Barnala District, 2,24,000 1,74,000 2,24,000 Direct
school under Education Punjab contribution
CSR plan of (50,000+ under CSR
the Company. 1,74,000) Plan to Govt.
Primary School,
Jodhpur Village,
Barnala
Sub-total (C) 2,99,41,000 1,41,82,500 2,99,41,000

53 ANNUAL REPORT 2017-18

D. Ongoing Projects [approved by the Board in the F.Y. 2016-17]:
11. Sponsored the Promoting In the states of 2,50,00,000 1,00,00,000 1,25,00,000 Through
distribution of Health Care Assam, Tripura, Implementing
artificial limbs, including Nagaland, Manipur, (25,00,000+ Agency, Artificial
aid & appliances preventive Odisha, Sikkim, 1,00,00,000) Limbs
to differently health care West Bengal, Manufacturing
abled persons. Jharkhand and Corporation of
Meghalaya India (ALIMCO),
Kanpur.
Sub-total (D) 2,50,00,000 1,00,00,000 1,25,00,000

E. Projects completed [approved by the Board in the F.Y. 2017-18]:

12. One RO system Safe drinking Hare Krishna 1,35,000 1,35,000 1,35,000
(a) water Gurukul, Village Through
Karola, District Implementing
Tonk Rajasthan Agency,
(b) One Solar Ensuring Hare Krishna 3,00,000 3,00,000 3,00,000 Hare Krishna
Power system environmental Gurukul, Village Community,
sustainability Karola, District Rajasthan
Tonk Rajasthan
13. 10 Patient Health care Medical College 3,90,000 3,90,000 3,90,000 Through our
Transport Kottayam, Kerala Kochi Regional
Trolley and Office
10 Wheelchairs
14. Repair and Promoting Government Higher 8,39,649 8,39,649 8,39,649 Through
renovation of education Secondary School, Implementing
school B. P. Agraharan, Agency,
Tamil Nadu Pasumai
Ulagam,
Tamil Nadu
15. Sponsored Healthcare Thiruvananthapuram 79,30,000 78,28,720 78,28,720 Through
various (It includes Implementing
equipments for an unutilized Agency, Sri
Gynecological amount of Ramakrishna
and minor `1,01,280) Ashrama
operation Charitable
theatre of the Hospital
hospital
16. Provided Education and In Chennai 3,00,000 1,67,700 1,67,700 Through
computers for vocational (It includes Implementing
vocational training an unutilized Agency,
training of amount of Guild of Service
women from `1,32,300) Seva Samajam,
poor Chennai
background
17. Sponsored a Promoting Punitnagar Primary 1,12,260 1,12,203 1,12,203 Through our
projector, sound education School in village (It includes Baroda
system and Nimeta near Baroda an unutilized Regional Office
water cooler amount of
to the adopted `57)
school under
CSR Plan

ANNUAL REPORT 2017-18 54

18. Provided 11 Promoting MES Girls High 2,97,000 2,97,000 2,97,000 Through our
computers to education School, Mogalwada, Baroda Regional
the adopted Vadodara Office
school under
CSR Plan
19. Sponsored Promoting Government High 2,85,000 2,84,500 2,84,500 Through our
setting up of a education School, Aroor, (It includes Kochi
smart library Kerala an unutilized Regional Office
cum reading amount of
room in the `500)
adopted school
under CSR
Plan
20. Sponsored a Vocational In Dakshineswar, 1,10,000 1,10,000 1,10,000 Through
group of 40 training West Bengal Implementing
women to Agency,
learn the art Ramakrishna
of making Sarada Mission,
handicraft Kolkata,
items West Bengal.
Sub-total (E) 1,06,98,909 1,04,64,772 1,04,64,772

F. Ongoing Projects [approved by the Board in the F.Y. 2017-18]:

21. Community Eradicating In Kolkata 2,63,250 2,36,925 2,36,925 Through

Kitchen hunger, poverty Implementing
and malnutrition Agency, Salt
Lake City,
Prayasam,
Kolkata
22. Sponsored one Health care In Cherrapunji 10,50,000 8,40,000 8,40,000 Through
Computed Implementing
Radiography Agency,
System Ramakrishna
Mission
Ashrama,
Cherrapunji
23. Vehicle for Animal welfare In the remotest 7,02,616 0 0 Through
Mobile areas of Andhra Implementing
veterinary Pradesh and Agency, Heritage
clinic for Telangana Farmers Welfare
providing Trust, Hyderabad
doorstep
veterinary
services
24. Desilting of Environmental Valankulam Tank, 50,00,000 0 0 Through
Tank and sustainability, Sungam Ukkadam Implementing
cleaning promoting Bypass road, Agency, Siruthuli,
3 inlet sanitation and Coimbatore Coimbatore
channels in the making
Valankumlam available
Tank clean drinking
water

55 ANNUAL REPORT 2017-18

25. Repair and Promoting Panchayat Union 5,63,333 4,22,499 4,22,499 Through
renovation of education Middle School, Implementing
school Sivagiri, Tamil Nadu Agency, Pasumai
Ulagam,
Tamil Nadu
26. Construction of Addressing the Goyai river near 34,22,363 25,94,043 25,94,043 Through
Bridge cum issue of water Dimdiha, Ghaghra Implementing
Check Dam scarcity and and Chatka villages Agency, Ananda
across making in Ghaghra Gram Marga
Goyai river available water Panchayat within Pracharaka
for various the periphery of Sangha
purpose Ananda Nagar
27. Sponsored 2 Promoting In the states of 46,24,000 22,75,682 22,75,682
(a) Digital Computer digital literacy Bihar, West Bengal,
Vans in rural/tribal Jharkhand
areas & Odisha Through
Implementing
(b) Sponsored Promoting In the states of 50,00,000 25,00,000 25,00,000 Agency, The
250 OTS for Education West Bengal, Friends of
providing Jharkhand, Odisha Tribals Society,
primary and Bihar Kolkata
education to the
tribal and rural
children.
28. Funding for Rural Village Buta Singh 1,20,000 60,000 60,000 Through our
construction of development Wala, Mohali, Ludhiana
one room in Punjab Regional Office
Dharamshala at
the adopted
village
29. Sponsored 40 Promoting In Ranchi, 50,00,000 25,00,000 25,00,000 Through
beds for the Health Care Jharkhand Implementing
treatment of including Agency,
patients preventive Ramakrishna
suffering from health care Mission
Tuberculosis Tuberculosis
primarily from Sanatorium,
tribal/adivasi Ranchi,
communities. Jharkhand.
30. Sponsored 30 Promoting In the states of 1,99,80,000 99,90,000 99,90,000 Through
GAP Units of Education Assam, Gujarat, Implementing
Ramakrishna & Health Care Jharkhand, Agency,
Mission for Karnataka, Ramakrishna
holistic Kerala, Mission,
development of Madhya Pradesh, Belur Math,
under privileged Maharashtra, District Howrah,
children. Odisha, Tamil Nadu, West Bengal.
Uttar Pradesh,
Uttarakhand &
West Bengal
31. Sponsored Promoting In Dakshineshwar, 4,10,000 2,05,000 2,05,000 Through
running of Education West Bengal Implementing
Nivedita Agency,
Vidyapeeth Ramakrishna
School Sarada Mission,
comprising of Kolkata,
90 children. West Bengal.

ANNUAL REPORT 2017-18 56

 32. Sponsored Healthcare, 5 villages in Block 9,30,000 0 0 Through
installation of sanitation and Mograhat, District Implementing
deep tube wells safe drinking South 24 Parganas, Agency,
for safe drinking water West Bengal The Rotary Club
water of Calcutta South
Central, Kolkata
Sub-total (F) 4,70,65,562 2,16,24,149 2,16,24,149
GRAND TOTAL (A+B+C+D+E+F) 17,32,89,471 6,09,16,202 7,97,44,317

6. Reasons for not spending 2% of the average net profit of the last three financial years:
CSR budget, allocation and amount spent during F.Y. 2015-16, F.Y. 2016-17 & 2017-18 is shown herein
below-
Projects approved in Financial Year 2015-16

Sl. Particulars Amount (`)

(a) CSR Budget for F.Y. 2015 -16 16,20,07,000
Amount b/f from the previous year 5,20,00,000
Total budget 21,40,07,000
(b) Total amount allocated/approved on projects during the 13,87,20,343
year
(c) Out of the total allocated amount of `13,87,20,343/-
Amount spent in F.Y. 2015 -16
? 2,43,09,173
Amount spent in F.Y. 2016 -17
? 5,39,23,806
Amount spent in F.Y. 2017 -18
? 29,69,884
Total amount spent as on 31.03.2018 8,12,02,863
(d) Amount remaining unspent upto F.Y. 2017-18 [b-c] 5,75,17,480
(e) Unallocated amount c/f to next year [a-b] 7,52,86,657

57 ANNUAL REPORT 2017-18

 Projects approved in Financial Year 2016-17

Sl. Particulars Amount

(`)
(a) CSR Budget for F.Y. 2016 -17 11,78,49,180
Amount b/f from the previous year 7,52,86,657
Total budget 19,31,35,837
(b) Total amount allocated/approved on projects during 6,58,99,871
the year
(c) Out of the total allocated amount of `6,58,99,871/-:
Amount spent in F.Y. 2016 -17
? 2,88,02,821
Amount spent in F.Y. 2017 -18
? 2,41,82,500
Total amount spent as on 31.03.2018 5,29,85,321
(d) Amount remaining unspent upto F.Y. 2017-18 [b-c] 1,29,14,550
(e) Unallocated amount c/f to next year [a-b] 12,72,35,966

Projects approved in Financial Year 2017-18

Sl. Particulars Amount

(`)
(a) CSR Budget for F.Y. 2017 -18 5,05,43,600
Amount b/f from the previous year 12,72,35,966
Total budget 17,77,79,566
(b) Total amount allocated/approved on projects during the 5,77,64,471
year
(c) Amount spent in F.Y. 2017 -18, out of the total allocated 3,20,88,921
amount of `5,77,64,471/-
(d) Amount remaining unspent upto F.Y. 2017 -18 [b-c] 2,56,75,550
(e) Unallocated amount c/f to next year [a-b] 12,00,15,095

The Net Profit during the three immediately preceding years calculated as per Section 135 of the
?l
Companies Act, 2013 is as follow –
Financial Year 2015-16: (-) `214.50 crore
?
Financial Year 2016-17: (-) `21.45 crore
?
Financial Year 2017-18: (-) `2422.42 crore
?

ANNUAL REPORT 2017-18 58

 It is evident from the figures as shown above for the last three financial years that there is no CSR Budget
?l
for the financial year 2018-19 except for the unallocated amount of `12,00,15,095/- which is brought
forward from the previous year.
The corpus is substantially lower for the fiscal 2018-19 as compared to earlier years and some of the
?l
projects such as Friends of Tribals Society, ALIMCO, Ramakrishna Mission Projects, etc. are of enduring
nature and look towards us for continuous support in the field of education, holistic development of
children, health care, distribution of aid and appliance to PwDs, etc. In view of long-term sustainability, we
also require a substantial amount annually out of the corpus for providing continuous support to these
institutions.
The proposals are scrutinized thoroughly to check the viability of the proposals and few proposals are
l
also under consideration for want of requisite documents in support of the proposals received from
various institutions/implementing agencies.
Further, the management is also exploring activities under CSR to align with the Government's initiative
l
for Swachh Bharat Mission such as building toilets, community baths, making available safe drinking
water, public health & sanitation programme, etc.
Some such proposals relating to our focus areas which have been examined and found feasible have
l
been made ready to be put up for Board approval.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR
Policy, is in compliance with CSR objectives and Policy of the Company.
We hereby declare that the implementation and monitoring of the CSR Policy is in compliance with CSR
objectives and Policy of the Company.

(John Pulinthanam) (B.N. Narasimhan)

Chairman- CSR Committee Whole-time Director

Kolkata, 19th July 2018

59 ANNUAL REPORT 2017-18

 ANNEXURE-G

H. M. CHORARIA & CO. 14/2, OLD CHINA BAZAR STREET,

Practicing Company Secretaries 4th Floor, Room No. 401,
Kolkata -700 001
033-22420196/22432509

FORM NO. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED ON 31ST MARCH, 2018

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

The Members
National Insurance Company Limited
3, Middleton Street,
Kolkata-700071
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the
adherence to good corporate practices by National Insurance Company Limited (hereinafter called "the
Company"). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating
the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the Company's books, papers, minute books, forms and returns filed and other
records maintained by the company and also the information provided by the Company, its officers, agents
and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion,
the company has, during the audit period covering the financial year ended on 31st March, 2018 complied
with the statutory provisions listed hereunder and also that the company has proper Board-processes and
compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained
by National Insurance Company Limited for the financial year ended on 31st March, 2018 according to the
provisions of:
(i) The Companies Act, 2013 (the Act) and the Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the Rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder, to the extent
of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India
Act, 1992 ('SEBI Act') is not applicable, as the equity shares of the company are not listed and debt
securities were listed after 31st March, 2017:
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009;

ANNUAL REPORT 2017-18 60

 (d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999;
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
2008;
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;
(vi) Insurance Act, 1938,
(vii) Insurance Regulatory and Development Authority Act, 1999,
(viii) Industrial Disputes (Banking and Insurance) Act, 1972,
(ix) Marine Insurance Act, 1963,
(x) The Employees Provident Fund and Miscellaneous Provisions Act, 1952
(xi) Income Tax Act, 1961 and Indirect Tax Laws
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
('LODR Regulations') to the extent applicable to the company, as the company had issued Non-
convertible Debentures on 27th March, 2017, which were listed during the year under review, and
Part B of Chapter III and Chapter V of the LODR Regulations are applicable to the company.
During the period under review, the company has complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations:
1. The Company had only one Independent director up to 28th September, 2017 as against the requirement
of minimum two directors pursuant to the provisions of sub-section(4) of section 149 of the Companies
Act, 2013, read with Rules prescribed under the laws, However, it was informed that the company had
made representations to the Ministry, to nominate the director.
2. The Company has listed its debt securities on NSE and BSE with effect from 07.04.2017 and
10.04.2017 respectively. We understand that the Company is also complying with Chapter IV of the
LODR Regulations though it is not applicable to them, beside the applicable Regulations as laid down in
Chapter V of the SEBI (LODR) Regulations, 2015, save and except, the annual and half-yearly financial
results of the company along with limited review were not declared within 60 & 45 days respectively. It
was noted that the same was published pursuant to the IRDAI Guidelines and subsequently sent to the
Stock Exchanges.
We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-
Executive Directors and Independent Directors. The changes in the composition of the Board of Directors
that took place during the period under review were carried out in compliance with the provisions of the Act,
subject to our observations given hereinabove.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the meeting and for meaningful participation at the
meeting.

61 ANNUAL REPORT 2017-18

Majority decision is carried through while the dissenting members' views are captured and recorded as part
of the minutes.
We further report that there are adequate systems and processes in the company commensurate with the
size and operations of the company to monitor and ensure compliance with applicable laws, rules,
regulations and guidelines.
We further report that during the audit period no specific event has happened and no action has been taken
by the Company having a major bearing on the company's affairs in pursuance of the above referred laws,
rules, regulations, guidelines, standards, etc. referred to above.

H.M. Choraria & Co.

Practicing Company Secretaries

(H.M. Choraria)
Place:Kolkata Proprietor
Date:19.07.2018 FCS No. 2398, C P No.: 1499

ANNUAL REPORT 2017-18 62

 ANNEXURE - H

DETAILS OF PERFORMANCE OF SOME OF THE PERSONAL LINE INSURANCE

JANATA PERSONAL ACCIDENT POLICY :

(`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred

policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 78702 215602 621037 1128 2209 373512 60.14
2014-15 68936 223218 52107 2053 1371 220449 420.84
2015-16 49736 176338 43575 1435 1037 136125 312.39
2016-17 35969 121719 45034 1074 720 106473 547.70
2017-18 29060 73739 38456 1031 640 89267 232.13

GRAMIN PERSONAL ACCIDENT POLICY :

(`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred

policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 1698 1698 482 28 32 160 33.19
2014-15 4246 4218 325 24 18 210 82.99
2015-16 648 639 65 3 7 80 30.76
2016-17 118 118 0.429 0 0 0 0
2017-18 1 0 0.12 0 0 0 0

PERSONAL ACCIDENT INSURANCE FOR KISSAN CREDIT CARD HOLDERS :

(` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred

policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 4015 220825 22548 205 196 8446 37.63
2014-15 3324 - 26522 421 387 19803 63.93
2015-16 2866 - 15294 343 261 14620 76.58
2016-17 2031 - 10190 263 199 10221 379.96
2017-18 1426 523 8864 138 140 7585 85.57

63 ANNUAL REPORT 2017-18

RAJRAJESHWARI MAHILA KALYAN BIMA YOJANA : (`` in thousand)
Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 57 427 28 nil nil nil nil
2014-15 109 128 16 nil nil nil nil
2015-16 34 33 8 - - - -
2016-17 170 169 11 - - - -
2017-18 34 33 7 0 0 0 0

BHAGYASHREE CHILD WELFARE BIMA YOJANA : (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 83 83 10.44 nil nil nil nil
2014-15 69 69 3.00 1 nil nil -
2015-16 73 91 2.10 - - - -
2016-17 49 49 0.735
2017-18 33 31 1.38 0 0 0 0

UNIVERSAL HEALTH INSURANCE SCHEME : (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 31583 100461 39813 11307 7602 69328 174.41
2014-15 29103 93134 40391 8622 8850 52939 128.00
2015-16 25550 80550 40933 7460 5269 49274 120.00
2016-17 21732 49780 37584 7477 4899 51847 247
2017-18 17129 34163 36166 6511 3588 45492 125.79

NATIONAL MEDICLAIM POLICY :

(`` in thousand)
Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 1377311 1825942 24676782 374713 336199 23266388 94.20
2014-15 1094804 2750745 9201430 239798 240950 7728178 84.00
2015-16 1084553 3184273 9601287 252136 224131 8346350 86.92
2016-17 1058349 1685083 9892648 249415 198409 8070338 163.10
2017-18 1033972 1394395 10076170 258443 172224 8794048 87.28

ANNUAL REPORT 2017-18 64

NATIONAL MEDICLAIM PLUS POLICY :
(`` in thousand)
Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2014-15 2824 5420 87832 809 773 7440 13.00
2015-16 5833 12488 187991 2601 794 54364 28.92
2016-17 7664 13427 254729 2710 1173 79953 65.95
2017-18 9350 10840 306239 3398 2462 125727 41.06
VIDYARTHI MEDICLAIM POLICY : (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred

policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 4041 6699 30304 1557 510 13117 43.00
2014-15 4180 7946 34790 1820 1846 15430 45.00
2015-16 4088 7826 32175 1432 509 16195 50.33
2016-17 3780 6250 35521 958 400 16405 94.40
2017-18 3609 6217 41556 798 413 17015 40.95

PARIVAR MEDICLAIM POLICY

(`` in thousand)
Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 209795 654982 1410832 47185 35610 1319786 93.50
2014-15 207644 655256 1676920 57893 56736 1540105 92.00
2015-16 225785 831960 1866768 68162 52033 1896350 101.58
2016-17 233023 724710 1992189 72584 49925 1898189 195.54
2017-18 53439 165535 435667 17112 13224 432691 99.32

VARISTHA MEDICLAIM POLICY : (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 31263 37352 257641 12579 6964 214474 83.20
2014-15 31330 37877 266596 15231 15243 257861 96.00
2015-16 31255 43295 270193 14169 8113 262691 97.22
2016-17 30773 36816 271433 11306 6667 232273 176.34
2017-18 30526 37152 269355 10445 5940 270134 100.29

65 ANNUAL REPORT 2017-18

RASHTRIYA SWASTHYA BIMA YOJANA :
(`` in thousand)
Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 97 28600000 1799577 2023 1823 1713052 83.06
2014-15 107 3016607 1750092 236116 167071 2226003 114.00
2015-16 45 - 1289028 1787 1632 2028899 173.53
2016-17 44 - 1121377 46533 26621 2437901 224.32
2017-18 53 15 1314079 296960 312342 1988636 151.33

PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY) :

(`` in thousand)
Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2014-15 - - Nil - - Nil -
2015-16 23 26566956 338506 2145 1569 310110 91.61
2016-17 11 27728521 338084 4263 2805 738952 217.14
2017-18 20 2078 305629 4120 444 783736 256.43

CATTLE INSURANCE POLICY: (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 100879 405440 580475 14742 12617 387855 66.81
2014-15 78793 317433 498622 15877 14539 430486 81.79
2015-16 60414 284682 423138 12397 10915 342555 80.95
2016-17 56659 278050 390424 10822 10485 333903 148.98
2017-18 61284 189782 422679 9886 8609 299059 70.75

RURAL INSURANCE : (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred
policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 778381 3897200 604016 72489 66388 582407 96.42
2014-15 54508 603088 133908 5502 5083 204078 106.17
2015-16 55947 64876 181096 5435 4834 245794 135.73
2016-17 30598 54986 6026204 3865 3569 185143 8.56
2017-18 23689 53198 17929024 4268 3604 1538836 8.58

ANNUAL REPORT 2017-18 66

V
MICRO INSURANCE POLICIES ::
(a) Gramin Suswasthya Micro Insurance Policy (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred

policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 9753 34601 9453 2894 2022 18376 194.39
2014-15 664 1510 8797 1064 776 8883 83.50
2015-16 5585 19695 6262 1741 1119 16383 261.63
2016-17 4576 12478 3954 1648 1071 9690 409
2017-18 3148 6300 2151 782 538 4862 226.06

(b) Gramin Suraksha Micro Insurance Policy : (`` in thousand)

Year No. of No. of Premium No. of No. of Amount Incurred

policies persons received claims claims paid claim
issued covered (in `) reported settled (in `) ratio (%)
2013-14 729 1763 99140 876 644 10581 106.72
2014-15 6917 21920 9795 2485 1484 16524 165.66
2015-16 301 1139 1481 587 481 4334 294.55
2016-17 226 638 1084 251 167 1266 117
2017-18 80 216 115 126 94 581 505.29

67 ANNUAL REPORT 2017-18

 ANNEXURE - I
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March 2018
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:

i) CIN U10200WB1906GOI001713
ii) Registration Date 5th December 1906
iii) Name of the Company National Insurance Company Limited
iv) Category / Sub-Category of the Company Government Company
v) Address of the Registered Office and 3, Middleton Street, Kolkata - 700 071.
contact details Telefax : (033) 22831717
Website : www.nationalinsuranceindia.com
vi) Whether listed company Equity-unlisted, Debentures-listed on BSE & NSE.
vii) Name, Address and Contact details of Shri Ravinder Dha, Manager (Systems)
Registrar and Transfer Agent, if any. RCMC Share Registry Pvt. Ltd.,
B-25/1, Okhla Industrial Area Phase-II, New Delhi-20,
Tel. No. (011)-2638-7320, Website: www.rcmcdelhi.com
Email: rdua@rcmcdelhi.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the company shall be stated:
Sl.No. Name and description of main products/ NIC Code of the % to total turnover of
services Product/Services the company
1 Non-life Insurance 6512 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sl.No. Name and Address CIN/GLN Holding/ % of Applicable
of the Company Subsidiary/ shares Section
Associate held
1 Health Insurance TPA
of India Limited,
NBCC Centre, Office No. 301, U85100DL2013PLC256581 Associate 23.75% 2(6)
Ma Anand Mai Marg, Okhla
Phase-I, New Delhi-110020
2 India International
Insurance Pte. Ltd,
64, Cecil Street, IOB Not Applicable Associate 20% 2(6)
Building #04/#05,
Singapore-049711.

ANNUAL REPORT 2017-18 68

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)-
i) Category-wise Share Holding

Category of No. of Shares held at the No. of Shares held at the end of %
Shareholders beginning of the year the year Change
during
the year
Demat Physical Total % of Demat Physical Total % of
Total Total
Shares Share
A. Promoters
(1) Indian
a) Individual/HUF - - - - - - - - -
b) Central Govt. 10 crore 10 crore 100% - 10 crore 10 crore 100% -
c) State Govt(s) - - - - - - - - -
d) Bodies Corp. - - - - - - - - -
e) Banks/FI - - - - - - - - -
f) Any Other.... - - - - - - - - -
Sub-total (A) (1):- 10 crore 10 crore 100% - 10 crore 10 crore 100% -
(2) Foreign
a) NRIs - - - - - - - - - -
Individuals
b) Other - - - - - - - - - -
Individuals
c) Bodies Corp. - - - - - - - - -
d) Banks/FI - - - - - - - - -
e) Any Other.... - - - - - - - - -
Sub-total (A) (2):- - - - - - - - - -
Total - 10 crore 10 crore 100% - 10 crore 10 crore 100% -
shareholding
of Promoter (A) =
(A)(1)+(A)(2)
B. Public - - - - - - - - -
Shareholding
1. Institutions
a) Mutual Funds
b) Banks/FI
c) Central Govt.
d) State Govt(s).
e) Venture
Capital
Funds

69 ANNUAL REPORT 2017-18

 Demat Physical Total % of Demat Physical Total % of
Total Total
Shares Share
f) Insurance
Companies
g) FIIs
h) Foreign
Venture
Capital Funds
i) Others
(specify)
Sub-total (B)(1):- - - - - - - - - -
2. Non-
Institutions - - - - - - - - -
a) Bodies Corp.
i) Indian
ii) Overseas
b) Individuals
i) Individual
shareholders
holding
nominal
share capital
upto `1 lakh
ii) Individual
shareholders
holding
nominal
share capital
in excess of
`1 lakh
c) Others
(specify)
Sub-total (B)(2):-
Total Public - - - - - - - - -
Shareholding
(B)=(B)(1)+(B)(2)
C. Shares - - - - - - - - -
held by
Custodian for
GDRs &
ADRs
Grand Total - 10 crore 10 crore 100% - 10 crore 10 crore 100% -
(A+B+C)

ANNUAL REPORT 2017-18 70

(ii) Shareholding of Promoters

Sl. Shareholder's Shareholding at the beginning of the Share holding at the end of the
No. Name year year
No. of % of %of shares No. of % of % of Shares %
Shares total Pledged/ Shares total Pledged/ change
Shares encumbered Shares encumbered in share
of the to total of the to total holding
company shares company shares the year
1 President of India 10 crore 100% - 10 crore 100% - -

(iii) Change in Promoters' Shareholding (please specify, if there is no change)

Sl. No. Particulars Shareholding at the beginning of Cumulative Shareholding

the year during the year
No. of shares % of total No. of shares % of total
shares of shares of
the company the company
1. At the beginning of 10 crore 100% 10 crore 100%
the year
2. Date wise
Increase/Decrease
in Promoters Share
holding during the
year specifying the
reasons for increase/ - - - -
decrease (e.g.
allotment/ transfer/
bonus/sweat equity
etc.)
At the end of the year 10 crore 100% 10 crore 100%
Note : There is no change in the shareholding.

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders
of GDRs and ADRs)

Sl. No. Particulars Shareholding at the beginning of Cumulative Shareholding

the year during the year
For Each of the No. of shares % of total No. of shares % of total
Top 10 shares of shares of
Shareholders the company the company
1. At the beginning of - - - -
the year

71 ANNUAL REPORT 2017-18

 Sl. No. Particulars Shareholding at the beginning of Cumulative Shareholding
the year during the year
2. Date wise Increase/
Decrease in Share
holding during the year
specifying the reasons - - - -
for increase/decrease
(e.g. allotment/transfer/
bonus/sweat equity etc.)
3. At the end of the year
(or on the date of
- - - -
separation, if separated
during the year)
Note: Ten Equity Shares are held by Directors/General Managers (one share each) as nominee sharehold-
ers on behalf of Government of India.
(v) Shareholding of Directors and Key Managerial Personnel :
Sl. No. Particulars Shareholding at the beginning of Cumulative Shareholding
the year during the year
For Each of the No. of shares % of total No. of shares % of total
Directors and shares of shares of
KMP the company the company
1. At the beginning of - - - -
the year
2. Date wise Increase/
Decrease in Share
holding during the year
specifying the reasons - - - -
for increase/decrease
(e.g. allotment/transfer/
bonus/sweat equity etc.)
3. At the end of the year - - - -
Note: Ten Equity Shares are held by Directors/General Managers (one share each) as nominee shareholders
on behalf of Government of India.
(vi) INDEBTEDNESS:
Indebtedness of the Company including interest outstanding/accrued but not due for payment

Secured Loans Unsecured Deposits Total

Particulars
excluding deposits (`) Loans (`) (`) Indebtedness (`)
Indebtedness at the beginning
of the financial year
i) Principal Amount Nil 895,00,00,000 Nil 895,00,00,000
ii) Interest due but not paid - - - -

ANNUAL REPORT 2017-18 72

 Secured Loans Unsecured* Deposits Total
excluding deposits (`) Loans (`) (`) Indebtedness (`)
iii) Interest accrued but not due - 1,02,37,000 - 1,02,37,000
Total (i + ii + iii) Nil 896,02,37,000 Nil 896,02,37,000
Change in Indebtedness
during the financial year
Nil Nil Nil Nil
Addition
l
Reduction
l
Net Change Nil Nil Nil Nil
Indebtedness at the end of the
financial year
i) Principal Amount Nil 895,00,00,000 Nil 895,00,00,000
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 1,02,37,000 - 1,02,37,000
(for 5 days 27th to 31st March 2018)
Total (i + ii + iii) Nil 896,02,37,000 Nil 896,02,37,000
Note: The Company had raised ` 895 crore by issuing unsecured Non-convertible Debentures @ 8.35% per annum in the financial year 2016-17.
REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl. Particulars of Name of MD/WTD/Manager Total
No. Remuneration Amount
Shri K. Sanath Shri M. Shri. John Shri Rakesh
Kumar, CMD Vasantha Pulinthanam Kumar,
(01.04.2017 Krishna, WTD (WTD) (ex-WTD)
to 31.03.2018) (01.04.2017 to ( 20.06.2017 to (15.05.2017
31.03.2018) 31.03.2018) to 31.05.2017)
(`) (`) (`) (`) (`)
1. Gross salary 27,78,930.00 21,99,103.95 17,07,242.88 66,85,276.83
(a) Salary as per
provisions contained Remuneration
in Section 17(1) of has been paid
the Income-tax Act, to him for the
1961. said period by
(b) Value of perquisites The New
- 2,47,802.88 1,90,033.98 4,37,836.86
India
u/s 17(2) Income-
Assurance
tax Act, 1961 Co. Limited,
(c) Profits in lieu of - - - Mumbai -
salary under section
17(3) Income-tax
Act, 1961.
2. Stock Option - - - - -

73 ANNUAL REPORT 2017-18

Sl. Particulars of Name of MD/WTD/Manager Total
No. Remuneration Amount (`)
3. Sweat Equity - - - - -
4. Commission - - - - -
- as % of profit
- others, specify ...
5. Others, please specify - - - - -
Total (A) 27,78,930.00 24,46,906.83 18,97,276.86 - 71,23,113.69
Ceiling as per the Act

B. Remuneration to other directors:

Sl. Particulars of Remuneration Name of Directors Total
No. Amount
Shri Sivaraman Mahadevan Shri Sudhakar Pahi
(`) (`) (`)
1. Independent Directors 2,70,000.00 2,70,000.00 5,40,000.00
? Fee for attending board/
committee meetings - -
-
? Commission - -
-
? Others, please specify
Total (1) 2,70,000.00 2,70,000.00 5,40,000.00
Ms. Bhumika Verma Shri Ravi Krishan Takkar -
(`) (`) (`)
2. Other Non-Executive Directors

?Fee for attending board/ Sitting Fees is not paid to Government Nominee Director and Independent
Committee meetings Director representing Bank.
?Commission
?Others, please specify
Total (2) - - -
Total (B)=(1+2) 2,70,000.00 2,70,000.00 5,40,000.00
Total Managerial Remuneration
Overall Ceiling as per the Act

ANNUAL REPORT 2017-18 74

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD:
Sl. Particulars of Key Managerial Personnel
No. Remuneration
Smt. Rina Madia, Smt. M. Sashikala, Shri P. Vijaya Kumar Total
Company Secretary (ex-CFO) (CFO)
(from 01.04.2017 (from 01.04.2017 (from 27.12.2017
to 31.03.2018) to 27.12.2017) to 31.03.2018)

(`) (`) (`) (`)

1. Gross Salary
(a) Salary as per 13,62,920.86 16,09,957.82 5,00,740.41 34,73,619.09
provisions contained in
Section 17(1) of the
Income-Tax Act, 1961
(b) Value of perquisites - 4,62,260.94 48,574.80 5,10,835.74
u/s 17(2) of Income-
tax Act 1961
(c) Profits in lieu of salary - - - -
under Section 17(3)
Income-tax Act 1961.

2. Stock Option - - - -
3. Sweat Equity - - - -
4. Commission
- as % of profit - - - -
- others, specify....
5. Others, please specify - - - -
Total 13,62,920.86 20,72,218.76 5,49,315.21 39,84,454.83

1. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:
Type Section of Brief Details of Authority Appeal made,
the Description Penalty/ [RD/NCLT/ if any
Companies Punishment/ COURT] (give details)
Act Compounding
fees imposed
A. COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHERS OFFICERS IN DEFAULT
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -

75 ANNUAL REPORT 2017-18

MANAGEMENT REPORT AS REQUIRED IN
PART IV OF SCHEDULE `B’ OF INSURANCE
REGULATORY & DEVELOPMENT AUTHORITY
(PREPARATION OF FINANCIAL STATEMENTS
AND AUDITORS’ REPORT OF INSURANCE
COMPANIES) REGULATIONS, 2002
We certify that:
1. Renewal of Registration for carrying out the
General Insurance Business of our Company
has been obtained from the Authority
(Registration No.58 renewed on 18th January,
2018)
2. All undisputed dues payable during the year to
the statutory authorities have been duly paid;
3. The shareholding pattern and transfer of shares
effected during the year are in accordance with
statutory/regulatory requirements;
4. The funds of the holders of policies issued in
India have not been directly or indirectly
invested outside India;
5. The Required Solvency Margin as at 31st March,
2018 as per IRDAI (Assets, Liabilities and
Solvency Margin of General Insurance
Business) Regulations, 2016, has been
maintained, subject to ratification by the IRDAI;
6. The value of all the Assets have been reviewed
on the date of the Balance Sheet and that in our
belief the Assets set forth in Balance Sheet are
shown in the aggregate at amounts not
exceeding their realizable or market value,
under the several headings – “Loans”,
“Investments”, “Agents' Balances”, “Outstanding
Premiums”, “Interest, Dividends and Rents
accruing but not due”, “Amounts due from other
Persons or Bodies carrying on Insurance
Business”, “Sundry Debtors”, “Bills Receivable”,
“Cash” and items specified under “Other Accounts”;
ANNUAL REPORT 2017-18
7. The Company is exposed to various types of risk
such as adverse loss risk, especially due to
catastrophic events, market risk, liquidity risk,
operational risk, etc. The adverse loss risk is
mitigated by a reinsurance programme consisting
of both proportional and non-proportional
reinsurance arrangements. The loss due to
catastrophic events such as flood, cyclone and
earthquake is limited per event by means of a
Catastrophic Excess of Loss treaty. As regards
market risk, the mitigation is by means of a
balanced and diversified investment portfolio
consisting of both debt and equity holdings and
exposure limits per sector/investee Company.
Liquidity risk is managed through an effective
Asset Liability Management policy. Internal
control systems, internal audit and business
continuity plan are few of the mechanisms in
place to reduce the operational risk.
8. Out of the offices in two foreign countries situated
in Nepal and in Hong Kong, the exposure in
Nepal is predominantly in property insurance
area and the assumption of risks of this kind is
mainly taken care of by the reinsurance
programme of the Company. In respect of Hong
Kong Branch, an agreement was entered into
with New India Assurance Co. Ltd. to transfer the
branch's operation, Assets and Liabilities at their
carrying values. The approval for the same was
obtained from the Insurance Authority of Hong
Kong in accordance with Section 25D of the
Insurance Companies Ordinance (chapter 41).
The present arrangement would continue as a
pure run-off operation and the run-off exercise
will be over once the entire outstanding liability is
fully paid-off.
9. The ageing of claims (on gross business in India)
during the preceding five years is given below.
Barring disputed cases, the claims are settled
within a reasonable period of time.
76
Ageing of Claims (on gross basis in India) 2017-18:
(` In thousand)

Segment 30 Days 30 Days to 6 6 Months to 1 year to 5 5 years

TOTAL
Months 1 year years and above
FIRE 195199 3601588 6470700 7278360 622129 18167976
(No. of Cases) 319 511 690 695 208 2423
MARINE CARGO 235413 310501 96155 176459 48003 866531
(No. of Cases) 402 410 296 176 49 1333
MARINE HULL 42821 146417 99837 293188 149324 731587
(No. of Cases) 27 27 29 83 20 186
MOTOR OD 2039451 2247273 1022961 677319 48181 6035185
(No. of Cases) 58787 52999 14490 5649 252 132177
MOTOR TP 4905686 3710624 4114870 20862981 10492336 44086497
(No. of Cases) 17008 8670 8004 52481 41582 127745
ENGINEERING 240006 207341 1268053 1040759 214422 2970581
(No. of Cases) 502 464 450 251 55 1722
AVIATION 137064 10185 73171 166017 5124 391561
(No. of Cases) 9 3 12 20 1 45
PUBLIC LIABILITY 59856 18972 8067 208465 21946 317306
(No. of Cases) 14 32 22 34 5 107
EMPLOYERS LIABILITY 23572 23791 24678 89960 22738 184739
(No. of Cases) 102 99 98 306 122 727
PERSONAL ACCIDENT 1167291 197274 113995 67514 5053 1551127
(No. of Cases) 612 783 501 335 50 2281
RURAL 481809 13084010 -516326 151877 112911 13314281
(No. of Cases) 515 3053 390 1497 232 5687
HEALTH 5332203 756118 556999 35718 0 6681038
(No. of Cases) 178671 26316 3153 6262 0 214402
OTHERS 38886 921290 378551 675430 231250 2245407
(No. of Cases) 685 1728 730 856 156 4155
TOTAL 14899257 25235384 13711711 31724047 11973417 97543816
(No. of Cases) 257653 95095 28865 68645 42732 492990

77 ANNUAL REPORT 2017-18

Ageing of Claims (on gross basis in India) 2016-17:
(` In thousand)

Segment 30 Days 30 Days to 6 6 Months to 1 year to 5 5 years

TOTAL
Months 1 year years and above
FIRE 5562357 2079065 4750840 5046500 403062 17841823
(No. of Cases) 243 477 520 606 181 2027
MARINE CARGO 403180 184144 58335 216866 57588 920113
(No. of Cases) 148 324 191 155 30 848
MARINE HULL 244185 93977 48682 638397 17281 1042521
(No. of Cases) 12 45 8 61 10 136
MOTOR OD 2144452 1516405 713378 539148 37770 4951152
(No. of Cases) 20502 47217 9101 4062 470 81352
MOTOR TP 6504718 2873707 3514051 16031830 9312926 38237232
(No. of Cases) 1855 8609 10146 45649 44389 110648
MOTOR ORPHAN 1639 34550 26124 170033 114049 346395
(No. of Cases) 39 253 170 839 1485 2786
ENGINEERING 1380810 278026 340667 2015452 225326 4240280
(No. of Cases) 214 594 303 226 60 1397
AVIATION 233690 12134 2835 210440 5440 464539
(No. of Cases) 10 4 5 33 1 53
PUBLIC LIABILITY -9197 13759 8182 232790 46182 291716
(No. of Cases) 6 23 20 67 61 177
EMPLOYERS LIABILITY 50373 25388 24666 67087 13651 181164
(No. of Cases) 40 176 114 212 95 637
PERSONAL ACCIDENT 742555 316741 104373 48155 2943 1214766
(No. of Cases) 737 1632 578 305 31 3283
RURAL -50825 45070 47096 131248 98586 271175
(No. of Cases) 257 670 412 739 696 2774
HEALTH 5273139 637481 251613 71235 6233468
(No. of Cases) 149601 48660 8167 2315 208743
OTHERS 695486 361398 285268 803356 104184 2249693
(No. of Cases) 951 1117 600 834 217 3719
TOTAL 23176560 8471846 10176111 26222536 10438986 78486039
(No. of Cases) 174615 109801 30335 56103 47726 418580

ANNUAL REPORT 2017-18 78

Ageing of Claims (on gross basis in India) 2015-16:
(` In thousand)

Segment 30 Days 30 Days to 6 6 Months to 1 year to 5 5 years

TOTAL
Months 1 year years and above
FIRE 3870558 3925996 2850149 4696617 502160 15845479
(No. of Cases) 246 1012 758 606 206 2828
MARINE CARGO 333099 166420 227604 374976 207725 1309824
(No. of Cases) 180 651 540 468 42 1881
MARINE HULL 71840 261399 92371 1383141 23228 1831978
(No. of Cases) 3 23 20 102 16 164
MOTOR OD 2115376 1874265 698782 542935 30629 5261987
(No. of Cases) 12329 20480 5608 3084 449 41950
MOTOR TP 5818517 3134126 3480908 14622531 8870692 35926773
(No. of Cases) 2012 8255 9169 44779 46343 110558
MOTOR ORPHAN 3308 33226 27709 154556 101993 320792
(No. of Cases) 70 473 303 1113 1626 3585
ENGINEERING 750721 310865 577100 3770148 331238 5740072
(No. of Cases) 223 875 455 471 141 2165
AVIATION 6175 1627537 45955 71335 0 1751002
(No. of Cases) 2 25 7 30 0 64
PUBLIC LIABILITY 2400 8536 45805 319927 54407 431075
(No. of Cases) 11 33 29 76 62 211
EMPLOYERS LIABILITY 26623 32364 27172 78322 15147 179627
(No. of Cases) 89 204 146 265 97 801
PERSONAL ACCIDENT 455025 167659 77562 53537 15860 769643
(No. of Cases) 637 1153 482 351 37 2660
RURAL -131071 83956 84081 168647 119411 325025
(No. of Cases) 363 1621 678 1157 787 4606
HEALTH 454881 887173 184020 76144 28799 5724951
(No. of Cases) 14400 13337 2590 966 98 31391
OTHERS 131671 692072 948539 993959 50778 2817019
(No. of Cases) 634 1968 1096 876 223 4797
TOTAL 18003056 13205594 9367758 27306775 10352065 78235247
(No. of Cases) 31199 50110 21881 54344 50127 207661

79 ANNUAL REPORT 2017-18

Ageing of Claims (on gross basis in India) 2014-15:
(` In thousand)

Segment 30 Days 30 Days to 6 6 Months to 1 year to 5 5 years

TOTAL
Months 1 year years and above
FIRE 1461874 4050481 2701357 4854293 522578 13590583
(No. of Cases) 272 951 638 774 201 2836
MARINE CARGO 468911 262143 239885 398345 232209 1601493
(No. of Cases) 928 1099 687 478 39 3231
MARINE HULL 47902 434913 110761 888563 30088 1512227
(No. of Cases) 4 50 53 90 19 216
MOTOR OD 1673617 1545000 656608 586120 28117 4489462
(No. of Cases) 9652 47670 8077 6253 501 72153
MOTOR TP 3967650 2729512 3004667 13455858 8529850 31687537
(No. of Cases) 2515 10084 10914 56050 50621 130184
MOTOR ORPHAN 384 27881 24156 136277 109387 298085
(No. of Cases) 43 311 241 1123 1816 3534
ENGINEERING 254254 1106859 1049966 4361889 146150 6919117
(No. of Cases) 230 986 521 905 73 2715
AVIATION 1139407 32226 67820 57326 3725 1300505
(No. of Cases) 1 10 19 16 1 47
PUBLIC LIABILITY 8839 10526 16316 173399 54232 263313
(No. of Cases) 12 23 28 92 62 217
EMPLOYERS LIABILITY 16280 34750 27755 92392 14619 185795
(No. of Cases) 87 272 163 387 94 1003
PERSONAL ACCIDENT 275291 173943 86435 198845 48128 782642
(No. of Cases) 368 1612 641 1366 159 4146
RURAL -166345 65688 155393 187299 153379 395414
(No. of Cases) 487 1395 675 1437 942 4936
HEALTH 3503197 1209828 296785 100103 16656 5126569
(No. of Cases) 16489 14621 2725 2022 81 35938
OTHERS 230090 674757 399699 1224062 49208 2577817
(No. of Cases) 18 1729 866 2226 200 5039
TOTAL 12881352 12358506 8837600 26714772 9938326 70730557
(No. of Cases) 31106 80813 26248 73219 54809 266195

ANNUAL REPORT 2017-18 80

Ageing of Claims (on gross basis in India) 2013-14:
(` In thousand)

Segment 30 Days 30 Days to 6 6 Months to 1 year to 5 5 years

TOTAL
Months 1 year years and above
FIRE 797161 3536630 6636513 2751087 581477 14302867
(No. of Cases) 313 1109 688 861 220 3191
MARINE CARGO 77357 706845 172277 579013 217595 1753087
(No. of Cases) 262 1563 636 562 57 3080
MARINE HULL 28484 468210 556592 1126027 114929 2294242
(No. of Cases) 42 42 34 90 20 228
MOTOR OD 1635730 1419256 598331 649879 47993 4351190
(No. of Cases) 16748 48772 7951 9490 697 83658
MOTOR TP 2562666 2716333 2881466 12051060 8165765 28377290
(No. of Cases) 6051 10696 11483 58033 50630 136893
MOTOR ORPHAN 4231 20505 13274 109718 114721 262449
(No. of Cases) 152 252 216 1085 1998 3703
ENGINEERING 224651 2811308 1721576 2175365 29519 6962419
(No. of Cases) 263 1035 666 1206 101 3271
AVIATION 82 4895 46765 658470 57627 767839
(No. of Cases) 12 3 5 18 3 41
PUBLIC LIABILITY 14690 16715 176900 116189 18766 343260
(No. of Cases) 14 22 34 76 71 217
EMPLOYERS LIABILITY 3724 39340 45672 106975 15032 210742
(No. of Cases) 48 294 248 502 114 1206
PERSONAL ACCIDENT 275014 201630 132284 177701 116778 903408
(No. of Cases) 440 1498 942 1107 212 4199
RURAL -194296 62980 91516 347551 170715 478466
(No. of Cases) 567 1983 1144 2765 1625 8084
HEALTH 2285199 1173162 297345 201097 157110 4113913
(No. of Cases) 15516 17235 2795 2009 133 37688
OTHERS 89523 795755 491426 636064 47757 2060525
(No. of Cases) 422 1536 1039 2642 305 5944
TOTAL 7804216 13973565 13861937 21686195 9855784 67181697
(No. of Cases) 40850 86040 27881 80446 56186 291403

10. All investments and stocks, as shown in the
Balance Sheet, have been valued in the
manner disclosed in Significant Accounting
Policies (Schedule 16), i.e.
i) Investments other than Equity Shares and
units of Mutual Funds are stated at cost and
the premium paid on securities is amortised
over the remaining period.
ii) Investments in Equity Shares that are
actively traded in the market and the units of
Mutual Funds are stated at fair value.
iii) Shares that are thinly traded are valued at
lower of Cost or break up value.
iv) Foreign Government securities are valued
at the acquisition cost.
v) In respect of loans and debentures,
prudential norms as prescribed by IRDAI
regarding provisioning have been followed
by the Company.

81 ANNUAL REPORT 2017-18

11. Review of Assets quality and performance of
Investment Portfolio :
(` In thousand)
Particulars Book Value Market Value Income
Equity Shares 73631900 112013400 21541200
Other than
142265500 146095100 12348600
Equity Shares
Total : 215897400 258108500 33889800
12. All investments are reviewed periodically and
assets are classified into performing and non-
performing based on Insurance Regulatory
and Development Authority of India (IRDAI)
Prudential norms.
13. We confirm that:
i) in the preparation of financial statements,
the applicable accounting standards,
principles and policies have been followed
along with proper explanations relating to
material departures, if any;
ii) the management has adopted accounting
policies and applied them consistently and
made judgements and estimates that are
For and on behalf of National Insurance Company Limited
Kolkata
19th July, 2018
ANNUAL REPORT 2017-18
reasonable and prudent so as to give a true
and fair view of the state of affairs of the
Company as at the end of the financial year
and of the operating loss of the Company
for the year;
iii) the management has taken proper and
sufficient care for maintenance of adequate
accounting records in accordance with the
applicable provisions of the Insurance Act,
1938 (4 of 1938)/Companies Act, 2013 (18
of 2013), for safeguarding the assets of the
Company and for preventing and detecting
fraud and other irregularities;
iv) the management has prepared the
financial statements on a going concern
basis;
v) the management has ensured that an
internal audit system commensurate with
the size and nature of the business exists
and is operating effectively.
14. We confirm that no payments have been made
to individuals, firms, companies and
organizations in which the Directors of the
Company are interested.
John Pulinthanam B. N. Narasimhan
DIN: 07881040 DIN: 07526494
Joint In-charge as Chairman-cum-Managing Director
82
STANDALONE FINANCIAL
STATEMENTS
2017-18

83 ANNUAL REPORT 2017-18

 INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF NATIONAL INSURANCE
COMPANY LIMITED
Report on the Standalone Financial Statements:
We have audited the accompanying standalone
financial statements of National Insurance
Company Limited (“the Company”), which
comprise the Balance Sheet as at 31st March, 2018,
the annexed Revenue Accounts of Fire, Marine
and Miscellaneous Insurance Business
(collectively known as 'Revenue Accounts'), Profit
and Loss Account and the Receipts and Payments
Account for the year then ended, and a summary of
significant accounting policies and other
explanatory information, in which are incorporated
the audited returns for the year ended as on that
date of Thirty Three (33) Regional Offices, Three
hundred and Ninety Two (392) Divisional Offices
audited by the other firms of Auditors appointed by
the Comptroller and Auditor General of India
(“C&AG”) under section 139 of the Companies Act,
2013, and Two (2) Foreign Branch Offices, audited
by the local auditors appointed by the Company on
approval of C&AG.
Management's Responsibility for the
Standalone Financial Statements
The Company's Board of Directors is responsible
for the matters stated in Section 134(5) of the
Companies Act, 2013, The Insurance Act,1938, as
amended by the Insurance Laws (Amendment)
Act, 2015, Insurance Regulatory and Development
Authority Act,1999, and for the Accounting
Principles as prescribed in the Insurance
Regulatory and Development Authority
(Preparation of Financial Statements and Auditors'
Report of Insurance Companies) Regulations,
2002 (“IRDA Financial Statements Regulations”)
and orders/directions/circulars issued by the
Insurance Regulatory and Development Authority
of India (“IRDA”)-(“the Act, Rules and
Regulations”), with respect to the preparation of
these standalone financial statements that give a
true and fair view of the financial position, financial
ANNUAL REPORT 2017-18
performance and cash flows of the Company in
accordance with the accounting principles
generally accepted in India, including the
Accounting Standards specified under Section 133
of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of
adequate accounting records in accordance with
the provisions of “the Act, Rules and Regulations”
for safeguarding of the assets of the Company and
for preventing and detecting frauds and other
irregularities; selection and application of
appropriate accounting policies; making
judgments and estimates that are reasonable and
prudent; and design, implementation and
maintenance of adequate internal financial
controls, that were operating effectively for
ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the financial statements that give a
true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these
standalone financial statements based on our
audit.
We have taken into account the provisions of the
“Act, Rules and Regulations”, the accounting and
auditing standards and matters which are required
to be included in the audit report under the
provisions of the “Act, Rules and Regulations”.
We conducted our audit in accordance with the
Standards on Auditing specified under Section
143(10) of the Companies Act, 2013. Those
Standards require that we comply with ethical
requirements and plan and perform the audit to
obtain reasonable assurance about whether the
financial statements are free from material
misstatement.
An audit involves performing procedures to obtain
audit evidence about the amounts and the
disclosures in the financial statements. The
procedures selected depend on the auditors'
judgment, including the assessment of the risks of
84
material misstatement of the financial statements,
whether due to fraud or error. In making those risk
assessments, the auditor considers internal
financial control relevant to the Company's
preparation of the financial statements that give a
true and fair view in order to design audit
procedures that are appropriate in the
circumstances. An audit also includes evaluating
the appropriateness of the accounting policies
used and the reasonableness of the accounting
estimates made by the Company's Directors, as
well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and
according to the explanations given to us, the
aforesaid standalone financial statements dealt
with by the Report read together with schedules,
significant accounting policies and disclosures,
give the information required by the “Act, Rules and
Regulations” in the manner so required and give a
true and fair view in conformity with the accounting
principles generally accepted in India as applicable
to Non-Life Insurance Companies:
(i) In the case of the Balance Sheet, of the state
of affairs of the Company as at 31st March,
2018;
(ii) In case of Revenue accounts of the profit in
Marine and loss in Fire and Miscellaneous
Business for the year ended as on that date;
(iii) In case of Profit and Loss Account of the
Loss for the year ended as on that date, and
(iv) In case of Receipts and Payments Account,
of the receipts and payments for the year
ended on that date.
Emphasis of Matters
We draw attention to the following matters:
a) Provisional Solvency Margin : (Refer
Schedule 17 – Note No. 44)
85
The Company has calculated provisional
solvency margin taking into account the
entire Fair Value Change Account balance
amounting to ` 3,85,24,496 thousand for
the computation of available solvency
margin on the basis of Company's
representation with IRDAI and which is
subject to ratification by IRDAI. Further, all
premium outstanding relating to
State/Central Government sponsored
schemes irrespective of its age of
outstanding have been considered as
admissible asset for computation of
solvency margin.
b) Re: Unearned Premium Reserve (UPR):
(Refer Schedule 16 – Note no 3.1 and
Schedule 17 – Note No. 8)
The Company has created UPR at the
prescribed rates including for the short term
policies, in spite of the fact that such short
term policies commence and lapse within
the accounting year and no part of the
premium written is attributable to the
succeeding accounting period. However,
no UPR has been created for the Net
Premium of ` 46,19,154 thousand for
Pradhan Mantri Fasal Bima Yojana for
Kharif Business.
c) Re: Premium Received in Instalment :
(Refer Schedule 16 - Note no. 3)
The Company accounts for the premium of
policy Scheme on receipt of instalment
even though the policy and the risk
commences from the date of signing the
MOU/Policy Cover.
d) Re: Balance confirmation/Reconciliation:
(Refer Schedule 17 - Note no. 28)
Various Account balances (Due from/Due
to) are under process of reconciliation and
confirmation. The impact of adjustments, if
any, arising out of reconciliation is not
ascertainable.
e) Re: Segment Assets and Segment
Liabilities: (Refer Schedule 16 - Note no. 14)
ANNUAL REPORT 2017-18
 The Company has disclosed prescribed
Segment wise revenue and results.
However, the Segment Assets and the
Segment liabilities are not identified for the
corresponding Segments as required under
AS-17.
f) Re: Contribution to Employees’ Provident
Fund (EPF): (Refer Schedule 16 - Note no.
12 (a) & Schedule 17 – Note no. 33.3)
The Company has been consistently
treating Contribution to EPF as Defined
Contribution Plan. In view of Company's
obligation for making up the deficit of EPF
Trust fund towards payment of interest at
the Government declared rate, it should
have been treated as Defined Benefit Plan
and disclosure requirement is applicable
accordingly.
g) Re: Segregation of Investments :(Refer
Schedule 8, 8A and Schedule 16-Note no.
8.13)
The Company has segregated investments
into Shareholder's Fund and Policyholder's
Fund without identifying them scrip-wise.
h) Re : Micro, Small and Medium Enterprises
Development Act, 2006 (Refer Schedule 17
– Note no. 34)
The Company has not identified the
Enterprises under the MSMED Act, 2006 for
requisite disclosure.
i) Re: Free look period (Refer Schedule 17 –
Note No. 36)
The Company has not carried out Actuarial
Valuation for the 'Free look period' feature.
j) Re: Bhavishya Arogya Policy (Refer
Schedule 17 – Note No. 37)
The Company is yet to account for premium
income and corresponding IBNR and
IBNER liabilities in respect of Bhavishya
Arogya Policy.
k) Re: Accounting Software (Refer Schedule
17 – Note No. 29)
ANNUAL REPORT 2017-18
Required adjustments of some assets and
liabilities on implementation of core
insurance accounting software is pending.
l) Re: Unclaimed amount of Policyholders
(Refer Schedule 17 – Note No. 49)
Identification of unclaimed amount of
policyholders, if any, lying in other heads of
account.
m) Re: GST Input Credit (Refer Schedule 17 –
Note No. 39)
The Company has availed GST input credit
which is subject to final assessment by the
GST Authority.
Our opinion is not modified in respect of these
matters.
Other Matter
We did not audit the financial statements of thirty
three (33) Regional offices, three hundred and
ninety two (392) Divisional offices, two (2) Foreign
offices, included in the standalone financial
statements of the Company whose financial
statements / financial information reflect total
assets of ` 5,58,27,193 thousand as at 31st March,
2018 and total revenues of ` 16,24,36,775
thousand for the year ended on that date. The
financial statements/information of these offices
have been audited by the other firm of auditors
(branch auditors) whose reports have been
furnished to us, and our opinion in so far as it
relates to the amounts and disclosures included in
respect of these offices, is based solely on the
report of such branch auditors.
Our opinion is not modified in respect of this matter
Report on Other Legal and Regulatory
Requirements
1. As required by the IRDA Financial
Statements Regulations, we have issued a
separate certificate of even date in the
matters specified in paragraph 3 and 4 of
Schedule C to the IRDA Financial
Statements Regulations – Refer Annexure
'A' to this report.
86
2. As required by Section 143(3) of the
Companies Act, 2013 and IRDA Financial
Statements Regulations and orders/
directions/circulars issued by the Insurance
Regulatory and Development Authority of
India, we report that:
a) We have sought and obtained all the
information and explanations which to
the best of our knowledge and belief
were necessary for the purposes of our
audit and have found them to be
satisfactory.
b) In our opinion, proper books of account
as required by law have been
maintained by the Company, so far as it
appears from our examination of those
books.
c) In our opinion proper returns from 33
Regional offices, 392 Divisional offices
and 2 Foreign branch offices audited by
the other firm of auditors and not visited
by us, have been received and are
g) The standalone financial statements
adequate for the purpose of audit.
d) The reports of the 33 Regional Auditors
consolidating the 392 Divisional
Auditors reports and reports of 2 foreign
branches audited under section 143(8)
of the Companies Act, 2013 by the
branch auditors have been sent to us
and have been properly dealt with by us
in preparing this report in the manner
h) The Investments have been valued in
considered necessary by us.
e) T h e B a l a n c e S h e e t , R e v e n u e
accounts, Profit and Loss account and
the Receipts and Payments Account
dealt with by the report are in
i)
agreement with the books of account
and returns received from offices not
visited by us.
f) The actuarial valuation of liabilities in
respect of Incurred But Not Reported
(the “IBNR”), Incurred But Not Enough
Reported (the “IBNER”) and Premium
Deficiency Reserve (the “PDR”) is the
87
responsibility of the Company's
Appointed Actuary and the Mentor
Actuary (the “Appointed Actuary”). The
Appointed Actuary has certified that
outstanding claims reserves are not
determined by statistical methods and
instead determined by respective
operating offices on a case to case
basis. The assumptions for the
valuation of Premium Deficiency
Reserve (the “PDR”) and IBNR
reserves as at 31st March, 2018 are in
accordance with the guidelines and
norms issued by IRDAI and the
Institute of Actuaries of India in
concurrence with the Authority. The
valuation of liabilities for outstanding
claims reserves and the PDR
contained in the financial statements of
the company are based on the
Appointed Actuary's certificate as
above.
have been prepared in accordance
with the requirements of the Insurance
Act, 1938 (4 of 1938), the Insurance
Regulatory and Development Authority
Act, 1999 (41 of 1999) and the
Companies Act, 2013 (18 of 2013) to
the extent applicable and in the manner
so required.
accordance with the provisions of the
Insurance Act, the regulations and
orders/directions/circulars issued by
IRDAI in this regard.
The accounting policies selected by the
Company are appropriate and are in
compliance with the applicable
Accounting Standards specified under
Section 133 of the Companies Act,
2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014
and with the accounting principles, as
prescribed in the IRDAI Financial
ANNUAL REPORT 2017-18
 Statements Regulations and order or
direction issued by the IRDAI in this
behalf.
j) In our opinion the standalone financial
statements comply with the Accounting
Standards specified under Section 133
of the Companies Act, 2013 read with
Rule 7 of the Companies (Accounts)
Rules, 2014.
k) The provisions of Section 164(2) of the
Companies Act, 2013 with regard to
disqualification for appointment of
directors are not applicable to the
Company in view of Notification No.
GSR 463(E) dated 5th June, 2015
issued by the Ministry of Corporate
Affairs, Government of India.
l) With respect to the adequacy of the
Internal Financial Controls over
financial reporting of the Company and
the operating effectiveness of such
controls, refer to our separate report in
Annexure-B to this report.
m) With respect to the other matters to be
included in the Auditor's Report in
accordance with Rule 11 of the
Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of
our information and according to the
explanations given to us:
For S. Ghose & Co. LLP
Chartered Accountants
FRN: 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place : Kolkata
Date : 19 July, 2018
th
ANNUAL REPORT 2017-18
i) The Company has disclosed the
impact of pending litigations on its
financial position in its financial
statements – Refer Schedule 17 -
Note no. 52.
ii) The Company did not have any
long term contracts including
derivatives contracts for which the
Company was expecting any
material foreseeable losses – Refer
Schedule 17 - Note no. 53.
iii) There were no amounts which were
required to be transferred to the
Investor Education and Protection
Fund by the Company – Refer
Schedule-17 - Note no. 54.
n) As required under section 143(5) of the
Companies Act, 2013, we enclose
Annexure C to this report, the
directions including sub-directions
issued by the Comptroller & Auditor
General of India, action taken thereon
and its financial impact on the accounts
and standalone financial statements of
the Company, which is based on the
information given by the Company and
approved by the Board of Directors and
as reported by the Branch Auditors to
the extent applicable to Divisional
offices and Regional offices.
For Saha Ganguli & Associates
Chartered Accountants
FRN : 302191E
(CA Samir Kumar Saha)
Partner
Membership No. 051392
88
Annexure – 'A' to the Independent Auditors'
Report of even date on the Standalone Financial
Statements of National Insurance Company
Limited
(Referred to in paragraph 1 under 'Report on Other
Legal and Regulatory Requirements' section)
Independent Auditors' Certificate to the members
of National Insurance Company Limited
This certificate is issued to comply with the provisions
of paragraphs 3 and 4 of Schedule C to the Insurance
Regulatory and Development Authority (Preparation
of Financial Statements and Auditor's Report of
Insurance Companies) Regulations, 2002 (the “IRDA
Financial Statements Regulations”) read with regulation
3 and may not be suitable for any other purpose.
The Company's Board of Directors is responsible for
complying with the provisions of The Insurance Act,
1938 (the “Insurance Act”) (amended by the Insurance
Laws (Amendment) Act, 2015), the Insurance
Regulatory and Development Authority Act, 1999 (the
“IRDA Act”), the IRDA Financial Statements
Regulations, orders/directions/ circulars issued by the
Insurance Regulatory and Development Authority of
India (the “IRDA”) which includes the preparation of
the Management Report. This includes collecting,
collating and validating data and designing,
implementing and monitoring of internal controls
suitable for ensuring compliance as aforesaid.
Our responsibility, for the purpose of this certificate, is
limited to certifying matters contained in paragraphs 3
and 4 of Schedule C to the IRDA Financial
Statements Regulations. We have conducted our
examination in accordance with the Guidance Note
on Audit Reports and Certificates for Special
Purposes issued by the Institute of Chartered
Accountants of India (the 'ICAI').
In accordance with the information and explanations
given to us and to the best of our knowledge and
belief and based on our examination of the books of
For S. Ghose & Co. LLP
Chartered Accountants
FRN: 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place : Kolkata
Date : 19 July, 2018
th
89
account and other records maintained by National
Insurance Company Limited ('the Company') for the
year ended 31st March, 2018, we certify that:
1. We have reviewed the Management Report
attached to the standalone financial statements
for the year ended 31st March, 2018, and on the
basis of our review read with our Independent
Auditors' Report, there is no apparent mistake or
material inconsistencies with the standalone
financial statements. However, trends in
average claim settlement time during the
preceding five years have not been reported.
2. Based on management representations and the
compliance certificate submitted to the Board by
the officers of the Company charged with
compliance and the same being noted by the
Board, nothing has come to our attention which
causes us to believe that the Company has not
complied with the terms and conditions of
registration stipulated by the IRDAI.
3. Branch auditors have verified the cash balances
and we have verified the securities relating to
the Company's loans (except for the loans given
to Company's employees) and investments as
at 31st March, 2018 by actual inspection or on the
basis of certificate/ confirmations received from
the custodian and/or depository participants
appointed by the Company as the case may be.
4. No investments and transactions relating to any
trusts have been undertaken by the Company
as trustee. – Refer Schedule 17 - Note no 31 (c).
5. The Company has yet to identify the scrip wise
investments pertaining to the policyholders'
funds. However, no part of the assets of the
policyholders' funds/shareholders' funds on an
overall basis has been directly or indirectly
applied in contravention of the provisions of the
Insurance Act, 1938 relating to the application
and investments of the policyholders' funds.
For Saha Ganguli & Associates
Chartered Accountants
FRN : 302191E
(CA Samir Kumar Saha)
Partner
Membership No. 051392
ANNUAL REPORT 2017-18
ANNEXURE – 'B' TO THE INDEPENDENT
AUDITORS' REPORT OF EVEN DATE ON THE
STANDALONE FINANCIAL STATEMENTS OF
NATIONAL INSURANCE COMPANY LIMITED
(Referred to in paragraph 2(l) under 'Report on
Other Legal and Regulatory Requirements'
section)
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013
1. We have audited the internal financial controls
over financial reporting of National Insurance
Company Limited (“the Company”) as at 31st
March, 2018 in conjunction with our audit of
the standalone financial statements of the
Company for the year ended on that date.
Management's Responsibility for Internal
Financial Controls
2. The Company's management is responsible
for establishing and maintaining internal
financial controls based on the internal control
over financial reporting criteria established by
the Company considering the essential
components of internal control stated in the
guidance Note on Audit of Internal Financial
Controls Over Financial Reporting ('the
Guidance Note') issued by the Institute of
Chartered Accountants of India ('the ICAI').
These responsibilities include the design,
implementation and maintenance of adequate
internal financial controls that were operating
effectively for ensuring the orderly and
efficient conduct of its business, including
adherence to Company's policies, the
safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy
and completeness of the accounting records,
and the timely preparation of reliable financial
information, as required under the Companies
Act, 2013 ('the Act').
Auditors' Responsibility
3. Our responsibility is to express an opinion on
the Company's internal financial controls over
financial reporting based on our audit. We
conducted our audit in accordance with the
Guidance Note and the Standards on
Auditing, ('the Standards') issued by the ICAI
and deemed to be prescribed under section
143(10) of the Act to the extent applicable to
ANNUAL REPORT 2017-18
an audit of internal financial controls, both
applicable to an audit of Internal Financial
Controls and, both issued by the ICAI. Those
Standards and the Guidance Note require that
we comply with ethical requirements and plan
and perform the audit to obtain reasonable
assurance about whether adequate internal
financial controls over financial reporting was
established and maintained and if such
controls operated effectively in all material
respects.
4. Our audit involves performing procedures to
obtain audit evidence about the adequacy of
the internal financial controls system over
financial reporting and their operating
effectiveness. Our audit of internal financial
controls over financial reporting included
obtaining an understanding of internal
financial controls over financial reporting,
assessing the risk that a material weakness
exists, and testing and evaluating the design
and operating effectiveness of internal control
based on the assessed risk. The procedures
selected depend on the auditors' judgment,
including the assessment of the risks of
material misstatement of the financial
statements, whether due to fraud or error.
5. We believe that the audit evidence we have
obtained is sufficient and appropriate to
provide a basis for our audit opinion on the
Company's internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over
Financial Reporting
6. A Company's internal financial control over
financial reporting is a process designed to
provide reasonable assurance regarding the
reliability of financial reporting and the
preparation of financial statements for
external purposes in accordance with
generally accepted accounting principles. A
Company's internal financial control over
financial reporting includes those policies and
procedures that (1) pertain to the
maintenance of records that, in reasonable
detail, accurately and fairly reflect the
transactions and dispositions of the assets of
the Company; (2) provide reasonable
assurance that transactions are recorded as
necessary to permit preparation of financial
90
 statements in accordance with generally
accepted accounting principles, and that
receipts and expenditures of the Company are
being made only in accordance with
authorisations of management and directors
of the Company; and (3) provide reasonable
assurance regarding prevention or timely
detection of unauthorised acquisition, use, or
disposition of the Company's assets that could
have a material effect on the financial
statements.
Inherent Limitations of Internal Financial
Controls Over Financial Reporting
7. Because of the inherent limitations of internal
financial controls over financial reporting,
including the possibility of collusion or
improper management override of controls,
material misstatements due to error or fraud
may occur and not be detected. Also,
projections of any evaluation of the internal
financial controls over financial reporting to
future periods are subject to the risk that the
internal financial control over financial
reporting may become inadequate because of
changes in conditions, or that the degree of
compliance with the policies or procedures
may deteriorate.
Opinion
8. In our opinion and to the best of our
information and accounting to the
explanations given to us, the Company has, in
all material respects, an adequate internal
financial controls system over financial
reporting and such internal financial controls
over financial reporting were operating
effectively as at 31st March, 2018, based on
the internal control over financial reporting
For S. Ghose & Co. LLP
Chartered Accountants
FRN: 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place : Kolkata
Date : 19 July, 2018
th
91
criteria established by the Company
considering the essential components of
internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over
Financial Reporting issued by the ICAI.
Other Matters
9. The Company's internal controls over
financial reporting require improving in the
area of data validation/integration of various
accounting software used by the company
and recording of intimated/incurred claims at
the offices of the Company and with TPAs.
The internal audit system also requires
improving in the areas of audit coverage and
compliance.
10. Our aforesaid report u/s 143(3)(i) of the Act on
the adequacy and operating effectiveness of
the internal financial controls over financial
reporting in so far as it relates to Regional
offices and Divisional offices is based on the
report u/s 143(3)(i) of the Act received from
the Branch Auditors of Regional/Divisional
offices.
11. The actuarial valuation of liabilities in respect
of Incurred But Not Reported (the “IBNR”),
Incurred But Not Enough Reported (the
“IBNER”) and Premium Deficiency Reserve
(the “PDR”) is the responsibility of the
Company's Appointed Actuary and the Mentor
Actuary (the “Appointed Actuary”). Our
opinion on the internal financial controls over
financial reporting does not include reporting
on the adequacy and operating effectiveness
of the Internal Controls over valuation and
accuracy of the aforesaid actuarial liabilities.
Our opinion is not qualified in respect of these
matters.
For Saha Ganguli & Associates
Chartered Accountants
FRN : 302191E
(CA Samir Kumar Saha)
Partner
Membership No. 051392
ANNUAL REPORT 2017-18
Annexure – 'C' to the Independent Auditors' Report of even date on the Standalone Financial
Statements of National Insurance Company Limited
(Referred to in paragraph 2(n) under 'Report on Other Legal and Regulatory Requirements' section)
Replies to the Directions issued to Statutory Auditors under Section 143(5) of the Companies Act,
2013 for the Financial Year 2017-18

Sr.No Query Reply

1 Whether the Company has clear titles/ lease
deeds for freehold and leasehold land
respectively? If not, please state the area of
freehold and leasehold land for which title /
lease deeds are not available?
2 Whether there are any cases of waiver / write-
off of debts / loans / interest etc. If yes, the
reasons thereof and the amount involved.
3 Whether proper records are maintained for
inventories lying with third parties & assets
received as gift(s) / grant(s) from Govt. or other
authorities.
The Company has clear title/lease deeds for
freehold and leasehold land except for one joint
leasehold land (4316 sq. meter) at Ellis Bridge,
Ahmedabad which was purchased in the name
of General Insurance Corporation of India on
26.7.1989 on behalf of four PSU insurance
companies.
The Company has during the year written off
` 73276 thousand in respect of depreciated
Investments and charged to Revenue and Profit
& Loss Accounts.
The Company, being an Insurance Company,
does not have any stock inventories. Proper
records of inventories for investments lying with
third party custodian M/S Stock Holding
Corporation of India are maintained.

Replies to Additional Directions to Statutory Auditors under section 143(5) of the Companies Act,
2013 appointed for audit of National Insurance Company Limited for the year 2017-18
Sr.No Query Reply
1. Number of titles of ownership in respect of SECURITY Total
CGS/SGS/Bonds/Debentures etc. CLASS Number of BV
available in physical/demat form and titles of (` in '000.)
number of cases which are not in ownership
agreement with the respective amounts CGS 41 46295631
shown in the Company's books of accounts
SGS 153 35230870
may be verified and discrepancy found may
be suitably reported. BONDS & 332 47257473
DEBENTURES
EQUITY SHARES 596 74301557
PREFERENCE 138 25754
SHARES
The following table states the number as well as the
book value of the following classes of securities,
where there is a mismatch between the Company's
books of accounts and the books of the Custodian.

ANNUAL REPORT 2017-18 92

Sr.No Query Reply
SECURITY SHORT CASES1 EXCESS CASES1
CLASS Number of BV Number of BV
titles of (` in '000) titles of (` in '000)
ownership ownership
CGS NIL 0 NIL 0
SGS NIL 0 NIL 0
BONDS & 21 375520* 4 7106
DEBENTURES
EQUITY 45 2327 12 284
SHARES
PREFERENCE 25 0.025 4 12
SHARES
1
as against the balances in the books of the Custodian.
* includes Debentures of ` 347000 thousands, which have been
withdrawn from Custodian on account of restructuring of Borrowal
Account.

2. Whether stop loss limits have been In view of the nature of transactions undertaken and
prescribed in respect of the investments. the Investment portfolio held by the Company, no Stop
If yes, whether or not the limit was loss limits have been prescribed.
adhered to. If no, details may be given.

3. Whether Company has carried out
reconciliation exercise for inter-company
balances reflected in their financial
statements with other PSU insurers and
whether confirmation has been obtained
from other PSU insurers for balances due
from them?
As reported by the Auditors of the operating offices,
the Company has carried out periodical reconciliation
for inter-company balances with other PSUs at the
respective operating offices and the year end
confirmations received from other PSU insurers for
balances due from them are in the process of
reconciliation.

4(a) Whether the method of accountal of
premium and reported claims are as per
conditions of agreement/scheme relating
to Pradhan Mantri Fasal Bima Yojana
The Company has accounted the premium income
and the reported claims under the Pradhan Mantri
Fasal Bima Yojana in accordance with the Company's
Accounting policies and in compliance with the
Operational Guidelines on Pradhan Mantri Fasal Bima
Yojana issued by the Ministry of Agriculture & Farmers
Welfare. However, in few cases balance recoverable
from the respective State and Central Governments
are subject to reconciliation and confirmation.

93 ANNUAL REPORT 2017-18

Sr.No Query
4(b) Whether the method of accountal of
premium and reported claims are as per
conditions of agreement/scheme relating
to Rashtriya Swasthya Bima Yojana
For S. Ghose & Co. LLP
Chartered Accountants
FRN: 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place : Kolkata
Date : 19 July, 2018
th
ANNUAL REPORT 2017-18
Reply
The Company has accounted the premium income
and the reported claims under the Rashtriya Swasthya
Bima Yojana in accordance with the Company's
Accounting policies and in compliance with the MoUs
with the respective State Governments. However, in
few cases balance recoverable from the respective
State and Central Governments are subject to
reconciliation and confirmation.
For Saha Ganguli & Associates
Chartered Accountants
FRN : 302191E
(CA Samir Kumar Saha)
Partner
Membership No. 051392
94
95 ANNUAL REPORT 2017-18
ANNUAL REPORT 2017-18 96
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b)
OF THE COMPANIES ACT, 2013 ON THE STANDALONE FINANCIAL STATEMENTS OF NATIONAL
INSURANCE COMPANY LIMITED FOR THE YEAR ENDED 31ST MARCH 2018
COMMENTS OF C&AG
A. Comments on Financial Statement
A.1 Balance Sheet
Investment- `25,344.84 crore
Shareholder's Investments- `5149.56 crore
Policyholder's Investments- `20195.28 crore
Fair Value Change Account
Policyholders- `3069.77 crore
Shareholders- `782.68 crore
(a) Insurance Regulatory and Development
Authority (IRDA) vide circular dated 4 April
2016 and Investments Regulations, 2016
required segregation of Shareholders' Funds
and Policyholders' Fund as well as
investments made from these funds on the
balance sheet date. Further, IRDA vide
circular dated 12 January 2017 reiterated the
segregation of Shareholders' Fund and
Policyholders' Fund.
The company has bifurcated the
Investments made out of Shareholders'
Fund and Policyholders' Fund. However, the
same was incorrectly done on the basis of
opening balances of components of
Shareholders' Fund and Policyholders' Fund
instead of closing balances. Consequently,
Shareholders' Investment and Policyholders'
Investment were bifurcated at `5149.56 crore
and `20195.28 crore instead of `2131.50 crore
and `23213.34 crore respectively. This has
resulted in overstatement of Shareholders'
Investments with corresponding
understatement of Policyholders' Investments
by `3018.06 crore.
(b) In addition to above requirement of
segregation of Shareholder's Fund and
Policyholder's Fund, IRDA also directed to
bifurcate the Fair Value Change (FVC)
Account under the Policyholders' Fund and
97
MANAGEMENT'S REPLY
(a) The bifurcation of Investments was done as
per IRDAI Circular ref: IRDA/ F&A/ CIR/
CPM/ 010/01/2017 dated 12th January, 2017
which stipulates bifurcation of Investments in
the ratio of Policyholders' Funds and
Shareholders' Funds at the end of each
quarter on a notional basis at minimum of the
fund level.
Accordingly, bifurcation was made on a
notional basis of the respective fund
balances as at the beginning of the Financial
Year 2017-18. The notional basis of
bifurcation has also been suitably disclosed
in the Board approved Significant Accounting
Policies under Schedule 16 - Note No. 8.13.
Moreover, the Company has ensured that the
Investments under Policyholders' Fund as at
31st March, 2018 are at least equal or more
than the net amount of the Policyholders'
liability (fund) as per the requirement of the
said Circular.
There is no financial impact on the results of
the Company for the FY 2017-18 on account
of the above treatment.
However, we shall refer the matter to the
IRDAI for further clarification and necessary
action shall be taken on the basis of their
advice.
(b) The Fair Value Change Account was similarly
bifurcated as per the reply given above under
point (a).
There is no financial impact on the results of
the Company for the FY 2017-18 on account
of the above treatment.
ANNUAL REPORT 2017-18
 Shareholders' Fund. Consequently,
Shareholders' Fund and Policyholders'
Fund were bifurcated at `782.68 crore and
`3069.77 crore instead of `323.99 and
`3528.46 crore respectively. This has
resulted in overstatement of Shareholders'
Funds with corresponding understatement
of Policyholders' Funds by `458.69 crore.
A.2 Profit & Loss Account for the year ended
31st March 2018
Loss after Tax - `2170.77 crore
The above is understated by `6.16 crore (Net) due
to:
i. Understatement of Gratuity Liability by `72.28
crore due to consideration of incorrect opening
balance of Fair Value Plan Assets in actuarial
valuation report and non-consideration of liability
towards employees (2112 Nos.) who had not
completed vesting period.
ii. Overstatement of liability by `66.12 crore due
release of payment to Hindustan Technologies
Limited (HCL) without adjustment of liability
already created in the account against their dues
towards Enterprise Architecture Solution for
Insurance Project.
A.3. General
i. The Profit and Loss account has not disclosed the
amount of "Earning Per Share" as required under
Paragraph 8 and 9 of Accounting Standard-20.
ANNUAL REPORT 2017-18 98
However, we shall refer the matter to the
IRDAI for further clarification and necessary
action shall be taken on the basis of their
advice.
i. The incorrect opening balance of Fair Value
Plan Assets was provided by the Gratuity
Trust inadvertently which has resulted in the
understatement of Gratuity Liability.
However, the same has been accounted for
in the first quarter accounts of FY 2018-19
including the liability towards 2112 nos. of
employees who had not completed vesting
period of 5 years.
ii. Pending reconciliation between payments of
various invoices raised by M/s HCL and the
outstanding invoices of the earlier periods,
the excess liability could not be reversed in
the FY 2017-18.
However, the same has been rectified in the
first quarter accounts of FY 2018-19 after
proper reconciliation.
The net impact of (i) and (ii) above, on the
financial results of the Company for the FY 2017-
18 is not significant.
i. The matter will be referred to the IRDAI
regarding presentation of financial
statements vis-à-vis the provisions of AS-20
and related Laws and Acts to the extent
applicable on the disclosure of EPS in the
Profit & Loss Statement and necessary
action shall be taken on the basis of their
advice.
ii. Service cost was not disclosed separately as
"Past Service Cost" and "Current Service Cost" in
Schedule-17 as per mandatory requirements of
AS-15.
ii. The Service Costs were disclosed under a
single head in the Notes forming part of the
Accounts. However, necessary care shall be
taken in future to disclose the past and
current service cost separately.

For and on behalf of the For and on behalf of the

Comptroller & Auditor General of India Board of Directors

Sd/- Sd/-
(Mausumi Ray Bhattacharyya) (Tajinder Mukherjee)
Director General of Commercial Audit Chairman-cum-Managing Director
& Ex-officio Member, Audit Board-II, (DIN: 08227563)
Kolkata

Kolkata, Kolkata,
27th September, 2018 27th September, 2018

99 ANNUAL REPORT 2017-18

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713

Fire Revenue Account for the year ended 31st March, 2018
2017-2018 2016-2017
Particulars Schedule Audited Audited
(`` ’000) (` ’000)
1 Premium Earned (Net) 1A 6,748,837 7,637,648
2 Profit/Loss on sale/redemption of Investments 1,508,335 1,964,031
3 Others : - -
Exchange Gain 157 166
4 Interest, Dividend & Rent (Gross) 1,161,562 1,115,026
Total (A) 9,418,891 10,716,871
1 Claims Incurred (Net) 2A 8,640,102 3,965,515
2 Commission 3A 911,441 1,038,477
3 Operating Expenses related to Insurance Business 4 1,753,654 1,971,232
4 Others :
Exchange loss - -
Provision for diminution in the value of Investments,
amortisation of Premium on investments, and 18,150 16,569
amount written off in respect of depreciated investments
Total (B) 11,323,347 6,991,793
Operating Profit/(Loss) from Fire Business C = (A - B) -1,904,456 3,725,078
Appropriations:
Transfer to Shareholders' Account -1,904,456 3,725,078
Transfer to Catastrophe Reserve - -
Transfer to Other Reserves - -
Total (C) -1,904,456 3,725,078
Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral
part of the Financial Statements

This is the Fire Insurance Revenue Account for the

year ended 31st March, 2018 referred to in our report
of even date.
For and on behalf of the Board of Directors
For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

ANNUAL REPORT 2017-18 100

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713

Marine Revenue Account for the year ended 31st March, 2018
2017-2018 2016-2017
Particulars Schedule Audited Audited
(`` ’000) (` ’000)
1 Premium Earned (Net) 1B 1,593,937 1,728,068
2 Profit/Loss on sale/redemption of Investments 296,577 369,063
3 Others :
Exchange Gain 57 -
4 Interest, Dividend & Rent - Gross 228,393 209,525
Total (A) 2,118,964 2,306,656
1 Claims Incurred (Net) 2B 771,346 1,170,929
2 Commission 3B 187,726 228,922
3 Operating Expenses related to Insurance Business 4 210,340 241,416
4 Others :
Exchange Loss - 5
Provision for diminution in the value of Investments,
amortisation of Premium on investments, and 3,569 3,114
amount written off in respect of depreciated investments
Total (B) 1,172,981 1,644,386
Operating Profit/(Loss) from Marine Business C = (A - B) 945,983 662,270
Appropriations:
Transfer to Shareholders' Account 945,983 662,270
Transfer to Catastrophe Reserve - -
Transfer to Other Reserves - -
Total (C) 945,983 662,270
Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral
part of the Financial Statements

This is the Marine Insurance Revenue Account for

the year ended 31st March, 2018 referred to in our
report of even date.
For and on behalf of the Board of Directors
For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

101 ANNUAL REPORT 2017-18

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Miscellaneous Revenue Account for the year ended 31st March, 2018
2017-2018 2016-2017
Particulars Schedule Audited Audited
(`` ’000) (` ’000)
1 Premium Earned (Net) 1C 104,322,774 98,670,555
2 Profit/Loss on sale/redemption of Investments 13,943,555 16,663,384
3 Others : - -

Exchange Gain - -
4 Interest, Dividend & Rent - Gross 10,737,873 9,460,186
Total (A) 129,004,202 124,794,125
1 Claims Incurred (Net) 2C 119,295,329 99,930,371
2 Commission 3C 9,904,484 8,415,022
3 Operating Expenses related to Insurance Business 4 26,995,013 24,317,840
4 Others :
Exchange Loss 2,379 5,451
Provision for diminution in the value of Investments,
amortisation of Premium on investments, and 167,786 140,580
amount written off in respect of depreciated investments
Total (B) 156,364,991 132,809,264
Operating Profit/(Loss) from Miscellaneous Business C = (A - B) -27,360,789 -8,015,139
Appropriations:
Transfer to Shareholders' Account -27,360,789 -8,015,139
Transfer to Catastrophe Reserve - -
Transfer to Other Reserves - -
Total (C) -27,360,789 -8,015,139
Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral
part of the Financial Statements

This is the Miscellaneous Insurance Revenue

Account for the year ended 31 st March, 2018
referred to in our report of even date.
For and on behalf of the Board of Directors
For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

ANNUAL REPORT 2017-18 102

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Profit and Loss Account for the year ended 31st March, 2018
2017 – 2018 2016 – 2017
Audited Audited
Particulars (`` ’000) (` ’000)
1. OPERATING PROFIT/LOSS -28,319,262 -3,627,791
(a) Fire Insurance -1,904,456 3,725,078
(b) Marine Insurance 945,983 662,270
(c) Miscellaneous Insurance -27,360,789 -8,015,139
2. INCOME FROM INVESTMENTS 7,168,563 7,678,354
(a) Interest, Dividend & Rent - Gross 3,153,265 2,780,579
(b) Profit on sale of investments 4,015,298 4,897,775
Less: Loss on sale of Investments - -
3. OTHER INCOME 363,244 64,279
(a) Profit on sale of other asset 49,787 109
(b) Miscellaneous Income 313,457 64,170
(c) Exchange Gain - -
(d) Others - -
Total (A) -20,787,455 4,114,842
4. PROVISIONS (Other than taxation) 1,399 -95,508
(a) For diminution in the value of Investments 1,399 22,323
(b) For doubtful debts - -117,831
(c) Others - -
5. OTHER EXPENSES 1,036,188 3,718,311
(a) Expenses other than those related to “Insurance Business" 15,301 13,651
(b) Bad debts written off - -
(c) Others:
Amortisation of Premium on Investments 32,031 11,007
Amount written off in respect of “depreciated Investments" 14,887 7,990
Exchange Loss - 37,655
Assets written off 81 -
Loss on Sale on Asset 4,197 11,505
Interest on Debentures 747,325 10,237
Debenture Related Expenses 326 5,312
Expenses in excess of allowable limits
(As per Section “40C of the Insurance Act, 1938)" 166,444 3,554,973
Corporate Social Responsibility Expenses 55,596 63,558
Other Misc. Expenses - 2,423
Total (B) 1,037,587 3,622,803

103 ANNUAL REPORT 2017-18

 2017 – 2018 2016 – 2017
Schedule Audited Audited
Particulars
(`` ’000) (` ’000)
Profit/Loss before tax -21,825,042 492,039
Provision for Taxation - -
Adjustment of taxation for Earlier Years -117,382 33,662
Profit/Loss after Tax -21,707,660 458,377
Appropriations: -21,707,660 458,377
(a) Interim dividends paid during the year - -
(b) Proposed Final Dividend - -
(c) Dividend Distribution tax - -
(d) Transfer to General Reserve -21,708,182 458,377
(e) Transfer to Unclaimed Policyholders Funds 522 -
Balance of profit/loss brought forward from last year - -
Balance carried forward to Balance Sheet - -
Significant Accounting Policies 16
Notes to Accounts 17

The schedules referred to above form an integral

part of the Financial Statements

This is the Profit and Loss Account for the year ended
31st March, 2018 referred to in our report of even date.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP
Chartered Accountants
FRN 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place: Kolkata
Date: 19th July, 2018
For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Director Chief Financial Officer
Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary

ANNUAL REPORT 2017-18 104

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Balance Sheet as at 31st March, 2018
As at As at
Particulars Schedule
31.03.2018 31.03.2017
SOURCES OF FUNDS (`` ’000) (`` ’000)
SHARE CAPITAL 5 1,000,000 1,000,000
RESERVES AND SURPLUS 6 17,616,082 39,322,413
FAIR VALUE CHANGE ACCOUNT - SHAREHOLDERS FUNDS 7,826,815 11,816,638
FAIR VALUE CHANGE ACCOUNT - POLICYHOLDERS FUNDS 30,697,681 45,831,941
BORROWINGS 7 8,950,000 8,950,000
TOTAL 66,090,578 106,920,992
APPLICATION OF FUNDS
INVESTMENTS - SHAREHOLDERS FUNDS 8 51,495,586 51,269,554
INVESTMENTS - POLICYHOLDERS FUNDS 8A 201,952,776 198,853,777
LOANS 9 1,905,773 1,870,849
FIXED ASSETS 10 3,126,437 2,835,419
CURRENT ASSETS
Cash and Bank Balances 11 9,306,508 10,886,866
Advances and Other Assets 12 80,038,916 56,735,064
Sub-Total (A) 89,345,424 67,621,930
CURRENT LIABILITIES 13 224,486,120 161,794,685
PROVISIONS 14 57,249,298 55,257,878
Sub-Total (B) 281,735,418 217,052,563
NET CURRENT ASSETS/(LIABILITIES) (C) = (A-B) -192,389,994 -149,430,633
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted) 15 - 1,522,026
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT - -
TOTAL 66,090,578 106,920,992
Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral part
of the Financial Statements

105 ANNUAL REPORT 2017-18

CONTINGENT LIABILITIES

As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Partly paid-up Investments 4,181 4,181
2. Claims, other than against policies, not acknowledged as debts 339,586 331,945
by the Company
3. Underwriting commitments outstanding (in respect of shares & securities) - -
4. Guarantees given by or on behalf of the Company - -
5. Statutory demands/liabilities in dispute, not provided for 6,676,319 10,540,770
6. Reinsurance obligations to the extent not provided for in Accounts - -
7. Others-Policyholders unclaimed amount transferred to Senior
Citizen Welfare Fund 22,571 -
TOTAL 7,042,657 10,876,896

This is the Balance Sheet as on 31st March, 2018

referred to in our report of even date.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP
Chartered Accountants
FRN 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place: Kolkata
Date: 19th July, 2018
For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Director Chief Financial Officer
Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary

ANNUAL REPORT 2017-18 106

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713

Receipts and Payments Account for the year ended 31st March, 2018

2017-18 2016-17
(` ‘000) (` ‘000)
A. Cash flows from Operating Activities:
1 Premium received from policyholders, (including advance receipts) 159,375,215 125,532,297
2 Other receipts 7,206,340 9,535,749
3 Receipts/Payments from/to the re-insurers, net of commissions and claims -11,735,246 -7,607,591
4 Receipts/Payments from/to co-insurers, net of claims recovery -2,550,307 -1,124,457
5 Payments of claims -89,227,787 -71,368,352
6 Payments of commission and brokerage -4,770,479 -5,472,581
7 Payments of other operating expenses -25,820,297 -27,579,128
8 Preliminary and pre-operative expenses - -
9 Deposits, advances and staff loans (including House building Loan) -413,613 -804,578
10 Income taxes paid (Net) (Including Wealth Tax) -109,648 -742,648
11 Service tax/GST paid -23,897,910 -20,552,646
12 Other payments -9,676,346 -24,280,061
13 Cash flows before extraordinary items -1,620,078 -24,463,996
14 Cash flow from extraordinary operations - -
15 Net cash flow from operating activities (A) -1,620,078 -24,463,996
B. Cash flows from Investing Activities:
1 Purchase of fixed assets -750,772 -811,884
2 Proceeds from sale of fixed assets 22,041 27,632
3 Purchases of investments (Other than money market instruments &
liquid mutual funds) -111,524,743 -82,417,159
4 Loans disbursed - -
5 Sales of investments 274,267,649 262,544,346
6 Repayments received 114,896 172,406
7 Rents/Interests/Dividends received 14,225,320 13,127,203
8 Investments in money market instruments and in liquid mutual funds -175,569,155 -174,291,505
9 Expenses related to investments -314 -96
10 Net cash flow from investing activities (B) 784,922 18,350,943

107 ANNUAL REPORT 2017-18

Receipts and Payments Account for the year ended 31st March, 2018

2017-18 2016-17
(` ‘000) (` ‘000)
C. Cash flows from Financing Activities:
1 Proceeds from issuance of share capital - -
2 Proceeds from borrowing - 8,950,000
3 Repayments of borrowing - -
4 Interest / dividends (including dividend distribution tax) paid -747,325 -541,770
5 Net cash flow from financing activities (C) -747,325 8,408,230
D. Effect of Foreign Exchange rates on Cash & Cash Equivalents,
net (due to translation of assets and liabilities) 2,123 -6,200
E. Net increase in Cash & Cash Equivalents: (A+B+C+D) -1,580,359 2,288,977
1 Cash and cash equivalents at the beginning of the year 10,886,866 8,597,889
a. Cash (including cheques, drafts and stamps) 1,493,884 587,263
b. Bank balances (including short term deposits) 9,379,279 7,995,021
c. Remittances in transit 13,703 15,605
2 Cash and cash equivalents at the end of the year 9,306,508 10,886,866
a. Cash (including cheques, drafts and stamps) 141,331 1,493,884
b. Bank balances (including short term deposits) 9,138,284 9,379,279
c. Remittances in transit 26,893 13,703

This is the Receipts and Payments A/c for the year ended
31st March, 2018 referred to in our report of even date.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP
Chartered Accountants
FRN 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place: Kolkata
Date: 19th July, 2018
For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Director Chief Financial Officer
Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary

ANNUAL REPORT 2017-18 108

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE – 1A FIRE
PREMIUM EARNED [NET]
2017 - 2018 2016 - 2017
Particulars (` ’000) (` ’000)
Premium from direct business written 9,167,566 9,270,219
Add: Premium on reinsurance accepted 1,503,826 1,604,513
Less : Premium on reinsurance ceded 3,760,796 3,127,655
Net Premium 6,910,596 7,747,077
Adjustment for change in reserve for unexpired risks* -161,759 -109,429
Total Premium Earned (Net) 6,748,837 7,637,648
*Includes Reserve for premium deficiency for `58000 thousand (` Nil thousand)
SCHEDULE – 2A FIRE
CLAIMS INCURRED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Claims paid
Direct 7,890,528 7,546,984
Add :Re-insurance accepted 1,017,050 908,549
Less :Re-insurance ceded 3,922,442 4,049,180
Net Claims paid 4,985,136 4,406,353
Add: Claims Outstanding at the end of the year 14,892,371 11,237,405
Less: Claims Outstanding at the beginning of the year 11,237,405 11,678,243
Total Claims Incurred 8,640,102 3,965,515

SCHEDULE- 3A FIRE
COMMISSION 2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Commission paid
Direct-Total (A)* 792,557 841,307
Add: Commission on Re-insurance accepted 328,578 361,607
Less: Commission on Re-insurance ceded 209,694 164,437
Net Commission 911,441 1,038,477

109 ANNUAL REPORT 2017-18

Break-up of the expenses (Gross) incurred to procure business :

2017 - 2018 2016 - 2017

(` ’000) (` ’000)

Agents 568,378 538,992

Brokers 165,041 204,743
Corporate Agency 59,130 97,572
Others :
Referral - -
Misc. Others 8 -
Total (B) 792,557 841,307

* Includes Agent Incentive of ` 167376 thousand (` 212929 thousand)

ANNUAL REPORT 2017-18 110

 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

FIRE
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1A
PREMIUM FROM DIRECT BUSINESS WRITTEN 9,017,948 149,617 9,167,565 9,122,637 147,582 9,270,219
ADD: PREMIUM ON R/I ACCEPTANCE 1,492,799 11,027 1,503,826 1,589,787 14,726 1,604,513
LESS : PREMIUM ON R/I CEDED 3,721,194 39,601 3,760,795 3,056,258 71,397 3,127,655
NET PREMIUM 6,789,553 121,043 6,910,596 7,656,166 90,911 7,747,077
ADJUSTMENT FOR CHANGE IN RESERVE FOR -146,694 -15,065 -161,759 -119,607 10,178 -109,429
UNEXPIRED RISK
TOTAL PREMIUM EARNED (NET) 6,642,859 105,978 6,748,837 7,536,559 101,089 7,637,648
CLAIMS INCURRED (NET) 2A
CLAIMS PAID – DIRECT 7,631,127 259,401 7,890,528 7,442,159 104,825 7,546,984
ADD : R/I ACCEPTANCE 1,017,050 - 1,017,050 882,529 26,020 908,549
LESS : R/I CEDED 3,882,005 40,437 3,922,442 3,846,299 202,881 4,049,180

111
NET CLAIMS PAID 4,766,172 218,964 4,985,136 4,478,389 -72,036 4,406,353
ADD: CLAIMS O/S AT THE END OF YEAR 14,746,989 145,382 14,892,371 10,976,279 261,126 11,237,405
LESS: CLAIMS OUTSTANDING AT THE BEGINING 10,976,279 261,126 11,237,405 11,290,277 387,966 11,678,243
TOTAL CLAIMS INCURRED 8,536,882 103,220 8,640,102 4,164,391 -198,876 3,965,515
COMMISSION 3A
COMMISSION PAID – DIRECT * 791,738 819 792,557 840,401 906 841,307
ADD: R/I ACCEPTANCE 326,174 2,404 328,578 358,983 2,624 361,607
LESS: R/I CEDED 200,258 9,436 209,694 155,303 9,134 164,437
NET COMMISSION 917,654 -6,213 911,441 1,044,081 -5,604 1,038,477
OPERATING EXPENSES 4 1,731,008 22,646 1,753,654 1,934,620 36,612 1,971,232
EXCHANGE GAIN (+) /LOSS (-) 157 - 157 166 - 166
UNDERWRITING RESULT -4,542,528 -13,675 -4,556,203 393,633 268,957 662,590
INVESTMENT INCOME (INTEREST, DIVIDEND &
RENT PLUS PROFIT ON SALE OF INVESTMENTS) 2,615,869 54,028 2,669,897 2,990,609 88,448 3,079,057
INVESTMENT PROVISION, AMORTIZATION
OF PREMIUM AND WRITE OFF 17,783 367 18,150 16,093 476 16,569
OPERATING RESULT -1,944,442 39,986 -1,904,456 3,368,149 356,929 3,725,078

ANNUAL REPORT 2017-18

*Includes Agent Incentive
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS

SCHEDULE – 1B MARINE
PREMIUM EARNED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Premium from direct business written 2,143,433 2,406,749
Add: Premium on reinsurance accepted 56,432 72,870
Less : Premium on reinsurance ceded 687,632 884,637
Net Premium 1,512,233 1,594,982
Adjustment for change in reserve for unexpired risks 81,704 133,086
Total Premium Earned (Net) 1,593,937 1,728,068

SCHEDULE – 2B MARINE
CLAIMS INCURRED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Claims paid
Direct 1,384,705 1,539,939
Add : Re-insurance accepted 79,934 81,266
Less: Re-insurance ceded 439,335 652,777
Net Claims paid 1,025,304 968,428
Add: Claims Outstanding at the end of the year 1,828,376 2,082,334
Less: Claims Outstanding at the beginning of the year 2,082,334 1,879,833
Total Claims Incurred 771,346 1,170,929
SCHEDULE- 3B MARINE
COMMISSION
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Commission paid
Direct - Total (A)* 254,022 302,652
Add: Commission on Re-insurance accepted 11,324 14,729
Less: Commission on Re-insurance ceded 77,620 88,459
Net Commission 187,726 228,922

ANNUAL REPORT 2017-18 112

Break-up of the expenses (Gross) incurred to procure business :

2017 - 2018 2016 - 2017

(` ’000) (` ’000)
Agents 196,359 216,173
Brokers 57,160 86,041
Corporate Agency 503 438
Others :
Referral - -
Misc. Others - -
Total (B) 254,022 302,652

* Includes Agent Incentive of ` 53645 thousand (` 76599 thousand)

113 ANNUAL REPORT 2017-18

 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MARINE CARGO
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1B
PREMIUM FROM DIRECT BUSINESS WRITTEN 1,556,545 64,945 1,621,490 1,593,638 50,449 1,644,087

ANNUAL REPORT 2017-18

ADD: PREMIUM ON R/I ACCEPTANCE 18,276 - 18,276 18,009 263 18,272
LESS : PREMIUM ON R/I CEDED 224,529 5,095 229,624 248,058 2,068 250,126
NET PREMIUM 1,350,292 59,850 1,410,142 1,363,589 48,644 1,412,233
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK 6,649 -5,603 1,046 62,135 1,354 63,489
TOTAL PREMIUM EARNED (NET) 1,356,941 54,247 1,411,188 1,425,724 49,998 1,475,722
CLAIMS INCURRED (NET) 2B
CLAIMS PAID – DIRECT 717,204 46,535 763,739 1,097,211 29,199 1,126,410
ADD : R/I ACCEPTANCE 8,651 - 8,651 20,552 - 20,552
LESS : R/I CEDED 82,477 2,829 85,306 241,710 150 241,860

114
NET CLAIMS PAID 643,378 43,706 687,084 876,053 29,049 905,102
ADD: CLAIMS O/S AT THE END OF YEAR 986,064 20,957 1,007,021 1,012,801 22,330 1,035,131
LESS: CLAIMS OUTSTANDING AT THE BEGINING 1,012,801 22,330 1,035,131 1,069,428 28,074 1,097,502
TOTAL CLAIMS INCURRED 616,641 42,333 658,974 819,426 23,305 842,731
COMMISSION 3B
COMMISSION PAID – DIRECT * 232,671 656 233,327 275,631 386 276,017
ADD: R/I ACCEPTANCE 5,842 - 5,842 6,090 133 6,223
LESS: R/I CEDED 35,611 1,538 37,149 38,980 524 39,504
NET COMMISSION 202,902 -882 202,020 242,741 -5 242,736
OPERATING EXPENSES 4 182,424 8,398 190,822 187,594 14,692 202,286
EXCHANGE GAIN (+) /LOSS (-) 57 - 57 -5 - -5
INVESTMENT INCOME (INTEREST, DIVIDEND &
RENT PLUS PROFIT ON SALE OF INVESTMENTS) 300,454 7,200 307,654 361,566 10,717 372,283
INVESTMENT PROVISION, AMORTIZATION OF
PREMIUM AND WRITE OFF 2,043 49 2,092 1,946 55 2,001
OPERATING RESULT 653,442 11,549 664,991 535,578 22,668 558,246
* Includes Agent Incentive
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MARINE HULL
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1B
PREMIUM FROM DIRECT BUSINESS WRITTEN 521,943 - 521,943 762,662 - 762,662
ADD: PREMIUM ON R/I ACCEPTANCE 38,156 - 38,156 54,598 - 54,598
LESS : PREMIUM ON R/I CEDED 458,008 - 458,008 634,511 - 634,511
NET PREMIUM 102,091 - 102,091 182,749 - 182,749
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK 80,658 - 80,658 69,597 - 69,597
TOTAL PREMIUM EARNED (NET) 182,749 - 182,749 252,346 - 252,346
CLAIMS INCURRED (NET) 2B
CLAIMS PAID – DIRECT 620,966 - 620,966 413,529 - 413,529
ADD : R/I ACCEPTANCE 71,283 - 71,283 60,714 - 60,714
LESS : R/I CEDED 354,029 - 354,029 410,917 - 410,917

115
NET CLAIMS PAID 338,220 - 338,220 63,326 - 63,326
ADD: CLAIMS O/S AT THE END OF YEAR 821,356 - 821,356 1,047,204 - 1,047,204
LESS: CLAIMS OUTSTANDING AT THE BEGINING 1,047,204 - 1,047,204 782,330 - 782,330
TOTAL CLAIMS INCURRED 112,372 - 112,372 328,200 - 328,200
COMMISSION 3B
COMMISSION PAID – DIRECT * 20,695 - 20,695 26,638 - 26,638
ADD: R/I ACCEPTANCE 5,482 - 5,482 8,506 - 8,506
LESS: R/I CEDED 40,471 - 40,471 48,956 - 48,956
NET COMMISSION -14,294 - -14,294 -13,812 - -13,812
OPERATING EXPENSES 4 19,518 - 19,518 39,130 - 39,130
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT 65,153 - 65,153 -101,172 - -101,172
INVESTMENT INCOME (INTEREST, DIVIDEND & 217,316 - 217,316 206,305 - 206,305
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 1,477 - 1,477 1,110 - 1,110
PREMIUM AND WRITE OFF
OPERATING RESULT 280,992 - 280,992 104,023 - 104,023

ANNUAL REPORT 2017-18

* Includes Agent Incentive
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MARINE TOTAL
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1B
PREMIUM FROM DIRECT BUSINESS WRITTEN 2,078,488 64,945 2,143,433 2,356,300 50,449 2,406,749
ADD: PREMIUM ON R/I ACCEPTANCE 56,432 - 56,432 72,607 263 72,870

ANNUAL REPORT 2017-18

LESS : PREMIUM ON R/I CEDED 682,537 5,095 687,632 882,569 2,068 884,637
NET PREMIUM 1,452,383 59,850 1,512,233 1,546,338 48,644 1,594,982
ADJUSTMENT FOR CHANGE IN RESERVE FOR 87,307 -5,603 81,704 131,732 1,354 133,086
UNEXPIRED RISK
TOTAL PREMIUM EARNED (NET) 1,539,690 54,247 1,593,937 1,678,070 49,998 1,728,068
CLAIMS INCURRED (NET) 2B
CLAIMS PAID – DIRECT 1,338,170 46,535 1,384,705 1,510,740 29,199 1,539,939
ADD : R/I ACCEPTANCE 79,934 - 79,934 81,266 - 81,266
LESS : R/I CEDED 436,506 2,829 439,335 652,627 150 652,777

116
NET CLAIMS PAID 981,598 43,706 1,025,304 939,379 29,049 968,428
ADD: CLAIMS O/S AT THE END OF YEAR 1,807,420 20,957 1,828,377 2,060,005 22,330 2,082,335
LESS: CLAIMS OUTSTANDING AT THE BEGINING 2,060,005 22,330 2,082,335 1,851,758 28,074 1,879,832
TOTAL CLAIMS INCURRED 729,013 42,333 771,346 1,147,626 23,305 1,170,931
COMMISSION 3B
COMMISSION PAID – DIRECT * 253,366 656 254,022 302,267 386 302,653
ADD: R/I ACCEPTANCE 11,324 - 11,324 14,596 133 14,729
LESS: R/I CEDED 76,082 1,538 77,620 87,936 524 88,460
NET COMMISSION 188,608 -882 187,726 228,927 -5 228,922
OPERATING EXPENSES 4 201,942 8,398 210,340 226,724 14,692 241,416
EXCHANGE GAIN (+) /LOSS (-) 57 - 57 -5 - -5
INVESTMENT INCOME (INTEREST, DIVIDEND & 517,770 7,200 524,970 567,871 10,717 578,588
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 3,520 49 3,569 3,056 55 3,111
PREMIUM AND WRITE OFF
OPERATING RESULT 934,434 11,549 945,983 639,602 22,668 662,270
* Includes Agent Incentive
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE – 1C MISCELLANEOUS
PREMIUM EARNED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Premium from direct business written 151,125,777 131,146,635
Add: Premium on reinsurance accepted 1,509,470 1,193,929
Less : Premium on reinsurance ceded 46,407,996 36,126,489
Net Premium 106,227,251 96,214,075
Adjustment for change in reserve for unexpired risks* -1,904,477 2,456,480
Total Premium Earned (Net) 104,322,774 98,670,555
* includes Reserve for Premium deficiency for ` Nil thousand
(` 1260100 thousand)

SCHEDULE – 2C MISCELLANEOUS
CLAIMS INCURRED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Claims paid
Direct 113,196,718 104,055,983
Add :Re-insurance accepted 1,439,065 967,156
Less :Re-insurance ceded 26,018,927 16,222,747
Net Claims paid 88,616,856 88,800,392
Add: Claims Outstanding at the end of the year 121,619,751 90,941,277
Less: Claims Outstanding at the beginning of the year 90,941,278 79,811,298
Total Claims Incurred 119,295,329 99,930,371
SCHEDULE- 3C MISCELLANEOUS
COMMISSION
2017 - 2018 2016 - 2017
Particulars (` ’000) (` ’000)
Commission paid
Direct-Total (A)* 13,342,850 12,747,588
Add: Commission on Re-insurance accepted 233,955 249,073
Less: Commission on Re-insurance ceded 3,672,321 4,581,639
Net Commission 9,904,484 8,415,022

117 ANNUAL REPORT 2017-18

Break-up of the expenses (Gross) incurred to procure business : 2017 - 2018 2016 - 2017

(` ’000) (` ’000)
Agents 6,638,676 5,688,166
Brokers 3,007,990 2,406,058
Corporate Agency 217,072 269,485
Others :
Referral 2 2
Misc. Others (Including Administrative expenses for Motor business) 3,479,110 4,383,877
Total (B) 13,342,850 12,747,588

* Includes Agent Incentive of ` 2083153 thousand (` 2116813 thousand)

* Includes Administrative expenses for Motor Business of ` 3478712 thousand
(` 4383828 thousand)

ANNUAL REPORT 2017-18 118

 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MOTOR OD
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 28,162,235 95,412 28,257,647 25,757,980 107,629 25,865,609
ADD: PREMIUM ON R/I ACCEPTANCE 2,218 - 2,218 3,132 - 3,132
LESS : PREMIUM ON R/I CEDED 7,084,271 22,367 7,106,638 6,662,286 22,005 6,684,291
NET PREMIUM 21,080,182 73,045 21,153,227 19,098,826 85,624 19,184,450
ADJUSTMENT FOR CHANGE IN RESERVE FOR -990,681 6,290 -984,391 2,589,718 -2,007 2,587,711
UNEXPIRED RISK
TOTAL PREMIUM EARNED (NET) 20,089,501 79,335 20,168,836 21,688,544 83,617 21,772,161
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 20,349,119 62,721 20,411,840 19,976,978 57,545 20,034,523
ADD : R/I ACCEPTANCE - - - 3,152 - 3,152
LESS : R/I CEDED 4,902,362 4,147 4,906,509 2,604,352 3,193 2,607,545

119
NET CLAIMS PAID 15,446,757 58,574 15,505,331 17,375,778 54,352 17,430,130
ADD: CLAIMS O/S AT THE END OF YEAR 5,306,517 65,641 5,372,158 4,722,235 67,541 4,789,776
LESS: CLAIMS OUTSTANDING AT THE BEGINING 4,722,235 67,541 4,789,776 5,932,586 81,030 6,013,616
TOTAL CLAIMS INCURRED 16,031,039 56,674 16,087,713 16,165,427 40,863 16,206,290
COMMISSION 3C
COMMISSION PAID – DIRECT * 6,881,191 2,289 6,883,480 7,282,016 3,551 7,285,567
ADD: R/I ACCEPTANCE 227 - 227 313 - 313
LESS: R/I CEDED 1,059,333 6,792 1,066,125 969,026 5,546 974,572
NET COMMISSION 5,822,085 -4,503 5,817,582 6,313,303 -1,995 6,311,308
OPERATING EXPENSES 4 5,379,396 13,666 5,393,062 3,708,013 34,483 3,742,496
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT -7,143,019 13,498 -7,129,521 -4,498,199 10,266 -4,487,933
INVESTMENT INCOME (INTEREST, DIVIDEND &
RENT PLUS PROFIT ON SALE OF INVESTMENTS) 2,522,152 18,952 2,541,104 3,603,327 24,293 3,627,620
INVESTMENT PROVISION, AMORTIZATION
OF PREMIUM AND WRITE OFF 17,146 129 17,275 19,391 130 19,521
OPERATING RESULT -4,638,013 32,321 -4,605,692 -914,263 34,429 -879,834

ANNUAL REPORT 2017-18

*Includes Agent Incentive and Administrative expenses for Motor business
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MOTOR TP
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 42,077,977 26,996 42,104,973 37,458,711 26,700 37,485,411
ADD: PREMIUM ON R/I ACCEPTANCE 69,630 - 69,630 95,455 - 95,455

ANNUAL REPORT 2017-18

LESS : PREMIUM ON R/I CEDED 10,533,636 - 10,533,636 9,394,917 - 9,394,917
NET PREMIUM 31,613,971 26,996 31,640,967 28,159,249 26,700 28,185,949
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK -1,727,361 -148 -1,727,509 708,557 876 709,433
TOTAL PREMIUM EARNED (NET) 29,886,610 26,848 29,913,458 28,867,806 27,576 28,895,382
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 21,241,156 28,042 21,269,198 20,172,800 38,328 20,211,128
ADD : R/I ACCEPTANCE 253 - 253 -118,565 - -118,565
LESS : R/I CEDED 2,426,567 - 2,426,567 2,254,210 - 2,254,210

120
NET CLAIMS PAID 18,814,842 28,042 18,842,884 17,800,025 38,328 17,838,353
ADD: CLAIMS O/S AT THE END OF YEAR 91,032,914 32,000 91,064,914 64,999,075 58,807 65,057,882
LESS: CLAIMS OUTSTANDING AT THE BEGINING 64,999,075 58,807 65,057,882 56,430,969 31,480 56,462,449
TOTAL CLAIMS INCURRED 44,848,681 1,235 44,849,916 26,368,131 65,655 26,433,786
COMMISSION 3C
COMMISSION PAID – DIRECT * 90,563 - 90,563 4 - 4
ADD: R/I ACCEPTANCE 182 - 182 6,598 - 6,598
LESS: R/I CEDED 1,369,373 - 1,369,373 1,219,075 - 1,219,075
NET COMMISSION -1,278,628 - -1,278,628 -1,212,473 - -1,212,473
OPERATING EXPENSES 4 8,058,603 5,051 8,063,654 8,039,621 10,753 8,050,374
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT -21,742,046 20,562 -21,721,484 -4,327,473 -48,832 -4,376,305
INVESTMENT INCOME (INTEREST, DIVIDEND & 13,977,617 7,254 13,984,871 14,200,416 9,114 14,209,530
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 95,021 49 95,070 76,417 49 76,466
PREMIUM AND WRITE OFF
OPERATING RESULT -7,859,450 27,767 -7,831,683 9,796,526 -39,767 9,756,759
* Includes Agent Incentive
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MOTOR TOTAL
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 70,240,212 122,408 70,362,620 63,216,691 134,329 63,351,020
ADD: PREMIUM ON R/I ACCEPTANCE 71,848 - 71,848 98,587 - 98,587
LESS : PREMIUM ON R/I CEDED 17,617,907 22,367 17,640,274 16,057,203 22,005 16,079,208
NET PREMIUM 52,694,153 100,041 52,794,194 47,258,075 112,324 47,370,399
ADJUSTMENT FOR CHANGE IN RESERVE FOR -2,718,042 6,142 -2,711,900 3,298,275 -1,131 3,297,144
UNEXPIRED RISK
TOTAL PREMIUM EARNED (NET) 49,976,111 106,183 50,082,294 50,556,350 111,193 50,667,543
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 41,590,275 90,763 41,681,038 40,149,778 95,873 40,245,651
ADD : R/I ACCEPTANCE 253 - 253 -115,413 - -115,413
LESS : R/I CEDED 7,328,929 4,147 7,333,076 4,858,562 3,193 4,861,755
NET CLAIMS PAID 34,261,599 86,616 34,348,215 35,175,803 92,680 35,268,483

121
ADD: CLAIMS O/S AT THE END OF YEAR 96,339,431 97,641 96,437,072 69,721,310 126,348 69,847,658
LESS: CLAIMS OUTSTANDING AT THE BEGINING 69,721,310 126,348 69,847,658 62,363,555 112,510 62,476,065
TOTAL CLAIMS INCURRED 60,879,720 57,909 60,937,629 42,533,558 106,518 42,640,076
COMMISSION 3C
COMMISSION PAID – DIRECT* 6,971,754 2,289 6,974,043 7,282,020 3,551 7,285,571
ADD: R/I ACCEPTANCE 409 - 409 6,911 - 6,911
LESS: R/I CEDED 2,428,706 6,792 2,435,498 2,188,101 5,546 2,193,647
NET COMMISSION 4,543,457 -4,503 4,538,954 5,100,830 -1,995 5,098,835
OPERATING EXPENSES 4 13,437,999 18,717 13,456,716 11,747,634 45,236 11,792,870
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
INVESTMENT INCOME (INTEREST, DIVIDEND & 16,499,769 26,206 16,525,975 17,803,743 33,407 17,837,150
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 112,167 178 112,345 95,808 179 95,987
PREMIUM AND WRITE OFF
OPERATING RESULT -12,497,463 60,088 -12,437,375 8,882,263 -5,338 8,876,925

ANNUAL REPORT 2017-18

*Includes Agent Incentive and Administrative expenses for Motor business
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

EMPLOYERS’ LIABILITY (WC)

PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 475,048 3,476 478,524 571,867 2,190 574,057
ADD: PREMIUM ON R/I ACCEPTANCE - - - - - -

ANNUAL REPORT 2017-18

LESS : PREMIUM ON R/I CEDED 23,751 348 24,099 28,593 - 28,593
NET PREMIUM 451,297 3,128 454,425 543,274 2,190 545,464
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK 45,988 -469 45,519 18,089 -383 17,706
TOTAL PREMIUM EARNED (NET) 497,285 2,659 499,944 561,363 1,807 563,170
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 113,047 1,847 114,894 127,702 1,338 129,040
ADD : R/I ACCEPTANCE - - - - - -
LESS : R/I CEDED 5,652 81 5,733 6,385 - 6,385

122
NET CLAIMS PAID 107,395 1,766 109,161 121,317 1,338 122,655
ADD: CLAIMS O/S AT THE END OF YEAR 444,402 46,903 491,305 467,205 50,584 517,789
LESS: CLAIMS OUTSTANDING AT THE BEGINING 467,205 50,584 517,789 417,627 50,100 467,727
TOTAL CLAIMS INCURRED 84,592 -1,915 82,677 170,895 1,822 172,717
COMMISSION 3C
COMMISSION PAID – DIRECT * 71,504 103 71,607 76,077 82 76,159
ADD: R/I ACCEPTANCE - - - - - -
LESS: R/I CEDED - - - - - -
NET COMMISSION 71,504 103 71,607 76,077 82 76,159
OPERATING EXPENSES 4 115,282 585 115,867 155,367 882 156,249
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT 225,907 3,886 229,793 159,024 -979 158,045
INVESTMENT INCOME (INTEREST, DIVIDEND & 130,720 8,954 139,674 139,369 10,011 149,380
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 889 61 950 750 54 804
PREMIUM AND WRITE OFF
OPERATING RESULT 355,738 12,779 368,517 297,643 8,978 306,621
*Includes Agent Incentive
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

PUBLIC LIABILITY
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 507,035 59 507,094 512,813 106 512,919
ADD: PREMIUM ON R/I ACCEPTANCE - 118 118 - - -
LESS : PREMIUM ON R/I CEDED 25,352 6 25,358 25,641 - 25,641
NET PREMIUM 481,683 171 481,854 487,172 106 487,278
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK 2,745 -33 2,712 -45,926 -32 -45,958
TOTAL PREMIUM EARNED (NET) 484,428 138 484,566 441,246 74 441,320
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 97,530 - 97,530 52,996 - 52,996
ADD : R/I ACCEPTANCE - - - - - -
LESS : R/I CEDED 4,876 - 4,876 2,650 - 2,650

123
NET CLAIMS PAID 92,654 - 92,654 50,346 - 50,346
ADD: CLAIMS O/S AT THE END OF YEAR 398,541 - 398,541 330,537 - 330,537
LESS: CLAIMS OUTSTANDING AT THE BEGINING 330,537 - 330,537 431,075 51 431,126
TOTAL CLAIMS INCURRED 160,658 - 160,658 -50,192 -51 -50,243
COMMISSION 3C
COMMISSION PAID – DIRECT * 60,543 1 60,544 69,472 25 69,497
ADD: R/I ACCEPTANCE - 18 18 - - -
LESS: R/I CEDED - 2 2 - - -
NET COMMISSION 60,543 17 60,560 69,472 25 69,497
OPERATING EXPENSES 4 122,818 32 122,850 139,121 43 139,164
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT 140,409 89 140,498 282,845 57 282,902
INVESTMENT INCOME (INTEREST, DIVIDEND & 101,440 9 101,449 121,067 13 121,080
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 690 - 690 652 - 652
PREMIUM AND WRITE OFF
OPERATING RESULT 241,159 98 241,257 403,260 70 403,330
*Includes Agent Incentive

ANNUAL REPORT 2017-18

 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

ENGINEERING
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 2,386,702 61,225 2,447,927 2,335,633 37,725 2,373,358
ADD: PREMIUM ON R/I ACCEPTANCE 376,989 6,393 383,382 396,288 3,779 400,067

ANNUAL REPORT 2017-18

LESS : PREMIUM ON R/I CEDED 630,478 11,110 641,588 792,242 13,997 806,239
NET PREMIUM 2,133,213 56,508 2,189,721 1,939,679 27,507 1,967,186
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK -96,767 -14,500 -111,267 93,232 413 93,645
TOTAL PREMIUM EARNED (NET) 2,036,446 42,008 2,078,454 2,032,911 27,920 2,060,831
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 1,989,682 42,532 2,032,214 2,006,451 57,635 2,064,086
ADD : R/I ACCEPTANCE 283,887 3 283,890 294,797 - 294,797
LESS : R/I CEDED 1,421,670 30,208 1,451,878 644,750 104,315 749,065

124
NET CLAIMS PAID 851,899 12,327 864,226 1,656,498 -46,680 1,609,818
ADD: CLAIMS O/S AT THE END OF YEAR 3,225,097 69,317 3,294,414 3,202,215 89,792 3,292,007
LESS: CLAIMS OUTSTANDING AT THE BEGINING 3,202,215 89,792 3,292,007 3,284,275 136,805 3,421,080
TOTAL CLAIMS INCURRED 874,781 -8,148 866,633 1,574,438 -93,693 1,480,745
COMMISSION 3C
COMMISSION PAID – DIRECT * 226,259 1,394 227,653 251,642 765 252,407
ADD: R/I ACCEPTANCE 121,982 663 122,645 113,458 685 114,143
LESS: R/I CEDED 80,523 2,137 82,660 137,806 2,664 140,470
NET COMMISSION 267,718 -80 267,638 227,294 -1,214 226,080
OPERATING EXPENSES 4 543,784 10,572 554,356 553,791 11,078 564,869
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT 350,163 39,664 389,827 -322,612 111,749 -210,863
INVESTMENT INCOME (INTEREST, DIVIDEND & 737,180 18,260 755,440 866,819 30,102 896,921
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 5,011 125 5,136 4,665 162 4,827
PREMIUM AND WRITE OFF
OPERATING RESULT 1,082,332 57,799 1,140,131 539,542 141,689 681,231
*Includes Agent Incentive
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

AVIATION
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 518,132 32,298 550,430 589,956 18,383 608,339
ADD: PREMIUM ON R/I ACCEPTANCE 250,074 - 250,074 88,120 - 88,120
LESS : PREMIUM ON R/I CEDED 593,450 31,949 625,399 630,101 24,937 655,038
NET PREMIUM 174,756 349 175,105 47,975 -6,554 41,421
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK -63,391 -3,451 -66,842 -6,523 15,052 8,529
TOTAL PREMIUM EARNED (NET) 111,365 -3,102 108,263 41,452 8,498 49,950
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 522,932 - 522,932 1,465,719 - 1,465,719
ADD : R/I ACCEPTANCE 199,668 - 199,668 108,134 - 108,134
LESS : R/I CEDED 441,990 - 441,990 1,381,745 - 1,381,745

125
NET CLAIMS PAID 280,610 - 280,610 192,108 - 192,108
ADD: CLAIMS O/S AT THE END OF YEAR 140,777 4,737 145,514 131,808 5,437 137,245
LESS: CLAIMS OUTSTANDING AT THE BEGINING 131,808 5,437 137,245 326,080 37 326,117
TOTAL CLAIMS INCURRED 289,579 -700 288,879 -2,164 5,400 3,236
COMMISSION 3C
COMMISSION PAID – DIRECT * 5,866 - 5,866 4,203 - 4,203
ADD: R/I ACCEPTANCE 3,346 - 3,346 19,785 - 19,785
LESS: R/I CEDED 21,923 160 22,083 20,751 125 20,876
NET COMMISSION -12,711 -160 -12,871 3,237 -125 3,112
OPERATING EXPENSES 4 44,547 65 44,612 13,697 -2,639 11,058
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT -210,050 -2,307 -212,357 26,682 5,862 32,544
INVESTMENT INCOME (INTEREST, DIVIDEND & 28,481 -573 27,908 68,500 2,355 70,855
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 194 -4 190 369 12 381
PREMIUM AND WRITE OFF
OPERATING RESULT -181,763 -2,876 -184,639 94,813 8,205 103,018
*Includes Agent Incentive

ANNUAL REPORT 2017-18

 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

PERSONAL ACCIDENT
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 3,124,241 - 3,124,241 3,146,861 - 3,146,861
ADD: PREMIUM ON R/I ACCEPTANCE - - - - - -

ANNUAL REPORT 2017-18

LESS : PREMIUM ON R/I CEDED 156,169 - 156,169 157,386 - 157,386
NET PREMIUM 2,968,072 - 2,968,072 2,989,475 - 2,989,475
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK 10,701 - 10,701 -323,271 - -323,271
TOTAL PREMIUM EARNED (NET) 2,978,773 - 2,978,773 2,666,204 - 2,666,204
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 3,326,236 - 3,326,236 2,642,826 - 2,642,826
ADD : R/I ACCEPTANCE - - - - - -
LESS : R/I CEDED 160,754 - 160,754 132,006 - 132,006

126
NET CLAIMS PAID 3,165,482 - 3,165,482 2,510,820 - 2,510,820
ADD: CLAIMS O/S AT THE END OF YEAR 1,780,184 - 1,780,184 1,853,368 - 1,853,368
LESS: CLAIMS OUTSTANDING AT THE BEGINING 1,853,368 - 1,853,368 1,434,643 - 1,434,643
TOTAL CLAIMS INCURRED 3,092,298 - 3,092,298 2,929,545 - 2,929,545
COMMISSION 3C
COMMISSION PAID – DIRECT * 157,540 - 157,540 268,939 - 268,939
ADD: R/I ACCEPTANCE - - - - - -
LESS: R/I CEDED - - - - - -
NET COMMISSION 157,540 - 157,540 268,939 - 268,939
OPERATING EXPENSES 4 768,026 - 768,026 866,063 - 866,063
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT -1,039,091 - -1,039,091 -1,398,343 - -1,398,343
INVESTMENT INCOME (INTEREST, DIVIDEND & 591,564 - 591,564 511,970 - 511,970
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 4,021 - 4,021 2,755 - 2,755
PREMIUM AND WRITE OFF
OPERATING RESULT -451,548 - -451,548 -889,128 - -889,128
*Includes Agent Incentive
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

HEALTH
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 53,339,065 28,416 53,367,481 47,392,251 21,373 47,413,624
ADD: PREMIUM ON R/I ACCEPTANCE - - - - - -
LESS : PREMIUM ON R/I CEDED 16,988,336 1,447 16,989,783 11,320,791 - 11,320,791
NET PREMIUM 36,350,729 26,969 36,377,698 36,071,460 21,373 36,092,833
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK 1,120,465 -2,798 1,117,667 1,453,119 -1,754 1,451,365
TOTAL PREMIUM EARNED (NET) 37,471,194 24,171 37,495,365 37,524,579 19,619 37,544,198
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 55,505,337 38,707 55,544,044 53,016,781 24,352 53,041,133
ADD : R/I ACCEPTANCE - - - - - -
LESS : R/I CEDED 11,380,891 2,527 11,383,418 8,680,318 - 8,680,318
NET CLAIMS PAID 44,124,446 36,180 44,160,626 44,336,463 24,352 44,360,815

127
ADD: CLAIMS O/S AT THE END OF YEAR 9,694,867 5,045 9,699,912 10,176,972 7,042 10,184,014
LESS: CLAIMS OUTSTANDING AT THE BEGINING 10,176,972 7,042 10,184,014 6,668,337 1,427 6,669,764
TOTAL CLAIMS INCURRED 43,642,341 34,183 43,676,524 47,845,098 29,967 47,875,065
COMMISSION 3C
COMMISSION PAID – DIRECT * 3,719,685 108 3,719,793 3,883,353 85 3,883,438
ADD: R/I ACCEPTANCE - - - - - -
LESS: R/I CEDED 645,114 - 645,114 1,566,358 - 1,566,358
NET COMMISSION 3,074,571 108 3,074,679 2,316,995 85 2,317,080
OPERATING EXPENSES 4 9,176,631 5,046 9,181,677 8,863,826 8,607 8,872,433
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
UNDERWRITING RESULT -18,422,349 -15,166 -18,437,515 -21,501,340 -19,040 -21,520,380
INVESTMENT INCOME (INTEREST, DIVIDEND & 4,985,405 2,525 4,987,930 5,172,601 2,049 5,174,650
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 33,891 16 33,907 27,836 10 27,846
PREMIUM AND WRITE OFF
OPERATING RESULT -13,470,835 -12,657 -13,483,492 -16,356,575 -17,001 -16,373,576
*Includes Agent Incentive

ANNUAL REPORT 2017-18

 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

RURAL & CROP

PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 16,402,730 - 16,402,730 8,824,143 - 8,824,143
ADD: PREMIUM ON R/I ACCEPTANCE - - - - - -

ANNUAL REPORT 2017-18

LESS : PREMIUM ON R/I CEDED 10,146,074 - 10,146,074 5,736,727 - 5,736,727
NET PREMIUM 6,256,656 - 6,256,656 3,087,416 - 3,087,416
ADJUSTMENT FOR CHANGE IN RESERVE FOR 257,392 - 257,392 -663,827 - -663,827
UNEXPIRED RISK
TOTAL PREMIUM EARNED (NET) 6,514,048 - 6,514,048 2,423,589 - 2,423,589
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 6,722,293 - 6,722,293 519,220 - 519,220
ADD : R/I ACCEPTANCE - - - - - -
LESS : R/I CEDED 4,927,927 - 4,927,927 - - -

128
NET CLAIMS PAID 1,794,366 - 1,794,366 519,220 - 519,220
ADD: CLAIMS O/S AT THE END OF YEAR 6,488,899 - 6,488,899 1,682,475 - 1,682,475
LESS: CLAIMS OUTSTANDING AT THE BEGINING 1,682,475 - 1,682,475 895,025 - 895,025
TOTAL CLAIMS INCURRED 6,600,790 - 6,600,790 1,306,670 - 1,306,670
COMMISSION 3C
COMMISSION PAID – DIRECT* 67,199 - 67,199 82,895 - 82,895
ADD: R/I ACCEPTANCE - - - - - -
LESS: R/I CEDED 470,603 - 470,603 411,539 - 411,539
NET COMMISSION -403,404 - -403,404 -328,644 - -328,644
OPERATING EXPENSES 4 1,594,925 - 1,594,925 881,529 - 881,529
EXCHANGE GAIN (+) /LOSS (-) - - - - - -
INVESTMENT INCOME (INTEREST, DIVIDEND & 576,964 - 576,964 227,487 - 227,487
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 3,922 - 3,922 1,224 - 1,224
PREMIUM AND WRITE OFF
OPERATING RESULT -705,221 - -705,221 790,297 - 790,297
* Includes Agent Incentive
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MISCELLANEOUS OTHERS
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 3,845,863 38,867 3,884,730 4,306,244 36,074 4,342,318
ADD: PREMIUM ON R/I ACCEPTANCE 802,899 1,149 804,048 604,062 3,093 607,155
LESS : PREMIUM ON R/I CEDED 149,802 9,450 159,252 1,311,101 5,768 1,316,869
NET PREMIUM 4,498,960 30,566 4,529,526 3,599,205 33,399 3,632,604
ADJUSTMENT FOR CHANGE IN RESERVE FOR
UNEXPIRED RISK -449,876 1,417 -448,459 -1,377,905 -947 -1,378,852
TOTAL PREMIUM EARNED (NET) 4,049,084 31,983 4,081,067 2,221,300 32,452 2,253,752
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 3,104,253 51,284 3,155,537 3,886,117 9,195 3,895,312
ADD : R/I ACCEPTANCE 955,254 - 955,254 679,639 - 679,639
LESS : R/I CEDED 308,007 1,268 309,275 408,823 - 408,823

129
NET CLAIMS PAID 3,751,500 50,016 3,801,516 4,156,933 9,195 4,166,128
ADD: CLAIMS O/S AT THE END OF YEAR 2,864,176 19,734 2,883,910 3,067,197 28,988 3,096,185
LESS: CLAIMS OUTSTANDING AT THE BEGINING 3,067,197 28,988 3,096,185 3,646,956 42,795 3,689,751
TOTAL CLAIMS INCURRED 3,548,479 40,762 3,589,241 3,577,174 -4,612 3,572,562
COMMISSION 3C
COMMISSION PAID – DIRECT * 2,056,940 1,665 2,058,605 823,159 1,318 824,477
ADD: R/I ACCEPTANCE 106,887 650 107,537 107,052 1,181 108,233
LESS: R/I CEDED 14,054 2,307 16,361 247,249 1,499 248,748
NET COMMISSION 2,149,773 8 2,149,781 682,962 1,000 683,962
OPERATING EXPENSES 4 1,150,265 5,719 1,155,984 1,020,156 13,450 1,033,606
EXCHANGE GAIN (+) /LOSS (-) 4,093 -6,472 -2,379 -3 -5,448 -5,451
UNDERWRITING RESULT -2,795,340 -20,978 -2,816,318 -3,058,995 17,166 -3,041,829
INVESTMENT INCOME (INTEREST, DIVIDEND & 965,500 9,024 974,524 1,121,751 12,326 1,134,077
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 6,564 61 6,625 6,037 66 6,103
PREMIUM AND WRITE OFF
OPERATING RESULT -1,836,404 -12,015 -1,848,419 -1,943,281 29,426 -1,913,855
*Includes Agent Incentive

ANNUAL REPORT 2017-18

 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

MISC TOTAL (INCLUDING MOTOR)

PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET) 1C
PREMIUM FROM DIRECT BUSINESS WRITTEN 150,839,028 286,749 151,125,777 130,896,459 250,180 131,146,639
ADD: PREMIUM ON R/I ACCEPTANCE 1,501,810 7,660 1,509,470 1,187,057 6,872 1,193,929

ANNUAL REPORT 2017-18

LESS : PREMIUM ON R/I CEDED 46,331,319 76,677 46,407,996 36,059,785 66,707 36,126,492
NET PREMIUM 106,009,519 217,732 106,227,251 96,023,731 190,345 96,214,076
ADJUSTMENT FOR CHANGE IN RESERVE FOR -1,890,785 -13,692 -1,904,477 2,445,263 11,218 2,456,481
UNEXPIRED RISK
TOTAL PREMIUM EARNED (NET) 104,118,734 204,040 104,322,774 98,468,994 201,563 98,670,557
CLAIMS INCURRED (NET) 2C
CLAIMS PAID – DIRECT 112,971,585 225,133 113,196,718 103,867,590 188,393 104,055,983
ADD : R/I ACCEPTANCE 1,439,062 3 1,439,065 967,157 - 967,157
LESS : R/I CEDED 25,980,696 38,231 26,018,927 16,115,239 107,508 16,222,747
NET CLAIMS PAID 88,429,951 186,905 88,616,856 88,719,508 80,885 88,800,393

130
ADD: CLAIMS O/S AT THE END OF YEAR 121,376,374 243,377 121,619,751 90,633,087 308,191 90,941,278
LESS: CLAIMS OUTSTANDING AT THE BEGINING 90,633,087 308,191 90,941,278 79,467,573 343,725 79,811,298
TOTAL CLAIMS INCURRED 119,173,238 122,091 119,295,329 99,885,022 45,351 99,930,373
COMMISSION 3C
COMMISSION PAID – DIRECT* 13,337,290 5,560 13,342,850 12,741,760 5,826 12,747,586
ADD: R/I ACCEPTANCE 232,624 1,331 233,955 247,206 1,866 249,072
LESS: R/I CEDED 3,660,923 11,398 3,672,321 4,571,804 9,834 4,581,638
NET COMMISSION 9,908,991 -4,507 9,904,484 8,417,162 -2,142 8,415,020
OPERATING EXPENSES 4 26,954,277 40,736 26,995,013 24,241,184 76,657 24,317,841
EXCHANGE GAIN (+) /LOSS (-) 4,093 -6,472 -2,379 -3 -5,448 -5,451
INVESTMENT INCOME (INTEREST, DIVIDEND & 24,617,023 64,405 24,681,428 26,033,307 90,263 26,123,570
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 167,349 437 167,786 140,096 483 140,579
PREMIUM AND WRITE OFF
OPERATING RESULT -27,464,005 103,216 -27,360,789 -8,181,167 166,029 -8,015,138
*Includes Agent Incentive and Administrative expenses for Motor business
 SEGMENT REPORT SCHEDULE FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(`` in Thousand)

ALL DEPARTMENTS
PARTICULARS SCHEDULE 2017-18 2016-17
IN INDIA OUTSIDE INDIA TOTAL IN INDIA OUTSIDE INDIA TOTAL
PREMIUM EARNED (NET)
PREMIUM FROM DIRECT BUSINESS WRITTEN 161,935,464 501,311 162,436,775 142,375,396 448,211 142,823,607
ADD: PREMIUM ON R/I ACCEPTANCE 3,051,041 18,687 3,069,728 2,849,451 21,861 2,871,312
LESS : PREMIUM ON R/I CEDED 50,735,050 121,373 50,856,423 39,998,612 140,172 40,138,784
NET PREMIUM 114,251,455 398,625 114,650,080 105,226,235 329,900 105,556,135
ADJUSTMENT FOR CHANGE IN RESERVE FOR -1,950,172 -34,360 -1,984,532 2,457,388 22,750 2,480,138
UNEXPIRED RISK
TOTAL PREMIUM EARNED (NET) 112,301,283 364,265 112,665,548 107,683,623 352,650 108,036,273
CLAIMS INCURRED (NET)
CLAIMS PAID – DIRECT 121,940,882 531,069 122,471,951 112,820,489 322,417 113,142,906
ADD : R/I ACCEPTANCE 2,536,046 3 2,536,049 1,930,952 26,020 1,956,972
LESS : R/I CEDED 30,299,207 81,497 30,380,704 20,614,165 310,539 20,924,704
NET CLAIMS PAID 94,177,721 449,575 94,627,296 94,137,276 37,898 94,175,174

131
ADD: CLAIMS O/S AT THE END OF YEAR 137,930,783 409,716 138,340,499 103,669,371 591,647 104,261,018
LESS: CLAIMS OUTSTANDING AT THE BEGINING 103,669,371 591,647 104,261,018 92,609,608 759,765 93,369,373
TOTAL CLAIMS INCURRED 128,439,133 267,644 128,706,777 105,197,039 -130,220 105,066,819
COMMISSION
COMMISSION PAID – DIRECT* 14,382,394 7,035 14,389,429 13,884,428 7,118 13,891,546
ADD: R/I ACCEPTANCE 570,122 3,735 573,857 620,785 4,623 625,408
LESS: R/I CEDED 3,937,263 22,372 3,959,635 4,815,043 19,492 4,834,535
NET COMMISSION 11,015,253 -11,602 11,003,651 9,690,170 -7,751 9,682,419
OPERATING EXPENSES 4 28,887,227 71,780 28,959,007 26,402,528 127,961 26,530,489
EXCHANGE GAIN (+) /LOSS (-) 4,307 -6,472 -2,165 158 -5,448 -5,290
INVESTMENT INCOME (INTEREST, DIVIDEND & 27,750,662 125,633 27,876,295 29,591,787 189,428 29,781,215
RENT PLUS PROFIT ON SALE OF INVESTMENTS)
INVESTMENT PROVISION, AMORTIZATION OF 188,652 853 189,505 159,245 1,014 160,259
PREMIUM AND WRITE OFF
OPERATING RESULT -28,474,013 154,751 -28,319,262 -4,173,416 545,626 -3,627,790

ANNUAL REPORT 2017-18

*Includes Agent Incentive and Administrative expenses for Motor business
SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE – 4
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
1. Employees’ remuneration & welfare benefits 22,102,591 21,200,346
2. Travel, conveyance and vehicle running expenses 593,459 535,993
3. Training expenses 83,306 82,359
4. Rents, rates & taxes 962,110 875,008
5. Repairs 73,376 48,810
6. Printing & stationery 245,643 233,789
7. Communication 252,964 189,626
8. Legal & professional charges 236,649 257,330
9. Auditors' fees, expenses etc
(a) as auditor 44,668 42,310
(b) as adviser or in any other capacity, in respect of
(I) Taxation matters - -
(ii) Insurance matters - -
(iii) Management services; and - -
(c) in any other capacity - -
10. Advertisement and publicity 310,217 363,348
11. Interest & Bank Charges 173,064 51,810
12. Others:
IT expenses 1,020,032 1,848,328
Policy Stamps 22,802 27,086
Misc expenses 1,578,636 1,587,802
13. Depreciation 959,507 773,226
14. Service Tax Account/GST Expenses 466,427 1,968,290
TOTAL 29,125,451 30,085,461
Allocated to:
Fire Revenue Account 1,753,654 1,971,232
Marine Revenue Account 210,340 241,416
Miscellaneous Revenue Account 26,995,013 24,317,840
Profit and loss account (Excess over allowable limits) 166,444 3,554,973
TOTAL 29,125,451 30,085,461

ANNUAL REPORT 2017-18 132

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE – 5
SHARE CAPITAL As at As at
31.03.2018 31.03.2017
Particulars
(` ’000) (` ’000)
1. Authorised Capital 2,000,000 2,000,000
20,00,00,000 Equity Shares of `10 each
2. Issued Capital* 1,000,000 1,000,000
10,00,00,000 Equity Shares of `10 each
3. Subscribed Capital* 1,000,000 1,000,000
10,00,00,000 Equity shares of `10/- each
4. Called-up Capital* 1,000,000 1,000,000
10,00,00,000 Equity shares of `10/- each
Less: Calls unpaid - -
Add: Equity Shares forfeited (Amount originally paid up) - -
Less: Par value of Equity shares bought back - -
Less: Preliminary expenses - -
Expenses including commission or brokerage on
underwriting or subscription of shares
TOTAL 1,000,000 1,000,000

*(includes 9,70,96,955 equity shares of `10/- each as fully paid up Bonus shares by capitalisation of General
Reserve & Share Premium)

SCHEDULE – 5A
SHARE CAPITAL
PATTERN OF SHAREHOLDING
(As certified by the Management)

Shareholder As at As at
31.03.2018 31.03.2017
Number of Shares % of Holding Number of Shares % of Holding
Promoters
l India 100,000,000 100% 100,000,000 100%
l Foreign - - - -
Others - - - -
Tot al 100,000,000 100% 100,000,000 100%

133 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE – 6
RESERVES AND SURPLUS
Particulars As at 31.03.2018 As at 31.03.2017
(` ’000) (` ’000)
1. Capital Reserve - -
2. Capital Redemption Reserve - -
3. Share Premium - -
4. General Reserves 16,606,244 38,314,426
Less: Debit balance in - -
Profit and Loss Account
Less: Amount utilized for Buy-Back - 16,606,244 - 38,314,426
5. Catastrophe Reserve 16,564 16,574
6. Other Reserves:
a) Foreign Exchange
Translation Reserve -21,153 -23,014
b) Investment Reserve 9,610 9,610
c) Exchange Reserve 4,817 4,817
d) Contingency Reserve for 1,000,000 1,000,000
Land & Building
7. Balance of profit in - -
Profit & Loss Account
TOTAL 17,616,082 39,322,413

Disclosure under AS-11, para 40(b)

FOREIGN EXCHANGE
TRANSLATION RESERVE
Opening Reserve -23,014 -20,092
Add: Effect of translation during the year 1,861 -2,922
Closing Reserve -21,153 -23,014

SCHEDULE - 7
BORROWINGS
As at As at
31.03.2018 31.03.2017
Particulars (` ’000) (` ’000)
1. Debentures/ Bonds 8,950,000 8,950,000
2. Banks NIL NIL
3. Financial Institutions NIL NIL
4. Others NIL NIL
Total 8,950,000 8,950,000

ANNUAL REPORT 2017-18 134

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE – 8
INVESTMENTS-Shareholders
As at As at
31.03.2018 31.03.2017
Particulars (` ’000) (` ’000)
LONG TERM INVESTMENTS
1. Government securities and Government guaranteed bonds
including Treasury Bills 16,223,858 14,530,680
2. Other Approved Securities 56,546 57,050
3. Other Investments
(a) Shares
(aa) Equity [See note (1) below] 22,891,624 23,573,207
(bb) Preference 5,232 7,977
(b) Mutual Funds - -
(c) Derivative Instruments - -
(d) Debentures/ Bonds [See note (3a) below] 4,643,807 4,161,953
(e) Other Securities:
Auto ancillary and Venture Capital 225,737 105,477
(f) Subsidiaries - -
(g) Investment Properties-Real Estate 4,823 1,043
4. Investments in Infrastructure and Social Sector 3,503,663 3,033,098
5. Other than Approved Investments - -
TOTAL 47,555,290 45,470,485
SHORT TERM INVESTMENTS
1. Government securities and Government guaranteed bonds
including Treasury Bills 322,545 1,583,706
2. Other Approved Securities - -
3. Other Investments
(a) Shares
(aa) Equity - -
(bb) Preference - -
(b) Mutual Funds 738,995 2,034,683
(c) Derivative Instruments - -
(d) Debentures/ Bonds 868,608 1,009,616
(e) Other securities (See note below) 1,427,210 930,287
(f) Subsidiaries - -
(g) Investment Properties-Real Estate - -
4. Investments in Infrastructure and Social Sector 582,938 240,777
5. Other than Approved Investments - -
TOTAL 3,940,296 5,799,069
GRAND TOTAL 51,495,586 51,269,554

135 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE – 8A
INVESTMENTS-POLICYHOLDERS
As at As at
31.03.2018 31.03.2017
Particulars (` ’000) (` ’000)
LONG TERM INVESTMENTS
1. Government securities and Government guaranteed bonds 63,631,864 56,358,605
2. Other Approved Securities 221,779 221,275
3. Other Investments
(a) Shares
(aa) Equity [See note (1) below] 89,783,620 91,430,892
(bb) Preference 20,522 30,939
(b) Mutual Funds - -
(c) Derivative Instruments - -
(d) Debentures/ Bonds [See note (3a) below] 18,213,553 16,142,523
(e) Other Securities: - -
Auto ancillary and Venture Capital 885,366 409,104
(f) Subsidiaries - -
(g) Investment Properties-Real Estate - 4,047
4. Investments in Infrastructure and Social Sector 13,741,774 11,764,154
5. Other than Approved Investments - -
TOTAL 186,498,478 176,361,539
SHORT TERM INVESTMENTS
1. Government securities and Government guaranteed bonds 1,265,057 6,142,552
2. Other Approved Securities - -
3. Other Investments
(a) Shares
(aa) Equity - -
(bb) Preference - -
(b) Mutual Funds 2,898,424 7,891,709
(c) Derivative Instruments - -
(d) Debentures/ Bonds 3,406,780 3,915,891
(e) Other securities (see note below) 5,597,686 3,608,211
(f) Subsidiaries - -
(g) Investment Properties-Real Estate - -
4. Investments in Infrastructure and Social Sector 2,286,351 933,875
5. Other than Approved Investments - -
TOTAL 15,454,298 22,492,238
GRAND TOTAL 201,952,776 198,853,777
Notes:
i) Includes ` 250000 thousand (PY ` 120000 thousand) kept as margin money for NSE/BSE equity transactions
as per SEBI Circular No. MRD/DoP/SE/Cir-07/2005 dated 23rd February, 2005

ANNUAL REPORT 2017-18 136

 As at As at
Notes to Schedule 8 and 8A 31.03.2018 31.03.2017
(` ’000) (` ’000)
1. Investment in Associates (included in Equity Shares)
is as follows:
a) India International Insurance Pte. Ltd., Singapore 28,576 28,576
b) Health Insurance TPA of India Ltd. 200,679 137,323
2. Aggregate amount of Company's Investments other than
listed Equity Securities and derivative instruments and
also the Market Value thereof:
Book value 142,265,500 136,066,655
Market Value 146,095,100 143,452,395
3. Provisions:
a) Provision against non-performing debentures
(grouped under Provision for Non-performing
Investments in Schedule 14) 301,363 278,109
b) Provision against thinly traded Equity Shares and
short holding of Equity Shares (grouped under
Provision for Non-performing Investments in Schedule 14) 15,390 42,195
c) Provision against Venture Capital (grouped under
Provision for Non-performing Investments in Schedule 14) 4,941 11,744
d) Provision against Standard Investments (grouped under
Provision for Standard Assets in Schedule 14) 186,853 162,626

137 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE - 9
LOANS
As at As at
Particulars 31.03.2018 31.03.2017
(` ’000) (` ’000)
1 SECURITY-WISE CLASSIFICATION
Secured 1,727,693 1,664,053
(a) On mortgage of property
(aa) In India 241,294 327,958
(bb) Outside India - -
(b) On Shares, Bonds, Govt. Securities - -
(c) Others:
House Building Loan to Employees 1,486,399 1,336,095
Unsecured 178,080 206,796
TOTAL 1,905,773 1,870,849
2. BORROWER-WISE CLASSIFICATION
(a) Central and State Governments 113,850 142,566
(b) Banks and Financial Institutions - -
(c) Subsidiaries - -
(d) Industrial Undertakings 304,886 391,549
(e) Others 1,487,037 1,336,734
TOTAL 1,905,773 1,870,849
PERFORMANCE-WISE CLASSIFICATION
(a) Loans classified as standard*
(aa) In India 1,611,894 1,572,995
(bb) Outside India - -
(b) Non-performing loans*
(aa) In India 293,879 297,854
(bb) Outside India - -
TOTAL 1,905,773 1,870,849
MATURITY-WISE CLASSIFICATION
(a) Short Term 4,808 8,471
(b) Long Term 1,900,965 1,862,378
TOTAL 1,905,773 1,870,849

As at As at
*Notes 31.03.2018 31.03.2017
(` ’000) (` ’000)
Provision against non-performing loans
(Grouped under Others in Schedule 14) 293,879 300,419
Provision against Standard loans
(Grouped under Provision for Standard Assets in Schedule 14) 502 948

ANNUAL REPORT 2017-18 138

SCHEDULE FORMING PART OF FINANCIAL STATEMENTS

SCHEDULE – 10
FIXED ASSETS AS AT 31ST MARCH, 2018
(`` ’000)

Cost/ Gross Block Depreciation Net Block

Particulars Opening Additions Deductions Closing Upto For On Sales/ As on As at As at

as at during for the as at 31.03.2017 the Year Adjust- 31.03.2018 31.03.2018 31.03.2017
01.04.2017 the year year 31.03.2018 ments

Goodwill - - - - - - - - - -

Intangibles (software) 1,075,239 443 504,925 570,757 787,168 105,797 -504,925 388,040 182,717 288,071

Land - Freehold 6,452 - - 6,452 - - - - 6,452 6,452

Leasehold Property 317,573 - - 317,573 15,417 3,208 - 18,625 298,948 302,156

Buildings - RCC* 1,063,230 31,801 - 1,095,031 333,177 36,115 - 369,292 725,739 730,053

Furniture & Fittings 464,251 51,817 4,906 511,162 353,565 39,530 -1,526 391,569 119,593 110,686

Computer and other

end use devices 2,881,484 152,160 70,855 2,962,789 2,317,386 363,569 -35,721 2,645,234 317,555 564,098

Servers & Network 2,276,207 540,148 2,790 2,813,565 1,969,384 219,993 -1,660 2,187,717 625,848 306,823

Motor Cars 867,144 389,505 266,009 990,640 458,742 155,789 -110,183 504,348 486,292 408,402

Office Equipment 212,136 4,942 1,736 215,342 192,108 7,873 -1,078 198,903 16,439 20,028

Electrical Equipments 369,401 25,223 5,900 388,724 274,777 26,942 -3,324 298,395 90,329 94,624

Plant & Machinery

(Other than Continuous 14,239 - - 14,239 10,213 691 - 10,904 3,335 4,026
Process Plant)**

TOTAL 9,547,356 1,196,039 857,121 9,886,274 6,711,937 959,507 -658,417 7,013,027 2,873,247 2,835,419
Capital Work in
progress - 253,190 - 253,190 - - - - 253,190 -

Grand Total 9,547,356 1,449,229 857,121 10,139,464 6,711,937 959,507 -658,417 7,013,027 3,126,437 2,835,419

PREVIOUS YEAR 8,088,495 2,538,052 1,079,191 9,547,356 6,266,638 773,226 -327,927 6,711,937 2,835,419

* Buildings RCC includes value of land for erstwhile units which cannot be segregated.
**Includes lifts, Water treatment plant, etc.

139 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE- 11
CASH AND BANK BALANCES
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Cash (including cheques, drafts and stamps) 141,331 1,493,884
2. Bank Balances
(a) Deposit Accounts
(aa) Short-term (due within 12 months) [note below] 814,135 1,937,694
(bb) Others - -
(b) Current Accounts 8,324,149 7,441,585
(c) Others - -
3. Money at Call and Short Notice
(a) With Banks - -
(b) With other Institutions - -
4. Others:
Remittances in transit 26,893 13,703
TOTAL 9,306,508 10,886,866
Balances with Non-Scheduled banks included in 2 and 3 above 49,532 31,238

ANNUAL REPORT 2017-18 140

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE- 12
ADVANCES AND OTHER ASSETS
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
ADVANCES
1. Reserve deposits with ceding companies - 1,570,072
2. Application money for investments - -
3. Prepayments - -
4. Advances to Directors / Officers - -
5. Advance tax paid and taxes deducted at source
(Net of provision for taxation) 5,484,214 1,964,036
6. Others:
Advance, deposits and prepaid expenses 3,428,164 4,454,078
TOTAL (A) 8,912,378 7,988,186
OTHER ASSETS
1. Income accrued on investments 4,026,701 3,647,729
2. Outstanding Premiums 3,390 6,045
3. Agents’ Balances 182,479 100,777
4. Foreign agencies balances - -
5. Due from other entities carrying on insurance business
(including reinsurers) 41,543,196 34,968,224
6. Due from Subsidiaries / Holding - -
7. Deposit with Reserve Bank of India
[Pursuant to section 7 of Insurance Act,1938] - -
8. Others:
Sundry Debtors 17,230,408 7,326,420
Service tax unutilised credit/GST Input Credit 6,967,570 831,322
Fixed Deposit - Unclaimed Amount of Policyholders 840,104 -
Income on Unclaimed Policyholders’ Funds 522 -
Misc others 332,168 1,866,361
TOTAL (B) 71,126,538 48,746,878
TOTAL (A+B) 80,038,916 56,735,064

141 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE- 13
CURRENT LIABILITIES
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Agents’ Balances 833,882 862,601
2. Balances due to other insurance companies 31,460,945 18,643,370
3. Deposits held on re-insurance ceded 15,451,103 8,342,106
4. Premiums received in advance 910,816 1,374,436
5. Unallocated Premium 6,993,326 5,393,244
6. Sundry creditors 26,620,891 22,394,774
7. Due to Subsidiaries / holding Company - -
8. Claims Outstanding (including IBNR/IBNER) 138,340,498 104,261,017
9. Due to Officers / Directors - -
10. Others:
Service tax liability/GST Liability 3,033,741 -328,455
Due to former shareholders 292 292
Unclaimed Amount of Policyholders 840,104 851,300
Investment Income on Unclaimed Policyholders’ Fund 522 -
TOTAL 224,486,120 161,794,685

SCHEDULE- 14
PROVISIONS
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Unearned Premium Reserve 54,916,334 52,251,702
2. Premium Deficiency Reserve 580,000 1,260,100
3. For taxation (less Advance tax paid and Taxes deducted at source) - -
4. For proposed dividends - -
5. For dividend distribution tax - -
6. Others:
For doubtful debts 950,036 950,037
For Non-performing Investments 321,694 332,048
For Non-performing Loans 293,879 300,419
For Standard Assets 187,355 163,572
TOTAL 57,249,298 55,257,878

ANNUAL REPORT 2017-18 142

SCHEDULES FORMING PART OF FINANCIAL STATEMENTS
SCHEDULE- 15
MISCELLANEOUS EXPENDITURE
(To the extent not written off or adjusted)

As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Discount Allowed in issue of shares / debentures - -
2. Others:
Deferred Revenue expenditure - Pension - 1,269,276
Deferred Revenue expenditure - Gratuity - 252,750
TOTAL - 1,522,026

143 ANNUAL REPORT 2017-18

Schedule 16
SIGNIFICANT ACCOUNTING POLICIES
1. ACCOUNTING CONVENTION :
The financial statements are prepared and presented in accordance with the Generally Accepted
Accounting Principles followed in India under the historical cost convention and accrual basis of
accounting and in accordance with the statutory requirements of the Insurance Act, 1938, the Insurance
Regulatory and Development Authority Act, 1999, the Insurance Regulatory and Development
Authority IRDA (Preparation of Financial Statements and Auditors' Report of Insurance Companies)
Regulations, 2002, and orders and directions issued by the IRDAI in this behalf, the Companies Act,
2013 to the extent applicable and in compliance with the Accounting Standards specified under section
133 of the Companies Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent
applicable and current practices prevailing in the Insurance industry.
2. USE OF ESTIMATES
The preparation of the financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amount of assets,
liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial
statement. Actual results may differ from those estimates and assumptions. The estimates and
assumptions used in the accompanying financial statements are based upon management's evaluation
of the relevant facts and circumstances as on the date of financial statements. Any revision to the
accounting estimates is recognized prospectively in current and future periods.
3. PREMIUM
Premium income is recognized net of re-insurance, based on assumption of risk in related revenue
account. In case of policies where payments are received in instalment, the revenue is recognized at the
time of receipt of instalment.
3.1 UNEARNED PREMIUM RESERVE
Unearned Premium Reserve is created on the amount representing that part of the net premium
written which is attributable to, and allocated to the succeeding accounting periods including short
term policies, at 50% of net premium except in the case of Marine Hull business, where it is made
at 100% of net premium.
However, no Unearned Premium Reserve is created in case of Pradhan Mantri Fasal Bima Yojana
– Kharif business, as the entire risk period falls within the Financial Year and the amount of risk
involved is also material.
3.2 PREMIUM DEFFICIENCY
Reserve for premium deficiency is recognized and disclosed where the sum of expected net
claims costs, related expenses and maintenance costs exceeds the related net unearned
premium on an annual basis as certified by the Actuary.
3.3 PREMIUM RECEIVED IN ADVANCE
Premium received in advance represents premium received in respect of policies issued during
the year, where the risk commences subsequent to the balance sheet date.
4. ACQUISITION COST
The acquisition cost relating to acquisition of new/renewal of insurance contracts is charged in the year
in which the premium is recognized.

ANNUAL REPORT 2017-18 144

5. CLAIMS
5.1 Claims are considered in the following manner:
(a) in respect of direct business in India on the basis of claim intimations received upto the year
end,
(b) in respect of re-insurance business as intimated by insurance companies/agents upto cut-off
date of finalization of accounts.
In case of claims reported wherever supporting information are available, liabilities for claims are
estimated on the basis of such information. Wherever supporting are not available, provisions are
estimated on current trends and past underwriting experience.
5.2 Provisions for claims 'Incurred but Not Reported' (IBNR) and “Incurred but not enough Reported
(IBNER) are made on the basis of actuarial valuation.
5.3 In respect of motor third party claims, where court summons have been served on the company
without adequate policy particulars, provisions are made to the extent of 1/3rd of the estimated
value of such unidentified claims and for claims remaining unidentified over one year, full
provision is made, in accordance with the existing practice.
5.4 In cases of claims repudiated by the Company but contested by the claimants in courts/
ombudsman/arbitration etc. provisions have been made where the management is of the opinion
that the final awards are likely to go against the company.
5.5 Claims paid include Court Deposits in Motor Accident Claims Tribunal (MACT) appeal cases.
5.6 Salvage recoveries are accounted for on realization and credited to claims account.
6. RE-INSURANCE
6.1 In case of reinsurance acceptances from foreign insurance companies, returns received upto the
date of finalization of accounts and returns from Indian companies received upto 3rd quarter of the
current year and the 4th quarter of the previous year are incorporated in the accounts. Returns of 4th
quarter from Indian companies wherever received are also considered.
6.2 In case of reinsurance cessions where full particulars are not available, cessions are done on the
basis of information available with the re-insurance department and/or on the basis of reasonable
estimation of probable maximum loss wherever applicable.
6.3 Investment income and expenses in respect of Terrorism pool retro are accounted as per the
statements received from GIC (Pool Administrator) upto finalization of accounts.
7. TRANSLATION/CONVERSION OF FOREIGN CURRENCIES:
7.1 Reinsurance operations:
Revenue transactions of reinsurance in foreign currencies are converted at the average of rates of
exchange of each quarter in which they are accounted.
Monetary assets and liabilities of reinsurance in foreign currencies are converted at the closing rate.
7.2 Foreign operations:
As per the Accounting Standard AS-11 “the effects of changes in foreign exchange rates”, foreign
branches are classified as 'non-integral foreign operations'.
The assets and liabilities both monetary and non-monetary of the non-integral part of operations
are translated at the closing rate.
Income and expenses of the non integral foreign operations are translated at the average
exchange rate of the year.

145 ANNUAL REPORT 2017-18

 7.3 Exchange difference in non-integral foreign branch:
As per provision of AS-11, the effect of changes in Foreign Exchange Rates, exchange difference
on account of transactions of the balances relating to foreign branch (non-integral-Nepal Branch)
is accumulated in Foreign Currency Translation Reserve until the closure of the operation in the
said branch. The cumulative amount of balance lying in aforesaid reserve would be recognized as
income or as expenses in the year of closure of the branch.
7.4 Exchange difference arises on account of transactions of Hong Kong branch is charged to Profit &
Loss Account.
7.5 The foreign exchange rates as advised by GIC, has been considered.
8. INVESTMENTS AND LOANS
8.1 Investment Properties-Real Estates are valued at historical cost less accumulated depreciation
and impairment loss.
8.2 The book value of the Investments is the sum of Weighted Average Cost of Opening balance and
purchases made during the period as reduced by the Cost of sales for that period.
8.3 Cost of investments includes brokerage, share transfer stamps, fees, taxes etc. Incentives
received are deducted from cost.
8.4 Investments have been valued as per IRDAI Regulations as follows:
(a) Debt Securities: Debt securities including Government securities and redeemable
preference shares are considered as “held to maturity” securities and are measured at
historical cost subject to amortization of premium over the residual period of maturity.
(b) Equity Securities traded in active markets: Listed equity shares which are traded in active
markets are measured at Fair Value as at the Balance Sheet date. For the purpose of
calculation of fair value, the market price of the last quoted closing price at the National Stock
Exchange (NSE) or if the scrip is not traded at NSE, the last quoted closing price of the
Bombay Stock Exchange (BSE) is taken into consideration.
Unrealized gain/loss arising due to changes in the fair value of listed equity shares are taken
to equity under the head “Fair Value Change Account”.
(c) Unlisted and other than actively traded Equity Securities: These are measured at
historical cost subject to impairment.
(d) Short term Money Market Instruments: Short term money market instruments such as
Certificates of Deposit and Commercial Papers, which are discounted at the time of contract
at the agreed rate, are accounted for at their discounted value.
(e) Venture Capital Fund (VCF)/Alternative Investment Fund (AIF): Investments in Venture
Capital Fund (VCF)/Alternative Investment Fund (AIF) are valued at cost for the first three
years from the end of the financial year in which the initial disbursement was made.
Thereafter, investments are subjected to impairment, if any.
(f) Mutual Fund/Exchange Traded Fund: Investment in units of Mutual/Exchange Traded fund
is valued on Net Assets Value (NAV) basis and unrealized gain/ loss is recognized in 'Fair
Value Change Account'.
8.5 Impairment of Loans and Investments
Impairment in value of loans and investments is assessed as at the Balance Sheet date and is
recognized in the Profit and Loss Account.
(a) Equity Share: Capital is considered to be impaired if the break-up value of a particular

ANNUAL REPORT 2017-18 146

 security share is less than its face value or where the current break-up value is not available
and there is a three years' history of continuous loss or if the published annual accounts are
not available for the last three years as on the date of valuation.
For this purpose, the break-up value is arrived at as per the latest Balance Sheet, which
should not be more than 1 (one) year prior to the date of valuation.
When capital is impaired, equity shares are valued as under:
(i) Actively traded equity shares are written down to lower of cost or market value;
(ii) Unlisted and other than actively traded equity shares are written down to lower of the cost
or breakup value and where the breakup value is not available or it is negative, such
shares are written down to Re. 1.
Further, in cases of other than actively traded equity shares where break-up value is less than
acquisition cost (as per latest balance sheet not more than one year prior to date of valuation)
provision is made equivalent to the difference in acquisition cost and the break-up value of the
share.
When the break-up value is negative or unavailable, provision shall be difference between the
acquisition cost and a nominal value of Re. 1/- per company.
(b) Preference share: Capital is considered to be impaired when the capital is eroded and the
companies are having three years' history of continuous losses or where the annual accounts
for three immediately preceding years are not available on the date of valuation. Such
preference shares are valued as under:
i) If the equity shares of the company are actively traded, its preference shares are written
down to a value, which is in the same proportion that the market value of the equity share
bears to its face value.
ii) If the equity shares of the company are unlisted/thinly traded, its preference shares are
written down to a value, which is in the same proportion that the break up value of equity
share bears to its face value. Where the break up value of equity shares is negative or
where the latest published annual accounts is not available one year prior to the date of
valuation, the preference shares are written down to a nominal value of Re. 1/- per
company.
(c) Loans and debentures: The Company follows the prudential norms prescribed by the
IRDAI/related RBI guidelines as regards Asset classification, recognition of income and
provisioning pertaining to Loans/Advances/Debentures.
(d) Venture Capital Fund (VCF)/Alternative Investment Fund (AIF): Provision is made for
impairment in value of such investments where NAV as at the Balance Sheet date is lower
than the cost. If the audited Balance Sheet / Financial Statements showing NAV figures are
not available continuously for more than 18 months as on the date of valuation, the
investments are valued at Re. 1 per VCF / AIF.
8.6 Reversal of impairment
In case of actively traded equity shares, impairment loss earlier recognized in profit & loss
l
account is reversed only when:
o The accumulated losses of the Company are completely wiped out and
o Company has shown net profit for three immediately preceding financial years

147 ANNUAL REPORT 2017-18

 In case of other than actively traded equity shares, reversal of impairment loss shall be
l
recognized in profit & loss account on realization.
8.7 Recovery in NPA Account
Amount received as recovery in NPA Account is appropriated towards principal outstanding and
surplus remaining, if any is adjusted towards interest.
8.8 (a) Dividend is accounted for in the year in which right to receive is established provided the
book closure date/ Ex Date also falls within the same period.
(b) Dividend in respect of foreign equity shares is accounted for when dividend advice is
received from the company or credit is received in the bank account whichever is earlier.
(c) In case of demerger, dividend in respect of resultant company is to be accounted for against
shares of demerged company till the documentary evidence in respect of cost acquisition
ratio of demerger is available.
(d) Where dividend is declared at the Annual General Meeting of the company, but
subsequently the receipt of such dividend becomes doubtful, provision is made for the
appropriate amount under the head 'Provision for Doubtful Loans, Investment and Debts'.
(e) Dividend, on shares which are not transferred in the company's name, is accounted for on
realization.
8.9 Where contracts of purchase of shares/debentures are made but delivery/registration of
certificates is pending, the same are accounted for as investments. If dividend is declared on
such shares during the pendency of delivery immediately after purchase, the cost of shares is
reduced by the amount of such dividend.
8.10 Bonus is accounted for in the year in which right to receive is established provided the book
closure date falls within the same year. Where bonus shares are received, the number of bonus
shares is recorded as an increase in holding without affecting the book value.
8.11 Investment in units of Mutual Fund is valued on Net Assets Value (NAV) basis and unrealized
gain/loss is recognized in 'Fair Value Change Account'.
8.12 Interest, dividend and rent income, net of expenses and profit/loss on sale/realisation of
investments, are apportioned between respective Revenue Accounts (Policyholders' Account)
and Profit and Loss Account (Shareholders' account) in the ratio of policyholders' fund and
shareholders' fund balances at the beginning of the year.
8.13 Segregation of Policyholders' and Shareholders' Funds:
In terms of IRDAI Circular No. IRDA/F&A/CIR/CPM/010/01/2017 dated 12th January, 2017,
policyholders' and shareholders' funds is bifurcated at the end of each year at the minimum at the
fund level on notional basis.
Investments made out of the Policyholders' fund are shown in a separate schedule i.e. 8A as
Investments – Policyholders. Investments under Shareholders' funds are shown in Schedule 8
as Investments – Shareholders.
Bifurcation of investments between the Policyholders and Shareholders funds are made in the
ratio of Policyholders' and Shareholders' funds balances at the beginning of the year but without
identifying scrip wise investments. Similarly, Fair Value Change account stands bifurcated.
9. EXPENSES OF MANAGEMENT/OPERATING EXPENSES
Operating expenses, other than those charged to Profit and Loss Account and which are directly
attributable to the respective Revenue Accounts, are apportioned between the Revenue Accounts on

ANNUAL REPORT 2017-18 148

 the basis of Net Premium after giving weightage of 75% for Marine business and 100% for Fire and
Miscellaneous business, in terms of Board approved policy on Expenses of Management as required
under Insurance Regulatory and Development Authority of India (Expenses of Management of
Insurers transacting General or Health Insurance Business) Regulations, 2016.
10. FIXED ASSETS AND DEPRECIATION/IMPAIRMENT
i) Fixed assets are carried at cost less accumulated depreciation.
ii) Depreciation is provided as per written down value method (WDV) on the basis of useful life of
assets asset out in Schedule II – Part C of the Companies Act, 2013. 95% of the value of asset
is considered depreciable and balance 5% is retained as un-depreciable amount.
iii) Cost of Leasehold properties is amortized over the period of lease.
iv) Intangible assets (software) are amortized over the estimated useful life not exceeding 5
years.
11. IMPAIRMENT OF ASSETS
Impairment loss is recognized when any indication about realizable value of block of assets is
observed to be less than its carrying cost.
12. EMPLOYEES' BENEFITS
Employee benefits comprise of both defined contributions and defined benefit plans.
(a) Provident fund is a defined contribution plan as the company's obligation is to pay fixed monthly
contribution to a separate trust.
(b) Pension, Gratuity and Leave Encashment liabilities are defined benefits obligations and are
provided for on the basis of an actuarial valuation made at the end of the financial year in
accordance with Accounting Standard (AS) 15 Employee Benefits.
13. BORROWING COSTS
Borrowing costs are interest and other costs incurred in connection with the borrowing of funds and are
charged to the Profit and Loss Account (Shareholder's Account) in the absence of any 'Qualifying
asset'.
14. SEGMENT REPORTING
Segments have been classified as per directives given in The Insurance Regulatory and Development
Authority (Preparation of Financial Statements and Auditors' Report of Insurance Companies)
Regulations, 2002 and subsequent circulars.
15. CONTINGENT LIABILITIES & CONTINGENT ASSETS
Provision against contingent liabilities is recognized when there is a present obligation as a result of
past events and it is probable that an outflow of resources will be required to settle the obligation.
Contingent assets are not recognized in the accounts.
16. TAXATION
(a) Provision for income tax is made in accordance with the tax laws.
Deferred tax is recognized on timing differences, being the differences between taxable and
accounting income / expenditure that originate in one period and are capable of reversal in one
or more subsequent period(s). Deferred tax asset is not recognized unless there is virtual certainty
that sufficient future taxable income will be available against which such deferred tax assets will be
realized.

149 ANNUAL REPORT 2017-18

 (b) Interest on tax refunds is accounted for on the basis of orders passed by the Tax authorities.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494

(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

ANNUAL REPORT 2017-18 150

Schedules forming part of Financial Statements
Schedule – 17
NOTES FORMING PART OF THE ACCOUNTS

1. Contingent Liabilities:
` in thousand
Particulars 2017-18 2016-17
Partly-paid up Investments 4181 4181
Underwriting commitments outstanding - -
Claims, other than those under policies, not acknowledged as debts 339586 331945
Guarantees given by or on behalf of the company - -
Statutory demands/liabilities in dispute, not provided for
(a) Income Tax 1550250 6229350
(b) Service Tax 5126069 4311420
Reinsurance obligations to the extent not provide for in the accounts - -
Others :
(a) Policyholders unclaimed amounts transferred to Senior 22571 -
Citizen Welfare Fund (SCWF)
Total 7042657 10876896

2. Encumbrance to assets of the company in India - ` Nil (` Nil).

Encumbrance to assets of the company outside India - ` Nil (` Nil).
3. Commitments made and outstanding for Loans, Investments and Fixed Assets:
` in thousand
Particulars 2017-18 2016-17
Loans and Investments 77405 128200
Fixed Assets 3148883 4007648
IT enabled Business Process Re-engineering (EASI) including 1899000 1689400
Data Migration

4. Claims, less reinsurance, paid to claimants In/outside India:

` in thousand
Business In India Outside India Total Total
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
Fire 4766172 4478389 218964 -72036 4985136 4406353
Marine 981598 938264 43706 30164 1025304 968428
Miscellaneous 88429191 88708040 187665 92352 88616856 88800392
Total 94176961 94124693 450335 50480 94627296 94175173

151 ANNUAL REPORT 2017-18

5. Actuarial assumptions for determination of claim liabilities in the case of claims where the claims
payment period exceed four years:
The company has not issued any policy where the claim payment period exceeds four years.
6. Ageing of claims outstanding of Indian gross business:
` in thousand

Business Less than six months More than six months Total Total
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
Fire 3796787 7641422 14371189 10200402 18167976 17841824
Marine 735151 925486 862967 1037148 1598118 1962634
Miscellaneous 35602702 23081499 42175020 35600082 77777722 58681581

7. Premiums less reinsurance written from business in and outside India:

` in thousand
Business In India Outside India Total Total
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
Fire 6789553 7656166 121043 90911 6910596 7747077
Marine 1452383 1546338 59850 48644 1512233 1594982
Miscellaneous 106009519 96023730 217732 190345 106227251 96214075
Total 114251455 105226234 398625 329900 114650080 105556134

8. Extent of premium income recognized, based on varying risk pattern, category-wise, with basis and
justification therefore, including whether reliance has been placed on external evidence:
Premiums are recognized, net of reinsurance, based on assumption of risks in related Revenue account
and Unearned Premium Reserve is based on a percentage thereof, being 50% in case of Fire, Marine
Cargo and Miscellaneous business and 100% in case of Marine Hull business.
However, the net premium of `4619154 thousand (`1235481 thousand) for Pradhan Mantri Fasal Bima
Yojana Kharif business is treated as fully earned as the risk period is from July 2017 to October 2017 as
the reinsurance cession is easily identifiable.
9. Value of contracts in relation to investments, for:
(a) Purchases where deliveries are pending – `1040481 thousand (`3361533 thousand)
(b) Sales where payments are due – `1545615 thousand (`102091 thousand)
10. Operating expenses relating to Insurance business: basis of allocation of expenditure to various classes
of business - Refer Schedule 16 (Significant Accounting policies – Note no. 9)
11. Historical costs of those investments valued on fair value basis:
In accordance with the regulations prescribed by IRDAI, unrealized gains (net) amounting to
`38524496 thousand (`57648579 thousand), arising due to changes in the Fair Value of listed equity
shares and mutual funds (excepting equities listed in stock exchanges outside India, thinly traded equity
shares and venture capital), are taken to 'Fair Value Change Account'. The historical cost of such
investments amounted to `77107620 thousand (` 66675184 thousand). Pending realization, the credit
balance in the Fair Value Change Account is not available for distribution.

ANNUAL REPORT 2017-18 152

 Break-up of Market Value and Historical Cost which have been valued on fair value basis is as follows:
` in thousand
Fair value change amount
Particulars Market value Historical cost
(Unrealized gain/loss)
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
Equity Shares
26482062 19036916 27774998 17224512 (1292936) 1812404
of PSU
Equity Shares of
Indian Companies 85512634 95360455 45844124 39670674 39668510 55689782
other than PSUs
Mutual Fund 3382412 9668551 3329000 9620500 53412 48051
Equity ETF 255008 257841 159498 159498 95510 98343
Total 115632116 124323763 77107620 66675184 38524496 57648579

12. Computation of Managerial Remuneration: Computation of managerial remuneration is exempted

being a government company vide notification no. GSR463 (E) dated 5th June, 2015.
13. Basis of amortization of debt securities: Refer Schedule 16 (Significant Accounting policies – Note no.
8.4(a)
14 As per available valuation report of independent approved valuer, out of aggregate fair value of `240304
thousand (`235336 thousand), proportionate fair value of real estate occupied by tenants is `119973
thousand (`117897 thousand). Proportionate cost of such real estate is shown under Investment
Properties (Schedule-8 and 8A).
15. Claims settled and remaining unpaid for a period of more than six months as on the balance sheet date:
No claim remained unpaid as on balance sheet date.
16. Agent Incentive is included with Direct Commission under Schedule-3 in the ratio of Gross Commission
for each segment.
17. Administrative expenses for Motor business are included with Direct Commission under Schedule-3 for
Motor Own Damage segment under miscellaneous segment.
18. Equity shares listed in Stock Exchange outside India having book value of ` 43615 thousand (`43615
thousand) for which market value is not readily available have not been taken into account for the
purpose of “Fair Value Change Account” and have been taken at book value.
19. The nature of securities (referred to Schedule 9) in all cases of long term secured loans (more than one
year) are:
(a) a first charge of the borrowers' all immovable properties both present and future, and
(b) a first charge by way of hypothecation of the borrowers' all movables including book debts, all
movable articles and such other movables as may be agreed to by other lending/financial
institutions.
However in the opinion of management the value of securities referred to herein above at any time
during the pendency of the loan should not be less than 1.25 times of the loan amount outstanding.
The mortgages and charges referred to above ranks pari-pasu with the mortgages and charges created
and/or to be created in favour of all lending/financial Institutions.

153 ANNUAL REPORT 2017-18

 Original security documents and extent of coverage on any particular date are ascertainable at the lead
institutions level in case of term loan and debenture trustee level in case of debentures
20. Investments in Equity Shares of ` 1888 thousand (`1888 thousand) held by the Company against
ownership of certain immovable properties have been included under 'Investment Properties – Real
Estate' in Schedule 8.
21. Difference between the Company's holding and certificate of holding from Stock Holding Corporation of
India Limited (SHCIL) has been provided in the accounts.
` in thousand

Particulars 2017-18 2016-17

Short Excess Short Excess
Book Value 2327 285* 3283437 27524*
Equity Share
No. of Shares 79631 30885 8135880 142359
Book Value .025 12* .025 12*
Preference Share
No. of Shares 1170100 300 1170100 300
Debentures Book Value 375520** 7106 381718** 355912
Total 377847 7403 3665155 383448

* Due to non-availability of book value of certain shares, the figures in respect to those Securities, under the head
EXCESS are shown at Face Value.
** Includes debentures of a Corporate having book value `347000 thousand. The security has since been removed
from NSDL pending proposed restructuring/IBC proceedings.
# Short/ excess refers to shortage and excess respectively of securities held by SHCIL vis-a-vis that of the
Company's holding.
## T+2 impact has been removed from the current year figures.

22. (a) Total amount of Loan/ other Assets subjected to restructuring is given below:
` in thousand

Particulars 31.03.2018 31.03.2017

a) Standard Assets 16798 17404
b) Substandard Assets Nil Nil
c) Doubtful Assets 347000 347000
Total 363798 364404

(b) Segregation of loans, bonds and debentures into performing and non-performing asset is given below:
` in thousand

Particulars 2017-18 2016-17

Performing 46838705 40893079
Non-Performing 838142 853563
Total Book Value 47676847 41746642

ANNUAL REPORT 2017-18 154

23. (a) Amortization of premium on investment during the year is `157658 thousand (`53698 thousand).
(b) The discount on securities is recognized as income at the time of maturity.
24. During the year, the Company has not participated in any Repo and Reverse Repo transaction in
Government Securities and Corporate Debt Securities.
25. Reporting of level of compliance achieved as required under Regulation 6.1 of IRDAI (Obligations of
Insurers to Rural and Social Sectors) Regulations, 2015:

Table No. 1 - Rural Sector

` in thousand
Gross premium Amount of Rural Sector Required % as Compliance
in India for the premium premium as % per the above with the above
FY 2017 - 18 procured in to Column (1) Regulations Regulations
Rural Sector (Yes/No)
(1) (2) (3) (4) (5)
161935465 20885617 12.90% 7% Yes

Table No. 2 - Social Sector

Total business* Number of lives Social Sector Required % as Compliance
in the preceding covered under premium as % per the above with the above
FY 2017-18 Social Sector in to Column (1) Regulations Regulations
(Total number of the FY 2017-18 (Yes/No)
lives covered by
the Company
during the FY
2017-18)
(1) (2) (3) (4) (5)
22636317 3361035 14.85% 5% Yes

26. Land and House property in India under fixed assets (Schedule – 10) includes `68364 thousand
(`38624 thousand) for which executions of deed of conveyance are pending. Stamp duty and
registration cost will be taken into account in the year of execution of Conveyance deeds.
27. Terrorism pool retro figures received from GIC (Pool administrator) accounted in 2017-18 includes
confirmed figures for the 3 quarters of the current year and provisional figure of the 4th quarter.

28. Balances due to/from persons carrying on Insurance business including Re-insurers, balances of Inter
office accounts, control accounts, Sundry debtors/creditors including for various govt. sponsored
health and crop business, unexplained debits and credits entries in bank accounts are subject to
reconciliations and confirmations.
Reconciliations, however being a continuous exercise, adjustments, if any, are carried out as and when
identified, which in the opinion of the Management is not expected to be material. However, as an
abundant measure, an ad hoc provision of `500000 thousand (`500000 thousand) has been made.

155 ANNUAL REPORT 2017-18

29. The Company is in the process of implementing a Core Insurance Solution by integrating Company's
various existing accounting softwares. On implementation of the same, some of the assets and
liabilities requiring adjustment shall be carried out. However, in the opinion of the Management, it will
not have any material impact on the financial results of the Company.
30. (a) The Hong Kong branch of the company was placed under Run-off operation with effect from
18.02.2002. As per agreement with New India Assurance Co. Ltd. dated 27.12.2006, the assets
and liabilities of Hong Kong branch will be transferred to them subject to approval by the Insurance
Authority of Hong Kong and subject to settlement of all the outstanding claims. Though approval
from said authority has since been obtained but settlement of all the claims are still in progress.
The outstanding liability as on 31.03.2018 is ` 49495 thousand (`53153 thousand).
(b) The amount of Gain/Loss on disposal of assets or settlement of liabilities attributable to the
discontinuing operation will be accounted for on transfer of undertaking.
31. Related party disclosures are given below:
(a) Associates:
SL. NO. OF % BOOK DIVIDEND
NO. NAME OF FINANCIAL SHARES OF VALUE OF RECEIVED
ASSOCIATE YEAR HELD HOLDING SHARE
` (in ` (in
thousand) thousand)
1. India 2017-18 1,00,00,000 20 28576 46587
International
2016-17 1,00,00,000 20 28576 48077
Insurance
Pte. Ltd.,
Singapore
2. Health 2017-18 2,85,00,000 23.75 200679 Nil
Insurance 2016-17 1,66,25,000 23.75 137323 Nil
TPA of India
Ltd.

(b) Key Management Personnel:

SL. NO. NAME OF KEY MANAGEMENT PERSONNEL

1. Shri K Sanath Kumar, Chairman-cum-Managing Director (retired on 30/04/2018)
2. Shri M. Vasantha Krishna, General Manager & Director (retired on 31/03/2018)
3. Shri John Pulinthanam, General Manager & Director (w.e.f 20th June, 2017)
4. Shri Rakesh Kumar, General Manager & Director (15th May, 2017 to 31st May, 2017)
5. Smt. M Sashikala, CFO (01st April, 2017 to 27th December, 2017)
6. Shri P. Vijaya Kumar, CFO (w.e.f 27th December, 2017)
7. Smt. Rina Madia, Company Secretary

ANNUAL REPORT 2017-18 156

 Nature of transactions:
i. Salaries, allowances & contributions ` 11108 thousand ( ` 9235 thousand)
ii. Loans and Advances ` 21 thousand ( ` 507 thousand)
iii. Rent Income ` 632 thousand ( ` Nil thousand)
(c) Entities over which control exist:
1. National Insurance Company Limited Employees' Provident Fund.
2. National Insurance Company (Employees') Pension Fund.
3. National Insurance Company Limited Employees' Gratuity Fund.
(No investments and transactions have been undertaken by the company as a trustee).
32. Premium Deficiency Reserve (PDR):
The Net Unearned Premium reserve is estimated using the 1/24th method. The Net Unearned Premium
is then compared with expected Net Incurred Claims in the next year (including claims related cost) and
when the expected claims cost exceeds the Net Unearned Premium, premium deficiency arises. It is
calculated for each portfolio and is recognized in the books only when there is deficiency at Segmental
Revenue Account level. The detail of Premium deficiency recognized in the Financial Statements is
given below:

` in thousand
st st
Segmental Revenue Account As at 31 March, 2018 As at 31 March, 2017
Fire 580000 -
Marine - -
Miscellaneous - 1260100
Total 580000 1260100

33. The Company has adopted the Accounting Standard (AS) 15 Employees benefits in respect of following
employee benefits.

157 ANNUAL REPORT 2017-18

 33.1 The status of the plan is given below:
` in thousand
Gratuity Pension Leave Encashment
(A) Present value of obligation
At the beginning of the year 7661562 22169235 4519612
(7556594) (20483621) (4153547)
Interest Cost 557285 1517273 326835
(523449) (1341459) (283844)
Service Cost 4225822 958240 559186
(392095) (751463) (364101)
Actuarial (Gain)/Loss -1229097 4420702 -279569
(343963) (4787692) (456031)
Benefits Paid 848179 4145800 550000
(1154539) (5195000) (737911)
At the end of the year 10367394 24919650 4576064
(7661562) (22169235) (4519612)
(B) Change in Plan Assets
Fair value at the beginning of the year 8377229 18506000 (0)
(6349963) (13232900) (0)
Expected Return 645047 1480480 (0)
(507997) (1058632) (0)
Contributions 602561 960300 (0)
(1041959) (6156000) (0)
Actuarial (Gain)/Loss -1144192 5076220 (0)
(313621) (3253468) (0)
Benefits Paid 848179 4145800 (0)
(1154539) (5195000) (0)
Fair Value at the end of the year 7632466 21877200 (0)
(7059001) (18506000) (0)
(C) Reconciliation of Fair Value of
obligation and Present Value of
Plan Assets
Fair Value at the year end 7632466 21877200 (0)
(7059001) (18506000) (0)
Present Value at the year end 10367394 24919650 4576064
(7661562) (22169235) (4519612)
Net (Liability) recognized in Balance Sheet 2734927 3042450 4576064
(602561) (3663235) (4519612)

ANNUAL REPORT 2017-18 158

 ` in thousand
Gratuity Pension Leave Encashment
(D) Expenses recognized in
Statement of Profit/Loss
Current/Past Service Cost 4225822 958240 559186
(392095) (751463) (364101)
Interest Cost 557285 1517273 326835
(523449) (1341459) (283844)
Expected return on Plan Asset 645047 1480480 (0)
(507997) (1058632) (0)
Actuarial gain/loss recognized in the year -84905 -655518 -279569
(30342) (1534224) (456031)
Expenses recognized in Statement of Profit/Loss 2734928 3042450 606452
(602561) (3663235) (1103976)
Unamortized expenses 0 0 (0)
(252750) (1269276) (0)
(E) Major category of Investment of Plan Assets
Fixed Income/Debt Securities 100% 100% (0)
(100%) (100%) (0)
(F) Assumptions
Discount Rate(%) 7.70 7.55 7.70
(7.50) (7.50) (7.50)
Return on Plan Asset(%) 7.70 8.00 -
(8.00) (8.00) -
Inflation rate (%) 4.50 4.00 4.50
(4.50) (4.00) (4.50)
Residual Working life (years) 10.00 8.00 10.00
(10.00) (8.00) (10.00)

The present value of pension obligation as on 31.3.2018 does not include future DA component on
monthly pension and widow pension on death in Service/after retirement. The said obligation is
paid out as and when it arises by debiting the Revenue Account.
33.2 The Company had amortized additional gratuity and pension liabilities of `758300 thousand and
` 3807828 thousand respectively (actuarial valuation) as on 31.03.2016 due to implementation of
pay revision over a period of three years vide IRDAI circular no. IRDA/ F&A/ CIR/ ACTS/ 077/ 04/
2016 dated 18.04.2016 and subsequent letter no. IRDA/F&A/LR/001/2016/8 dated 19.04.2016.
Accordingly, ` 252750 thousand (` 252750 thousand) and ` 1269276 thousand (` 1269276
thousand) has been recognized in the current year.
Further, vide IRDAI's letters dated 07th May, 2018 and 14th June, 2018 (bearing Reference No. IRDA/ F&A/
GNI/LR/001/2018-19/29 and IRDA/F&A/GNI/LR/001/2018-19/42 respectively), the Company was
permitted to amortise the additional Gratuity Liability (Actuarial Valuation) as on 31.03.2018 due to
enhancement of limit as per Gratuity Act, over a period of 5 years amounting to ` 2734928 thousand.
However, the Company has absorbed the full liability in the current year.

159 ANNUAL REPORT 2017-18

 33.3 Actuarial valuation for Provident Fund has not been obtained. Whenever there is shortfall of
interest, company makes contribution of such interest to the fund. The company has recognized
the contribution towards Provident Fund (Defined Contribution Plan) in Revenue Accounts for
` 255098 thousand (`235982 thousand).
34. In accordance with the requirement of Micro, small and Medium enterprises Development Act, 2006, the
company is yet to identify the eligible MSM enterprises which are providing goods and services to the
company.
35. Properties occupied on monthly rental basis or given on monthly rent are in the nature of operating
leases renewable/cancellable at mutual consent. Lease terms are based on individual agreements
which fall under Premises Tenancy Act.
36. The Actuarial valuation for the “Free look period” feature of the policies under Health Segment has not
been carried out.
37. The premium collected on account of Bhavishya Arogya policy is kept as Current Liabilities and no
premium income and corresponding IBNR liabilities are recognized in the Accounts, as the Company is
in process of identifying the risk coverage.
38. In the opinion of management, there is no impairment of assets of the Company in terms of Accounting
Standard (AS) 28.
39. From the month of July 2017, the Company has taken registration with the GST Authorities in 29 States
and 4 Union territories.
The Company has availed GST Input Credit amounting to ` 6112447 thousand, out of which
` 1997906 thousand has been utilized and is subject to assessment by the GST Authority.
40. Contribution to Solatium fund
In accordance with the requirements of the IRDAI, the Company has provided 0.10% of Motor Third
Party Gross direct premium in India towards contribution to the Solatium fund. Accordingly, an amount of
` 42078 thousand (` 37459 thousand) has been provided, which is charged to Miscellaneous revenue
account and also disclosed under Current Liabilities.
41. Subordinated Debt
The Company had raised ` 895 crores as Subordinated Debt by issuing 8950 unsecured, subordinated,
fully paid up, listed, redeemable and non convertible debentures of `10 lakhs each at a coupon rate of
8.35% p.a. on private placement basis under the Insurance Regulatory and Development Authority of
India (Other forms of Capital) Regulations, 2015 and approved by IRDAI vide letter
106/F&A/(NL)/GNI/OFC/01/2016-17/153 dated 22nd February, 2017.
Terms of Borrowings:

Issue Series I/NIC/NCD/2016-17

Type, Nature and Seniority of Instrument Unsecured, subordinated, fully paid-up, listed,
redeemable and non-convertible debentures (NCD)
Face Value (per security) `10,00,000
Issue Size ` 8950000 thousand
th
Issue date/ date of allotment 27 March, 2017
th
Redemption date 27 March, 2027

ANNUAL REPORT 2017-18 160

 th
Call option date 27 March, 2022
Coupon Rate 8.35% per annum
Credit Rating CRISIL: AAA/Negative
ICRA: AA+ Stable outlook
Listing th
Listed on WDM segment of NSE and BSE on 7 April,
th
2017 and 10 April, 2017 respectively
Frequency of the Interest payment Annual

(B) Maturity pattern from the date of issue

` in thousand
Maturity buckets Borrowings
1 to 5 years -
Above 5 years 8950000
Tot al 8950000

The Company has a call option which can be exercised at the end of 5 years from the date of
allotment.
(C) Debenture Redemption Reserve (DRR)
Pursuant to IRDAI Circular No. IRDA/F&A/OFC/01/2014-15/115 dated 4th August, 2017 and as
required by the Companies (Share Capital and Debentures) Rules, 2014, the Company is
required to create DRR of ` 2237500 thousand out of profits of the Company, being 25% of the
value of Outstanding debentures. In the absence of any profits during the year, no DRR is created.
42. Borrowing Cost:
lThe Interest expense on issue of subordinated debt for ` 747325 thousand (` 10237 thousand)
and related expenses for ` 326 thousand (` 5312 thousand) has been charged to the Profit and
Loss Account (Shareholder's Account).
lThe amount of borrowing costs capitalized during the year is ` Nil thousand (` Nil thousand) since
there is no 'Qualifying asset'.
43. Incurred but not Reported/not enough reported Claims (IBNR/IBNER)
The estimated liability for IBNR/IBNER Claims has been estimated by the Panel Actuary as directed by
the IRDAI vide its letter ref: IRDAI/ACTL/NL/NIC/AA/01/2017 dated 15th June, 2017, in compliance with
the guidelines issued by IRDAI vide Circular No. 11/IRDA/ACTL/IBNR/2005-06 dated 8th June, 2005
and applicable provisions of Guidance Note 21 issued by the Institute of Actuaries of India. The Panel
Actuary has used generally accepted actuarial methods for each product category as considered
appropriate depending upon the availability of past data as well as appropriateness of the different
methods to the different lines of businesses.
The IRDAI vide its letter ref: IRDA/F&A/GNI/LR/005/2016-17/90 dated 4th November, 2016, had made
observations on the underestimation of Gross IBNR/IBNER Claims and had permitted the Company to
defer the absorption of the balance in unrecognized provision of IBNR (Motor TP) identified as on
31.03.2016 equally in three financial years, commencing from the FY 2016-17.
However, the Company has absorbed the full liability in the current year, for which the details of
absorption of provision is as under:

161 ANNUAL REPORT 2017-18

 Particulars Amount ( ` in ’000)

Balance of Gross provision of IBNR identified as on 31/03/2018 29203900

Provided up to 31.03.2017 13880467
Balance provided in the current year fully 15323433

In addition, the Company has provided Gross IBNR of ` 18811900 thousand (` 24698400 thousand) for
Motor TP business incepted on or after 01/04/2016 in line with actuarial valuations, during the current
year.
The total Gross IBNR absorbed by the Company for all lines of business till 31st March, 2018 is
`82435800 thousand (`51544800 thousand) and net IBNR absorbed is `60907700 thousand
(`41232200 thousand)
44. Solvency Margin
The provisional Solvency Margin has been calculated in terms of the IRDAI (Assets, Liabilities and
Solvency Margin of General Insurance Business), Regulations, 2016 and Company's representation to
the IRDAI after taking into account the entire Fair Value Change Account balance amounting to
`38524496 thousand for the computation of Available Solvency Margin, which is subject to ratification
by the IRDAI.
The Company has not considered Loans or temporary advances amounting to `2169267 thousand
(`2080830 thousand) granted to its full time employees for computation of Available Solvency Margin
as required under IRDAI (Loans or Temporary Advances to the full time employees of the Insurers)
Regulations, 2016.
The liabilities representing the unclaimed amounts of policyholders and the investment income accrued
or earned thereon amounting to `840626 thousand; and the investments representing such amounts
have not been considered towards computation of available solvency margin as required under IRDAI
Master Circular ref no. IRDA/F&A/CIR/MISC/173/07/2017 dated 25th July, 2017.
All premium outstanding relating to State/Central Government sponsored schemes, irrespective of the
age of outstanding, have been considered as admissible assets for computation of Available Solvency
Margin.
45. Expenses of Management
The excess of Management expenses have been identified in different lines of business over the
allowable limits prescribed under the Insurance Regulatory and Development Authority of India
(Expenses of Management of Insurers transacting General or Health Insurance business) Regulations,
2016. The expenses of management for the segments which are within the allowable limits have been
charged to the Revenue Accounts. However, the expenses of management for the segments which
have exceeded the allowable limits, have been charged to the Profit & Loss Account (Shareholder's
Account) to the tune of `166444 thousand (`3554973 thousand)
46. The Company has substantial carry forward losses and unabsorbed depreciation under the Income
Tax Act, 1961 giving rise to deferred tax asset. However, as a matter of prudence the deferred tax asset
has not been recognized in the financial statements as per requirement of Accounting Standard AS-22
(Accounting of Taxes on income) owing to uncertainty over future taxable income.

ANNUAL REPORT 2017-18 162

47. Disclosure as per Accounting Standard (AS 20)
(` in thousand)
Particulars Current Year Previous Year
Net Profit/ Loss attributable to Shareholders -21707660 458377
Weighted average number of Shares 10,00,00,000 10,00,00,000
Basic and diluted earnings p er share of `10 each -217.08 4.58

The Company does not have any outstanding diluted potential equity share. Consequently, the basic and
diluted earnings per share of the Company remain the same.
48. In terms of IRDA circular no. IRDA/F&A/CIR/IFRS/038/03/2016 dated 01.03.2016, the company has
decided to implement Ind AS from the financial year 2018-19. On the advice of the Audit Committee of
the Board of Directors, the management has set up a dedicated task force for determining the Ind AS
direction and strategy and overseeing the development and execution of Ind AS implementation plan.
However, as per IRDA Circular No. IRDA/F&A/CIR/ACTS/146/06/2017 dated 28th June, 2017, the
Authority has approved the Regulatory override whereby the implementation of Ind AS in the Insurance
Sector in India has been deferred for a period of two years and the same shall now be implemented
effective FY 2020-21. The requirement of submitting Proforma Ind AS financial statements on a
quarterly basis shall continue to be governed as directed under IRDAI Circular reference
IRDA/F&A/CIR/ACTS/262/12/2016 dated 30th December, 2016.
49.
49.1 In terms of the IRDAI Master Circular ref no. IRDA/F&A/CIR/MISC/173/07/2017 dated 25th July,
2017 and as amended from time to time, the Company has transferred the Unclaimed amount of
Policyholders' amounting to `22571 thousand outstanding for a period of more than 10 years as on
September 30, 2017, to the Senior Citizen Welfare Fund.

163 ANNUAL REPORT 2017-18

 Other disclosures, as required under the Master Circular, are given below:
Age-wise analysis of the Unclaimed Amount of Policyholders:
(` in thousand)

Particulars Age-wise Analysis

1 to 6 7 to 12 13 to 18 19 to 24 25 to 30 31 to 36 Beyond 36
Months Months Months Months Months Months Months TOTAL
Claims settled but
not paid to the
Policy
holders/Insureds
a) due to any
reasons except
under litigation
from Insureds /
Policy holders
Sum due to the
Insureds / Policy
b) holders on
maturity or
otherwise
Any excess
collection of the
Premium / Tax or
any other charges 203344 47399 22073 19416 3504 5871 10576 312183
which is
refundable to the
Policyholders
c)
either as terms of
conditions of the
Policy or as per
the law or as may (388892) (297) (346) (363) (435) (746) (6313) (397392)
be directed by the
authority but not
refunded to so far.
Cheques issued
but not encashed 372785 54557 40699 33557 11562 5170 9591 527921
d)
by the Policy
holders / Insureds (440471) (2172) (1484) (2048) (890) (1019) (5824) (453908)

576129 101956 62772 52973 15066 11041 20167 840104

Total
(829363) (2469) (1830) (2411) (1325) (1765) (12137) (851300)

Further as per the Master Circular, the Company has invested ` 840104 thousands in Fixed Deposit and the
interest of ` 522 thousands accrued on such Fixed Deposit, has been allocated to the Unclaimed
Policyholders' Fund.

ANNUAL REPORT 2017-18 164

49.2 Details of Unclaimed Amount and Investment Income
(`` in thousand)
Particulars FY 2017-18 FY 2016-17
Opening Balance 8,51,300 7,47,042
Add: Amount transferred to Unclaimed Policyholders’ Fund 684156 958177
Add: Cheques issued out of the Unclaimed Amount but not -- --
encashed by the Policyholders
Add: Investment Income on Unclaimed Fund 522 --
Less: Amount of Claims paid during the year 672781 853919
Less: Amount transferred to SCWF (net of claims paid in 22,571 --
respect of amounts transferred earlier)
Closing balance of Unclaimed Amount Fund 8,40,626 8,51,300

The Company is in process of identifying the unclaimed amount of Policyholders, if any, lying in
other heads of account.
50. Expenditure includes Prior Period Items:
(`` in thousand)
Head of Account As on As on
31.03.201 8 31.03.2017
Employee Remuneration and Welfare benefits 113 154
Travel, conveyance and vehicle running expenses 92 347
Rents, Rates and Taxes 8278 5972
Repairs - 151
Printing & Stationery 203 144
Communication 409 458
Advertisement 174 -
Others 13699 1800
Electric ity charges 730 189
Office up-keep & Maintenance 496 102
Payment to Professionals & Contractors 345 0
Total 24539 9317

165 ANNUAL REPORT 2017-18

51. Details of penal actions taken by various Government Authorities:
(`` in thousand)

Sl. Authority Non-Compliance/ Penalty Penalty Penalty

No. Violation Awarded paid Waived/
Reduced
1. Insurance Regulatory and - - - -
Development Authority of India - - - -

2. Service Tax Authorities - - - -

- - -
- - - -
3. Income Tax Authorities
- - - -
4. Any other Tax Authorities - - - -
(Municipal Corporation) - - - -

5. Enforcement Directorate/ - - - -
Adjudicating Authority/Tribunal - - - -
or any Authority under FEMA

6. Registrar of Companies/NCLT/
CLB/Department of Corporate - - - -
Affairs or any Authority under
- - - -
Companies Act, 2013.

7. Penalty awarded by any Court/

Tribunal for any matter including - - - -
claim settlement but excluding
compensation. - - - -

8. Securities and Exchange Board - - - -

of India - - - -
Violation - - -
9. Competition Commission of India (16,28,000) (2,000) (16,26,000)
10. Any other Central/State/Local Violation - - -
Government/Statutory Authority - (8) (3) (5)

52. In the opinion of the Management, there is no significant impact on its financial position in its Financial
Statements due to pending litigations, save otherwise, which have already been provided for in the
Accounts.
53. Management is not expecting any foreseeable losses on the long-term contracts it has entered into. The
company has not entered into any derivative contracts.
54. No amount is required to be transferred to the Investor Education and Protection Fund by the Company.

ANNUAL REPORT 2017-18 166

55. Corporate Social Responsibility –
` in thousand
Particulars 2017-18 2016-17
Gross amount required to be spent by the Company during the year 56089 65900
Adjustment of earlier years -493 -2342
Charged to Profit and loss account 55596 63558

Amount spent during the year on: ` in thousand

Sl. No Particulars In cash Yet to be Total
paid in
cash
(i) Construction/acquisition 0 0 0
of any asset (0) (0) (0)
(ii) On purposes other than 30414 25182 55596
(i) above (28976) (36924) (65900)

56. Accounting Ratios prescribed by IRDAI:

SL. PERFORMANCE METHOD OF 2017-18 2016-17

NO. RATIO CALCULATION TOTAL INDIA FOREIGN TOTAL INDIA FOREIGN
Gross Direct
Premium Growth
1 Rate (%) 13.73% 13.74% 11.85% 18.83% 18.88% 4.46%
a) Fire -1.11% -1.15% 1.38% 1.97% 1.75% 17.14%
b) Marine Cargo -1.37% -2.33% 28.73% -8.19% -8.38% -1.76%
c) Marine other than
cargo -31.56% -31.56% - -9.65% -9.65% -
d) Motor Own
9.25% 9.33% -11.35% 0.05% 0.02% 6.69%
Damage
e) Motor Third Party [GDPI (CY) - 12.32% 12.33% 1.11% 21.22% 21.25% -6.16%
f) Engineering GDPI (PY)] / 3.14% 2.19% 62.29% -10.36% -10.33% -12.25%
g) Workmen's GDPI (PY)
Compensation -16.64% -16.93% 58.69% -6.10% -6.24% 53.69%
h) Public Liability -1.14% -1.13% -44.21% 23.25% 23.24% 156.79%
i) Personal Accident -0.72% -0.72% - 27.60% 27.60% -
j) Health Insurance 12.56% 12.55% 32.95% 17.38% 17.38% 19.64%
k) Aviation -9.52% -12.17% 75.69% -19.68% -19.16% -33.40%

l) Rural 85.88% 85.88% - 1498.94% 1498.94% -

m) Misc. Others -10.54% -10.69% 7.74% 12.94% 12.96% 11.13%

Gross Direct Premium
2 to Net Worth Ratio GDPI / Net 9.23 3.78
(times) Worth

167 ANNUAL REPORT 2017-18

 (Net Worth of
CY - Net Worth
Growth Rate of Net of PY) / (Net
3 Worth (%) Worth of PY) -53.41% 5.53%

4 Net Retention Ratio (%) 69.27% 69.25% 76.66% 72.45% 72.46% 70.18%

a) Fire 64.76% 64.60% 75.35% 71.24% 71.47% 56.01%

b) Marine Cargo 86.00% 85.74% 92.15% 84.95% 84.61% 95.92%

Net Premium /
c) Marine other than cargo (Gross Direct 18.23% 18.23% - 22.36% 22.36% -
Premium
d) Motor Own Damage Income 74.85% 74.85% 76.56% 74.16% 74.14% 79.56%
+ Reinsurance
e) Motor Third Party 75.02% 75.01% 100.00% 75.00% 74.98% 100.00%
Accepted)
f) Engineering 77.34% 77.19% 83.57% 70.93% 71.00% 66.28%
g) Workmen's
Compensation 94.96% 95.00% 90.00% 95.02% 95.00% 100.00%

h) Public Liability 95.00% 95.00% 96.66% 95.00% 95.00% 100.00%

i) Personal Accident 95.00% 95.00% - 95.00% 95.00% -

j) Health Insurance 68.16% 68.15% 94.91% 76.12% 76.11% 100.00%

k) Aviation 21.87% 22.75% 1.08% 5.95% 7.08% -35.65%

l) Rural 38.14% 38.14% - 34.99% 34.99% -

m) Misc. Others 96.60% 96.78% 76.38% 73.39% 73.30% 85.27%
Net Commission Ratio(%)
5 9.60% 9.64% -2.91% 2.74% 2.76% -2.35%

a) Fire 13.19% 13.52% -5.13% 10.66% 10.86% -6.16%

b) Marine Cargo 14.33% 15.03% -1.47% 12.24% 12.68% -0.01%

c) Marine other than
-14.00% -14.00% - -11.25% -11.25% -
cargo

d) Motor Own Damage 27.50% 27.62% -6.16% 6.22% 6.26% -2.33%

e) Motor Third Party Net -4.04% -4.04% 0.00% -4.30% -4.31% 0.00%

f) Engineering Commission / 12.22% 12.55% -0.14% 8.25% 8.42% -4.41%

g) Workmen's Net Written
Compensation Premium 15.76% 15.84% 3.29% 10.43% 10.46% 3.76%

h) Public Liability 12.57% 12.57% 9.77% 10.65% 10.65% 23.64%

i) Personal Accident 5.31% 5.31% - 6.72% 6.72% -

j) Health Insurance 8.45% 8.46% 0.40% 3.70% 3.70% 0.40%

k) Aviation -7.35% -7.27% -45.82% 4.95% 4.53% 1.90%

l) Rural -6.45% -6.45% - -11.32% -11.32% -

m) Misc. Others 47.46% 47.78% 0.02% 13.08% 13.18% 2.99%
(Expenses of
Expenses of Management +
Management to Gross Direct
Direct Premium Ratio Commission) /
6 (%) GDPI 26.79% 30.79%

ANNUAL REPORT 2017-18 168

 (Expenses of
Expenses of Management +
Management to Net Direct
Written Premium Ratio Commission) /
7 (%) NWPI 37.95% 41.66%
Net Incurred
Claims /
Net Incurred Claims to Net Net Earned
8 Earned Premium (%) Premium 114.24% 97.25%
[Net Incurred
Claim / Net
Earned
Premium] +
[(Expenses of
149.24% 149.44% 88.19% 134.93% 135.42% -14.81%
Management
(including Net
Commission) /
Net Written
9 Combined Ratio (%) Premium]
(URR + Reserve
for Premium
Deficiency +
Reserve for
Outstanding
Claims
including IBNR
Technical Reserves to Net and IBNER) /
10 Premium Ratio (times) Net Premium 1.69 1.49
Underwriting
profit or Loss /
Underwriting Balance Net earned
11 Ratio premium -0.50 -0.34
(Underwriting
profit or Loss +
Investment
Income) / Net
earned
12 Operating Profit Ratio (%) premium -25.11% -6.50%
Liquid Assets /
Liquid Assets to Policyholders'
13 Liabilities Ratio (Times) Liabilities 0.15 0.25
Profit after tax /
14 Net Earnings Ratio (%) Net Premium -18.93% 0.43%
Returns on Net Worth Profit after tax /
15 Ratio (%) Net Worth -123.30% 1.21%
Available Solvency
Margin (ASM) to Required
Solvency Margin (RSM)
16 ratio (Times) ASM / RSM 1.55* 1.90

17 NPA Ratio (%)

Gross NPA Ratio 1.76% 0.44%

Net NPA Ratio 0.39% 0.0014%

* Subject to ratification by the IRDAI.

169 ANNUAL REPORT 2017-18

57. Summary of working results for the last 5 years as prescribed by IRDAI:
(` in lakh)
No. Particulars 2017-18 2016-17 2015-16 2014-15 2013-14
OPERATING RESULTS
1. Gross direct premiums 1624368 1428236 1201898 1128263 1026098
2. Net premium # 1146501 1055561 1117315 1038675 942104
3. Income from investments (net) @ 276868 296210 291659 209509 180584
4. Other income (+)/Outgo(-) -22 -53 -916 137 535
5. Total income (2+3+4) 1423347 1351718 1408058 1248321 1123223
6. Commissions (Net) (Including brokerage) 110037 28923 61986 56459 58311
7. Operating Expenses 299952 333206 350901 312239 227412
8. Net Incurred Claims 1287068 1050668 1028240 767518 704861
9. Change in Unexpired Risk Reserve 19845 -24801 38177 48859 73837
10. Operating profit/loss (5-6-7-8-9) -293555 -36278 -71246 63246 58802
NON-OPERATING RESULT
Total income under shareholders' account net of
11. expenses 75305 36490 86296 56427 41977
12. Profit/ (loss) before tax (10-11) -218250 4920 15050 119673 100779
13. Provision for tax (including adjustment) -1173 336 127 22662 18490
14. Profit/ (loss) after tax (12-13) -217077 4584 14923 97011 82289
MISCELLANEOUS
Policy holders' Account:
15. Total funds 1916719 1482262 1493613 837064 1171671
Total investments 1712551 1490559 1150486 1250192 1114687
Yield on investments 16.58% 20.16% 22.39% 16.87% 16.16%
Shareholders' Account:
16. Total funds 176062 377924 358120 379055 309686
Total investments 436688 384304 507241 330440 296013
Yield on investments 16.58% 20.16% 22.39% 16.87% 16.16%
17. Paid up equity capital 10000 10000 10000 10000 10000
18. Net worth 176062 377924 358120 379055 309686
19. Total assets 3478260 3239736 2884413 3030227 2705020
20. Yield on total investments 16.58% 20.16% 22.39% 16.87% 16.16%
21. Earnings per share (Rs.) -217.08 4.58 14.92 97.01 82.29
22. Book value per share (Rs.) 176.06 377.92 358.12 379.06 309.69
23 Total dividend 0.00 0.00 4515 19353 16466
24. Dividend per share (Rs.) 0.00 0.00 4.51 19.35 16.47

# Net of reinsurance
@ Net of losses
Note:
Total Investments less Fair Value have been apportioned between Shareholders' Account and Policyholders' Account
in the ratio of Shareholders' Funds and Policyholders' Funds as at the beginning of the year.

ANNUAL REPORT 2017-18 170

58. Figures in brackets are of the previous year. To conform to current year's presentation previous year's
figures are regrouped or rearranged wherever considered necessary.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494

(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place: Kolkata
Date: 19th July, 2018
(CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Director Chief Financial Officer
Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary

171 ANNUAL REPORT 2017-18

 CONSOLIDATED FINANCIAL
STATEMENTS
2017-18

ANNUAL REPORT 2017-18 172

 INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF NATIONAL INSURANCE
COMPANY LIMITED
Report on the Consolidated Financial
Statements
We have audited the accompanying consolidated
financial statements of NATIONAL INSURANCE
COMPANY LIMITED (hereinafter referred to as
“the Company”) and its two (2) Associates,
comprising of the Consolidated Balance Sheet as
at 31st March, 2018, the annexed consolidated
Revenue Accounts of Fire, Marine and
Miscellaneous Insurance Business (collectively
known as 'Consolidated Revenue Accounts'),
Consolidated Profit and Loss Account and the
Consolidated Receipts and Payments Account for
the year then ended, and a summary of significant
accounting policies and other explanatory
information (hereinafter referred to as “the
consolidated financial statements”). The Associate
companies are consolidated by using the
Investments in Associates under the Equity
method in accordance with the Accounting
Standard 23.
Management's Responsibility for the
Consolidated Financial Statements
The Company's Board of Directors is responsible
for the preparation of these consolidated financial
statements in terms of the requirements of the
Companies Act, 2013 (hereinafter referred to as
“the Act”) that give a true and fair view of the
consolidated financial position, consolidated
financial performance and consolidated cash flows
of the Company including its Associates in
accordance with the accounting principles
generally accepted in India, including the
Accounting Standards specified under Section 133
of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. The respective Board of
Directors of the Company and of its Associates are
responsible for maintenance of adequate
accounting records in accordance with the
provisions of the Act for safeguarding the assets of
the Company and its Associates and for preventing
and detecting frauds and other irregularities; the
selection and application of appropriate
accounting policies; making judgments and
173
estimates that are reasonable and prudent; and
the design, implementation and maintenance of
adequate internal financial controls, that were
operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant
to the preparation and presentation of the financial
statements that give a true and fair view and are
free from material misstatement, whether due to
fraud or error, which have been used for the
purpose of preparation of the consolidated
financial statements by the Directors of the
Company, as aforesaid.
Auditors' Responsibility
Our responsibility is to express an opinion on these
consolidated financial statements based on our
audit. While conducting the audit, we have taken
into account the provisions of the Act, the
accounting and auditing standards and matters
which are required to be included in the audit report
under the provisions of the Act and the Rules made
there under and Insurance Act, 1938, Insurance
Regulatory and Development Authority Act, 1999
and the Rules and Regulations made there under.
We conducted our audit in accordance with the
Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance
about whether the consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain
audit evidence about the amounts and the
disclosures in the consolidated financial
statements. The procedures selected depend on
the auditors' judgment, including the assessment
of the risks of material misstatement of the
consolidated financial statements, whether due to
fraud or error. In making those risk assessments,
the auditors consider internal financial control
relevant to the Company's preparation of the
consolidated financial statements that give a true
and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the
accounting policies used and the reasonableness
of the accounting estimates made by the
Company's Board of Directors, as well as
evaluating the overall presentation of the
consolidated financial statements.
ANNUAL REPORT 2017-18
We believe that the audit evidence obtained by us
and the audit evidence obtained by the other
auditors in terms of their reports referred to in sub-
paragraph (a) and (b) of the Other Matters
paragraph below, are sufficient and appropriate to
provide a basis for our audit opinion on the
consolidated financial statements.
Opinion
In our opinion and to the best of our information and
according to the explanations given to us, the
aforesaid consolidated financial statements give
the information required by the Act in the manner
so required and give a true and fair view in
conformity with the accounting principles generally
accepted in India, of the consolidated state of
affairs of the Company and its Associates as at 31st
March, 2018, Consolidated Revenue accounts of
the profit in Marine and loss in Fire and
Miscellaneous Business for the year ended as on
that date, their consolidated loss and their
consolidated receipts and payments for the year
ended on that date.
Emphasis of Matters
We draw attention to the following matters:
a) Provisional Solvency Margin : (Refer Stand
Alone Schedule 17 – Note No. 44)
The Company has calculated provisional
solvency margin taking into account the
entire Fair Value Change Account balance
amounting to ` 3,85,24,496 thousand for
the computation of available solvency
margin on the basis of Company's
representation with IRDAI and which is
subject to ratification by IRDAI. Further, all
premium outstanding relating to
State/Central Government sponsored
schemes irrespective of its age of
outstanding have been considered as
admissible asset for computation of
solvency margin.
b) Re: Unearned Premium Reserve (UPR): (Refer
Stand Alone Schedule 16 – Note no 3.1 and
Stand Alone Schedule 17 – Note No. 8)
The Company has created UPR at the
prescribed rates including for the short term
policies, in spite of the fact that such short
term policies commence and lapse within
ANNUAL REPORT 2017-18
the accounting year and no part of the
premium written is attributable to the
succeeding accounting period. However, no
UPR has been created for the Net Premium
of ` 46,19,154 thousand for Pradhan Mantri
Fasal Bima Yojana for Kharif Business.
c) Re: Premium Received in Instalment: (Refer
Stand Alone Schedule 16 - Note no. 3)
The Company accounts for the premium of
policy Scheme on receipt of instalment
even though the policy and the risk
commences from the date of signing the
MOU/Policy Cover.
d) Re: Balance confirmation/Reconciliation:
(Refer Stand Alone Schedule 17 - Note no. 28)
Various Account balances (Due from/Due
to) are under process of reconciliation and
confirmation. The impact of adjustments, if
any, arising out of reconciliation is not
ascertainable.
e) Re: Segment Assets and Segment
Liabilities: (Refer Stand Alone Schedule 16
- Note no. 14)
The Company has disclosed prescribed
Segment wise revenue and results.
However, the Segment Assets and the
Segment liabilities are not identified for the
corresponding Segments as required
under AS-17.
f) Re: Contribution to Employees’ Provident
Fund (EPF): (Refer Stand Alone Schedule
16 - Note no. 12 (a) & Stand Alone Schedule
17 – Note no. 33.3)
The Company has been consistently
treating Contribution to EPF as Defined
Contribution Plan. In view of Company's
obligation for making up the deficit of EPF
Trust fund towards payment of interest at
the Government declared rate, it should
have been treated as Defined Benefit Plan
and disclosure requirement is applicable
accordingly.
g) Re: Segregation of Investments: (Refer
Stand Alone Schedule 8, 8A and Stand
Alone Schedule 16-Note no. 8.13)
The Company has segregated investments
174
 into Shareholder's Fund and Policyholder's
Fund without identifying them scrip-wise.
h) Re: Micro, Small and Medium Enterprises
Development Act, 2006 (Refer Stand Alone
Schedule 17 – Note no. 34)
The Company has not identified the
Enterprises under the MSMED Act, 2006
for requisite disclosure.
i) Re: Free look period (Refer Stand Alone
Schedule 17 – Note No. 36)
The Company has not carried out Actuarial
Valuation for the 'Free look period' feature.
j) Re: Bhavishya Arogya Policy (Refer Stand
Alone Schedule 17 – Note No. 37)
The Company is yet to account for premium
income and corresponding IBNR and
IBNER liabilities in respect of Bhavishya
Arogya Policy.
k) Re: Accounting Software (Refer Stand
Alone Schedule 17 – Note No. 29)
Required adjustments of some assets and
liabilities on implementation of core
insurance accounting software is pending.
l) Re: Unclaimed amount of Policyholders
(Refer Stand Alone Schedule 17 – Note No.
49)
Identification of unclaimed amount of
policyholders, if any, lying in other heads of
account.
m) Re: GST Input Credit (Refer Stand Alone
Schedule 17 – Note No. 39)
The Company has availed GST input credit
which is subject to final assessment by the
GST Authority.
Our opinion is not modified in respect of these matters.
Other Matter
(a) We did not audit the financial statements of
thirty three (33) Regional offices, three
hundred and ninety two (392) Divisional
offices, two (2) Foreign offices, included in the
financial statements of the Company whose
financial statements / financial information
reflect total assets of ` 5,58,27,193
thousand as at 31st March, 2018 and total
175
revenues of ` 16,24,36,775 thousand for the
year ended on that date. The financial
statements/information of these offices have
been audited by the other firm of auditors
(branch auditors) whose reports have been
furnished to us, and our opinion in so far as it
relates to the amounts and disclosures
included in respect of these offices, is based
solely on the report of such branch auditors.
(b) The consolidated financial statements include
the Company's share of net loss of ` 34,137
thousand for the year ended 31st March,
2018, as considered in the consolidated
financial statements, in respect of two
Associates, whose financial statements have
not been audited by us. These financial
statements have been audited by other
auditors whose reports have been furnished
to us by the Management and our opinion on
the consolidated financial statements, insofar
as it relates to the aforesaid Associates, is
based solely on the reports of the other
auditors.
Our opinion on the consolidated financial
statements, and our “Report on Other Legal and
Regulatory Requirements“ below, is not modified in
respect of the above matters with respect to our
reliance on the work done and the reports of the
other auditors.
Report on Other Legal and Regulatory
Requirements
1. As required by the IRDA Financial
Statements Regulations, we have issued a
separate certificate of even date in the
matters specified in paragraph 3 and 4 of
Schedule C to the IRDA Financial
Statements Regulations – Refer
Annexure 'A' to this report relating to the
Company only, as the corresponding
certificate from the Associates are not
applicable.
2. As required by Section 143(3) of the
Companies Act, 2013 and IRDA Financial
Statements Regulations and orders/
directions/circulars issued by the
Insurance Regulatory and Development
Authority of India, we report, as it is related
ANNUAL REPORT 2017-18
 to the Company and to the extent it is
applicable to the Associates, that:
a) We have sought and obtained all the
information and explanations which to
the best of our knowledge and belief
were necessary for the purposes of our
audit and have found them to be
satisfactory.
b) In our opinion, proper books of account
as required by law have been
maintained by the Company, so far as it
appears from our examination of those
books.
c) In our opinion proper returns from 33
Regional offices, 392 Divisional offices
and 2 Foreign branch offices of the
Company audited by the other firm of
auditors and not visited by us, have
been received and are adequate for the
purpose of audit.
d) The reports of the 33 Regional Auditors
consolidating the 392 Divisional
Auditors' Reports and reports of 2
foreign branches audited under section
143(8) of the Companies Act, 2013 by
the branch auditors of the Company
have been sent to us and have been
properly dealt with by us in preparing
this report in the manner considered
necessary by us.
e) The Consolidated Balance Sheet,
Consolidated Revenue accounts,
Consolidated Profit and Loss account
and the Consolidated Receipts and
Payments Account dealt with by the
report are in agreement with the books
of account and returns received from
offices not visited by us.
f) The actuarial valuation of liabilities in
respect of Incurred But Not Reported
(the “IBNR”), Incurred But Not Enough
Reported (the “IBNER”) and Premium
Deficiency Reserve (the “PDR”) is the
responsibility of the Company's
Appointed Actuary and the Mentor
Actuary (the “Appointed Actuary”). The
Appointed Actuary has certified that
ANNUAL REPORT 2017-18
outstanding claims reserves are not
determined by statistical methods and
instead determined by respective
operating offices on a case to case
basis. The assumptions for the
valuation of Premium Deficiency
Reserve (the “PDR”) and IBNR
reserves as at 31st March, 2018 are in
accordance with the guidelines and
norms issued by IRDAI and the
Institute of Actuaries of India in
concurrence with the Authority. The
valuation of liabilities for outstanding
claims reserves and the PDR
contained in the financial statements of
the company are based on the
Appointed Actuary's certificate as
above.
g) The consolidated financial statements
have been prepared in accordance
with the requirements of the Insurance
Act, 1938 (4 of 1938), the Insurance
Regulatory and Development Authority
Act, 1999 (41 of 1999) and the
Companies Act, 2013 (18 of 2013) to
the extent applicable and in the manner
so required.
h) The Investments of the Company have
been valued in accordance with the
provisions of the Insurance Act, the
regulations and orders/ directions/
circulars issued by IRDA in this regard.
i) The accounting policies selected by the
Company are appropriate and are in
compliance with the applicable
Accounting Standards specified under
Section 133 of the Companies Act,
2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014
and with the accounting principles, as
prescribed in the IRDA Financial
Statements Regulations and order or
direction issued by the IRDA in this
behalf.
j) In our opinion the consolidated
financial statements comply with the
Accounting Standards specified under
Section 133 of the Companies Act,
176
 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014.
k) The provisions of Section 164(2) of the
Companies Act, 2013 with regard to
disqualification for appointment of
directors are not applicable to the
Company and its Associate company
incorporated in India, in view of
Notification No. GSR 463(E) dated 5th
June, 2015 issued by the Ministry of
Corporate Affairs, Government of India.
l) With respect to the adequacy of the
Interim Financial Controls over
financial reporting of the Company and
its Associate company incorporated in
India and the operating effectiveness of
such controls, refer to our separate
report in Annexure-‘B’ to this report.
m) With respect to the other matters to be
included in the Auditor's Report in
accordance with Rule 11 of the
Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of
our information and according to the
explanations given to us:
i) The Company and its Associate
company incorporated in India have
disclosed the impact of pending
litigations on its financial position in
its financial statements – Refer
Stand Alone Schedule 17 - Note no.
52.
For S. Ghose & Co. LLP
Chartered Accountants
FRN: 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place : Kolkata
Date : 19 July, 2018
th
177
ii) The Company and its Associate
company incorporated in India did
not have any long term contracts
including derivatives contracts for
which the Company was expecting
any material foreseeable losses –
Refer Stand Alone Schedule 17 -
Note no. 53.
iii) There were no amounts, which were
required to be transferred to the
Investor Education and Protection
Fund by the Company and its
Associate company incorporated in
India – Refer Stand Alone
Schedule-17 - Note no. 54.
n) As required under section 143(5) of the
Companies Act, 2013, we enclose
Annexure ‘C’ to this report, relating to
the Company and one of its applicable
Associate, the directions including sub-
directions issued by the Comptroller &
Auditor General of India, action taken
thereon and its financial impact on the
accounts and financial statements of the
Company and its applicable Associate,
which is based on the information given
by and approved by the Board of
Directors of the Company and as
reported by the Branch auditors of
Company to the extent applicable to
Divisional offices and Regional offices
and auditor of the applicable Associate
company.
For Saha Ganguli & Associates
Chartered Accountants
FRN : 302191E
(CA Samir Kumar Saha)
Partner
Membership No. 051392
ANNUAL REPORT 2017-18
Annexure – 'A' to the Independent Auditors'
Report of even date on the Consolidated Financial
Statements of National Insurance Company Limited
(Referred to in paragraph 1 under 'Report on Other
Legal and Regulatory Requirements' section)
Independent Auditors' Certificate to the
members of National Insurance Company
Limited (the “Company”)
This certificate is issued to comply with the
provisions of paragraphs 3 and 4 of Schedule C to
the Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor's
Report of Insurance Companies) Regulations, 2002
(the “IRDA Financial Statements Regulations”) read
with regulation 3 and may not be suitable for any
other purpose.
The Company's Board of Directors is responsible
for complying with the provisions of The Insurance
Act, 1938 (the “Insurance Act”) (amended by the
Insurance Laws (Amendment) Act, 2015), the
Insurance Regulatory and Development Authority
Act, 1999 (the “IRDA Act”), the IRDA Financial
Statements Regulations, orders/ directions/
circulars issued by the Insurance Regulatory and
Development Authority of India (the “IRDA”) which
includes the preparation of the Management
Report. This includes collecting, collating and
validating data and designing, implementing and
monitoring of internal controls suitable for ensuring
compliance as aforesaid.
Our responsibility, for the purpose of this certificate,
is limited to certifying matters contained in
paragraphs 3 and 4 of Schedule C to the IRDA
Financial Statements Regulations. We have
conducted our examination in accordance with the
Guidance Note on Audit Reports and Certificates
for Special Purposes issued by the Institute of
Chartered Accountants of India (the 'ICAI').
In accordance with the information and
explanations given to us and to the best of our
knowledge and belief and based on our
examination of the books of account and other
records maintained by the Company for the year
ended 31st March, 2018, we certify that:
For S. Ghose & Co. LLP
Chartered Accountants
FRN: 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place : Kolkata
Date : 19 July, 2018
th
ANNUAL REPORT 2017-18
1. We have reviewed the Management Report
attached to the financial statements of the
Company for the year ended 31st March,
2018, and on the basis of our review read
with our Independent Auditors' Report, there
is no apparent mistake or material
inconsistencies with the financial
statements of the Company. However,
trends in average claim settlement time
during the preceding five years have not
been reported.
2. Based on management representations and
the compliance certificate submitted to the
Board by the officers of the Company
charged with compliance and the same
being noted by the Board, nothing has come
to our attention which causes us to believe
that the Company has not complied with the
terms and conditions of registration
stipulated by the IRDA.
3. Branch auditors have verified the cash
balances and we have verified the securities
relating to the Company's loans (except for
the loans given to Company's employees)
and investments as at 31st March, 2018 by
actual inspection or on the basis of certificate/
confirmations received from the custodian
and/or depository participants appointed by
the Company as the case may be.
4. No investments and transactions relating to
any trusts have been undertaken by the
Company as trustee. – Refer Stand Alone
Schedule 17 -Note no 31 (c).
5. The Company has yet to identify the scrip
wise investments pertaining to the
policyholders' funds. However, no part of the
assets of the policyholders' funds/
shareholders' funds on an overall basis has
been directly or indirectly applied in
contravention of the provisions of the
Insurance Act, 1938 relating to the
application and investments of the
policyholders' funds.
For Saha Ganguli & Associates
Chartered Accountants
FRN : 302191E
(CA Samir Kumar Saha)
Partner
Membership No. 051392
178
ANNEXURE 'B' TO THE INDEPENDENT
AUDITORS' REPORT OF EVEN DATE ON THE
CONSOLIDATED FINANCIAL STATEMENTS OF
NATIONAL INSURANCE COMPANY LIMITED
(Referred to in paragraph 2(l) under 'Report on
Other Legal and Regulatory Requirements'
section)
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated
financial statements of the Company as of March
31, 2018 and for the year ended March 31, 2018,
We have audited the internal financial controls over
financial reporting of NATIONAL INSURANCE
COMPANY LIMITED (hereinafter referred to as
“the Company”) and its one Associate company
incorporated in India, as of date.
Management's Responsibility for Internal
Financial Controls
The respective Board of Directors of the Company
and one of its Associate company incorporated in
India, are responsible for establishing and
maintaining internal financial controls based on the
internal control over financial reporting criteria
established by the Company considering the
essential components of internal control stated in
the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design,
implementation and maintenance of adequate
internal financial controls that were operating
effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the
respective company's policies, the safeguarding of
its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the
accounting records, and the timely preparation of
reliable financial information, as required under the
Companies Act, 2013.
Auditors' Responsibility
Our responsibility is to express an opinion on the
Company's internal financial controls over financial
reporting based on our audit. We conducted our
audit in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the ICAI
179
and the Standards on Auditing, issued by ICAI and
deemed to be prescribed under section 143(10) of
the Companies Act, 2013, to the extent applicable
to an audit of internal financial controls, both issued
by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require
that we comply with ethical requirements and plan
and perform the audit to obtain reasonable
assurance about whether adequate internal
financial controls over financial reporting was
established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain
audit evidence about the adequacy of the internal
financial controls system over financial reporting
and their operating effectiveness. Our audit of
internal financial controls over financial reporting
included obtaining an understanding of internal
financial controls over financial reporting,
assessing the risk that a material weakness exists,
and testing and evaluating the design and
operating effectiveness of internal control based on
the assessed risk. The procedures selected
depend on the auditor's judgment, including the
assessment of the risks of material misstatement of
the financial statements, whether due to fraud or
error.
We believe that the audit evidence we have
obtained and the audit evidence obtained by the
other auditors in terms of their reports referred to in
the Other Matters paragraph below, is sufficient
and appropriate to provide a basis for our audit
opinion on the Company's internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls Over
Financial Reporting
A company's internal financial control over financial
reporting is a process designed to provide
reasonable assurance regarding the reliability of
financial reporting and the preparation of financial
statements for external purposes in accordance
with generally accepted accounting principles. A
company's internal financial control over financial
reporting includes those policies and procedures
that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of
the company; (2) provide reasonable assurance
ANNUAL REPORT 2017-18
that transactions are recorded as necessary to
permit preparation of financial statements in
accordance with generally accepted accounting
principles, and that receipts and expenditures of
the company are being made only in accordance
with authorisations of management and directors
of the company; and (3) provide reasonable
assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of
the company's assets that could have a material
effect on the financial statements.
Inherent Limitations of Internal Financial
Controls Over Financial Reporting
Because of the inherent limitations of internal
financial controls over financial reporting, including
the possibility of collusion or improper
management override of controls, material
misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation
of the internal financial controls over financial
reporting to future periods are subject to the risk
that the internal financial control over financial
reporting may become inadequate because of
changes in conditions, or that the degree of
compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, the Company, one of its Associate
company incorporated in India, have, in all material
respects, an adequate internal financial controls
system over financial reporting and such internal
financial controls over financial reporting were
operating effectively as at March 31, 2018, based
on the internal control over financial reporting
criteria established by the Company considering
the essential components of internal control stated
For S. Ghose & Co. LLP
Chartered Accountants
FRN: 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place : Kolkata
Date : 19 July, 2018
th
ANNUAL REPORT 2017-18
in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
Other Matters
The Company's internal controls over financial
reporting require improving in the area of data
validation/integration of various accounting
software used by the Company and recording of
intimated/incurred claims at the offices of the
Company and with TPAs. The internal audit system
of the Company also requires improving in the
areas of audit coverage and compliance.
Our aforesaid report u/s 143(3)(i) of the Act on the
adequacy and operating effectiveness of the
internal financial controls over financial reporting in
so far as it relates to one Associate company,
incorporated in India, is based on the
corresponding report of such company and in so far
as it relates to the Regional offices and Divisional
offices of the Company is based on the report u/s
143(3)(i) of the Act received from the Branch
Auditors of Regional/Divisional offices.
The actuarial valuation of liabilities in respect of
Incurred But Not Reported (the “IBNR”), Incurred
But Not Enough Reported (the “IBNER”) and
Premium Deficiency Reserve (the “PDR”) is the
responsibility of the Company's Appointed Actuary
and the Mentor Actuary (the “Appointed Actuary”).
Our opinion on the internal financial controls over
financial reporting does not include reporting on the
adequacy and operating effectiveness of the
Internal Controls over valuation and accuracy of
the aforesaid actuarial liabilities.
Our opinion is not qualified in respect of these
matters.
For Saha Ganguli & Associates
Chartered Accountants
FRN : 302191E
(CA Samir Kumar Saha)
Partner
Membership No. 051392
180
Annexure – 'C' to the Independent Auditors' Report of even date on the Consolidated Financial
Statements of National Insurance Company Limited
(Referred to in paragraph 2(n) under 'Report on Other Legal and Regulatory Requirements' section)
Replies to the Directions issued to Statutory Auditors under Section 143(5) of the Companies Act,
2013 for the Financial Year 2017-18

Sr.No Query Reply

1 Whether the Company has clear title / lease
deeds for freehold and leasehold land
respectively? If not please state the area of
freehold and leasehold land for which title /
lease deeds are not available?
2 Whether there are any cases of waiver / write-
off of debts / loans / interest etc. If yes, the
reasons thereof and the amounts involved.
The Company has clear title/lease deeds for
freehold and leasehold land except for one joint
leasehold land (4316 sq. meter) at Ellis Bridge,
Ahmedabad which was purchased in the name
of General Insurance Corporation of India on
26.7.1989 on behalf of four PSU insurance
companies.
The Company has during the year written off
`73276 thousand in respect of depreciated
Investments and charged to Revenue and Profit
& Loss Accounts.

3 Whether proper records are maintained for
inventories lying with third parties & assets
received as gift(s) / grant(s) from Govt. or other
authorities.
The Company, being an Insurance Company,
does not have any stock inventories. Proper
records of inventories for investments lying with
third party custodian M/S Stock Holding
Corporation of India are maintained.

Replies to Additional Directions to Statutory Auditors under section 143(5) of the Companies Act,
2013 appointed for audit of National Insurance Company Limited for the year 2017-18

Sr.No Query Reply

1. Number of titles of ownership in respect of SECURITY Total
CGS/SGS/Bonds/Debentures etc. CLASS Number of BV
available in physical/demat form and titles of (` in '000.)
number of cases which are not in ownership
agreement with the respective amounts CGS 41 46295631
shown in the Company's books of accounts
SGS 153 35230870
may be verified and discrepancy found may
be suitably reported. BONDS & 332 47257473
DEBENTURES
EQUITY SHARES 596 74301557
PREFERENCE 138 25754
SHARES
The following table states the number as well as the
book value of the following classes of securities,
where there is a mismatch between the Company's
books of accounts and the books of the Custodian.

181 ANNUAL REPORT 2017-18

Sr.No Query Reply
SECURITY SHORT CASES1 EXCESS CASES1
CLASS Number of BV Number of BV
titles of (` in '000) titles of (` in '000)
ownership ownership
CGS NIL 0 NIL 0
SGS NIL 0 NIL 0
BONDS & 21 375520* 4 7106
DEBENTURES
EQUITY 45 2327 12 284
SHARES
PREFERENCE 25 0.025 4 12
SHARES
as against the balances in the books of the Custodian.
1

* includes Debentures of `347000 thousands, which have been

withdrawn from Custodian on account of restructuring of Borrowal
Account.

2. Whether stop loss limits have been In view of the nature of transactions undertaken and
prescribed in respect of the investments. the Investment portfolio held by the Company, no Stop
If yes, whether or not the limit was loss limits have been prescribed.
adhered to. If no, details may be given.

3. Whether Company has carried out
reconciliation exercise for inter-company
balances reflected in their financial
statements with other PSU insurers and
whether confirmation has been obtained
from other PSU insurers for balances due
from them?
As reported by the Auditors of the operating offices,
the Company has carried out periodical reconciliation
for inter-company balances with other PSUs at the
respective operating offices and the year end
confirmations received from other PSU insurers for
balances due from them are in the process of
reconciliation.

4(a) Whether the method of accountal of
premium and reported claims are as per
conditions of agreement/scheme relating
to Pradhan Mantri Fasal Bima Yojana.
The Company has accounted the premium income
and the reported claims under the Pradhan Mantri
Fasal Bima Yojana in accordance with the Company's
Accounting policies and in compliance with the
Operational Guidelines on Pradhan Mantri Fasal Bima
Yojana issued by the Ministry of Agriculture & Farmers
Welfare. However, in few cases balance recoverable
from the respective State and Central Governments
are subject to reconciliation and confirmation.

ANNUAL REPORT 2017-18 182

Sr.No Query Reply

4(b) Whether the method of accountal of
premium and reported claims are as per
conditions of agreement/scheme relating
to Rashtriya Swasthya Bima Yojana
The Company has accounted the premium income
and the reported claims under the Rashtriya Swasthya
Bima Yojana in accordance with the Company's
Accounting policies and in compliance with the MoUs
with the respective State Governments. However, in
few cases balance recoverable from the respective
State and Central Governments are subject to
reconciliation and confirmation.

For S. Ghose & Co. LLP For Saha Ganguli & Associates
Chartered Accountants Chartered Accountants
FRN: 302184E/E300007 FRN : 302191E

(CA Chandan Chattopadhay) (CA Samir Kumar Saha)

Partner Partner
Membership No. 051254 Membership No. 051392

Place : Kolkata
Date : 19 July, 2018
th

183 ANNUAL REPORT 2017-18

ANNUAL REPORT 2017-18 184
185 ANNUAL REPORT 2017-18
ANNUAL REPORT 2017-18 186
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION
143(6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED
FINANCIAL STATEMENTS OF NATIONAL INSURANCE COMPANY LIMITED FOR THE YEAR
ENDED 31ST MARCH 2018
COMMENTS OF C&AG
A. Comments on Financial Statement
A.1 Balance Sheet
Investment- `25,344.84 crore
Shareholder's Investments- `5148.87 crore
Policyholder's Investments- `20192.56 crore
Fair Value Change Account
Policyholders- `3069.77 crore
Shareholders- `782.68 crore
(a) Insurance Regulatory and Development
Authority (IRDA) vide circular dated 4 April
2016 and Investments Regulations, 2016
required segregation of Shareholders' Funds
and Policyholders' Fund as well as
investments made from these funds on the
balance sheet date. Further, IRDA vide
circular dated 12 January 2017 reiterated the
segregation of Shareholders' Fund and
Policyholders' Fund.
The company has bifurcated the
Investments made out of Shareholders'
Fund and Policyholders' Fund. However, the
same was incorrectly done on the basis of
opening balances of components of
Shareholders' Fund and Policyholders' Fund
instead of on the closing balances.
Consequently, Shareholders' Investment
and Policyholders' Investment were
bifurcated at `5148.87 crore and `20192.56
crore instead of `2131.21 crore and ` 23210.21
crore respectively. This has resulted in
overstatement of Shareholders' Investments
with corresponding understatement of
Policyholders' Investments by `3017.65 crore.
(b) In addition to above requirement of
segregation of Shareholder's Fund and
Policyholder's Fund, IRDA also directed to
bifurcate the Fair Value Change (FVC)
Account under the Policyholders' Fund and
187
MANAGEMENT'S REPLY
(a) The bifurcation of Investments was done as
per IRDAI Circular ref: IRDA/ F&A/ CIR/
CPM/ 010/01/2017 dated 12th January, 2017
which stipulates bifurcation of Investments in
the ratio of Policyholders' Funds and
Shareholders' Funds at the end of each
quarter on a notional basis at minimum of the
fund level.
Accordingly, bifurcation was made on a
notional basis of the respective fund
balances as at the beginning of the Financial
Year 2017-18. The notional basis of
bifurcation has also been suitably disclosed
in the Board approved Significant Accounting
Policies under Schedule 16 - Note No. 8.13.
Moreover, the Company has ensured that the
Investments under Policyholders' Fund as at
31st March, 2018 are at least equal or more
than the net amount of the Policyholders'
liability (fund) as per the requirement of the
said Circular.
There is no financial impact on the results of
the Company for the FY 2017-18 on account
of the above treatment.
However, we shall refer the matter to the
IRDAI for further clarification and necessary
action shall be taken on the basis of their
advice.
(b) The Fair Value Change Account was similarly
bifurcated as per the reply given above under
point (a).
There is no financial impact on the results of
the Company for the FY 2017-18 on account
of the above treatment.
ANNUAL REPORT 2017-18
 Shareholders' Fund. Consequently,
Shareholders' Fund and Policyholders'
Fund were bifurcated at `782.68 crore and
`3069.77 crore instead of `323.99 and
`3528.46 crore respectively. This has
resulted in overstatement of Shareholders'
Funds with corresponding understatement
of Policyholders' Funds by `458.69 crore.
A.2 Profit & Loss Account for the year ended
31st March 2018
Loss after Tax - `2170.77 crore
The above is understated by `6.16 crore (Net) due
to:
i. Understatement of Gratuity Liability by `72.28
crore due to consideration of incorrect opening
balance of Fair Value Plan Assets in actuarial
valuation report and non-consideration of liability
towards employees (2112 Nos.) who had not
completed vesting period.
ii. Overstatement of liability by `66.12 crore due
release of payment to Hindustan Technologies
Limited (HCL) without adjustment of liability
already created in the account against their dues
towards Enterprise Architecture Solution for
Insurance Project.
A.3. General
i. The Profit and Loss account has not disclosed the
amount of "Earning Per Share" as required under
Paragraph 8 and 9 of Accounting Standard-20.
ANNUAL REPORT 2017-18 188
However, we shall refer the matter to the
IRDAI for further clarification and necessary
action shall be taken on the basis of their
advice.
i. The incorrect opening balance of Fair Value
Plan Assets was provided by the Gratuity
Trust inadvertently which has resulted in the
understatement of Gratuity Liability.
However, the same has been accounted for
in the first quarter accounts of FY 2018-19
including the liability towards 2112 nos. of
employees who had not completed vesting
period of 5 years.
ii. Pending reconciliation between payments of
various invoices raised by M/s HCL and the
outstanding invoices of the earlier periods,
the excess liability could not be reversed in
the FY 2017-18.
However, the same has been rectified in the
first quarter accounts of FY 2018-19 after
proper reconciliation.
The net impact of (i) and (ii) above, on the
financial results of the Company for the FY
2017-18 is not significant.
i. The matter will be referred to the IRDAI
regarding presentation of financial
statements vis-à-vis the provisions of AS-20
and related Laws and Acts to the extent
applicable on the disclosure of EPS in the
Profit & Loss Statement and necessary
action shall be taken on the basis of their
advice.
ii. Service cost was not disclosed separately as
"Past Service Cost" and "Current Service Cost" in
Schedule-17 as per mandatory requirements of
AS-15.
ii. The Service Costs were disclosed under a
single head in the Notes forming part of the
Accounts. However, necessary care shall be
taken in future to disclose the past and
current service cost separately.

For and on behalf of the For and on behalf of the

Comptroller & Auditor General of India Board of Directors

Sd/- Sd/-
(Mausumi Ray Bhattacharyya) (Tajinder Mukherjee)
Director General of Commercial Audit Chairman-cum-Managing Director
& Ex-officio Member, Audit Board-II, (DIN: 08227563)
Kolkata

Kolkata, Kolkata,
27th September, 2018 27th September, 2018

189 ANNUAL REPORT 2017-18

 Form B-RA
IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Consolidated Fire Revenue Account for the year ended 31st March, 2018
2017-2018 2016-2017
Particulars Schedule
(`` ’000) (` ’000)
1 Premium Earned (Net) 1A 6,748,837 7,637,648
2 Profit/Loss on sale/redemption of Investments 1,508,335 1,964,031
3 Others : - -
Exchange Gain 157 166
4 Interest, Dividend & Rent (Gross) 1,161,562 1,115,026
Total (A) 9,418,891 10,716,871
1 Claims Incurred (Net) 2A 8,640,102 3,965,515
2 Commission 3A 911,441 1,038,477
3 Operating Expenses related to Insurance Business 4 1,753,654 1,971,232
4 Others :
Exchange loss - -
Provision for diminution in the value of Investments,
amortisation of Premium on investments, and 18,150 16,569
amount written off in respect of depreciated investments
Total (B) 11,323,347 6,991,793
Operating Profit/(Loss) from Fire Business C = (A - B) -1,904,456 3,725,078
Appropriations:
Transfer to Shareholders' Account -1,904,456 3,725,078
Transfer to Catastrophe Reserve - -
Transfer to Other Reserves - -
Total (C) -1,904,456 3,725,078
Principles of Consolidation and Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral
part of the Financial Statements

This is the Consolidated

st Fire Insurance Revenue
Account for the year ended 31st March, 2018 referred
to in our report of even date. For and on behalf of the Board of Directors
For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

ANNUAL REPORT 2017-18 190

 Form B-RA
IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Consolidated Marine Revenue Account for the year ended 31st March, 2018

2017-2018 2016-2017
Particulars Schedule
(`` ’000) (` ’000)
1 Premium Earned (Net) 1B 1,593,937 1,728,068
2 Profit/Loss on sale/redemption of Investments 296,577 369,063
3 Others :
Exchange Gain 57 -
4 Interest, Dividend & Rent - Gross 228,393 209,525
Total (A) 2,118,964 2,306,656
1 Claims Incurred (Net) 2B 771,346 1,170,929
2 Commission 3B 187,726 228,922
3 Operating Expenses related to Insurance Business 4 210,340 241,416
4 Others :
Exchange Loss - 5
Provision for diminution in the value of Investments,
amortisation of Premium on investments, and 3,569 3,114
amount written off in respect of depreciated investments
Total (B) 1,172,981 1,644,386
Operating Profit/(Loss) from Marine Business C = (A - B) 945,983 662,270
Appropriations:
Transfer to Shareholders' Account 945,983 662,270
Transfer to Catastrophe Reserve - -
Transfer to Other Reserves - -
Total (C) 945,983 662,270
Principles of Consolidation and Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral
part of the Financial Statements

This is the Consolidated Marine Insurance Revenue

Account for the year ended 31st March, 2018 referred
to in our report of even date.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

191 ANNUAL REPORT 2017-18

 Form B-RA
IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Consolidated Miscellaneous Revenue Account for the year ended 31st March, 2018

2017-2018 2016-2017
Particulars Schedule
(`` ’000) (` ’000)
1 Premium Earned (Net) 1C 104,322,774 98,670,555
2 Profit/Loss on sale/redemption of Investments 13,943,555 16,663,384
3 Others : - -

Exchange Gain - -
4 Interest, Dividend & Rent - Gross 10,737,873 9,460,186
Total (A) 129,004,202 124,794,125
1 Claims Incurred (Net) 2C 119,295,329 99,930,371
2 Commission 3C 9,904,484 8,415,022
3 Operating Expenses related to Insurance Business 4 26,995,013 24,317,840
4 Others :
Exchange Loss 2,379 5,451
Provision for diminution in the value of Investments,
amortisation of Premium on investments, and 167,786 140,580
amount written off in respect of depreciated investments
Total (B) 156,364,991 132,809,264
Operating Profit/(Loss) from Miscellaneous Business C = (A - B) -27,360,789 -8,015,139
Appropriations:
Transfer to Shareholders' Account -27,360,789 -8,015,139
Transfer to Catastrophe Reserve - -
Transfer to Other Reserves - -
Total (C) -27,360,789 -8,015,139
Principles of Consolidation and Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral
part of the Financial Statements
This is the Consolidated Miscellaneous Insurance
Revenue Account for the year ended 31st March, 2018
referred to in our report of even date.
For and on behalf of the Board of Directors
For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

ANNUAL REPORT 2017-18 192

 Form B-PL
IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Consolidated Profit and Loss Account for the year ended 31st March, 2018
2017 – 2018 2016 – 2017
Particulars (`` ’000) (` ’000)
1. OPERATING PROFIT/LOSS -28,319,262 -3,627,791
(a) Fire Insurance -1,904,456 3,762,278
(b) Marine Insurance 945,983 712,250
(c) Miscellaneous Insurance -27,360,789 -8,102,319
2. INCOME FROM INVESTMENTS 7,168,563 7,678,354
(a) Interest, Dividend & Rent - Gross 3,153,265 2,780,579
(b) Profit on sale of investments 4,015,298 4,897,775
Less: Loss on sale of Investments - -
3. OTHER INCOME 363,244 64,279
(a) Profit on sale of other asset 49,787 109
(b) Miscellaneous Income 313,457 64,170
(c) Exchange Gain - -
(d) Others - -
Total (A) -20,787,455 4,114,842
4. PROVISIONS (Other than taxation) 1,399 -95,508
(a) For diminution in the value of Investments 1,399 22,323
(b) For doubtful debts - -117,831
(c) Others - -
5. OTHER EXPENSES 1,036,188 3,718,311
(a) Expenses other than those related to “Insurance Business" 15,301 13,651
(b) Bad debts written off - -
(c) Others:
Amortisation of Premium on Investments 32,031 11,007
Amount written off in respect of “depreciated Investments" 14,887 7,990
Exchange Loss - 37,655
Assets written off 81 -
Loss on Sale of Asset 4,197 11,505
Interest on Debentures 747,325 10,237
Debenture Related Expenses 326 5,312
Expenses in excess of allowable limits
(As per Section “40C of the Insurance Act, 1938)" 166,444 3,554,973
Corporate Social Responsibility Expenses 55,596 63,558
Other Misc. Expenses - 2,423
Total (B) 1,037,587 3,622,803

193 ANNUAL REPORT 2017-18

 2017 – 2018 2016 – 2017
Schedule
Particulars
(`` ’000) (` ’000)
Profit/Loss before tax -21,825,042 492,039
Provision for Taxation - -
Adjustment of taxation for Earlier Years -117,382 33,662
Profit/Loss after Tax -21,707,660 458,377
Add: Share of Profit/Loss of Associates -34,137 173,404
Profit/Loss after Tax and share of Profit/Loss of Associates -21,741,797 631,781
Appropriations: -21,741,797 631,781
(a) Interim dividends paid during the year - -
(b) Proposed Final Dividend - -
(c) Dividend Distribution tax - -
(d) Transfer to General Reserve (Includes Profit or Loss from associated
companies) -21,742,319 631,781
(e) Transfer to Unclaimed Policyholders Funds 522 -
Balance of profit/loss brought forward from last year - -
Balance carried forward to Balance Sheet - -
Principles of Consolidation and Significant Accounting Policies 16
Notes to Accounts 17

The schedules referred to above form an integral

part of the Financial Statements

This is the Consolidated Profit and Loss

Account for the year ended 31st March, 2018
referred to in our report of even date.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494

(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary
Place: Kolkata
Date: 19th July, 2018

ANNUAL REPORT 2017-18 194

 Form B-BS
IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713
Consolidated Balance Sheet as at 31st March, 2018

As at As at
Particulars Schedule
31.03.2018 31.03.2017
SOURCES OF FUNDS (`` ’000) (`` ’000)
SHARE CAPITAL 5 1,000,000 1,000,000
RESERVES AND SURPLUS 6 17,581,945 39,495,817
FAIR VALUE CHANGE ACCOUNT - SHAREHOLDERS FUNDS 7,826,815 11,816,638
FAIR VALUE CHANGE ACCOUNT - POLICYHOLDERS FUNDS 30,697,681 45,831,941
BORROWINGS 7 8,950,000 8,950,000
TOTAL 66,056,441 107,094,396
APPLICATION OF FUNDS
INVESTMENTS - SHAREHOLDERS FUNDS 8 51,488,650 51,305,098
INVESTMENTS - POLICYHOLDERS FUNDS 8A 201,925,575 198,991,637
LOANS 9 1,905,773 1,870,849
FIXED ASSETS 10 3,126,437 2,835,419
CURRENT ASSETS
Cash and Bank Balances 11 9,306,508 10,886,866
Advances and Other Assets 12 80,038,916 56,735,064
Sub-Total (A) 89,345,424 67,621,930
CURRENT LIABILITIES 13 224,486,120 161,794,685
PROVISIONS 14 57,249,298 55,257,878
Sub-Total (B) 281,735,418 217,052,563
NET CURRENT ASSETS (C) = (A-B) -192,389,994 -149,430,633
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted) 15 - 1,522,026
DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT - -
TOTAL 66,056,441 107,094,396
Principles of Consolidation and Significant Accounting Policies 16
Notes to Accounts 17
The schedules referred to above form an integral part
of the Financial Statements

195 ANNUAL REPORT 2017-18

 Form B-BS
IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713

CONTINGENT LIABILITIES

As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Partly paid-up Investments 4,181 4,181
2. Claims, other than against policies, not acknowledged as debts 339,586 331,945
by the Company
3. Underwriting commitments outstanding (in respect of shares & securities) - -
4. Guarantees given by or on behalf of the Company 950 950
5. Statutory demands/liabilities in dispute, not provided for 6,676,319 10,540,770
6. Reinsurance obligations to the extent not provided for in Accounts - -
7. Others - Policyholders unclaimed amount transferred to Senior Citizen
Welfare Fund 22,571 -
TOTAL 7,043,607 10,877,846

This is the Consolidated Balance Sheet as on 31st March, 2018

referred to in our report of even date.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494

(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary
Place: Kolkata
Date: 19th July, 2018

ANNUAL REPORT 2017-18 196

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713

Consolidated Receipts and Payments Account for the year ended 31st March, 2018

2017-18 2016-17
(` ‘000) (` ‘000)
A. Cash flows from Operating Activities:
1 Premium received from policyholders, (including advance receipts) 159,375,215 125,532,297
2 Other receipts 7,206,340 9,535,749
3 Receipts/Payments from/to the re-insurers, net of commissions and claims -11,735,246 -7,607,591
4 Receipts/Payments from/to co-insurers, net of claims recovery -2,550,307 -1,124,457
5 Payments of claims -89,227,787 -71,368,352
6 Payments of commission and brokerage -4,770,479 -5,472,581
7 Payments of other operating expenses -25,820,297 -27,579,128
8 Preliminary and pre-operative expenses - -
9 Deposits, advances and staff loans (including House building Loan) -413,613 -804,578
10 Income taxes paid (Net) (Including Wealth Tax) -109,648 -742,648
11 Service tax/GST paid -23,897,910 -20,552,646
12 Other payments -9,676,347 -24,280,061
13 Cash flows before extraordinary items -1,620,079 -24,463,996
14 Cash flow from extraordinary operations - -
15 Net cash flow from operating activities (A) -1,620,079 -24,463,996
B. Cash flows from Investing Activities:
1 Purchase of fixed assets -750,772 -811,884
2 Proceeds from sale of fixed assets 22,041 27,632
3 Purchases of investments (Other than money market instruments &
liquid mutual funds) -111,524,743 -82,417,159
4 Loans disbursed - -
5 Sales of investments 274,267,649 262,544,346
6 Repayments received 114,896 172,406
7 Rents/Interests/Dividends received 14,225,320 13,127,203
8 Investments in money market instruments and in liquid mutual funds -175,569,155 -174,291,505
9 Expenses related to investments -314 -96
10 Net cash flow from investing activities (B) 784,922 18,350,943

197 ANNUAL REPORT 2017-18

 IRDA Registration No. 58 renewed on 18th January, 2018
CIN: U10200WB1906GOI001713

Consolidated Receipts and Payments Account for the year ended 31st March, 2018

2017-18 2016-17
(` ‘000) (` ‘000)
C. Cash flows from Financing Activities:
1 Proceeds from issuance of share capital - -
2 Proceeds from borrowing - 8,950,000
3 Repayments of borrowing - -
4 Interest / dividends (including dividend distribution tax) paid -747,325 -541,770
5 Net cash flow from financing activities (C) -747,325 8,408,230
D. Effect of Foreign Exchange rates on Cash & Cash Equivalents,
net (due to translation of assets and liabilities) 2,123 -6,200
E. Net increase in Cash & Cash Equivalents: (A+B+C+D) -1,580,359 2,288,977
1 Cash and cash equivalents at the beginning of the year 10,886,866 8,597,889
a. Cash (including cheques, drafts and stamps) 1,493,884 587,263
b. Bank balances (including short term deposits) 9,379,279 7,995,021
c. Remittances in transit 13,703 15,605
2 Cash and cash equivalents at the end of the year 9,306,508 10,886,866
a. Cash (including cheques, drafts and stamps) 141,331 1,493,884
b. Bank balances (including short term deposits) 9,138,284 9,259,279
c. Remittances in transit 26,893 13,703

This is the Consolidated Receipts and Payments A/c for the year
ended 31st March, 2018 referred to in our report of even date.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494

(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary
Place: Kolkata
Date: 19th July, 2018

ANNUAL REPORT 2017-18 198

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE – 1A FIRE
PREMIUM EARNED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Premium from direct business written 9,167,566 9,270,219
Add: Premium on reinsurance accepted 1,503,826 1,604,513
Less : Premium on reinsurance ceded 3,760,796 3,127,655
Net Premium 6,910,596 7,747,077
Adjustment for change in reserve for unexpired risks* -161,759 -109,429
Total Premium Earned (Net) 6,748,837 7,637,648

* includes Reserve for Premium deficiency for ` 580000 thousand (` Nil thousand)

SCHEDULE – 2A FIRE
CLAIMS INCURRED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Claims paid
Direct 7,890,528 7,546,984
Add :Re-insurance accepted 1,017,050 908,549
Less :Re-insurance ceded 3,922,442 4,049,180
Net Claims paid 4,985,136 4,406,353
Add: Claims Outstanding at the end of the year 14,892,371 11,237,405
Less: Claims Outstanding at the beginning of the year 11,237,405 11,678,243
Total Claims Incurred 8,640,102 3,965,515

199 ANNUAL REPORT 2017-18

SCHEDULE- 3A FIRE
COMMISSION 2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Commission paid
Direct-Total (A)* 792,557 841,307
Add: Commission on Re-insurance accepted 328,578 361,607
Less: Commission on Re-insurance ceded 209,694 164,437
Net Commission 911,441 1,038,477

Break-up of the expenses (Gross) incurred to procure business :

2017 - 2018 2016 - 2017

(` ’000) (` ’000)

Agents 568,378 538,992

Brokers 165,041 204,743
Corporate Agency 59,130 97,572
Others :
Referral - -
Misc. Others 8 -
Total (B) 792,557 841,307

* Includes Agent Incentive of ` 167376 thousand (` 212929 thousand)

ANNUAL REPORT 2017-18 200

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE – 1B MARINE
PREMIUM EARNED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Premium from direct business written 2,143,433 2,406,749
Add: Premium on reinsurance accepted 56,432 72,870
Less : Premium on reinsurance ceded 687,632 884,637
Net Premium 1,512,233 1,594,982
Adjustment for change in reserve for unexpired risks 81,704 133,086
Total Premium Earned (Net) 1,593,937 1,728,068

SCHEDULE – 2B MARINE
CLAIMS INCURRED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Claims paid
Direct 1,384,705 1,539,939
Add : Re-insurance accepted 79,934 81,266
Less: Re-insurance ceded 439,335 652,777
Net Claims paid 1,025,304 968,428
Add: Claims Outstanding at the end of the year 1,828,376 2,082,334
Less: Claims Outstanding at the beginning of the year 2,082,334 1,879,833
Total Claims Incurred 771,346 1,170,929
SCHEDULE- 3B MARINE
COMMISSION
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Commission paid
Direct - Total (A)* 254,022 302,652
Add: Commission on Re-insurance accepted 11,324 14,729
Less: Commission on Re-insurance ceded 77,620 88,459
Net Commission 187,726 228,922

201 ANNUAL REPORT 2017-18

Break-up of the expenses (Gross) incurred to procure business :

2017 - 2018 2016 - 2017

(` ’000) (` ’000)
Agents 196,359 216,173
Brokers 57,160 86,041
Corporate Agency 503 438
Others :
Referral - -
Misc. Others - -
Total (B) 254,022 302,652

* Includes Agent Incentive of ` 53645 thousand (` 76599 thousand)

ANNUAL REPORT 2017-18 202

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE – 1C MISCELLANEOUS
PREMIUM EARNED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Premium from direct business written 151,125,777 131,146,635
Add: Premium on reinsurance accepted 1,509,470 1,193,929
Less : Premium on reinsurance ceded 46,407,996 36,126,489
Net Premium 106,227,251 96,214,075
Adjustment for change in reserve for unexpired risks* -1,904,477 2,456,480
Total Premium Earned (Net) 104,322,774 98,670,555
* includes Reserve for Premium deficiency for ` Nil thousand
(` 1260100 thousand)

SCHEDULE – 2C MISCELLANEOUS
CLAIMS INCURRED [NET]
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
Claims paid
Direct 113,196,718 104,055,983
Add :Re-insurance accepted 1,439,065 967,156
Less :Re-insurance ceded 26,018,927 16,222,747
Net Claims paid 88,616,856 88,800,392
Add: Claims Outstanding at the end of the year 121,619,751 90,941,277
Less: Claims Outstanding at the beginning of the year 90,941,278 79,811,298
Total Claims Incurred 119,295,329 99,930,371
SCHEDULE- 3C MISCELLANEOUS
COMMISSION
2017 - 2018 2016 - 2017
Particulars (` ’000) (` ’000)
Commission paid
Direct-Total (A)* 13,342,850 12,747,588
Add: Commission on Re-insurance accepted 233,955 249,073
Less: Commission on Re-insurance ceded 3,672,321 4,581,639
Net Commission 9,904,484 8,415,022

203 ANNUAL REPORT 2017-18

Break-up of the expenses (Gross) incurred to procure business :

2017 - 2018 2016 - 2017

(` ’000) (` ’000)
Agents 6,638,676 5,688,166
Brokers 3,007,990 2,406,058
Corporate Agency 217,072 269,485
Others :
Referral 2 2
Misc. Others (Including Administrative expenses for Motor business) 3,479,110 4,383,877
Total (B) 13,342,850 12,747,588

* Includes Agent Incentive of ` 2083153 thousand (` 2116813 thousand)

* Includes Administrative expenses for Motor Business of ` 3478712 thousand
(` 4383828 thousand)

ANNUAL REPORT 2017-18 204

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE – 4
OPERATING EXPENSES RELATED TO INSURANCE BUSINESS
2017 - 2018 2016 - 2017
Particulars
(` ’000) (` ’000)
1. Employees’ remuneration & welfare benefits 22,102,591 21,200,346
2. Travel, conveyance and vehicle running expenses 593,459 535,993
3. Training expenses 83,306 82,359
4. Rents, rates & taxes 962,110 875,008
5. Repairs 73,376 48,810
6. Printing & stationery 245,643 233,789
7. Communication 252,964 189,626
8. Legal & professional charges 236,649 257,330
9. Auditors' fees, expenses etc
(a) as auditor 44,668 42,310
(b) as adviser or in any other capacity, in respect of
(I) Taxation matters - -
(ii) Insurance matters - -
(iii) Management services; and - -
(c) in any other capacity - -
10. Advertisement and publicity 310,217 363,348
11. Interest & Bank Charges 173,064 51,810
12. Others:
IT expenses 1,020,032 1,848,328
Policy Stamps 22,802 27,086
Misc expenses 1,578,636 1,587,802
13. Depreciation 959,507 773,226
14. Service Tax Account/GST Expenses 466,427 1,968,290
TOTAL 29,125,451 30,085,461
Allocated to:
Fire Revenue Account 1,753,654 1,971,232
Marine Revenue Account 210,340 241,416
Miscellaneous Revenue Account 26,995,013 24,317,840
Profit and loss account (Excess over allowable limits) 166,444 3,554,973
TOTAL 29,125,451 30,085,461

205 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE – 5
SHARE CAPITAL As at As at
31.03.2018 31.03.2017
Particulars
(` ’000) (` ’000)
1. Authorised Capital 2,000,000 2,000,000
20,00,00,000 Equity Shares of `10 each
2. Issued Capital* 1,000,000 1,000,000
10,00,00,000 Equity Shares of `10 each
3. Subscribed Capital* 1,000,000 1,000,000
10,00,00,000 Equity shares of `10/- each
4. Called-up Capital* 1,000,000 1,000,000
10,00,00,000 Equity shares of `10/- each
Less: Calls unpaid - -
Add: Equity Shares forfeited (Amount originally paid up) - -
Less: Par value of Equity shares bought back - -
Less: Preliminary expenses - -
Expenses including commission or brokerage on
underwriting or subscription of shares
TOTAL 1,000,000 1,000,000

*(includes 9,70,96,955 equity shares of `10/- each as fully paid up Bonus shares by capitalisation of General
Reserve & Share Premium)

SCHEDULE – 5A
SHARE CAPITAL
PATTERN OF SHAREHOLDING
(As certified by the Management)

Shareholder As at As at
31.03.2018 31.03.2017
Number of Shares % of Holding Number of Shares % of Holding
Promoters
l India 100,000,000 100% 100,000,000 100%
l Foreign - - - -
Others - - - -
Tot al 100,000,000 100% 100,000,000 100%

ANNUAL REPORT 2017-18 206

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE – 6
RESERVES AND SURPLUS
Particulars As at 31.03.2018 As at 31.03.2017
(` ’000) (` ’000)
1. Capital Reserve - -
2. Capital Redemption Reserve - -
3. Share Premium - -
4. General Reserves 16,606,244 38,314,426
Add: Share of Post Acquisition profits/losses
of Associates
a) India International Insurance Pte Ltd -18,511 182,277
b) Health Insurance TPA of India Limited -15,626 -8,873
Less: Debit balance in - -
Profit and Loss Account
Less: Amount utilized for Buy-Back - 16,572,107 - 38,487,830
5. Catastrophe Reserve 16,564 16,574
6. Other Reserves:
a) Foreign Exchange
Translation Reserve -21,153 -23,014
b) Investment Reserve 9,610 9,610
c) Exchange Reserve 4,817 4,817
d) Contingency Reserve for 1,000,000 1,000,000
Land & Building
7. Balance of profit in - -
Profit & Loss Account
TOTAL 17,581,945 39,495,817
Disclosure under AS-11, para 40(b)
FOREIGN EXCHANGE
TRANSLATION RESERVE
Opening Reserve -23,014 -20,092
Add: Effect of translation during the year 1,861 -2,922
Closing Reserve -21,153 -23,014
SCHEDULE - 7
BORROWINGS
As at As at
31.03.2018 31.03.2017
Particulars (` ’000) (` ’000)
1. Debentures/ Bonds 8,950,000 8,950,000
2. Banks NIL NIL
3. Financial Institutions NIL NIL
4. Others NIL NIL
Total 8,950,000 8,950,000

207 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE – 8
INVESTMENTS-SHAREHOLDERS As at As at
31.03.2018 31.03.2017
Particulars (` ’000) (` ’000)
LONG TERM INVESTMENTS
1. Government securities and Government guaranteed bonds
including Treasury Bills 16,223,858 14,530,680
2. Other Approved Securities 56,546 57,050
3. Other Investments
(a) Shares
(aa) Equity [See note (1) below] 22,845,048 23,485,034
(bb) Preference 5,232 7,977
(b) Mutual Funds - -
(c) Derivative Instruments - -
(d) Debentures/ Bonds [See note (3a) below] 4,643,807 4,161,953
(e) Other Securities:
Auto ancillary and Venture Capital 225,737 105,477
(f) Subsidiaries - -
(g) Investment Properties-Real Estate 4,823 1,043
4. Investments in Infrastructure and Social Sector 3,503,663 3,033,098
5. Investment in Associates
a) Health Insurance TPA of India Limited 37,596 26,329
b) India International Insurance Pte Ltd. Singapore 2,045 97,386
TOTAL 47,548,355 45,506,027
SHORT TERM INVESTMENTS
1. Government securities and Government guaranteed bonds
including Treasury Bills 322,545 1,583,706
2. Other Approved Securities - -
3. Other Investments
(a) Shares
(aa) Equity - -
(bb) Preference - -
(b) Mutual Funds 738,995 2,034,683
(c) Derivative Instruments - -
(d) Debentures/ Bonds 868,608 1,009,616
(e) Other securities 1,427,210 930,289
(f) Subsidiaries - -
(g) Investment Properties-Real Estate - -
4. Investments in Infrastructure and Social Sector 582,937 240,777
TOTAL 3,940,295 5,799,071
GRAND TOTAL 51,488,650 51,305,098

ANNUAL REPORT 2017-18 208

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE – 8A
INVESTMENTS-POLICYHOLDERS
As at As at
31.03.2018 31.03.2017
Particulars (` ’000) (` ’000)
LONG TERM INVESTMENTS
1. Government securities and Government guaranteed bonds 63,631,864 56,358,603
2. Other Approved Securities 221,779 221,275
3. Other Investments
(a) Shares
(aa) Equity [See note (1) below] 89,600,941 91,088,905
(bb) Preference 20,522 30,939
(b) Mutual Funds - -
(c) Derivative Instruments - -
(d) Debentures/ Bonds [See note (3a) below] 18,213,553 16,142,523
(e) Other Securities: - -
Auto ancillary and Venture Capital 885,366 409,104
(f) Subsidiaries - -
(g) Investment Properties-Real Estate - 4,047
4. Investments in Infrastructure and Social Sector 13,741,774 11,764,154
5. Investment in Associates
a) Health Insurance TPA of India Limited 147,457 102,121
b) India International Insurance Pte Ltd. Singapore 8,020 377,727
TOTAL 186,471,276 176,499,398
SHORT TERM INVESTMENTS
1. Government securities and Government guaranteed bonds 1,265,057 6,142,552
2. Other Approved Securities - -
3. Other Investments
(a) Shares
(aa) Equity - -
(bb) Preference - -
(b) Mutual Funds 2,898,424 7,891,709
(c) Derivative Instruments - -
(d) Debentures/ Bonds 3,406,780 3,915,891
(e) Other securities 5,597,686 3,608,211
(f) Subsidiaries - -
(g) Investment Properties-Real Estate - -
4. Investments in Infrastructure and Social Sector 2,286,352 933,876
TOTAL 15,454,299 22,492,239
GRAND TOTAL 201,925,575 198,991,637
Notes:
i) Includes ` 250000 thousand (PY ` 120000 thousand) kept as margin money for NSE/BSE equity transactions
as per SEBI Circular No. MRD/DoP/SE/Cir-07/2005 dated 23rd February, 2005.

209 ANNUAL REPORT 2017-18

 As at As at
Notes to Schedule 8 and 8A 31.03.2018 31.03.2017
(` ’000) (` ’000)
1. Aggregate amount of Company's Investments other than
listed Equity Securities and derivative instruments and
also the Market Value thereof:
Book value 142,265,500 136,066,655
Market Value 146,095,100 143,452,395
2. Provisions:
a) Provision against non-performing debentures
(grouped under Provision for Non-performing
Investments in Schedule 14) 301,363 278,109
b) Provision against thinly traded Equity Shares and
short holding of Equity Shares (grouped under
Provision for Non-performing Investments in Schedule 14) 15,390 42,195
c) Provision against Venture Capital (grouped under
Provision for Non-performing Investments in Schedule 14) 4,941 11,744
d) Provision against Standard Investments (grouped under
Provision for Standard Assets in Schedule 14) 186,853 162,626
e) Provision for diminution in value of share of investments in
Associates(grouped under Provision for Non-performing - -
Investments in Schedule 14)

ANNUAL REPORT 2017-18 210

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE - 9
LOANS
As at As at
Particulars 31.03.2018 31.03.2017
(` ’000) (` ’000)
1. SECURITY-WISE CLASSIFICATION
Secured 1,727,693 1,664,053
(a) On mortgage of property
(aa) In India 241,294 327,958
(bb) Outside India - -
(b) On Shares, Bonds, Govt. Securities - -
(c) Others:
House Building Loan to Employees 1,486,399 1,336,095
Unsecured 178,080 206,796
TOTAL 1,905,773 1,870,849
2. BORROWER-WISE CLASSIFICATION
(a) Central and State Governments 113,850 142,566
(b) Banks and Financial Institutions - -
(c) Subsidiaries - -
(d) Industrial Undertakings 304,886 391,549
(e) Others 1,487,037 1,336,734
TOTAL 1,905,773 1,870,849
PERFORMANCE-WISE CLASSIFICATION
(a) Loans classified as standard*
(aa) In India 1,611,894 1,572,995
(bb) Outside India - -
(b) Non-performing loans*
(aa) In India 293,879 297,854
(bb) Outside India - -
TOTAL 1,905,773 1,870,849
MATURITY-WISE CLASSIFICATION
(a) Short Term 4,808 8,471
(b) Long Term 1,900,965 1,862,378
TOTAL 1,905,773 1,870,849

As at As at
*Notes 31.03.2018 31.03.2017
(` ’000) (` ’000)
Provision against non-performing loans
(Grouped under Others in Schedule 14) 293,879 300,419
Provision against Standard loans
(Grouped under Provision for Standard Assets in Schedule 14) 502 948

211 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE – 10
FIXED ASSETS

(`` ’000)

Particulars Cost/ Gross Block Depreciation Net Block

Opening Additions Deductions Closing Upto For On Sales/ As on As at As at

as at during for the as at 31.03.2017 the Year Adjust- 31.03.2018 31.03.2018 31.03.2017
01.04.2017 the year year 31.03.2018 ments

Goodwill - - - - - - - - - -

Intangibles (software) 1,075,239 443 504,925 570,757 787,168 105,797 -504,925 388,040 182,717 288,071

Land - Freehold 6,452 - - 6,452 - - - - 6,452 6,452

Leasehold Property 317,573 - - 317,573 15,417 3,208 - 18,625 298,948 302,156

Buildings - RCC* 1,063,230 31,801 - 1,095,031 333,177 36,115 - 369,292 725,739 730,053

Furniture & Fittings 464,251 51,817 4,906 511,162 353,565 39,530 -1,526 391,569 119,593 110,686

Computer and other

end use devices 2,881,484 152,160 70,855 2,962,789 2,317,386 363,569 -35,721 2,645,234 317,555 564,098

Servers & Network 2,276,207 540,148 2,790 2,813,565 1,969,384 219,993 -1,660 2,187,717 625,848 306,823

Motor Cars 867,144 389,505 266,009 990,640 458,742 155,789 -110,183 504,348 486,292 408,402

Office Equipment 212,136 4,942 1,736 215,342 192,108 7,873 -1,078 198,903 16,439 20,028

Electrical Equipments 369,401 25,223 5,900 388,724 274,777 26,942 -3,324 298,395 90,329 94,624

Plant & Machinery

(Other than Continuous 14,239 - - 14,239 10,213 691 - 10,904 3,335 4,026
Process Plant)**

TOTAL 9,547,356 1,196,039 857,121 9,886,274 6,711,937 959,507 -658,417 7,013,027 2,873,247 2,835,419
Capital Work in
progress - 253,190 - 253,190 - - - - 253,190 -

Grand Total 9,547,356 1,449,229 857,121 10,139,464 6,711,937 959,507 -658,417 7,013,027 3,126,437 2,835,419

PREVIOUS YEAR 8,088,495 2,538,052 1,079,191 9,547,356 6,266,638 773,226 -327,927 6,711,937 2,835,419

*Buildings RCC includes value of land for erstwhile units which cannot be segregated.
**Includes lifts, Water treatment plant, etc.

ANNUAL REPORT 2017-18 212

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE- 11
CASH AND BANK BALANCES
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Cash (including cheques, drafts and stamps) 141,331 1,493,884
2. Bank Balances
(a) Deposit Accounts
(aa) Short-term (due within 12 months) [note below] 814,135 1,937,694
(bb) Others - -
(b) Current Accounts 8,324,149 7,441,585
(c) Others - -
3. Money at Call and Short Notice
(a) With Banks - -
(b) With other Institutions - -
4. Others:
Remittances in transit 26,893 13,703
TOTAL 9,306,508 10,886,866
Balances with Non-Scheduled banks included in 2 and 3 above 49,532 31,238

213 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE- 12
ADVANCES AND OTHER ASSETS
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
ADVANCES
1. Reserve deposits with ceding companies - 1,570,072
2. Application money for investments - -
3. Prepayments - -
4. Advances to Directors / Officers - -
5. Advance tax paid and taxes deducted at source
(Net of provision for taxation) 5,484,214 1,964,036
6. Others:
Advance, deposits and prepaid expenses 3,428,164 4,454,078
TOTAL (A) 8,912,378 7,988,186
OTHER ASSETS
1. Income accrued on investments 4,026,701 3,647,729
2. Outstanding Premiums 3,390 6,045
3. Agents’ Balances 182,479 100,777
4. Foreign agencies balances - -
5. Due from other entities carrying on insurance business
(including reinsurers) 41,543,196 34,968,224
6. Due from Subsidiaries / Holding - -
7. Deposit with Reserve Bank of India
[Pursuant to section 7 of Insurance Act,1938] - -
8. Others:
Sundry Debtors 17,230,408 7,326,420
Service tax unutilised credit/GST Input Credit 6,967,570 831,322
Fixed Deposit - Unclaimed Amount of Policyholders 840,104 -
Income on Unclaimed Policyholders’ Funds 522 -
Misc others 332,168 1,866,361
TOTAL (B) 71,126,538 48,746,878
TOTAL (A+B) 80,038,916 56,735,064

ANNUAL REPORT 2017-18 214

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE- 13
CURRENT LIABILITIES
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Agents’ Balances 833,882 862,601
2. Balances due to other insurance companies 31,460,945 18,643,370
3. Deposits held on re-insurance ceded 15,451,103 8,342,106
4. Premiums received in advance 910,816 1,374,436
5. Unallocated Premium 6,993,326 5,393,244
6. Sundry creditors 26,620,891 22,394,774
7. Due to Subsidiaries / holding Company - -
8. Claims Outstanding (including IBNR/IBNER) 138,340,498 104,261,017
9. Due to Officers / Directors - -
10. Others:
Service tax liability/GST Liability 3,033,741 -328,455
Due to former shareholders 292 292
Unclaimed Amount of Policyholders 840,104 851,300
Investment Income on Unclaimed Policyholders’ Fund 522 -
TOTAL 224,486,120 161,794,685

SCHEDULE- 14
PROVISIONS
As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Unearned Premium Reserve 54,916,334 52,251,702
2. Premium Deficiency Reserve 580,000 1,260,100
3. For taxation (less Advance tax paid and Taxes deducted at source) - -
4. For proposed dividends - -
5. For dividend distribution tax - -
6. Others:
For doubtful debts 950,036 950,037
For Non-performing Investments 321,694 332,048
For Non-performing Loans 293,879 300,419
For Standard Assets 187,355 163,572
TOTAL 57,249,298 55,257,878

215 ANNUAL REPORT 2017-18

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE- 15
MISCELLANEOUS EXPENDITURE
(To the extent not written off or adjusted)

As at As at
31.03.2018 31.03.2017
Particulars (`` ’000) (`` ’000)
1. Discount Allowed in issue of shares / debentures - -
2. Others:
Deferred Revenue expenditure - Pension - 1,269,276
Deferred Revenue expenditure - Gratuity - 252,750
TOTAL - 1,522,026

ANNUAL REPORT 2017-18 216

Schedule 16
PRINCIPLE OF CONSOLIDATION & SIGNIFICANT ACCOUNTING POLICIES
A. PRINCIPLE OF CONSOLIDATION
1. The Consolidated Financial Statements have been prepared considering the Financial Statements of
National Insurance Company Limited (the Company) and two Associate Companies viz. (i) Health
Insurance TPA of India Limited and (ii) India International Insurance Pte Limited. Associate Companies
are consolidated by using the investments in associates under the equity method in accordance with
Accounting Standard-23 - "Accounting for Investments in Associates in Consolidated Financial
Statements."
2. The consolidated financial statements include the share of profit/ loss of the associate companies which
has been accounted as per the “Equity Method”, and accordingly, the share of profit/loss of each of the
associate companies (the loss being restricted to the cost of investment) has been added to/ deducted
from the cost of investments. No other assets and liabilities of the Associate Company are considered in
the Consolidated Financial Statements.
An associate is an enterprise in which the investor has significant influence and which is neither a
subsidiary nor a joint venture of the investor.
3. The figures of the last audited Financial Statements of India International Insurance Pte Limited,
Singapore incorporated for consolidation purposes, is for the period from 1st January, 2017 to 31st
December, 2017.
4. In view of accounting for investments in Associates under the Equity method and the clarification issued
vide General Circular No. 39/2014 dated 14th October, 2014, by the Ministry of Corporate Affairs,
Government of India, the disclosures made by the Company under Stand-alone Accounts being
consolidated are not repeated and, which are relevant for Consolidated Financial Statements are only
disclosed.
5. List of Entities consolidated and their respective share of Net Assets and Profit/ Loss -

Net Assets i.e., total assets Net Assets i.e., total assets
Name of the entity minus total liabilities minus total liabilities
As % of As % of Amount
consolidated Amount consolidated (` In
net assets (` In thousands)
net assets thousands)
2017 -18 2016-17
Parent:
National Insurance Company
Limited 98.89% 17,376,989 98.41% 37,362,240
Associates
(Investment as per the equity
method)
Indian
1. Health Insurance TPA of India
Limited 1.05% 185,053 0.34% 128,450
Foreign
1. India International Insurance
PTE Ltd. Singapore 0.06% 10,065 1.25% 475,114
Total 100.00% 17,572,107 100.00% 37,965,804

217 ANNUAL REPORT 2017-18

 Name of the entity Share in profit or loss Share in profit or loss
As % of As % of Amount
consolidated Amount consolidated (` In
profit or loss (` In thousands) profit or loss thousands)
2017-18 2016-17
Parent:
National Insurance Company Limited 99.84% -21,707,660 72.55% 458,377
Associates
(Investment as per the equity method)
Indian
1. Health Insurance TPA of India Limited 0.07% -15,626 -1.40% -8,873
Foreign
1. India International Insurance
PTE Ltd. Singapore 0.09% -18,511 28.85% 182,277
Total 100% -2,17,41,797 100% 631,781

Name of the entity Share in other Share in other

comprehensive income comprehensive income
As % of As % of Amount
consolidated Amount consolidated (` In
profit or loss (` In thousands) profit or loss thousands)
2017 -18 2016-17
Parent:
National Insurance Company Limited - Nil - Nil
Associates
(Investment as per the equity method)
Indian
1. Health Insurance TPA of India Limited - Nil - Nil
Foreign
1. India International Insurance - Nil - Nil
PTE Ltd. Singapore
Total - Nil - Nil

ANNUAL REPORT 2017-18 218

Name of the entity Share in Total Share in Total
comprehensive income comprehensive income
As % of As % of Amount
consolidated Amount consolidated (` In
profit or loss (` In thousands) profit or loss thousands)
2017 -18 2016-17
Parent:
National Insurance Company Limited - Nil - Nil
Associates
(Investment as per the equity method)
Indian
1. Health Insurance TPA of India Limited - Nil - Nil
Foreign
1. India International Insurance - Nil - Nil
PTE Ltd. Singapore
Total - Nil - Nil

219 ANNUAL REPORT 2017-18

 FORM AOC – I
(Pursuant to first proviso to sub- section (3) of section 129 read with rule 5 of
Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of
Subsidiaries / associate companies/ joint ventures
Part "A": Subsidiaries
` in ’000
Sl No. Particulars
1. Name of the subsidiary NIL
2. Reporting period for the subsidiary concerned, if different from the
holding company's reporting period N.A
3. Reporting currency and exchange rate as on the last date of the relevant
Financial year in the case of foreign subsidiaries. N.A
4. Share Capital N.A
5. Reserves & Surplus N.A
6. Total Assets N.A
7. Total Liabilities N.A
8. Investments N.A
9. Turnover N.A
10. Profit before taxation N.A
11. Provision for taxation N.A
12. Profit after taxation N.A
13. Proposed Dividend N.A
14. % of shareholding N.A
Notes:
1. Name of Subsidiaries which are yet to commence operations NIL
2. Name of Subsidiaries which have been liquidated or sold during the year NIL

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP
Chartered Accountants
FRN 302184E/E300007
(CA Chandan Chattopadhay)
Partner
Membership No. 051254
Place: Kolkata
Date: 19th July, 2018
For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Director Chief Financial Officer
Membership No. 051392 DIN: 07734571
Rina Madia
Company Secretary

ANNUAL REPORT 2017-18 220

 FORM AOC – I
(Pursuant to first proviso to sub- section (3) of section 129 read with rule 5 of
Companies (Accounts) Rules, 2014)

Statement containing salient features of the financial statement of

Subsidiaries / associate companies/ joint ventures

Part "B": Associates

Amount (` in '000)

INDIA INTERNATIONAL
HEALTH INSURANCE TPA OF
NAME OF ASSOCIATES / JOINT VENTURES INSURANCE PTE LTD,
INDIA LIMITED
SINGAPORE

1. Latest Audited Balance Sheet Date 31.03.2018 31.12.2017

2. Shares of Associate/Joint Ventures held by the
Company on the year end
No. of shares 28,500,000 10,000,000
Amount of Investment in Associates / Joint Venture 200,679 28,576
Extent of Holding % 23.75% 20.00%
3. Description of how there is significant influence By shareholding By shareholding
4. Reason why the associate / Joint venture is not
Consolidated N.A N.A
5. Net worth attributable to Shareholding as per latest
Audited Balance Sheet 220,186 4,122,881
6. Profit / Loss for the year
i) Considered in Consolidation (15,626) (18,511)
ii) Not considered in Consolidation (50,169) (74,042)
Notes:
1. Names of Associates / Joint Ventures which are yet to
commence operations NIL NIL
2. Names of Associates / Joint Ventures which have been
liquidated or sold during the year NIL NIL

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494

(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571

Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

221 ANNUAL REPORT 2017-18

Schedule 16
B. SIGNIFICANT ACCOUNTING POLICIES
1. ACCOUNTING CONVENTION :

The financial statements are prepared and presented in accordance with the Generally Accepted
Accounting Principles followed in India under the historical cost convention and accrual basis of
accounting and in accordance with the statutory requirements of the Insurance Act, 1938, the Insurance
Regulatory and Development Authority Act, 1999, the Insurance Regulatory and Development
Authority IRDA (Preparation of Financial Statements and Auditors' Report of Insurance Companies)
Regulations, 2002, and orders and directions issued by the IRDAI in this behalf, the Companies Act,
2013 to the extent applicable and in compliance with the Accounting Standards specified under section
133 of the Companies Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent
applicable and current practices prevailing in the Insurance industry.
2. USE OF ESTIMATES
The preparation of the financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amount of assets,
liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial
statement. Actual results may differ from those estimates and assumptions. The estimates and
assumptions used in the accompanying financial statements are based upon management's evaluation
of the relevant facts and circumstances as on the date of financial statements. Any revision to the
accounting estimates is recognized prospectively in current and future periods.
3. PREMIUM
Premium income is recognized net of re-insurance, based on assumption of risk in related revenue
account. In case of policies where payments are received in installment, the revenue is recognized at
the time of receipt of installment.
3.1 UNEARNED PREMIUM RESERVE
Unearned Premium Reserve is created on the amount representing that part of the net premium
written which is attributable to, and allocated to the succeeding accounting periods including short
term policies, at 50% of net premium except in the case of Marine Hull business, where it is made
at 100% of net premium.
However, no Unearned Premium Reserve is created in case of Pradhan Mantri Fasal Bima Yojana
- Kharif business, as the entire risk period falls within the Financial Year and the amount of risk
involved is also material.
3.2 PREMIUM DEFFICIENCY
Reserve for premium deficiency is recognized and disclosed where the sum of expected net
claims costs, related expenses and maintenance costs exceeds the related net unearned
premium on an annual basis as certified by the Actuary.
3.3 PREMIUM RECEIVED IN ADVANCE
Premium received in advance represents premium received in respect of policies issued during
the year, where the risk commences subsequent to the balance sheet date.
4. ACQUISITION COST
The acquisition cost relating to acquisition of new/renewal of insurance contracts is charged in the year
in which the premium is recognized.

ANNUAL REPORT 2017-18 222

5. CLAIMS
5.1 Claims are considered in the following manner:
(a) In respect of direct business in India on the basis of claim intimations received upto the year
end,
(b) In respect of re-insurance business as intimated by insurance companies/agents upto cut-off
date of finalization of accounts.
In case of claims reported wherever supporting information are available, liabilities for claims are
estimated on the basis of such information. Wherever supporting are not available, provisions are
estimated on current trends and past underwriting experience.
5.2 Provisions for claims 'Incurred but Not Reported' (IBNR) and "Incurred but not enough Reported
(IBNER) are made on the basis of actuarial valuation.
5.3 In respect of motor third party claims, where court summons have been served on the company
without adequate policy particulars, provisions are made to the extent of 1/3rd of the estimated
value of such unidentified claims and for claims remaining unidentified over one year, full
provision is made, in accordance with the existing practice.
5.4 In cases of claims repudiated by the Company but contested by the claimants in
courts/ombudsman/arbitration etc. provisions have been made where the management is of the
opinion that the final awards are likely to go against the company.
5.5 Claims paid include Court Deposits in Motor Accident Claims Tribunal (MACT) appeal cases.
5.6 Salvage recoveries are accounted for on realization and credited to claims account.
6. RE-INSURANCE
6.1 In case of reinsurance acceptances from foreign insurance companies, returns received up to the
date of finalization of accounts and returns from Indian companies received up to 3rd quarter of
the current year and the 4th quarter of the previous year are incorporated in the accounts. Returns
of 4th quarter from Indian companies wherever received are also considered.
6.2 In case of reinsurance cessions where full particulars are not available, cessions are done on the
basis of information available with the re-insurance department and/or on the basis of reasonable
estimation of probable maximum loss wherever applicable.
6.3 Investment income and expenses in respect of Terrorism pool retro are accounted as per the
statements received from GIC (Pool Administrator) upto finalization of accounts.
7. TRANSLATION/CONVERSION OF FOREIGN CURRENCIES:
7.1 Reinsurance operations:
Revenue transactions of reinsurance in foreign currencies are converted at the average of rates of
exchange of each quarter in which they are accounted.
Monetary assets and liabilities of reinsurance in foreign currencies are converted at the closing rate.
7.2 Foreign operations:
As per the Accounting Standard AS-11 “the effects of changes in foreign exchange rates”, foreign
branches are classified as 'non-integral foreign operations'.
The assets and liabilities both monetary and non-monetary of the non-integral part of operations
are translated at the closing rate.
Income and expenses of the non integral foreign operations are translated at the average
exchange rate of the year.

223 ANNUAL REPORT 2017-18

 7.3 Exchange difference in non-integral foreign branch:
As per provision of AS-11, the effect of changes in Foreign Exchange Rates, exchange difference
on account of transactions of the balances relating to foreign branch (non-integral-Nepal Branch)
is accumulated in Foreign Currency Translation Reserve until the closure of the operation in the
said branch. The cumulative amount of balance lying in aforesaid reserve would be recognized a
income or as expenses in the year of closure of the branch.
7.4 Exchange difference arises on account of transactions of Hong Kong branch is charged to Profit &
Loss Account.
7.5 The foreign exchange rates as advised by GIC, has been considered.
8. INVESTMENTS AND LOANS
8.1 Investment Properties-Real Estates are valued at historical cost less accumulated depreciation
and impairment loss.
8.2 The book value of the Investments is the sum of Weighted Average Cost of Opening balance and
purchases made during the period as reduced by the Cost of sales for that period.
8.3 Cost of investments includes brokerage, share transfer stamps, fees, taxes etc. Incentives
received are deducted from cost.
8.4 Investments have been valued as per IRDAI Regulations as follows:
(a) Debt Securities: Debt securities including Government securities and redeemable
preference shares are considered as “held to maturity” securities and are measured at
historical cost subject to amortization of premium over the residual period of maturity.
(b) Equity Securities traded in active markets: Listed equity shares which are traded in active
markets are measured at Fair Value as at the Balance Sheet date. For the purpose of
calculation of fair value, the market price of the last quoted closing price at the National Stock
Exchange (NSE) or if the scrip is not traded at NSE, the last quoted closing price of the
Bombay Stock Exchange (BSE) is taken into consideration.
Unrealized gain/loss arising due to changes in the fair value of listed equity shares are taken to
equity under the head “Fair Value Change Account”.
(c) Unlisted and other than actively traded Equity Securities: These are measured at
historical cost subject to impairment.
(d) Short term Money Market Instruments: Short term money market instruments such as
Certificates of deposit and Commercial Papers, which are discounted at the time of contract
at the agreed rate, are accounted for at their discounted value.
(e) Venture Capital Fund (VCF)/Alternative Investment Fund (AIF): Investments in Venture
Capital Fund (VCF)/Alternative Investment Fund (AIF) are valued at cost for the first three
years from the end of the financial year in which the initial disbursement was made.
Thereafter, investments are subjected to impairment, if any.
(f) Mutual Fund/Exchange Traded Fund: Investment in units of Mutual/Exchange Traded fund
is valued on Net Assets Value (NAV) basis and unrealized gain/ loss is recognized in 'Fair
Value Change Account'.
8.5 Impairment of Loans and Investments
Impairment in value of loans and investments is assessed as at the Balance Sheet date and is
recognized in the Profit and Loss Account.
(a) Equity Share: Capital is considered to be impaired if the break-up value of a particular
security share is less than its face value or where the current break-up value is not available
and there is a three years' history of continuous loss or if the published annual accounts are
not available for the last three years as on the date of valuation.

ANNUAL REPORT 2017-18 224

 For this purpose, the break-up value is arrived at as per the latest Balance Sheet, which
should not be more than 1 (one) year prior to the date of valuation.
When capital is impaired, equity shares are valued as under:
(i) Actively traded equity shares are written down to lower of cost or market value;
(ii) Unlisted and other than actively traded equity shares are written down to lower of the cost
or breakup value and where the breakup value is not available or it is negative, such
shares are written down to Re. 1.
Further, in cases of other than actively traded equity shares where break-up value is less than
acquisition cost (as per latest balance sheet not more than one year prior to date of valuation)
provision is made equivalent to the difference in acquisition cost and the break-up value of the
share.
When the break-up value is negative or unavailable, provision shall be difference between the
acquisition cost and a nominal value of Re. 1/- per company.
(b) Preference share: Capital is considered to be impaired when the capital is eroded and the
companies are having three years' history of continuous losses or where the annual accounts
for three immediately preceding years are not available on the date of valuation. Such
preference shares are valued as under.
i) If the equity shares of the company are actively traded, its preference shares are written
down to a value, which is in the same proportion that the market value of the equity share
bears to its face value.
ii) If the equity shares of the company are unlisted/thinly traded, its preference shares are
written down to a value, which is in the same proportion that the break up value of equity
share bears to its face value. Where the break up value of equity shares is negative or
where the latest published annual accounts is not available one year prior to the date of
valuation, the preference shares are written down to a nominal value of `1/- per company.
(c) Loans and debentures: The Company follows the prudential norms prescribed by the
IRDAI/related RBI guidelines as regards Asset classification, recognition of income and
provisioning pertaining to Loans/Advances/Debentures.
(d) Venture Capital Fund (VCF)/Alternative Investment Fund (AIF): Provision is made for
impairment in value of such investments where NAV as at the Balance Sheet date is lower
than the cost. If the audited Balance Sheet / Financial Statements showing NAV figures are
not available continuously for more than 18 months as on the date of valuation, the
investments are valued at Re. 1 per VCF / AIF.
8.6 Reversal of impairment
l In case of actively traded equity shares, impairment loss earlier recognized in profit & loss
account is reversed only when:
o The accumulated losses of the Company are completely wiped out and
o Company has shown net profit for three immediately preceding financial years
l In case of other than actively traded equity shares, reversal of impairment loss shall be
recognized in profit & loss account on realization.
8.7 Recovery in NPA Account
Amount received as recovery in NPA Account is appropriated towards principal outstanding and
surplus remaining, if any is adjusted towards interest.

225 ANNUAL REPORT 2017-18

 8.8 (a) Dividend is accounted for in the year in which right to receive is established provided the
book closure date/ Ex Date also falls within the same period.
(b) Dividend in respect of foreign equity shares is accounted for when dividend advice is
received from the company or credit is received in the bank account whichever is earlier.
(c) In case of demerger, dividend in respect of resultant company is to be accounted for against
shares of demerged company till the documentary evidence in respect of cost acquisition
ratio of demerger is available.
(d) Where dividend is declared at the Annual General Meeting of the company, but
subsequently the receipt of such dividend becomes doubtful, provision is made for the
appropriate amount under the head 'Provision for Doubtful Loans, Investment and Debts'.
(e) Dividend, on shares which are not transferred in the company's name, is accounted for on
realization.
8.9 Where contracts of purchase of shares/debentures are made but delivery/registration of
certificates is pending, the same are accounted for as investments. If dividend is declared on
such shares during the pendency of delivery immediately after purchase, the cost of shares is
reduced by the amount of such dividend.
8.10 Bonus is accounted for in the year in which right to receive is established provided the book
closure date falls within the same year. Where bonus shares are received, the number of bonus
shares is recorded as an increase in holding without affecting the book value.
8.11 Investment in units of Mutual Fund is valued on Net Assets Value (NAV) basis and unrealized
gain/loss is recognized in 'Fair Value Change Account'.
8.12 Interest, dividend and rent income, net of expenses and profit/loss on sale/realisation of
investments, are apportioned between respective Revenue Accounts (Policyholders' Account)
and Profit and Loss Account (Shareholders' account) in the ratio of policyholders' fund and
shareholders' fund balances at the beginning of the year.
8.13 Segregation of Policyholders' and Shareholders' Funds:
In terms of IRDAI Circular No. IRDA/F&A/CIR/CPM/010/01/2017 dated 12th January, 2017,
policyholders' and shareholders' funds is bifurcated at the end of each year at the minimum at the
fund level on notional basis.
Investments made out of the Policyholders' fund are shown in a separate schedule i.e. 8A as
Investments – Policyholders. Investments under Shareholders' funds are shown in Schedule 8
as Investments – Shareholders.
Bifurcation of investments between the Policyholders and Shareholders funds are made in the
ratio of Policyholders' and Shareholders' funds balances at the beginning of the year but without
identifying scrip wise investments. Similarly, Fair Value Change account stands bifurcated.
9. EXPENSES OF MANAGEMENT/OPERATING EXPENSES
Operating expenses, other than those charged to Profit and Loss Account and which are directly
attributable to the respective Revenue Accounts, are apportioned between the Revenue Accounts on
the basis of Net Premium after giving weightage of 75% for Marine business and 100% for Fire and
Miscellaneous business, in terms of Board approved policy on Expenses of Management as required
under Insurance Regulatory and Development Authority of India (Expenses of Management of
Insurers transacting General or Health Insurance Business) Regulations, 2016.
10. FIXED ASSETS AND DEPRECIATION/IMPAIRMENT
i) Fixed assets are carried at cost less accumulated depreciation.
ii) Depreciation is provided as per written down value method (WDV) on the basis of useful life of
assets as set out in Schedule II – Part C of the Companies Act, 2013. 95% of the value of asset
is considered depreciable and balance 5% is retained as un-depreciable amount.

ANNUAL REPORT 2017-18 226

 iii) Cost of Leasehold properties is amortized over the period of lease.
iv) Intangible assets (software) are amortized over the estimated useful life not exceeding 5
years.
11. IMPAIRMENT OF ASSETS:
Impairment loss is recognized when any indication about realizable value of block of assets is
observed to be less than its carrying cost.
12. EMPLOYEES' BENEFITS
Employee benefits comprise of both defined contributions and defined benefit plans.
(a) Provident fund is a defined contribution plan as the company's obligation is to pay fixed monthly
contribution to a separate trust.
(b) Pension, Gratuity and Leave Encashment liabilities are defined benefits obligations and are
provided for on the basis of an actuarial valuation made at the end of the financial year in
accordance with Accounting Standard (AS) 15 Employee Benefits.
13. BORROWING COSTS
Borrowing costs are interest and other costs incurred in connection with the borrowing of funds and are
charged to the Profit and Loss Account (Shareholder's Account) in the absence of any 'Qualifying
asset'.
14. SEGMENT REPORTING
Segments have been classified as per directives given in The Insurance Regulatory and Development
Authority (Preparation of Financial Statements and Auditors' Report of Insurance Companies)
Regulations, 2002 and subsequent circulars.
15. CONTINGENT LIABILITIES & CONTINGENT ASSETS
Provision against contingent liabilities is recognized when there is a present obligation as a result of
past events and it is probable that an outflow of resources will be required to settle the obligation.
Contingent assets are not recognized in the accounts.
16. TAXATION
(a) Provision for income tax is made in accordance with the tax laws.
Deferred tax is recognized on timing differences, being the differences between taxable and
accounting income / expenditure that originate in one period and are capable of reversal in one
or more subsequent period(s). Deferred tax asset is not recognized unless there is virtual
certainty that sufficient future taxable income will be available against which such deferred tax
assets will be realized.
(b) Interest on tax refunds is accounted for on the basis of orders passed by the Tax authorities.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

227 ANNUAL REPORT 2017-18

Schedule – 17
NOTES FORMING PART OF THE ACCOUNTS

1. Contingent Liabilities:
` in thousand
Particulars 2017-18 2016-17
Partly-paid up Investments 4181 4181
Underwriting commitments outstanding - -
Claims, other than those under policies, not acknowledged as debts 339586 331945
Guarantees given by or on behalf of the company 950* 950*
Statutory demands/liabilities in dispute, not provided for
(a) Income Tax 1550250 6229350
(b) Service Tax 5126069 4311420
Reinsurance obligations to the extent not provide for in the accounts - -
Others :
(a) Policy holders unclaimed amounts transferred to Senior Citizen
Welfare Fund (SCWF) 22571 -
Total 7043607 10877846
* Includes figures of Associate Companies.
2. Related party disclosures are given below:
(a) Key Management Personnel:
SL. NO. NAME OF KEY MANAGEMENT PERSONNEL
1. Shri K Sanath Kumar, Chairman -cum-Managing Director (retired on 30/04/2018)
2. Shri M.Vasantha Krishna, General Manager & Director (retired on 31/03/2018)
3. Shri John Pulinthanam, Director (w.e.f 20th June, 2017)
4. Shri Rakesh Kumar, General Manager & Director (15th May, 2017 to 31st May, 2017)
5. Smt. M Sashikala, CFO (01st April, 2017 to 27 th December, 2017)
6. Shri P. Vijaya Kumar, CFO (w.e.f. 27th December, 2017)
7. Smt. Rina Madia, Company Secretary

Nature of transactions:
i. Salaries, allowances & contributions ` 11108 thousand (` 9235 thousand)
ii. Loans and Advances ` 21 thousand (` 507 thousand).
(b) Entities over which control exist:
1. National Insurance Company Limited Employees' Provident Fund.
2. National Insurance Company (Employees') Pension Fund.
3. National Insurance Company Limited Employees' Gratuity Fund.
(No investments and transactions have been undertaken by the company as a trustee).

ANNUAL REPORT 2017-18 228

4. Disclosure as per Accounting Standard (AS 20):
` in thousand
Particulars 2017-18 2016-17
Net Profit/Loss attributable to Shareholders -2,17,41,797 6,31,781
Weighted average number of Shares 10,00,00,000 10,00,00,000
Basic and diluted earnings per share of `10 each -217.42 6.32

The Company does not have any outstanding diluted potential equity share. Consequently, the basic
and diluted earnings per share of the Company remain the same.
4. Figures in brackets are of the previous year. To conform to current year's presentation previous year's
figures are regrouped or rearranged wherever considered necessary.

For and on behalf of the Board of Directors

For S. Ghose & Co.LLP For Saha Ganguli & Associates John Pulinthanam B. N. Narasimhan
Chartered Accountants Chartered Accountants Joint in-charge as Chairman-cum-Managing Director
FRN 302184E/E300007 FRN: 302191E DIN: 07881040 DIN: 07526494
(CA Chandan Chattopadhay) (CA Samir Kumar Saha) Ravi Krishan Takkar P. Vijaya Kumar
Partner Partner Director Chief Financial Officer
Membership No. 051254 Membership No. 051392 DIN: 07734571
Rina Madia
Place: Kolkata Company Secretary
Date: 19th July, 2018

229 ANNUAL REPORT 2017-18

ANNUAL REPORT 2017-18 230