New India Assurance Company Ltd Management Discussions.

"To the Members: Your Directors have immense pleasure in presenting the Hundred and Second Annual Report of the Company together with the audited statement of accounts and balance sheet for the year ended 31st March, 2021."

1. The snapshot of your Company Standalone financial performance is as below:

I. CLASS-WISE PERFORMANCE SUMMARY:

Rs. in Crores

Fire Marine Misc Total
Gross Direct Premium Income India CY 3771.31 850.94 23926.22 28548.47
PY 3063.16 741.06 23008.91 26813.13
(% Growth) CY 23.12 14.83 3.99 6.47
PY 37.69 4.54 9.69 12.14
Outside India CY 957.29 38.94 2028.72 3024.95
PY 823.78 42.92 2035.24 2901.94
(% Growth) CY 16.21 (9.27) (0.32) 4.24
PY 9.48 (18.68) 7.54 7.57
Global CY 4728.6 889.88 25954.95 31573.42
PY 3886.94 783.97 25044.15 29715.07
(% Growth) CY 21.65 13.51 3.64 6.25
PY 30.56 2.93 9.51 11.68
Reinsurance Premium Accepted CY 1149.77 50.61 272.61 1472.98
PY 1174.47 63.5 290.82 1528.79
Global Gross Written Premium CY 5878.36 940.48 26227.56 33046.41
PY 5061.41 847.48 25334.97 31243.86
Growth in Global Gross Written Premium CY 16.14 10.97 3.52 5.77
PY 23.44 4.52 9.65 11.52
Reinsurance Premium Ceded CY 2806.36 509.70 2764.52 6080.57
PY 2303.32 414.01 4039.48 6756.81
Global Net Premium CY 3072.01 430.78 23463.04 26965.84
PY 2758.09 433.46 21295.5 24487.05
(% Growth) CY 11.38 (0.62) 10.18 10.12
PY 30.28 (2.38) 8.87 10.7
Addition / Reduction in Un-expired Risks Reserves CY 56.12 10.19 665.81 732.11
PY 314.73 4.16 639.32 958.21
(% to Net Premium) CY 1.83 2.37 2.36 2.71
PY 11.41 0.96 3.00 3.91
Earned Premium CY 3015.89 420.6 22797.24 26233.72
PY 2443.36 429.31 20656.18 23528.84
Incurred Claims Net CY 2233.73 309.27 19543.96 22086.96
PY 1860.13 292.11 19360.38 21512.62
(% to Earned Premium) CY 74.07 73.53 85.73 84.19
PY 76.13 68.04 93.73 91.43
Commission Net CY 559.73 60.42 1846.41 2466.56
PY 432.18 72.71 1788.87 2293.76
(% to Earned Premium) CY 18.22 14.03 7.87 9.15
PY 15.67 16.77 8.4 9.37
Operating Expenses CY 598.74 83.96 4693.94 5376.65
PY 431.08 67.75 3328.4 3827.23
(% to Earned Premium) CY 19.49 19.49 20.01 19.94
PY 15.63 15.63 15.63 15.63
U/W Results CY (376.32) (33.05) (3287.07) (3696.44)
PY (280.03) (3.26) (3821.48) (4104.76)
(% to Earned Premium) CY (12.48) (7.86) (14.42) (14.09)
PY (11.46) (0.76) (18.5) (17.45)
Investment Income-Policy Holders CY 569.21 75.87 3676.95 4322.03
PY 621.73 89.1 3806.89 4517.72
Contribution from Shareholders CY 0 0 73.31 73.31
PY 0 0 0 0
Revenue (Policyholder) Account Surplus CY 192.89 42.82 463.19 698.9
PY 341.71 85.84 (14.59) 412.96
Investment Income Shareholders CY 1844.86
PY 2247.89
Other Income less Outgo CY (507.04)
PY (1022.02)
Profit before Tax CY 2037.72
PY 1638.83
Provision for Tax CY 432.03
PY 221.07
Profit after Tax CY 1604.69
PY 1417.75

1. PERFORMANCE REVIEW (Global)

(Rs. in crores)

2020-21 2019-20
A Gross Written Premium (Indian) 28663 26999
%change over previous year 6.16 12.33
Gross Written Premium (Foreign) 4383 4245
%change over previous year 3.27 6.6
Global Premium 33046 31244
%change over previous year 5.77 11.52
Gross Written Premium has increased from Rs. 26999 crore in 2019-20 to Rs. 28663 crore in 2020-21, recording a growth of 6.16 % in 2020-21. The Company continues to be the market leader in India.
B Net Premium 26966 24487
%change over previous year 10.12 10.7
The net premium income of the Company grew by Rs. 2479 crore in Rs. 24487 2019-20 to Rs. 26966 crore in 2020-21.
C Change in Unexpired Risk Reserve 732 958
D Earned Premium 26324 23529
%change over previous year 11.5 9.5
E Incurred Claims (Net) 22087 21513
% to Earned Premium 84.19 91.43
F Commission 2467 2294
% to Net Premium 9.15 9.37
G Operating Expenses 5377 3827
% to Net Premium 19.94 15.63
H Underwriting Results (3696) (4105)
I Investment Income (Less Provision)
Apportioned to Policyholders 4322 4518
Apportioned to Shareholders 1845 2248
Total 6167 6766
J Contribution from Shareholders 73 0
K Revenue (Policyholders) Account 699 413
L Other Income/Outgo (507) (1022)
M Profit Before Tax (PBT) 2037 1639
N Profit After Tax (PAT) 1605 1418
O Proposed Total Dividend 0 0
P Paid Up Capital 824 824
Q Reserves and Surplus 18192 16632
R Total Assets 90189 74609
S Investments (at cost) 47693 41133
Solvency Margin
i. Required Solvency Margin under IRDAI Regulations 6974 6770
ii. Available Solvency Margin 14852 14296
The Companys Global Solvency Ratio is 2.13 times (PY 2.11 times)
T Compliance with Section 40C
i. Expenses prescribed under the Act 8788 8417
ii. Actual Expenses 7277 5636
iii. Difference 1511 2781

General Insurance Industry Vis-a-vis Indian Economy

The International Monetary Fund (IMF) estimates that the economy contracted by 3.3% in 2020. Supportive policy measures announced in various economies and rollout of Covid-19 vaccines indicate that the global economy should be back on the growth path in 2021, as demand revives across segments. The IMF estimates growth to be 6.0%. This growth depends on various factors such as successful containment of the transmission of the virus, limited impact of subsequent wave(s), policy measures to support growth, etc.

On the domestic front, the financial sector regulators and the Government undertook various measures in FY 2020-21 for containing the risks to financial stability. The manufacturing sector registered 8.4% decline following 2.4% decline last year. The service sectors, those related to hotels, transport, and trade, were impacted adversely as well. Service sectors witnessed 8.1% decline as against 5.9% growth last year. The Union Budget FY 2021-22 lay thrust on various sectors such as infrastructure, health and well-being, innovation, and research, etc. which should augment growth prospects next year. With the vaccination rollout picking up pace, the Reserve Bank of India expects near double-digit growth in the real economy in FY22 on the back of increased demand, especially in rural areas. Nonetheless, continuing uncertainty around subsequent waves of COVID-19and unfavourable global developments continue to be downside risks to domestic economic activity.

Indian general insurance industry

In a COVID-19 pandemic impacted financial year, the IRDAI had taken several measures with a major focus on driving industry wide uniformity in policy wording and coverages of some standard products which will help in increasing penetration of insurance products. Last year, IRDAI had announced the standardization of health insurance product named Arogya Sanjeevani Policy, w.e.f April 1, 2020. This year, IRDAI took further measures aimed at standardizing retail products. Insurers launched a standard cover for home insurance (Bharat Griha Raksha), micro (Sookshma Udyam Suraksha) and small businesses (Laghu Udyam Suraksha) and Standard Personal Saral Accident Insurance from April 1, 2021. Further, IRDAI has also encouraged insurers to launch a standard Vector Borne Disease Health Insurance Policy (Mashak Rakshak) from April 1, 2021. During the COVID-19

Outbreak, IRDAI undertook various initiatives and measures aimed at protecting the interests of the Policyholders. Apart from asking insurers to launch standard COVID-specific health insurance products (Corona Kavach and Corona Rakshak), insurers were advised to expeditiously handle health insurance claims especially those pertaining to COVID-19. The timeline for payment of health and motor third party renewal premiums was also extended. Effective August 1, 2020, IRDAI has also withdrawn the long-term motor insurance package policies - 3 year OD + 3 year TP coverage for new cars and 5 year OD + 5 year TP coverage for new two wheelers. The Union Budget FY 2021- 22 proposed to increase the Foreign Direct Investments (FDI) limit in insurance sector from 49% to 74%. Over the medium to long term, this is expected to enable insurers to access foreign capital, which in turn may augment industry growth by increasing penetration.

In FY21, non-life insurers (comprising general insurers, standalone health insurers and specialized insurers) recorded a 5.19% growth in gross direct premiums. Motor insurance accounted for 34.1% of the general insurance premiums written in FY21. Post-Covid rising demand for personal mobility space is leading to a shift in vehicle ownership patterns and may create an opportunity for motor insurers. Health insurance witnessed 13.3% growth in GDPI in FY21, while fire insurance and liability insurance observed 28.1% and 16.4% growth respectively in the same period.

India is the 2nd largest InsurTech market in the APAC (Asia- Pacific) region, accounting for 35% of the $3.66 bn capital invested in this region. The online individual insurance market opportunity is estimated to be $1.25 bn by FY25 more than tripling from $365 mn in FY20(as per investIndia.gov.in/sector/ bfsi-insurance).

From selling new policies to settling claims, the pandemic pushed insurance players to depend heavily on digital architecture. While digitisation was already on the rise, the onset of COVID-19 accelerated the transition process, leading customers towards better choices and smoother delivery systems. Digitisation became the key pillar that accelerated the growth of the entire ecosystem, including marketing, digital policy issuance and claim submission. Increased usage of AI and ML will help address the needs across policy purchases, customer service, operations, and claims optimisation. Utilisation of cloud platforms and services will increase, driven by increased emphasis on big data, AI, and ML.

2. OVERVIEW OF COMPANYS OPERATIONS INDIAN OPERATIONS:

Gross direct premium in India has increased from Rs. 26813 crores in 2019-20 to Rs. 28548 Crores in 2020-21 recording a growth of 6.47% during 2020-21. The growth is observed in all geographical segments as well as all classes of business.

? INDIAN OPERATIONAL RESULTS

Sr. No PARTICULARS 2020-21 2019-20
(Rs. in crores) (%) (Rs. in crores) (%)
1 Gross Direct premium 28548.47 6.47 26813.13 12.14
2 Net premium 23895.59 11.43 21444.06 11.21
3 Change in unexpired risk reserve 747.73 - 872.78 -
4 Net earned premium 23147.87 12.53 20571.28 8.31
5 Commission 1757.56 7.36 1595.98 7.44
6 Incurred claims 20048.98 86.61 19556.03 95.06
7 Management expenses 5113.25 21.40 3597.34 16.78
8 Other income (net of outgo) (510.10) (2.13) (1024.49) (4.78)
9 Investment income 5994.60 25.09 6596.44 30.76

Note: Percentage shown in Sr. No. 1, 2 & 4 indicates the growth over previous year, percentage shown in Sr. No. 5, 7 to 9 is percentage to Net premium and percentage shown in Sr. No. 6 is percentage to Net Earned Premium

B. FOREIGN OPERATIONS:

The Company commenced its foreign operations shortly after its formation in 1919. The London branch was opened in 1920. After that the Company saw a steady increase in presence abroad with Manila, Port Louis and Japan. Today New India has presence in 28 countries.

Today the company operates in the following countries:

Branches & Agency offices:

Abu Dhabi

Aruba

Australia

Bahrain

Curacao

Dubai

Fiji

Hong Kong

Japan

Kuwait

Mauritius

New Zealand

• Oman

• Philippines

• Thailand

• United Kingdom

Apart from these countries, the Company has subsidiaries in Nigeria (Prestige Assurance Plc.), Trinidad and Tobago (New India Assurance T&T) and Sierra Leone. The New India T&T also operates in countries such as St. Lucia, Dominica, St. Maarten, Guyana and Anguilla. The Company has opened a Representative office in Myanmar and is planning to open an office in SEZ, Myanmar. The Company also has its presence in Saudi Arabia (WAFA Insurance), Singapore (India International Pte, Singapore) and Kenya (Ken India Assurance Co. Ltd., Nairobi)

The Companys foreign operations saw a gross written premium turnover in rupee equivalent of ? 3888.83 crores and a Net Premium of Rs 3070.24 crores in 2020-21. The foreign operations recorded an underwriting profit of 75.69 crores and Profit After Tax was Rs. 196.21 crores.

New India Assurance has taken a license to operate in DIFC, Dubai through a regional office

Sr. No PARTICULARS 2020-21 2019-20
(Rs. in crores) (%) (Rs. in crores) (%)
1 Gross Direct premium 3024.95 4.24 2901.94 7.57
2 Net premium 3070.24 0.90 3042.99 7.18
3 Change in unexpired risk reserve 15.61 0.51 (85.42) -
4 Net Earned premium 3085.86 4.34 2957.57 18.51
5 Incurred claims 2037.98 66.04 1956.59 66.16
6 Commission 708.80 23.09 697.77 22.93
7 Expenses of management 263.39 8.58 229.89 7.55
8 Other outgo 3.06 0.10 2.47 0.08
9 Investment income 172.29 5.61 169.17 5.56

Note:

Percentage shown in Sr. No. 1, 2 & 4 indicates the growth over previous year, percentage shown in Sr. No. 6 to 9 is percentage to Net premium and percentage shown in Sr. No. 5 is percentage to Net Earned Premium

ORGANISATION STRUCTURE

Domestic

Our Company has been consistently restructuring its various Offices after reviewing their performance and financial viability for continuation of business at their location.

During the year, we have opened 1 Regional Government Business Office (RGBO) for better servicing and closed 1 Divisional Office, 2 Branch Offices and 76 Micro Offices. We have downgraded 2 Branch offices to Micro offices after checking their feasibility.

As on 31st March 2021, the Company has a network of 31 Regional Offices, 7 Large Corporate Offices, 1 Auto Hub, 1 RGBO, 1 IFSC, 1 Digital Hub, 473 Divisional Offices, 587 Branch Offices, 25 Direct Agent Branches and 1086 Micro Offices, totalling 2214 offices inclusive of Head Office.

Foreign

The Company operates in 28 countries

REINSURANCE

The Companys Reinsurance protection continues to be optimal and commensurate with its risk profile and financial position. The year 2020-21 witnessed unprecedented challenges due to COVID 19 pandemic. However, renewal of all proportional and non-proportional treaties for Domestic business and foreign operations was completed as per schedule.

The earlier part of the year saw CAT losses in Orissa & West Bengal due to Cyclone Amphan and floods in various parts of India. Then there were unexpected CAT losses in the month of February 2021 due to Uttarakhand Glacier burst. Apart from these Cat losses, there were few large risk losses in Property & Miscellaneous segments. On the global front , there was a major risk loss in New Zealand in the month of March 2021. All these losses impacted the Reinsurance treaties/Covers taken by the Company.

TECHNO MARKETING

Techno Marketing is a specialized Department Created at Corporate office to cater the needs of Large Corporate clients for their operational Business units. This Department also takes care of normal and specialized construction projects within India projects from Indian clients outside India and the Stand Alone Terrorism cover.

Corporate clients in the Indian market with the implementation of new Technology and new business models are always looking for customized covers which is being addressed by the department by devising need- based Insurance solutions with the expertise available in the department.

With the support of National and International Reinsurers, company has been able to design few Unique covers to fulfil the requirement of Corporate clients.

Seminars are organized for Large corporates at their work places to educate their employees and executives about the Large risk policies along with the claims modalities. In view of focus on the corporate strategy of Underwriting the risk with profitability, clients are educated about the Risk management practices and loss minimizing activities. Risks inspections for a few risks are conducted by globally reputed risk engineers.

The company is equipped to face the challenges in this segment and aims to maintain the leadership in coming years as well.

FIRE AND ENGINEERING

The company performed well in the Property insurance segment despite the pandemic shaken economy. The Fire premium rose to Rs 3771 Cr and Engineering to Rs 660 cr. The company continued its leadership position in this segment of the general insurance market.

During the year, the company kept up with strict measures and enhanced rating for high claim policy renewals as a part of improvement in underwriting. The company also decentralized policy underwriting in a controlled manner at regional offices which improved the customer servicing and efficiency. The company conducted online training sessions on underwriting and claims management for the education of the technical teams in various offices. That apart, the company conducted video conferences for better coordination with the technical teams.

The ICR of the company in this segment improved. Tight claims control was achieved by optimum utilization of the resources and thrust on quicker claims settlement. This resulted in reducing the cost of claims and increased profitability.

We aspire to maintain our leadership in this segment in the years to come.

HEALTH INSURANCE

The country has been going through Pandemic and Lockdown in the first quarter of FY 2020-21. Despite the economic slowdown and various challenges and hardships faced by the company, Health LOB emerged as the largest portfolio of the company garnering premium of Rs. 10,784 Cr recording growth of 14% over the last year. Retail Health has witnessed growth of 11% and Group Health including Govt. Business has shown an increase of 16% during this year.

To facilitate customers to renew their policies during lockdown, we have implemented the following customer friendly measures

• Relaxation in remittance of premium on or before 15/5/2020 for the renewals due for the period from 23/3/2020 to 3/5/2020 without break in coverage

• SMS alert were sent to customers for renewing their policies

• Decentralization of acceptance of renewal with break in insurance beyond 30 days at MO/BO level.

In the midst of lockdown, we have launched following new products within the timeline specified by the Regulator:

• Arogya Sanjeevani, The New India Assurance

• Corona Kavach, The New India Assurance

• Group Corona Kavach, The New India Assurance

• Group Mediclaim for Workers

We have sold nearly 2.60 Lakh policies by covering around 4.11 Lakh lives under Corona Kavach Policy.

We have also made amendments as stipulated by IRDAI viz

• All our Health Insurance policy documents incorporate mental illness, genetic disorder, etc and coverage of advanced medical treatment in line with IRDAI guidelines.

• Our Underwriting policy is amended with the approval of Board of Directors to cover risks of substandard lives in compliance with Mental illness Act and HIV Act.

In view of hardship faced by customers in the submission of claim documents due to ongoing pandemic, we have advised all TPAs to process claims based on scanned copies of claim documents. In respect of COVID claims, Cashless facility is extended to non-network hospitals including makeshift arrangements to ease out financial burden of the policy holders.

We have settled nearly 1.60 Lakh COVID claims amounting to Rs. 1560 crores under various Health insurance policies in the financial year 20-21.

We have also implemented following measures in the Policy Holders Interest:

• Exclusive mail i.d. is created for COVID related queries and solutions and grievances are addressed immediately.

• FAQ on COVID related queries, Details of SPOC of TPA are displayed in our website.

MARINE CARGO & HULL

New India Assurance Co Ltd insures major shipping lines of India, majority of Inland and Coastal vessels, sailing vessels and fishing vessels navigating in and around Indian waters. In the oil and energy segment, we have consistently been the market leaders since inception. We are also the only insurance company in India which offers P&I cover to the Indian flag vessels.

We continued to maintain our leadership in the Marine Line of Business in the Indian Market, procuring Rs 851 Cr of premium out of an industry total Rs 3,491 Cr, and improving the Companys market share from 21.06% to 24.37%, during the year 2020-21. While there was a marginal drop in the market share in Marine Cargo Insurance to 15%, the Company improved its share in Marine Hull quite substantially from 35% to 46%. We have booked a Premium of Rs 485.74 Crores as against Rs. 304.46 Crores in 2019-20.

The Covid-19 led slowdown has affected the shipping business significantly. As per Clarksons Research, around 1 billion tons of trade is estimated to have been lost in 2020. As a result, our premium base was also eroded, and a decline of 16.33% was registered in the marine cargo portfolio. However, with a growth of nearly 60% in the Hull portfolio, New Indias Marine business grew in 2020-21 by nearly 15% while the industry itself had recorded a negative growth of 0.79%.

Though the marine cargo domestic premium went down to Rs. 365.26 Crores in 2020-21 from Rs. 436.59 Crores in the previous year, portfolio in 2020-21 remained profitable despite cyclones Amphan, Nisarga and Nivar hitting the Indian coasts this year.

As the leader in Marine Insurance, the Company is committed to delivering best-in-class service to its clients. We are continuously upgrading our Portals for issuance of certificates online and claim processing as well. We are in process of updating our Vessel master which will display details of more than 46000 vessels plying in international waters.

Our focus area for the next year will be a faster disposal of claims to touch higher levels of customer satisfaction. As shipping industry is showing signs of revival with oil prices also elevated, we anticipate a quick recovery in cargo business and outlook for Hull & Energy segment in the next year, is looking positive.

AVIATION

New India is the insurer of choice of most major airline operators and General Aviation Business.

With the advent of Government sponsored Regional Connectivity scheme, New India has been extending insurance support to smaller airlines/ new entrants under UDAN scheme.

New India continues to be a preferred re-insurer in international market extending its support to around 60 Aviation Reinsurance Programme across the Globe.

MOTOR

AUTO TIE-UP

New India has been able to tie up with motor dealers across India through partnership with major brands in the Indian market. This network through centralized tie ups has enabled us to source business through more than 4300 dealers. Besides more than 2200 dealers (other than OEM Tie ups) of private cars, commercial vehicles and two wheelers have tied up with company offices directly for sale of motor insurance policies to their customers. Auto tie up has empowered the company to create a brand image of leading motor insurer in India which has been delivering value added services like; instant delivery of insurance policies & endorsements, seamless settlement of claim, TAT based delivery of services & cashless facility at dealer points. This has been possible through intervention of IT enabling our partner dealers to execute all such activities on portals available at each dealer point.

NON TIE-UP

During FY 2020-21, the growth of Automobile Industry was badly affected by lockdown due to Covid-19 from end of March 20 in addition to implementing BS-VI Emission rules effective from April 2020 and the Introduction and promotion for transition to electric vehicle etc. The Slowdown of Automobile industry has, had a direct impact on Motor Insurance Business of General Insurance Industry. The Industry growth of Motor LOB Premium was (-) 1.68% and generated a total premium of Rs 67790 Cr. The Companys Overall Motor Premium also showed a negative growth by 1.39% and achieved a total premium of Rs 8800 Cr during the year. Though the company has shown a minor decline, but overall market share has increased to 12.98% maintaining No.1 position in the Industry for this LOB also. The loss ratio of Motor LOB has improved from 76.62% to 67.14% during the year. During the year, eight new products were approved by the Regulator - IRDAI (Nil Depreciation Add-on Cover under Commercial Vehicles, Roadside Assistance Add-On Cover under Annual Policy, Bundled Policy, Stand Alone Motor Own Damage Policy for Two-Wheeler and Private Car separately and under Long Term Two-Wheeler Package Policy for 2 & 3 years). Further, company is in process of filing new products in the coming year too, to augment the product range.

Claim Settlement in Motor Own Damage segment stands at 91.88%. There are 36 claims hubs, which handle the claims of 948 operating offices as on date. Company has tied up with over 1371 reputed motor workshop/garages to provide cashless service to retail customers.

Our team at all levels geared up to provide seamless service in the midst of challenging COVID scenario, with the help of our strong IT network.

The company has rolled out few significant IT enabled initiatives with an objective of providing seamless service to customers. Automation of Motor OD claim process has been introduced PAN India facilitating real time registration of claims through various channels, submission of claim documents online, auto appointment of surveyors for Private Cars and Two-wheelers for Estimate up to Rs.50,000/-, development of digital Survey Reports which enables faster settlement of claims and helps in analysis. The Companys Core System has been integrated to Digi Locker for enabling cross verification of vehicle documents instantly in case of claims. Underwriting Workflow has been introduced in some of the ROs on pilot basis for underwriting and discount approval for motor policies between HO and ROs with an objective for faster decision-making process. This new initiative is proposed to be implemented in all offices during 2021-22 with further improvements / additional features.

MOTOR TP CLAIMS AND MOTOR TP CLAIMS HUB

The whole world being in the unchallenged grip of Pandemic through most part of the year, isolation of companys Motor TP claim Management in any respectable measure warranted operationally strategic choice of priorities and reaching out to the distressed section of the society when it needed the company most.

A new compromise manual in speedy claim settlement was rolled out. Compromise/ conciliation improved from 35% to 40% Development and Testing of Advocate Portal, Advocate App and Investigator was completed, as a step towards Digitization of Motor TP Claims Tracking and Processing. In order to dispense with physical file movement and to facilitate quick decision, Documents Upload Facility (initially in all High Value Claims, which shall gradually be implemented for all claims) has been made mandatory. Paperless System Driven Approval System is already in deliberation stage.

2 legal Hubs at Mumbai and Delhi and 49 Motor TP Claims Hubs are efficiently handling claims. Delhi Legal Hub works as the face of the company in Supreme Court and NCDRC Matters.

MISCELLANEOUS AND LIABILITY INSURANCE

The Companys visibility in the industry as pioneers in writing Event Insurance which includes Sporting Events and other Lines of Business such as Liability Insurance and Film insurance continues and these lines of business have been sustained due to increase in premium rates and reinsurance support from international market. We have maintained our leadership in the Nuclear Pool for the year 2020-2021 and propose to continue the same in the coming years. It has been our endeavour to continuously support our banking sector by providing them with Cyber Liability Insurance and Commercial Crime insurance which are the most critical cover in the existing scenario. Cyber liability has special significance in the current working environment where technology-based working has proved to be the mainstay of our economy. Efforts are being made to approach International Markets to bring newer products to Indian Market depending on market needs so as to ensure sustainable and stable growth with profitability.

We are preferred insurers for our valued clients and it is our constant endeavour to improve underwriting and claims management. Our Regional Offices have been empowered in respect of policy underwriting which has been decentralized to a greater extent and has contributed towards improving the turn-around time, client servicing and efficiency. We have introduced new products and conducted virtual workshops on underwriting and claims management during lockdown to ensure that the technical teams in various offices are constantly updated. We are focused on improving our performance year after year.

BROKER

Broker Channel is a business model which offers immense opportunities for sourcing various line of business in the field of non-life sector. It is a significant distribution channel, contributing a sizeable percentage of total premium income of the Company.

In this FY 2020-21, Broker Department did business of Rs.8480.26 Crores with an accretion of 22.75%.

We have also mobilised a premium of Rs.33.68 Crores trough IMF as against Rs.26.51 Crores of previous year with 27.06% growth.

We have been successful in aligning with more than 96% of the brokers operating in Indian Market. Presently 467 out of 486 brokers are working with us.

In order to give stimulus to our online business, we have been issuing Broker/IMF Portals to facilitate quick issuance of policy and also to encourage them for more usage of portals.

In order to have one to one interaction with brokers fraternity and to encourage and energise them to ensure optimum output we have organized Virtual Brokers Meet keeping in mind social distancing measures.

In order to have regular interaction and communication with brokers fraternity and updating them about national and international developments we have launched a Brokers Digital magazine SANYOJAN by our Chairman cum Managing Director Mr. Atul Sahai on 6th March 2020 and the subsequent edition was released in March 2021.

BANCASSURANCE

Banks, due to their geographical spread and penetration in terms of customer reach in all segments, have emerged as an important channel of distribution of Insurance products. New India Assurance has tie-up with Union Bank of India, Bank of India, Canara Bank, Punjab and Sind Bank, SIDBI, Central Bank of India, Citibank besides 30 Scheduled Cooperative Banks. During FY 2020-2021, Company has been selected by Punjab Sind Bank as its General Insurance business partner.

In FY 20-21, Bancassurance dept. of New India contributed Rs. 323.24 cr premium income. Various campaigns were launched during the course of the year, to increase the awareness & reach. During Pandemic, New India Assurance has increased its focus on developing world class Technology platform. In order to improve availability, efficiency, TAT, ease of doing business & providing service to customers, this is the core requirement. Portal integration with various Banks has been implemented. Training of banks Personnel engaged in insurance operations is also offered.

Bancassurance Channel is looking forward to achieve many milestones with current Banca partners as well as aims to reach out to PSU Banks in bank merger era as well. New India is constantly in effort to tie-up with other Public sector Banks, large and small banks in coming years.

AGENCY

The Agency channel has been a major channel of business for the Company contributing the largest share of Premium income. The Premium procured by Individual agents during the FY 2020-21 was ? 10296.54 crores & by Corporate Agents (other than Banks) ? 99.16 Crores. Recruitment of 8439 new agents during the year enhanced the strength of Agency. Various recognition and reward schemes implemented for motivating & recognizing agents, were reviewed and revised to encourage and reward agents and to motivate them to face market challenges. A quarterly Agents Magazine E Version, named "PRAGATI" based on the articles, Poems and achievements by agents is published. Various other measures like sending text messages to agents on various occasions, Birthday, festivals etc, celebrating "First Monday of every Month" as "Agents Day" honouring the top performer agent in every office, Monthly Business Campaign Scheme etc are implemented.

The Company has one Designated Officer in every operating office in the role of Agent manager for recruiting & training agents and providing them constant sales and service support. On-line Training was imparted during the year, to 248 new Agent Managers in order to enhance their knowledge and skills for performing their role better in nurturing and supporting agents. On line Programs were also organized for CMD & GM club agents for enhancing their skills. This year 9998 agents are eligible for agent club membership based on 2019-20 performance. Agent portal & App facilitates quick issuance of policies on 24x7 basis. Agent portal & App were improved further to make them more user friendly for enhancing penetration and thrust in retail business. The Agent App with new features available in smart phone enables agents to quickly renew policies and better manage their renewals and claims. The Company made constant efforts supported by training for encouraging and motivating agents for usage of agent portal and App. During the year, Portal access was enhanced to over 46800 agents and they issued 73,57,490 policies generating Premium of ? 4053.55 Crores. The Premium through agent portal was 38.99% of total agency business as against 34.35% in previous year.

RURAL AND SOCIAL SECTOR AND MICRO INSURANCE

The Company has been leading the way in providing affordable Insurance cover in order to protect various types of Assets of Rural customers. The Company has occupied a dominant place in the rural and social sector insurance business in India with a host of rural & micro insurance products ranging from Livestock insurance like cattle, sheep & goat, other animals owned by farmers to farmers property like hut & contents, Agriculture Tractor & Agriculture pump set, to health and Personal accident insurance cover for farmers.

Insurance covers provided by the Company are generally need-based /tailor-made for the benefit of Rural and Social sectors. The Company has been stepping up focus on Rural Market by reaching out to maximum number of rural populations through a wide network of micro-offices located in nook & corner of the Country.

In keeping with the Government of India initiative for upliftment of rural economy through series of Govt. sponsored schemes, the Company has been participating in various Central/State/Local based schemes like HLDB - Livestock insurance scheme by Haryana state, TJSS - for Sheep & Goat insurance by Telangana state, NDDB Gokul mission for genetic upgradation of cattle breed & Ganna Kamgar Vima Yojana by Sugarcane Co-operative Societies.

As per the requirement of Govt. of India, your Company has submitted the Draft for a "Standard Insurance Product" to cover Solar Pumps being installed under the ambitious scheme PM-KUSUM. The Company is also covering such Solar Pump sets installed in various states under its existing Pump Set Insurance Policy for a period of 5 years at a reasonable premium rate.

The Company provides Aquaculture insurance to protect the interest of farmers engaged in Fish farming. The Company also provide Insect insurance to protect interest of Honeybee & silkworm farmers.

Rural Insurance activities are mainly village specific and as per Government guidelines. The Company has more than 50 Rural Insurance products which have been designed & developed to meet the insurance needs & requirements of people from all walks of Rural life in a holistic manner.

The Company is empanelled by the Government of India, for implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY), the Central Govt.s flagship crop insurance scheme & Restructured Weather Based Crop Insurance Scheme (RWBCIS) - the flagship crop insurance schemes of Government India. Your Company is participating towards implementation of the said schemes in various states since their inception.

GOVERNMENT HEALTH BUSINESS

New India Assurance is the direct insurer to the prestigious AB-MGRSBY scheme of Government of Rajasthan under AYUSHMAN BHARAT flagged off by Government of India in 2019 to reach out to BPL and needy families of the country for Health cover. The AB- MGRSBY aims to cover more than 1 crore families of the State of Rajasthan with a sum insured of Rs 5 lakh for each family.

Our efficient handling and learning from the scheme will help us explore more avenues in the coming days and increase insurance penetration.

Rupay Card Insurance that offers personal accident cover for RuPay cards which was launched through NPCI in the year 2015-16.The scheme has played a role in increasing awareness of insurance. Approximately 16 crore lives are covered in year 2020- 21.

PRADHAN MANTRI SURAKSHA BIMA YOJNA

Pradhan Mantri Suraksha Bima Yojana is one of the auxiliary schemes of Pradhan Mantri Jan Dhan Yojana (PMJDY) launched in 2015-16. Covering people in the age group of 18-70 years, it helps achieve the motto of Financial Inclusion of Government of India. The coverage includes both against death and disability. Our Company has conducted various enrollment and awareness Campaigns for PMSBY and has provided Coverage to 2.78 Crore Subscribers for sum insured of INR 2 lakhs with a premium of INR 12/- per year making it economically affordable even to the deprived. The Company has tied up with more than 345 banks and Cooperative Banks and is still expanding footprints through tie-ups."

ALTERNATE BUSINESS CHANNEL

Alternative Business Channel is a dedicated department to strategize and develop alternate channels for various gamut of business requirements, improve operational aspects and support our Nodal Offices for effectively handling the Digital Operations. Moreover, during this pandemic, the significance of digital channels, its demand and acceptability among the masses/stakeholders has increased tremendously, thereby creating a huge scope for growth.

For this Financial Year, this department has contributed 21.7% of the total Alternate Business Channel premium. This has been achieved through various digital channels like customer portals, tie-ups with different partners/ intermediaries (Agency, Brokers, Web Aggregators, Corporate Agencies, IMF, POS, CPSC etc). With the arrival of new innovative technologies, its scope and presence are going to grow manifolds.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

CSR Committee of the board was constituted in September 2014 with a mission to achieve our vision to strive to transform India into a "Risk Aware" society from being a "Risk-Averse" society and with a mission to "achieve our vision by integrating social, environmental and health concerns of the Indian society into Companys overall CSR Policy and programmes". CSR has been a long-standing commitment in the Company and forms an integral part of our activities. Being a responsible corporate citizen, Company is committed to perform its role towards the society at large. In alignment with its vision, the Company always work towards adding value to its stakeholders by going beyond business goals and contributing to the well-being of the community.

In this year, The Company has utilized its CSR budget with presence in areas including health, education, infrastructure, environment and government projects. On the health front, the company has provided sponsorship of treatment to needy ulcer care patients and acquisition of Centurion Phacoemulsification Machine for free treatment to people belonging to the economically weaker section of the society. On the education side, the Company has sponsored organizations to acquire software to impart online training to students in these Covid times. The company has also utilized its budget in building old-age and orphanage homes in various parts of the country. On the environment side, the company has sponsored for installation of solar power plants specially in educational institutes which not only significantly impacts the environment but also reduces the cost of electricity for the institutes. The Company has also provided a significant amount to the Prime Ministers Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND).

CUSTOMER CARE

Customer Care Department is functioning well at Companys Corporate Office as well as all Regional Offices. Dedicated Customer Care Nodal Officers are working in all the operating offices throughout the country for extending quality service to the Policyholders and the prospects. Online information on the Companys products is provided in the website www.newindia.co.in for the benefit of the public.

The Companys Call Centre established in 2010 forms an integral part of Customer Relationship Management activity. The toll-free number of the company 1800-209- 1415 is available to the customer 24*7 for enquiries on various Products, Claims and Grievances, both in Hindi and English. Service Requests for further follow up are replied/resolved by companys operating offices. This initiative and endeavour of Customer Service is a key and vital element of our business strategy for a continuous and progressive growth in the General Insurance Industry, with value added products matching the Customers needs and requirements.

The Company has a Grievance Redressal Policy approved by the Board of Directors of the Company which lays down the guidelines for timely redressal of customer grievances maintaining a high level of quality. The Company also has a Policy for Protection of Policyholders Interests approved by the Board of Directors which formulates the high standard of service the Company aspires to extend to its Policyholders and the prospects.

Grievances received orally, over telephone or in writing are registered in the CRM Module. Customers can register their grievance through our website https:// www.newindia.co.in/portal/#/home. The Company has a dedicated e-mail ID customercare.ho@newindia.co.in for getting customer grievances and service-related issues and this is monitored by the Head Office. With a view to give special attention to the grievances and service- related issues of the senior citizens, the Company has a dedicated e-mail address seniorcitizencare.ho@ newindia.co.in which is also monitored by the Head Office. Customer grievances received by IRDA gets registered in IGMS. Our CRM Module is integrated with IGMS on real time basis. We also receive customer grievances registered in Centralized Public Grievance Redress and Monitoring System (CPGRAMS) portal and National Consumer Helpline portal. We resolve the grievances, intimate the customers and post the resolution through the portal.

The Grievance Redressal position for the period 1.4.2020 to 31.3.2021 is as under:

Source Outstanding as on 31/03/2020 Received From 01/04/2020 To 31/03/2021 Resolved From 01/04/2020 To 31/03/2021 Outstanding as on 31/03/2021 Disposal Ratio
ALL 20 5132 5135 17 99.67

? ENTERPRISE RISK MANAGEMENT

Enterprise Risk Management Department (ERM) vertical established at Companys Corporate Office with its wings at all Regional offices and Large Corporate Broker Offices represented by ERM Nodal Officers. Detailed risk registers are in place for all key departments and same is reviewed and updated on periodic basis. Its imperative to have a robust ERM in place as our Company has also been identified as Domestic Systematically Important Insurer in India (D-SII).

Our Organizations BCM apparatus was put to test in the current pandemic. Business Continuity was ensured by enabling Work from Home (WFH), Providing additional laptops, making efficient use of collaboration tools etc. The framework has withstood the vagaries of the current pandemic and validated our strategy in this regard. Business Continuity Management Policy was reviewed & adopted by the Board on 30th June, 2020.

Recovery Procedure Document (RPD): It is a single pager guide during the emergency times which have been implemented across all the ROs and LCBOs and Head office.

The following activities were also carried out under ERM framework: -

a) Outsourcing Policy was reviewed and approved by Board on 12th February, 2021 and it is displayed on the Website and Document Store.

b) The Chief Risk Officer reports to the Risk Management Committee periodically to update on the progress of ERM activities.

CLAIMS MANAGEMENT

The Company carried out the following activities in this vertical during the FY 2020-21

• Close monitoring of non-Suit claims with a target to increase settlement ratio and reduce outstanding claims, irrespective of pandemic conditions

• Review and Monitor Catastrophic claims to enable faster claim settlement

• Implementation of the guidelines enumerated under the Surveyors Management Policy (SMP)adopted by Board on 13.10.2018.

• Focus on claim automation under Motor OD Two- wheeler and Private car segment. Roll out of automatic appointment of surveyors completed in all offices.

• Undertaken virtual training of designated officials of all Regions on claim automation.

Parameter Non-Suit Suit Total
Number of Claims OS as on 01.04.2020 229393 10916 240309
Number of Claims Intimated during 2020-21 3931144 4143 3935287
Number of Claims Settled during 2020-21 3963512 2510 3966022
Number of Claims OS as on 31.03.2021 197025 12549 209574
Claims OS for less than 3 months 171355 372 171727
Claims OS for more than 3 months but less than 1 year 17225 1253 18478
Claims OS for more than 1 year 8445 10924 19369
Claims OS for more than 1 year 6614 125326 131940

? SUIT CLAIMS

Parameter 31.03.2019 31.03.2020 31.03.2021
No of claims O/s 9248 10916 12549
Amount of claims O/s 6617494961 7083597542 7684213437
No of claim O/s for more than one year (Excl.GA and Coinsurance) 7768 9248 10916
Non-Suit Claim Settlement Ratio 26% 27% 16.67%

NON-SUIT CLAIMS

Parameter 31.03.2019 31.03.2020 31.03.2021
No of claims O/s 155690 229393 197025
Amount of claims O/s 6210 cr 7437 cr 8990 cr
No of claim O/s for more than one year (Excl.GA and Coinsurance) 2361 6167 7976
Non-Suit Claim Settlement Ratio 97.00% 95.91% 95.26%

MARKETING

New India remains market leader with a total of 14.33% market share. Our marketing team contributed to this with a share of premium by our development officers of Rs. 5043.61 crores. Our Business Associates have successfully contributed more than Rs.1386.87 crores premium for the FY-2020-21. In all total share of premium by AO (D), AM (D) from all over India is Rs. 1413.98 crores.

CORPORATE COMMUNICATION

Financial Year 2020-21 began under the shadows of Covid 19 pandemic. There were not much Publicity activities during the year because of DFS, MOF s circular of Austerity Measures, except for the Contracts which were already in force before issuance of said Circular.

RIGHT TO INFORMATION ACT

The Right to Information Department set up at Head Office in 2005, processes the requests for information from Citizens from all over the country and adjudicates appeals promptly and efficiently. The Department continues to facilitate the principles of transparency and accountability, in conformity with the grand objectives of the RTI Act. The Central Public Information Officers (CPIOs) of Regional Offices and LCBOs / HUBs also contributed to the promotion of the ideals of the Act, under the umbrella of RTI Department at Head Office.

With a view to maintaining uniformity, consistency and improved standard of approach, the function of First Appellate Authority is centralized at Head Office. In compliance with the directive of CIC, our Company has appointed Transparency Officer in the rank of General Manager.

As per the directives of Ministry of Personnel, Public Grievances and Pensions, DoPT, New Delhi, we have extended the facility of RTI Web Portal w.e.f. 20.07.2016 under the administrative control of Department of Financial Services (DFS). It is a citizen interface which facilitates Indian Citizens to file RTI applications and First Appeals online and also to make online payment of RTI fees.

During the year 2020-21 the total (including online) number of rTi Applications received was 1581 and First Appeals was 301.

In compliance with the CIC guidelines / RTI Act, the Companys official website is up-dated from time to time disclosing and uploading maximum information under xvii points as mandated under the provisions of Section 4(1) (b) of the RTI Act, 2005.

INDUSTRIAL DISPUTES AND DISCIPLINE

The Company made all efforts to maintain a healthy, peaceful, joyful, and stress-free environment at the workplace during the pandemic. To ensure the same, the Company has imparted fruitful virtual training sessions/ programs throughout the Country on CDA Rules, 2014. Given subsequent DoPT circulars and in pursuance of Prevention, Prohibition and Redressal of Sexual Harassment of Women at the Workplace Act, 2013, the Company has revised its Corporate Policy on Prevention, Prohibition & Redressal of Sexual Harassment of Women at the Workplace. The Company has also ensured that Internal Committee is constituted in each Regional Office and Head Office to take care of grievances reported under the policy. The Company has conducted virtual pieces of training/workshops to spread awareness so as to keep the employees updated with the revised policy.

In compliance with CVC guidelines, the Company has revised its online Annual Property Return formats, which has attained more transparency and efficacy now.

There has neither been any labour disturbance nor any IR problem during the Financial Year.

Furthermore, the Company makes persistent efforts for quick disposal of legal matters of employees. Head Office Team is extending prompt help and assistance to R.Os. in effectively attending the court cases. Monitoring of employee related court cases is also being done on regular basis by the Company.

INFORMATION TECHNOLOGY

New Indias IT system has proven to be most resilient, agile and is manned by a very compassionate workforce. Through the entire period of lockdown on account of Corona pandemic spanning over majority period in 2020- 21, our customer safety remained paramount for us. Hence, we expanded online payment facility for all kinds of customers with the help of payment link. It received indeed a phenomenal response. Use of payment link enabled NIA to issue 14.43 lakh policies clocking up premium worth Rs. 1,334 crores. Policy download feature was, also, made available on companys website.

In order to facilitate our health claims service providers, an interactive UI/Portal was given to claim processing partners for easy and faster claim intimation/processing. We are constantly learning and evolving with our customer expectations. As a part of the endeavour to provide a superior, familiar and hassle-free policy purchase cycle, "Add to Cart" facility was provided to our customers to make payments conveniently for more than one product. Installment facility was introduced to greatly increase affordability of our health products which were, indeed, the need of the hour in such pandemic. With a resolve of public service, we developed innovative new products for covid protection and implemented the same in no time.

All such efforts led New India to secure Rs. 7,538 crores as online premium with accretion of 23%.

Our employees donated to PM CARE and CM CARE fund and the entire contribution drive was empowered by our IT systems.

While the interaction with our clients became a challenge in these times, we came up with ingenious ways of collecting feedback of our services. Such feedbacks were tracked at all levels by our management leaving no stone unturned for customer satisfaction.

Concepts like decentralized payment hubs and digital payment instructions to Banks were implemented within a few hours to benefit quick and uninterrupted payments to policyholders and intermediaries resulted in negligible impact of lockdown on New Indias payments. We succeeded in making centralized payments on behalf of various operating offices to the tune of Rs. 421 crores even though they were not functioning due to strict lockdown/shutdown guidelines imposed.

We started our journey in RPA (Robotic Process Automation) last FY and multiplied the implemented use cases from 1 to 8 in this financial year.

We look at future with great hopes that world will be a better place if we know how to use the tools we have in hand, and we at New India consider IT and Insurance combined as a force to reckon with. Although accretion in revenue figures for 2020-21 reflected elsewhere in the annual report may grab attention as against that of previous year, IT department is committed to go beyond such impressive figures and ensure a shining future of the company with technology as its key pillar built on a fundamentally strong foundation of public service and financial inclusion.

HUMAN RESOURCE DEVELOPMENT AND PERSONNEL STAFF WELFARE SCHEMES

• STAFF WELFARE SCHEMES

In line with the tradition of keeping the interest of its employees foremost, the Company has continued to implement welfare schemes for its employees. Active as well as retired employees along with their dependent and non-dependent family members are covered under Group Staff Mediclaim Policy covering all kinds of diseases with minimal exclusions, Group Personal Accident Policy providing 24 hours cover to employees against accidental death or permanent disablement, Group Savings Linked Life Insurance, Group Term Life Insurance, Employees Deposit Linked Life Insurance, Lump sum payment for Domiciliary Medical Treatment, Group Baggage Policy, Education Advance Scheme for children of employees to pursue quality education, Housing Loan at subsidized rate of interest, Medical Check-up facility to Manager and above cadres, Directors Mediclaim Scheme for reimbursement of medical expenses of active as well as retired Directors along with their dependent family members etc.

The Company provides Ex-gratia relief scheme to its employees which provides for reimbursement of medical expenses beyond the Mediclaim cover. Special leave is sanctioned and medical expenses are reimbursed if employee meets with accident whilst on duty which is in addition to the 24 hours Personal Accident cover provided to employees. Special leave is also granted for participating in National & International sports events including Mountaineering, Expedition and Trekking events. Employees are encouraged for pursuing higher post graduate academic courses for which financial assistance is provided.

Other welfare schemes like Vehicle Loans at subsidized rate of interest, Leased accommodation to all cadres of employees, Provision of Holiday Home Facilities, Retirement Benefit and Death Relief Schemes managed by Mutual Benefit Society for employees, Leave Travel Subsidy, Labour Welfare scheme are provided.

In order to facilitate more transparency and expeditious settlement, the Company has implemented online access for all its employees for availing the benefits and necessary training has also been imparted to them.

HUMAN RESOURCES

Employee strength as on 31st March 2021

Category of Employees Male Female Total
Class I 5268 2455 7723
Class II 468 29 497
Class III 4530 1474 6004
Class IV (Excluding Part Time Sweepers) 728 294 1022
Part Time Sweepers 3 0 3
TOTAL 10997 4252 15249

RECRUITMENT AND RESERVATION

Number of employees recruited during 2020-21

Category of Employees SC ST OBC Total Ex-Servicemen PWD
Class-I 0 0 0 0 0 0
Class-II - - - - - -
Class III 10 2 3 32 0 0
Class IV (Excluding Part Time Sweepers) 12 4 4 23 0 0
Part Time Sweepers - - - - - -
TOTAL 22 6 7 55 0 0

Representation of Scheduled Caste, Scheduled Tribe and Other Backward Classes employees under various cadres as on 31.03.2021

Category/Level Total Number Number and Percentage
SC % ST % OBC# %#
Class-I 7723 1587 20.55% 671 8.69% 1022 13.23%
Class-II 497 49 9.86% 29 5.84% 25 5.03%
Class III 6004 1166 19.42% 492 8.19% 975 16.24%
Class IV (Excluding Part Time Sweepers) 1022 527 51.57% 102 9.98% 69 6.75%
Part Time Sweepers 3 2 66.67% 1 33.33% 0 0.00%
TOTAL 15249 3331 21.84% 1295 8.49% 2091 13.71%

• No EWS (Economically Weaker Section) recruitment till 31.03.2021.

The Company Strictly adheres to Brochure provisions and Government DoPT guidelines regarding reservations and concessions in the matter of recruitment and promotion and safeguards the interest of employees belonging to SC/ST/OBC/EWS/PwBD and Ex-servicemen. Pre-promotional training programs are duly organised for all eligible SC/ST/OBC employees for promotion to various cadres. Regular training programs are conducted on personality development, stress management, motivation etc. for SC/ST/OBC employees of various cadres. Various benefits under Dr. B. R.Ambedkar Welfare Trust have been given to SC/ST/OBC employees. SC/ ST/OBC employees have been nominated for NIA, Pune training programmes on a regular basis. Pre-recruitment training programmes are also arranged for SC/ST/OBC candidates at various centres on all-India basis.

A separate reservation cell is actively functioning at Head Office and Regional Office level for SC/ST/OBC/EWS/ PWBD/Ex-servicemen employees. A Liaison Officer under the charge of Chief Liaison Officer manages this cell at Head Office, whereas, Assistant Liaison Officers head the cells at various Regional Offices.

A well-defined mechanism has been provided under which, on yearly basis, the Liaison Officer from the Head Office inspects the Rosters pertaining to recruitment and promotions at all Regional Offices. The inspection report with observations of Liaison Officer, are put up to the Chief Liaison Officer & General Manager (Personnel) for further directions and sent back to the respective Regional Offices with necessary advices. Based on the inspection report, action is taken by the concerned Regional Offices in co-ordination with the Head Office to rectify shortcomings in procedure, if any, observed by the Liaison Officer.

Special attention is given to complaints/grievances raised by SC/ST/OBC employees and they are resolved within shortest possible time-frame.

The Company is providing financial support on behalf of Dr. B. R. Ambedkar Welfare Trust, to various SC/ST/OBC welfare activities. On the eve of Mahaparinirvan Day i.e., December, 6th every year these welfare activities are supported to observe the death anniversary of Dr. B.R. Ambedkar at Chaitya Bhumi, Dadar.

GENDER ISSUES AND EMPOWERMENT OF WOMEN

The Company has a strong women force and provides adequate opportunities for self and career development. A significant number of women Officers, as on 31.03.2021, are holding senior positions in our Offices:

General Manager 3
Deputy General Manager 5
Chief Manager / Regional Manager 38
Divisional Manager / Sr. Divisional Manager 74
Branch Manager / Sr. Branch Manager 64

• Women executives are nominated for various programmes organized by Forum of Women in Public Sector (WIPS)

• Women Officers are also nominated in large numbers to the Programme for Women Managers conducted by National Insurance Academy, Pune

• Womens Committees are constituted at Head Office and various Regional Offices and are actively involved in resolving all gender-related issues/cases referred to them

• The International Womens Day is celebrated on March 8th in all Offices across the country. Seminars are organised at various centers on topics such as Women Entrepreneurship, Stress Management, Work-Life Balance, Mental & Physical Health, Nutritious diets, Rights of women under various laws of the country, and new law for protection of the women at workplace etc. This year, however, due to the COVID-19 pandemic, the day was celebrated on a very restricted scale.

TRAINING

In the competitive scenario of the insurance industry of present times, it is of utmost importance to keep our employees abreast of the changes and to develop their insurance skills both in underwriting and claims settlement. Keeping this in mind, the Company conducts regular training programs. The Company also nominates employees for various training programs organized by external institutes from time to time. The focus of the training is on policy awareness, technical matters, specialized topics, marketing strategies, IT, personality development etc. Apart from emphasizing on mainstream training, the Company encourages nominations in alternate training programs, as arranged for homogenous group of employees. Women employees are also nominated to specialized training programs like the Women Managers Training Programme. Pre-promotional training is imparted to all eligible SC/ST/ OBC employees of all cadres. Pre-recruitment training is imparted to all SC/ST/OBC applicants desirous of availing the same. Based on our study of previous nominations, the system of Training Nominations has shifted from nomination-based to employees work profile based, i.e., the employee is nominated for training relevant to his line of working. Every effort is made to limit the training of an employee to ONE in a year, so that maximum number of employees get the opportunity to be trained.

Apart from above, various Departments at Companys office conducted homogeneous training programmes to respective employees based on their work profile. ™

Due to ongoing Pandemic of Covid-19, all the Off-Line Training Programmes conducted as On-line by Training Institutions i.e., National Insurance Academy, Pune and Insurance Institute of India, Mumbai in the year 2020- 21. Company also, taking into consideration safety of employees, adopted Online Training Pattern for its In- house Training Programmes.

OFFICIAL LANGUAGE IMPLEMENTATION

The Official Language Department of Head Office works as per the guidelines issued by the Official Language Department of Ministry of Home Affairs and Financial Services Department of Finance Ministry. All these guidelines are followed by all the Regional offices and the offices under their control. Due to the Covid pandemic, all the programs are conducted online. For motivating the employees to do work in Hindi, workshops are conducted at HO and RO level. Special Hindi workshop cum training program was conducted to review Official Language progress in the Regional offices. Online Inspection regarding Official Language was carried out for all Regional Offices. Two issues of Corporate Head Office Hindi House Magazine "Arjan" was printed and circulated among all offices online. Hindi symposium was organized with the collaboration of TOLIC, Mumbai (Undertakings), 52 Member Undertaking offices participated online. Hindi Day/Fortnight/Month was organized by all the offices according to their convenience. Our various offices received 35 Awards for the excellent performance of Official Language.

INTERNAL AUDIT

Internal Audit has been playing a vital role towards strengthening the Corporate Governance and complying with the management objectives to improve and strengthen the internal controls.

Internal Audit functions through Audit teams stationed at various Regional offices and supervised by IAD, Head Office. An Annual Audit Plan is drawn by the Dept. so as to ensure that all operating offices (including Branches and Micro Offices) are audited at least once in the financial year. The Department successfully conducted regular audits of their Regional Offices, Claims Hub, Broker DO, LCBOs, Auto Tie-up Offices & HO departments to ensure proper implementation of corporate guidelines.

IAD has also assisted in enhancing the performance of Audit Compliance Cells at various Regional Offices for expediting the resolution of pending audit queries - both CAG and internal. At the end of the financial year, the audit activities & observations of IAD are consolidated in the form of Annual Report and informed to the Board.

The Company has been complying with the Prevention of Money Laundering Act (PMLA) 2002 since it has been made applicable to insurance companies w.e.f 01.08.2006. Amendments issued by IRDAI are adopted by the Board from time to time. The Principal Compliance Officer posted at Corporate Office monitors the compliance of AML guidelines.

IAD, H.O controls the expenses of the company by preparing budget for revenue and capital expenses. After the approval of the Board, the budget is allocated to ROs, LCBOs and various departments at H.O. Due care for budget utilization and periodical review are being taken by IAD, H.O..

LEGAL & CONSUMER FORUM

The Department sustainably works towards achieving the twin objective of minimizing fresh reporting of cases and faster disposal of pending cases which will improve the customer satisfaction index of the Company. The Department handles legal matters pertaining to Arbitration cases and Consumer fora cases/ Supreme Court matters other than T.P claims. All court notices received from various fora/courts in the country are properly monitored on urgent basis and due care is taken to ensure that the same are attended to by ROs. Amid the challenges caused by the pandemic, the Department has been overseeing the settlement of consumer cases across all Regional offices. With travel restrictions in place, the Department had conducted virtual meetings with all Regional offices to facilitate faster disposal of the cases. In spite of Courts/ for a being shut across the country, the Department was unyieldingly passionate in pursuing its objective -and achieved settlement of 2164 cases in dispute- with a settlement ratio of 16.67%.

Meanwhile the New Consumer Protection Act 2019 came into effect in July 2020 introducing stricter provisions for enforcement of consumer rights and exposing the frontline offices to new challenges of defending consumer cases. To make the best of Pandemic standstill, a month-long virtual training for all litigation handlers, across all ROs, were conducted to sensitise them on the nuances and impacts of the New Act. The New Provisions called upon sellers/service providers to redefine prevalent approach of handling consumer disputes. The Department has been supervising the adaptation of such new practice. To bring in professionalism and pragmatism to dispute- handling offices, a hand-holding practice of HO approval (in respect of high exposure cases exceeding Rs. 1 crore) in selection of advocate and strategy/defense has been introduced. This helps the ROs to put their best foot forward in defending/resolving such matters from beginning.

During the year 12 arbitration cases were received and 4 cases were resolved.

Another critical area which engages persistent attention of the Department is Execution cases against Head Office Executives which are mostly filed as arm-twisters. The Department has successfully overseen favourable disposal of such cases by rigorous follow-up with and professional guidance to ROs. No adverse court order of arrest/contempt/attachment/enforcement was received against HO executives during the year on matters dealt by this Department.

VIGILANCE

The vigilance department is headed by Chief Vigilance Officer. The department is staffed with Chief Manager and Desk Officers who deal with matters relating to various Regional Offices. Each Regional Office has a Vigilance Officer who directly reports to Vigilance department, Head Office. The focus of the department is to create a sound vigilance culture with emphasis upon the Preventive Vigilance Mechanism which will bring not only systemic improvement but also raise the standard of corporate governance. Robust preventive vigilance measures with a sound vigilance culture across the organization would help in achieving organizational excellence. The Vigilance Committee at HO (VCHO) and the Preventive Vigilance committees (PVC) at Regional Offices are also contributing on vigilance awareness and preventive vigilance. Internal Advisory committee ensure that there is fairness and justice in determination of vigilance angle and timely completion of disciplinary proceedings. The department conducts inspection of various offices on a surprise basis, i.e., where the concerned office is not given advance information of the proposed visit of the Vigilance Officer. Based on the reports of such surprise inspection, salient points are pointed out to the Region-in-charge. Any observation that leads to vigilance investigation is taken up accordingly. During the year 2020-21, surprise inspection was conducted at 485 offices, comprising of Divisional Offices, Branch Offices, Micro Offices and RO/ TP/OD HUB. Regular Preventive Vigilance Workshops were conducted at various offices and Head Office to educate and sensitize the staff about the importance of vigilance in public and personal life. Recommendations were also made for further improvement of the system. Vigilance awareness week was observed from 27th October 2020 to 02nd November 2020. The theme for the year was "Vigilant India - Prosperous India". During the Vigilance Awareness week various activities / events / competitions within and outside organization were organized to spread the message of building a corruption free and strong India.

PARTICULARS WITH REGARD TO EMPLOYEES DRAWING REMUNERATION IN EXCESS OF RUPEES ONE CRORE TWO LAKH PER ANNUM IF EMPLOYED THROUGHOUT THE YEAR OR EIGHT LAKH FIFTY THOUSAND PER MONTH IF EMPLOYED FOR PART OF THE YEAR

TABLE OF REMUNERATION

SR. NAME OF THE NO. EMPLOYEES SERVICE (IN YRS) DESIGNATION REMUNERATION QUALIFICATION DATE OF JOINING AGE LAST EMPLOYMENT HELD PLACE
1 PHILIP SCOTT 44 CHIEF UNDERWRITER (Facultative) 1,79,23,209.12 ACII 01.08.2011 64 Assicurazione Generali SPA LONDON
2 JAMES DAY 38 CHIEF UNDERWRITER (Treaty) 1,65,11,665.60 ACII 19.09.2011 58 Brit Insurance LONDON

SECRETARIAL STANDARDS

During FY 2020-21, the Company was compliant with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India with respect to Board and General Meetings.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING GOING STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS.

BSE Limited and National Stock Exchange Limited imposed a penalty of Rs. 5,31,000/- (Rupees Five Lakhs Thirty-One Thousand only) each with respect to the non-compliance of Regulation 17(1) of lOdR, 2015. The Company has made representation with regard to the same that the Company is a Government of India Undertaking and all the Directors are appointed by the Government of India.

EVALUATION OF BOARD COMMITTEES & DIRECTORS

The Evaluation criteria for evaluation of the Board, Directors and the Committees was approved by the Nomination and Remuneration Committee. Subsequently, evaluation of the Board, Directors and the Committees were carried-out for FY 2020-21.

DIRECTORS AND OFFICERS INSURANCE

As per the requirements of Regulation 25(10) of the Listing Regulations, the Company has taken "Directors and Officers Insurance" for all its Directors.

AUDITORS RESPONSE TO REMARKS

The replies to the qualification made by the Statutory Auditors in their report is attached as Annexure to the Directors Report.

SECRETARIAL AUDITORS

Pursuant to provisions of Section 204 of the Companies Act 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, the Company had appointed Mehta & Mehta, Practicing Company Secretary to conduct Secretarial Audit Report is annexed herewith as Annexure. There are no qualifications, reservation, adverse remark or disclaimer made by the auditor in the report save and except for observations and disclaimer made by them in discharge of their professional obligation.

INTERNAL FINANCIAL CONTROL AND ITS ADEQUACY

The Board has adopted policies & procedures for ensuring the orderly & efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention & detection of fraud, ever reporting mechanisms, the accuracy and completeness of the accounting records and the timely preparation of reliable financial disclosures.

RELATED PARTY TRANSACTIONS

The Company undertakes transactions with related parties in the ordinary course of business. The details of related party transactions are disclosed under Notes to Financial Statements for FY 2020-2021.

Board approved policy on Related Party Transactions has been hosted on the website of the Company and can be viewed at the below link:

https://www.newindia.co.in/cms/755da005-5d81-4145-bfe3- 43b8f82caecf/Related%20party%20Policy.pdf?guest=true

REPORTING OF FRAUDS:

During the year under review, there were no instances of fraud reported by the Statutory auditors and secretarial auditor under section 143(12) of the Act to the Audit Committee or the Board of Directors of the Company.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI)

The Company being a General Insurance Company, its working and functions are governed by the regulations of Insurance Regulatory and Development Authority of India. The Accounts of the Company are drawn up according to the stipulations prescribed in the IRDA (preparation of Financial Statements and Auditors Report) Regulations 2002 and as amended from time to time.

CREDIT RATING

AM Best Company has affirmed the Financial Strength Rating of B++ (Stable Outlook) and Issuer Credit Rating: bbb+ (Stable Outlook). CRISIL has assigned its Corporate Credit Rating (CCR) of CCR AAA/Stable (Re-affirmed).

FOREIGN EXCHANGE EARNING & OUTGO AND INFORMATION

The particulars of Foreign Exchange earnings/outgo as required by the Companies Act under Section 134(3)(m) is given below:

Earnings: Rs. 760.23 Crores. (Previous year Rs. 645.83 Crores.) Outgo: Rs. 1061.56 Crores. (Previous year Rs. 1554.06 Crores.)

The earnings included all receipts denominated in foreign currencies in respect of premium, recovery of claims outward commission and investment earnings. The outgo comprised all payments in foreign currency in respect of outward premium, claims on reinsurance accepted, commission and expenses of management.

Expenses on (a) Entertainment (b) Foreign tours and (c) Publicity and Advertisement amounted to Rs. 29,60,965 (PY Rs. 94,98,362), Rs. 11,12,996 (PY Rs. 2,04,34,903) and Rs. 28,23,11,932 (PY Rs. 52,40,41,287) respectively.

DIVIDEND & DIVIDEND DISTIRBUTION POLICY

In terms of Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 ("Listing Regulations") the Dividend Distribution Policy of the Company has been hosted on Companys website and can be viewed at the below mentioned link:

https://www.newindia.co.in/cms/c52d520f-6589-4772-bcc8-e214657297ec/Dividend%20DistributionPolicy.

pdf?guest=true

CONSOLIDATED FINANCIAL STATEMENTS

Provisions regarding Financial Statements are laid down under Section 129 of the new Companies Act 2013. As per the provision of Section 129 (2) of the said Act, at every Annual General Meeting of a company, the Board of Directors of the Company shall lay before such meeting financial statements for the financial year. Section 129(3) of the Companies Act 2013 provides that where a company has one or more subsidiaries, it shall, in addition to financial statements provided under sub-section (2) of Section 129, prepare a Consolidated Financial Statement of the company and of the subsidiaries in the same form and manner as that of its own which shall also be laid before the Annual General Meeting of the company along with the laying of its financial statements under Sub Section (2) of Section129.

The Company prepares Standalone Financial Statements and Consolidated Statements which are available in the Annual Report.

BUSINESS RESPONSIBILITY REPORTING

The Business Responsibility Report (BRR) forms part of the Annual Report.

SHARE CAPITAL

The issued and paid-up equity share capital of the Company as on March 31, 2021 is Rs. 824 crores. The solvency margin position of the Company as at March 31, 2021 is 2.13 times as against the minimum solvency margin requirement of 1.50 times as prescribed by IRDAI.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The provisions of Section 186(4) of the Companies Act, 2013 ("the Act") requiring disclosure in the financial statements of full particulars of the loans given, investment made or guarantee given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security is not applicable to the Company.

INDEPENDENT DIRECTORS

All Independent Directors of the Company have given declarations that they meet the criteria of independence as laid down under Section 149(6) & (7 of the Act, the Companies (Appointment and Qualification of Directors) Rules, 2014 as amended from time to time and Regulation 16(1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"). All the Independent Directors of the Company have also confirmed that they have complied with Schedule IV of the Act and the Companys Code of Conduct for Directors and Senior Management.

A certificate complying with Regulation 25(9) of SEBI (Listing Obligations and Disclosure Requirements) issued by the Practicing Company Secretary has been attached as "Annexure".

Independent Directors Meeting of the Company was held during the Financial Year.

DEPOSITS

During the year under review, the Company has not accepted any deposits under Section 73 of the Act.

MAINTENANCE OF COST RECORDS

Being an Insurance Company, the Company is not required to maintain cost records as specified by the Central Government under Section 148(1) of the Act.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All the transactions with related parties were in the ordinary course of business and on arms length basis and there were no material contracts or arrangement or transactions entered with related parties during the FY 2020-21

UNPAID/UNCLAIMED DIVIDEND

Pursuant to Section 124 & 125 of the Act read with the Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016, the Company was not required to transfer any unpaid/unclaimed dividend amount to the Investor Education and Protection Fund in FY 2020-21.

CODE OF CONDUCT AS PRESCRIBED UNDER THE SECURITIES AND EXCHANGE BOARD OF INDIA (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015

In accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015 ("Insider Trading Regulations"), the Company has in place a code of conduct to regulate, monitor and report trading by its Designated Persons ("the Insider Trading Code") to the extent specified in the Insider Trading Code of the Company. The Insider Trading Code of the Company has been revised in line with the amendments in the Insider Trading Regulations, as amended from time to time.

The Company also has in place Code of Conduct to Regulate, Monitor and Report Trading by Insiders which is hosted on the website of the Company and can be viewed at:

https://www.newindia.co.in/cms/83cd316d-91ce-4783-8322-e2772fd6dc87/Code_of_Conduct.pdf?guest=true

CEO/CFO CERTIFICATION

Pursuant to Regulation 17(8) of the Listing Regulations, Certification by the Managing Director & CEO and the Chief Financial Officer of the Company on the financial statements and the Internal Financial Controls relating to financial reporting for FY 2020-21 has been obtained.

CORPORATE GOVERNANCE:

The Company is fully committed to follow sound corporate governance practices. The Companys Board is constituted in compliance with Companies Act, 2013, in accordance with SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 and IRDAI Corporate Governance guidelines 2015. The Board comprises of Corporate Governance refers to the set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders in this case would include everyone ranging from the board of Directors, management, shareholders to customers, employees and society. The management of the company hence assumes the role of a trustee for all others.

The Board meets at least once a quarter to review the quarterly, financial, and operational and investment performance of the Company. The companys philosophy on corporate Governance lays strong emphasis on transparency, accountability and integrity. Corporate governance is concerned with the establishment of a system whereby the Directors are entrusted with responsibilities and duties in relation to the directions of corporate affairs. It is concerned with accountability of who are managing it. It is concerned with morals, ethics, values, parameters, conduct and behaviour of the company and its management.

The Board functions either as an entity per se, or through various committees constituted to oversee specific operational areas. There is an appropriate mix of Executive, Non-Executive and Independent Directors to maintain the independence of the Board None of the Directors are related to any other Directors or employees of the Company.

BOARD OF DIRECTORS:

The composition of the Board of Directors as on 31.03.2021:

(i) Mr. Atul Sahai, Chairman-cum-Managing Director

(ii) Dr. Balla Swamy, Director & General Manager

(iii) Mr. Sanjeev Kaushik, Government Nominee Director

(iv) Ms. Vandita Kaul, Government Nominee Director

(v) Mr. A K Goel, Director

(vi) Mr. A S Rajeev, Director

The Board underwent the following changes in its composition since the date of last Directors report, i.e., 30th June, 2020:

• Cessation of Mr. Sanjeev Kumar Chanana, Non-Executive Independent Director w.e.f. 28th September 2020.

• Cessation of Mr. Samir Kumar Banerjee, Non- Executive Independent Director w.e.f. 28th September 2020.

• Appointment of Dr. Ballaswamy (General Manager) as Whole-Time Director w.e.f 01st December, 2020.

• Superannuation of Dr. Ballaswamy as Director & General Manager w.e.f 30th June, 2021.

• Appointment of Ms. Susmita Mukherjee as Director & General Manager w.e.f 01st December, 2020.

• Superannuation of Ms. Susmita Mukherjee as Director & General Manager w.e.f 31st December, 2020.

• Cessation of Ms Padmaja Chunduru as Non- Executive Independent Director w.e.f 9th July 2020

• Appointment of Ms Vandita Kaul as Government Nominee Director w.e.f 3rd July 2020

• Appointment of Mr. Satyajit Tripathy as Director & General Manager w.e.f. 06th August, 2021

• The Board placed on record its thanks to Ms Padmaja Chunduru, Mr. Sanjeev Kumar Chanana, Mr. Samir Kumar Banerjee, Ms. Susmita Mukherjee and Dr. Ballaswamy for their co-operation to the Board during their tenure. The Board also extended its warm appreciation to the above Directors for their timely guidance and support to the Board members.

PRESENT DETAILS OF BOARD OF DIRECTORS

Name Designation Qualifications Field of Specialisation/ Existing skills/expertise/ competence
Atul Sahai DIN 07542308 Chairman cum Managing Director M.A, D.C.M, A.I.I.I Insurance & Finance
Sanjeev Kaushik DIN 02842527 Government Nominee Director Mechanical Engineer (BITS Pilani), MBA Finance & Investment
Vandita Kaul DIN 07854527 Government Nominee Director B.Sc. (Hons in Zoology), M.Sc. Zoology (University of Delhi), Diploma in Systems Management (NIIT) Finance
Atul Kumar Goel DIN 07266897 Non-Executive & Independent Director B.COM, CA Banking, Investments & Finance
Aerathu Sekharapanicker Rajeev DIN 07478424 Non-Executive & Independent Director Mathematics Graduate, FCA, MBA Banking, Investments & Finance
Satyajit Tripathy DIN 08681994 Executive Director & General Manager Bachelors Degree in Science (Agriculture), PG Diploma in Management from XiMB Insurance & Agriculture Reinsurance

The Board meets at regular intervals to discuss and decide on business policy and strategy apart from other board businesses. The Board of the Company met five (5) times during the year under review on June 30, 2020, August 14, 2020, November 11, 2020, November 30, 2020 and February 12, 2021.The maximum gap between any two Board meetings was less than one hundred and twenty days.

In the opinion of the Board, the Independent Directors fulfil the conditions specified in the Listing Regulations and are independent of the management. There were no inter-se relationships between any of the Directors.

The names of the Directors, their attendance at Board Meetings during the year, attendance at the last AGM and the number of other Directorships and Board Committee memberships/chairpersonships held by them at March 31, 2021 are set out in the following tables:

Name of Director Board meetings attended/held during the financial year Attendance at last AGM held on Friday, 29th October, 2020
Mr. Atul Sahai 5/5 Present
Dr. Ballaswamy1 1/1 N/A
Ms. Susmita Mukherjee2 0/0 N/A
Mr. Sanjeev Kaushik 5/5 Absent
Ms. Padmaja Chunduru3 0/1 N/A
Mr. A K Goel 5/5 Present
Mr. A S Rajeev 4/5 Absent
Ms. Vandita Kaul 3/4 Absent
Mr. Sanjeev Kumar Chanana4 2/2 N/A
Mr. Samir Kumar Banerjee5 2/2 N/A

 

1 Appointed on 01st December, 2020 & ceased to be Director & GM w.e.f 30th June, 2021

 

2 Appointed on 01st December, 2020 & ceased to be Director w.e.f 31st December, 2020

 

3 Ceased to be Director on 09th July, 2020

 

4 Ceased to be Director on 28th September, 2020

 

5 Ceased to be Director on 28th September, 2020

Mr. Sharad S Ramnarayanan, Appointed Actuary of the Company is a permanent invitee to the Board meetings.

The details of "Directorships held in other companies" and "Memberships/Chairpersonships of committees in other companies" as on March 31, 2021 are as follows:

Name of Director No. of other directorships Name of other listed companies where he/she is Director Number of Committees of other Companies*
Company Category of Directorship In which a member Chairman
Mr. Atul Sahai 1 GIC Housing Finance Ltd. Non-Executive Director 0 0
Dr. Ballaswamy 1 - - - - -
Mr. Sanjeev Kaushik - - - - -
Ms. Vandita Kaul 1 Bank of Maharashtra Government Nominee Director 1 0
Mr. A K Goel 1 UCO Bank Managing Director & CEO 0 0
Mr. A S Rajeev 1 Bank of Maharashtra Managing Director & CEO 0 0

 

1 Appointed on 01st December, 2020 and ceased on 30th June, 2021.

*Memberships/Chairpersonships in Audit Committee and Stakeholders Relationship Committee of Indian public limited companies; number of Memberships includes Chairpersonships.

In terms of Listing Regulations, the number of Committees (Audit Committee and Stakeholders Relationship Committee) of public limited companies in which a Director is a member/ chairman/chairperson were within the limits prescribed under the Listing Regulations, for all the Directors of the Company. The number of Directorships of each Non-executive, Independent Director is also within the limits prescribed under the Listing Regulations as amended from time to time.

The Board has identified the following skill sets with reference to its business and industry which are available with the Board viz. Finance, Accountancy & Law, Administration, Corporate Governance, Corporate Planning and Strategy.

The Members of the Board of Directors of the Company has the necessary Skills/Expertise/Competence in the above- mentioned areas.

Details of Equity Shares held by Non-Executive Directors as on March 31 2021:

NIL

Recommendations of mandatory Committees

During the year under review, all the recommendations made by the Committees of the Board mandatorily required to be constituted by the Company under the Act, Listing Regulations and IRDAI Guidelines were accepted by the Board.

COMMITTEES OF THE BOARD:

The Board has constituted the following committees:

i) Audit Committee

ii) Investment Committee

iii) Risk Management Committee

iv) Policyholders Protection Committee

v) Nomination & Remuneration Committee

vi) Corporate Social Responsibility Committee

vii) Stakeholders Relationship Committee

viii) Information Technology Committee

ix) Board Sub-Committee (HR)

x) Property Review Committee

The terms of reference, the composition along with the number of meetings held during FY 2021 and the attendance of the Committees of the Board are provided below:

AUDIT COMMITTEE:

Terms of Reference:

1. Oversight of the companys financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.

2. Recommendation for appointment, remuneration and terms of appointment of auditors of the company.

3. Approval of payment to statutory auditors for any other services rendered by the statutory auditors.

4. Reviewing, with the management, the annual financial statements and auditors report thereon before submission to the board for approval, with reference to:

a. Matters required to be included in the Directors Responsibility Statement to be included in the Boards report in terms of clause (c) of sub-section 3 of section 134 of the Companies Act, 2013

b. Changes, if any, in accounting policies and practices and reasons for the same.

c. Major accounting entries involving estimates based on the exercise of judgment by management

d. Significant adjustments made in the financial statements arising out of audit findings

e. Compliance with listing and other legal requirements relating to financial statements

f. Disclosure of any related party transactions

g. Qualifications/ modified opinion(s) in the draft audit report

5. Reviewing, with the management, the quarterly financial statements before submission to the board for approval including the financial statements, in particular, the investments made by unlisted subsidiary(ies);

6. Reviewing, with the management, the statement of uses /application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document /prospectus /notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter;

7. Review and monitor the auditors independence and performance, and effectiveness of audit process;

8. Approval or any subsequent modification of transactions of the company with related parties;

9. Scrutiny of inter-corporate loans and investments;

10. Valuation of undertakings or assets of the company, wherever it is necessary;

11. Evaluation of internal financial controls and risk management systems;

12. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems;

13. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;

14. Discussion with internal auditors of any significant findings and follow up there on;

15. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board;

16. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern;

17. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors

18. To review the functioning of the Whistle Blower mechanism;

19. Approval of appointment of CFO (i.e., the whole-time Finance Director or any other person heading the finance function or discharging that function) after assessing the qualifications, experience and background, etc. of the candidate;

20. Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.

21. To review the utilization of loans and/or advances from/ investment by the holding company in the subsidiary exceeding rupees 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing loans / advances / investments existing as on 1 April 2019.

22. To review Management discussion and analysis of financial condition and results of operations;

23. To review and approve Statement of significant related party transactions (as defined by the Audit Committee), submitted by management;

24. To review Management letters / letters of internal control weaknesses issued by the statutory auditors;

25. To review Internal audit reports relating to internal control weaknesses;

26. To review the appointment, removal and terms of remuneration of the Chief internal auditor.

27. To review statement of deviations:

a. quarterly statement of deviation(s) including report of monitoring agency, if applicable, submitted to stock exchange(s) in terms of Regulation 32(1) of SEBI Listing Regulations, 2015.

b. annual statement of funds utilized for purposes other than those stated in the offer document/prospectus/ notice in terms of Regulation 32(7) of SEBI Listing Regulations, 2015.

28. To review compliance with the provisions of Regulation 9A of SEBI (Prohibition of Insider Trading) Regulations, 2015 at least once in a financial year and verify that the systems for internal control are adequate and are operating effectively.

Composition: In terms of provisions of the Act and Listing Regulations, the Audit Committee comprises of three (3) Members, out of which two (2) are Independent Directors and one (1) is Non-executive Independent Director. The Chairperson as per the SEBI (LODR), 2015 amendment shall be an independent Director and he/she shall be present at the AGM to answer all the questions. As per the rule, the Audit Committee is chaired by Mr. A S Rajeev (Non-Executive Independent Director) of the Company.

As per the Regulation, the Audit Committee is required to meet at-least 4 times in a year and not more than 120 days shall elapse between 2 meetings. In terms of provisions of the Act and Listing Regulations, the Audit Committee comprises of three (3) Members, out of which two (2) are Independent Directors and one (1) is Non-executive Independent Director. The Audit Committee met five (5) times during the year under review on June 30, 2020, August 12, 2020, August 14, 2020, November 11, 2020, and February 12,2021.

Attendance of Members of the Audit Committee:

Directors Category Number of Meetings Attended/Held
Mr. A S Rajeev Non-Executive Independent Director 5/5
Mr. Samir Kumar Banerjee1 Non-Executive Independent Director 3/3
Mr. Sanjeev Kumar Chanana2 Non-Executive Independent Director 3/3
Mr. A. K. Goel3 Non-Executive Independent Director 2/2
Mr. Sanjeev Kaushik4 Government Nominee Director 2/2

 

1 Samir Kumar Banerjee ceased to be member w.e.f. 28th September, 2020.

 

2 Sanjeev Kumar Chanana ceased to be member w.e.f. 28th September, 2020.

 

3 A.K. Goel was appointed as a member of the Audit Committee w.e.f. 03rd October, 2020.

 

4 Mr. Sanjeev Kaushik was appointed as a member of the Audit Committee w.e.f. 03rd October, 2020.

INVESTMENT COMMITTEE:

Terms of Reference:

1. Overseeing the implementation of the investment policy approved by our Board from time to time;

2. Reviewing the investment policy;

3. Periodical updating to our Board with regard to investment activities of the Company;

4. Reviewing the investment strategies adopted from time to time and giving suitable directions as needed in the best interest of the Company;

5. Reviewing the broker policy and making suitable amendments from time to time;

6. Reviewing counter party/intermediary exposure norms;

7. Supervising the asset allocation strategy to ensure financial liquidity, security and diversification through liquidity contingency plan and asset liability management policy; and

8. Overseeing the assessment, measurement and accounting for other than temporary impairment in investments in accordance with the policy adopted by the Company.

Composition: In terms of Corporate Governance Guidelines issued by IRDAI, the Investment Committee comprises of seven (7) Members, out of which two (2) are Independent Directors, one (1) is Whole Time Director, one is the Chief Investment Officer, Chief Financial Officer, Appointed Actuary & Chief Risk Officer each. The Investment Committee is chaired by Atul Sahai, Chairman cum Managing Director (Whole Time Director) of the Company.

The composition of the Investment Committee is given below along with the attendance of the members. The Investment Committee met four (4) times during the year under review on June 26, 2020, August 14, 2020, October 20, 2020, and January 28, 2021.

Attendance of the Members of the Investment Committee:

Directors/ Member Category Number of Meetings Attended/Held
Mr. Atul Sahai Chairman & Managing Director 4/4
Mr. Samir Kumar Banerjee1 Non-Executive Independent Director 2/2
Mr. Sanjeev Kumar Chanana2 Non-Executive Independent Director 2/2
Mr. A.S. Rajeev3 Non-Executive Independent Director 2/2
Mr. A. K. Goel4 Non-Executive Independent Director 2/2
Ms. S N Rajeswari5 Member 1/1
Ms. Gouri Rajan6 Member 4/4
Mr. Sharad S Ramnarayanan Member 4/4
Mr. Titus F Maliakkel7 Member 3/3
Mr. Rajesh Dua Member 4/4
Mr C S Ayappan8 Member 0/0

 

1 Samir Kumar Banerjee ceased to be member w.e.f. 28th September, 2020.

 

2 Sanjeev Kumar Chanana ceased to be member w.e.f. 28th September, 2020.

 

3 Mr. A.S. Rajeev was appointed as a member of the IC w.e.f. 01st October, 2020

 

4 Mr. A.K. Goel was appointed as a member of the IC w.e.f. 01st October, 2020

 

5 S N Rajeswari ceased to be a member of w.e.f 30th June 2020

 

6 Gouri Rajan ceased to be Chief Risk Officer w.e.f 15th March 2021

 

7 Mr. Titus F. Maliakkel was appointed as a member of the IC w.e.f. 07th August, 2020

 

8 C S Ayappan was nominated as Chief Risk Officer w.e.f 15th March 2021.

RISK MANAGEMENT COMMITTEE:

Terms of Reference:

1. To review and assess the risk management system and policy of the Company from time to time and recommend for amendment or modification there of;

2. To frame and devise risk management plan and policy of the Company;

3. To review and recommend potential risk involved in any new business plans and processes;

4. Establish effective Risk Management framework and recommend to the Board the Risk Management policy and processes for the organization;

5. Set the risk tolerance limits and assess the cost and benefits associated with risk exposure;

6. Review the Companys risk - reward performance to align with overall policy objectives;

7. Discuss and consider best practices in risk management in the market and advise the respective functions;

8. Assist the Board in effective operation of the risk management system by performing specialized analyses and quality reviews;

9. Maintain an aggregated view on the risk profile of the Company for all categories of risk including insurance risk, market risk, credit risk, liquidity risk, operational risk, compliance risk, legal risk, reputation risk;

10. Advise the Board with regard to risk management decisions in relation to strategic and operational matters such as corporate strategy, mergers and acquisitions and related matters;

11. Report to the Board, details on the risk exposures and the actions taken to manage the exposures; review, monitor and challenge where necessary, risks undertaken by the Company;

12. Review the solvency position of the Company on a regular basis;

13. Monitor and review regular updates on business continuity;

14. Formulation of a Fraud monitoring policy and framework for approval by the Board;

15. Monitor implementation of Anti-fraud policy for effective deterrence, prevention, detection and mitigation of frauds;

16. Review compliance with the guidelines on Insurance Fraud Monitoring Framework, issued by the Authority;

17. Any other similar or other functions as may be laid down by Board from time to time;

18. To perform such other functions as the Board may deem fit from time to time, which shall also cover cyber security.

Composition : In terms of the provisions of the Act, the Risk Management Committee shall have minimum three members with majority of them being members of the board of Directors, including at least one independent Director and in case of a listed entity having outstanding SR equity shares, at least two thirds of the Risk Management Committee shall comprise independent Directors. The quorum for a meeting of the Risk Management Committee shall be either two members or one third of the members of the committee, whichever is higher, including at- least one member of the board of Directors in attendance. The meetings of the risk management committee shall be conducted in such a manner that on a continuous basis not more than one hundred and eighty days shall elapse between any two consecutive meetings. The board of Directors shall define the role and responsibility of the Risk Management Committee and may delegate monitoring and reviewing of the risk management plan to the committee and such other functions as it may deem fit such function shall specifically cover cyber security. The risk management committee shall meet at least twice in a year. As per the SEBI (LODR) Second Amendment Regulations, 2021 the provisions of this regulation shall be applicable to top "1000" listed entities, determined on the basis of market capitalisation, as at the end of the immediate previous financial year. The Risk Management Committee met four (4) times during the year under review on June 26, 2020, October 20, 2020, January 28,2021 and March, 24, 2021.

Attendance of Members of the Risk Management Committee:

Directors/ Member Category Number of Meetings Attended/Held
Mr. Atul Sahai Chairman & Managing Director 4/4
Dr. Ballaswamy1 Executive Director 2/2
Mr. A.S. Rajeev2 Non-Executive Independent Director 3/3
Mr. A. K. Goel3 Non-Executive Independent Director 3/4
Mr. S.K. Banerjee4 Non-Executive Independent Director 1/1
Mr. S.K. Chanana5 Non-Executive Independent Director 1/1

 

1 Dr. Ballaswamy was appointed as a member of the RMC w.e.f. 02.12.2020

 

2 Mr. A.S.Rajeev was appointed as a member of the RMC w.e.f. 01.10.2020

 

3 Mr. A.K.Goel was appointed as a member of the RMC w.e.f. 01.10.2020

 

4 Mr. S.K.Banerjee ceased to be member w.e.f. 28.09.2020

 

5 Mr. S.K.Chanana ceased to be member w.e.f. 28.09.2020

As per IRDAI guidelines, Mr. Sharad Ramnarayanan, Appointed Actuary, Ms Gouri Rajan, Chief Risk Officer (upto 15.03.2021) and Mr. C. S. Ayyappan, Chief Risk Officer (from 15.03.2021) were present in all meetings of the Risk Management Committee held during the year.

POLICYHOLDERS PROTECTION COMMITTEE:

Terms of Reference :

1. Putting in place proper procedures and effective mechanism to address complaints and grievances of Policyholders including mis-selling by intermediaries;

2. Ensuring compliance with the statutory requirements as laid down in the regulatory framework;

3. Reviewing the mechanism at periodic intervals;

4. Ensuring adequacy of "material information" to the policyholders to comply with the requirements laid down by the authority both at the point of sale and periodic intervals;

5. Reviewing the status of complaints at periodic intervals;

6. Providing the details of grievance at periodic intervals in such formats as may be prescribed by the authority;

7. Providing details of insurance ombudsman to the policyholders;

8. Monitoring of payments of dues to the policyholders and disclosure of unclaimed amount thereof;

9. Review of regulatory reports to be submitted to various authorities;

10. To review the standard operating procedures for treating the customer fairly including time-frames for policy and claims servicing parameters and monitoring implementation thereof;

11. To review the framework for awards given by Insurance Ombudsman/ Consumer Forums. Analyse the root cause of customer complaints, identify market conduct issues and advise the management appropriately about rectifying systemic issues, if any;

12. To review all the awards given by Insurance Ombudsman/ Consumer Forums remaining unimplemented for more than three (3) months with reasons therefore and report the same to our Board for initiating remedial action, where necessary;

13. To review claim report including status of outstanding claims with ageing of outstanding claims; and

14. To review repudiated claims with analysis of reasons

15. Recommend a policy on customer education for approval of the Board, and ensure proper implementation of such policy;

16. Put in place systems to ensure that policy holders have access to redressal mechanisms and shall establish policies and procedures for the creation of a dedicated unit to deal with customer complaints and resolve disputes expeditiously;

17. Review of unclaimed amounts of policyholders, as required under the circulars and guidelines issued by the Authority.

Composition: In terms of Corporate Governance Guidelines issued by IRDAI, the Policyholders Protection Committee comprises of five (5) Members, out of which two (2) are Non- Executive Independent Directors, one (1) is Executive Director, one (1) is Whole Time Director and one (1) is Policyholder Representative. Committee is chaired by A. K. Goel Non- Executive Independent Director. The Policyholders Protection Committee met four (4) times during the year under review on

June 26, 2020, October 20, 2020, January 28,2021 and March 24, 2021.

Attendance of Members of the Policyholders Protection Committee :

Directors/Member Category Number of Meetings Attended/Held
Mr. A K Goel Non-Executive Independent Director 3/4
Mr. A.S. Rajeev1 Non-Executive Independent Director 3/3
Mr. S.K. Banerjee2 Non-Executive Independent Director 1/1
Mr. S.K. Chanana3 Non-Executive Independent Director 1/1
Mr. Atul Sahai Chairman cum Managing Director 1/1
Dr. Ballaswamy4 Executive Director 1/1
Mr. Surinder Kanwar Policyholder Representative 4/4

 

1 Mr. A.S.Rajeev was appointed as a member of the PPC w.e.f. 01st October,2020

 

2 Mr. S.K.Banerjee ceased to be member w.e.f. 28th September, 2020.

 

3 Mr. S.K.Chanana ceased to be member w.e.f. 28th September, 2020.

 

4 Dr. Ballaswamy ceased to be member w.e.f 30th June, 2021.

* NOMINATION & REMUNERATION COMMITTEE:

Terms of Reference :

1. To formulate a criterion for determining qualifications, positive attributes and independence of a Director.

2. Formulate criteria for evaluation of Independent Directors and the Board.

3. To recommend to the Board policy relating to remuneration for Directors, Key Managerial Personnel and Senior Management.

4. Ensure that level and composition of remuneration is reasonable and sufficient, relationship of remuneration to performance is clear and meets appropriate performance benchmarks 8. To devise a policy on Board diversity.

5. Recommend to the Board, remuneration including salary, perquisite and commission to be paid to the Companys Executive Directors on an annual basis or as may be permissible by laws applicable.

6. Recommend to the Board, the Sitting Fees payable for attending the meetings of the Board/Committee thereof, and, any other benefits such as Commission, if any, payable to the Non- Executive Directors.

7. To carry out any other function as is mandated by the Board from time to time and / or enforced by any statutory notification, amendment or modification, as may be applicable.

8. To perform such other functions as may be necessary or appropriate for the performance of its duties.

Composition: In terms of provisions of the Act and Listing Regulations the NRC Committee shall constitute of at least 3 Directors. All shall be non-executive Directors and at least 50% shall be independent Directors. In case of entity having outstanding SR Equity shares, it shall consist of 2/3rd Independent Directors. The Chairperson of the Committee shall be independent Director. The Chairperson of Listed Entity whether executive or non-executive can be member but cant be Chairperson of this Committee. In terms of provisions of the Act and Listing Regulations, the Board Nomination and Remuneration Committee comprises of Four (4) Members, out of which two (2) are Non-executive Independent Director, one (1) is Non- Executive Non-Independent Director and one (1) is Whole Time Director. The Board Nomination and Remuneration Committee is chaired by Mr. A. K. Goel, Non- Executive Independent Director of the Company. The composition of the Board Nomination and Remuneration Committee is given below along with the attendance of the Members. The Board Nomination and Remuneration Committee met three (3) time during the year under review on June 30, 2020, August 14, 2020, and October 20,2021.

Attendance of Members of the Nomination & Remuneration Committee:

Directors/Member Category Number of Meetings Attended/Held
Mr. A K Goel1 Non-Executive Independent Director 1/1
Mr. Atul Sahai Chairman cum Managing Director 3/3
Mr. Sanjeev Kaushik Government Nominee Director 3/3
Mr. S.K. Chanana2 Non-Executive Independent Director 2/2
Mr. A.S. Rajeev Non-Executive Independent Director 3/3

 

1 Mr. A.K.Goel was appointed as a member of the NRC w.e.f. 01st October, 2020

 

2 Sanjeev Kumar Chanana ceased to be member w.e.f. 28th September, 2020.

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:

In March 2020, the Ministry of Corporate Affairs allowed spending of CSR funds towards COVID-19 as a part of companys CSR activities and also specified that the funds can be spent for various activities related to COVID-19. Considering the impact of spread of COVID-19, World Health Organisation and Government of India declared COVID-19 as pandemic and a notified disaster, respectively.

As a responsible entity, the Board of Directors of the Company approved the proposal to contribute Rs. 15 crores towards initiative against COVID-19, towards PM Cares Fund for COVID 19.

Terms of Reference:

1. To formulate and recommend to the Board, a Corporate Social Responsibility Policy (CSR Policy), which shall indicate a list of CSR projects or programs which a Company plans to undertake falling within the purview of the Schedule VII of the Companies Act, 2013, as may be amended.

2. To recommend the amount of expenditure to be incurred on each of the activities to be undertaken by the Company, while ensuring that it does not include any expenditure on an item not in conformity or not in line with activities which fall within the purview of Schedule VII of the Companies Act, 2013.

3. To approve the Annual Report on CSR activities to be included in the Directors Report forming part of the Companys Annual Report and Attribute reasons for short comings in incurring expenditures.

4. To monitor the CSR policy of the Company from time to time; and

5. To institute a transparent monitoring mechanism for implementation of the CSR Projects or programs or activities under taken by the Company.

6. The CSR Committee shall formulate and recommend to the Board, an annual action plan in pursuance of its CSR policy.

Composition: As per Section 135 of the Companies Act, 2013, the Corporate Social Responsibility Committee of the Board shall comprise of 3 or more Directors, out of which 1 Director shall be Independent Director. The constitution of the Committee as per the Act stands as 3 or more Directors out of which at least 1 shall be independent Director. The Committee met three (3) times during the year on June 26, 2020, October 20, 2020 and March 24, 2021 The names of the Directors and their attendance at Meetings during the year are set out in the following table: In terms of provisions of the Act, CSR Committee comprises of five (5) Members, out of which one (1) is Non-executive Independent Director, two (2) are Non-Independent Directors, one (1) is Executive Director and one (1) is the Whole Time Director. The CSR Committee is chaired by Atul Sahai Chairman cum Managing Director. The composition of CSR Committee is given below along with the attendance of the Members.

Attendance of Members of the Corporate Social Responsibility Committee :

Directors/ Member Category Number of Meetings Attended/Held
Mr. Atul Sahai Chairman cum Managing Director 3/3
Dr. Ballaswamy1 Executive Director 1/1
Mr. A.S. Rajeev Non-Executive Independent Director 2/3
Mr. Sanjeev Kaushik2 Government Nominee Director 1/2
Ms. Vandita Kaul3 Government Nominee Director 2/2
Mr. S.K. Banerjee4 Non-Executive Independent Director 1/1
Mr. S.K. Chanana5 Non-Executive Independent Director 1/1

 

1 Dr. Ballaswamy ceased to be member w.e.f 30th June, 2021.

 

2 Mr. Sanjeev Kaushik was appointed as a member w.e.f 02nd December, 2020.

 

3 Ms. Vandita Kaul was appointed as a member w.e.f 02nd December, 2020.

 

4 Samir Kumar Banerjee ceased to be member w.e.f. 28th September, 2020.

 

5 Sanjeev Kumar Chanana ceased to be member w.e.f. 28th September, 2020.

STAKEHOLDERS RELATIONSHIP COMMITTEE:

Terms of Reference :

1. To resolve the grievances of the security holders of the Company including complaints related to transfer/ transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate certificates, general meetings etc.

2. Review measures taken for effective exercise of voting rights by shareholders.

3. Review of adherence to the service standards adopted by the Company in respect of various services being rendered by the Registrar & Share Transfer Agent.

4. Review of the various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/ annual reports/statutory notices by the shareholders of the Company.

5. To perform such other functions as the Board may deem fit from time to time or in order to comply with applicable laws, rules, regulations, as the case may be.

Composition: In terms of provisions of the Act and Listing Regulations, the Stakeholders Relationship Committee comprises of four (4) Members, out of which two (2) are Non- Executive Independent Director, one (1) is Executive Director and one (1) is a Whole Time Director. The Stakeholders Relationship Committee is chaired by A.K. Goel Non-executive, Independent Director of the Company. The composition of the Stakeholders Relationship Committee is given below along with the attendance of the Members. The Stakeholders Relationship Committee met two (2) times during the year under review on June 26, 2020 and January 28, 2021.

Attendance of Members of the Stakeholders Relationship Committee:

Directors/Member Category Number of Meetings Attended/Held
Mr. A.K. Goel Non-Executive Independent Director 2/2
Mr. Atul Sahai Chairman cum Managing Director 2/2
Mr. A.S. Rajeev1 Non-Executive Independent Director 1/1
Dr. Ballaswamy2 Executive Director 1/1
Mr. S.K. Banerjee3 Non-Executive Independent Director 1/1

 

1 Mr. A.S. Rajeev was appointed as a member w.e.f 02nd December, 2020.

 

2 Dr. Ballaswamy ceased to be member w.e.f 30th June, 2021.

 

3 Mr. S.K. Banerjee ceased to be member w.e.f. 28th September, 2020.

During the year, the Company/its Registrar received the following complaints from SEBI/Stock Exchanges/ Depositories which were resolved within the time frame laid down by SEBI:

PARTICULARS No.
1 No. of Investors complaints pending as on 1 01.04.2020 0
2 No. of Investors complaints received during 2 01.04.2020 to 31.3.2021 0
3 No. of Investors complaints disposed during 3 01.04.2020 to 31.03.2021 0
4 No. of Investors complaints those remained unsolved as on 31.3.2021 0

Ms Jayashree Nair, Company Secretary also acts as the Compliance Officer of the Company.

INFORMATION TECHNOLOGY COMMITTEE:

Terms of Reference :

Evaluation of various IT proposals and after perusal recommending the same to the board for approval.

Composition: The Committee consists of one (1) Whole Time Director, Two (2) Non-Executive Independent Director and one (1) Executive Director. The Committee is chaired by Atul Sahai Chairman cum Managing Director (Whole Time Director). The names of the Directors and their attendance at Meetings during the year are set out in the following table. The Committee met three (3) times in the year on August 14, 2020, November 11, 2020 and January, 28, 2021.

Attendance of Members of the Information Technology Committee :

Directors/Member Category Number of Meetings Attended/Held
Mr. Atul Sahai Chairman cum Managing Director 3/3
Dr. Ballaswamy1 Executive Director 1/1
Mr. A.K. Goel2 Non-Executive Independent Director 2/2
Mr. A.S. Rajeev Non-Executive Independent Director 3/3
Mr. S.K. Banerjee3 Non-Executive Independent Director 1/1
Mr. S.K. Chanana4 Non-Executive Independent Director 1/1

 

1 Dr. Ballaswamy ceased to be member w.e.f 30th June, 2021.

 

2 Mr. A.K. Goel was appointed as a member of the IT Committee w.e.f. 01st October, 2020.

 

3 Mr. S.K. Banerjee ceased to be member w.e.f. 28th September, 2020.

 

4 Mr. S.K. Chanana ceased to be member w.e.f. 28th September, 2020.

BOARD SUB-COMMITTEE (HR):

This Committee was formed as per the CDA Rules of the Company, page no. 27, Memorials of Officers in Scale IV & V is to be placed to this Committee. Appellate Authority for Scale VI & VII is also this Committee.

Composition: The Committee consists of one (1) Whole Time Director, One (1) Non-Executive Independent Director, One (1) Executive Director and one (1) Non- Independent Director. The Committee is chaired by Atul Sahai Chairman cum Managing Director (Whole Time Director). The names of the Directors and their attendance at Meetings during the year are set out in the following table. The Committee met one (1) time in the year, on October 20, 2020.:

Attendance of Members of the Board-Sub Committee HR

Directors/Member Category Number of Meetings Attended/Held
Mr. Atul Sahai Chairman cum Managing Director 1/1
Dr. Ballaswamy1 Executive Director 0/0
Mr. Sanjeev Kaushik Government Nominee Director 1/1
Mr. S.K. Banerjee2 Non-Executive Independent Director 0/0
Mr. A.S Rajeev Non-Executive Independent Director 1/1

 

1 Dr. Ballaswamy ceased to be member w.e.f 30th June, 2021.

 

2 Samir Kumar Banerjee ceased to be member w.e.f. 28th September, 2020.

PROPERTY REVIEW COMMITTEE:

Terms of Reference:

To review the various matters with regard to the held by the Company.

In 2020-21 no meeting of the Property Review was held.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS:

The detail of the familiarization programme has been hosted on the website of the Company and can be viewed at the below mentioned link https:

https://www.newindia.co.in/cms/838a8ea3-05ea-4a56-bb1f-e47df7883d2c/Familiarization%20Programme.

PDF?guest=true

CODE OF CONDUCT FOR DIRECTORS / SENIOR MANAGEMENT

A Code of Conduct as required to be formulated in terms of Clause 49 of the Listing Agreement in parlance with Schedule IV of the Companies Act, 2013 provides for an evaluation mechanism of all the Directors, to be done at a separate meeting. The Code of Conduct for Directors/Senior management has been hosted on the website of the Company and can be viewed at the below mentioned link:

https://www.newindia.co.in/cms/f6aac711-c72a-4f75-82ae- f2001bf929d3/Code%20of%20Conduct.pdf?guest=true

CRITERIA FOR APPOINTMENT OF DIRECTORS AND SENIOR MANAGEMENT:

The appointment of Directors & Senior Management is as per the relevant notifications issued by Government of India.

REMUNERATION POLICY

The remuneration to Whole Time Directors, Key Managerial Personnel, Senior Management and other employees is as per relevant notifications issued by Government of India.

SITTING FEES PAID TO INDEPENDENT DIRECTORS DURING THE FINANCIAL YEAR ENDED MARCH 31 2021:

Name of the Director Sitting Fees (Rs.)
Mr. S.K. Chanana 1,38,750
Mr. S.K. Banerjee 1,29,500

KEY MANAGERIAL PERSONNEL:

As per Section 2(51) and Section 203(1) of The Companies Act 2013 the following were the Key Managerial Personnel of the Company as on 31.3.2021:

Chairman cum Managing Director : Mr. Atul Sahai
Deputy General Manager & Chief Underwriting Officer : Mr. Sunil Kumar Singh
Deputy General Manager & Chief Financial Officer : Mr Francis Titus
General Manager & Chief Marketing Officer : Dr Balla Swamy
General Manager & Financial Advisor : Ms. Rekha Gopalkrishnan
Deputy General Manager & Chief Risk Officer : Mr. CS Ayappan
Appointed Actuary : Mr. Sharad S. Ramnarayanan
Chief Investment Officer : Mr.Rajesh Dua
Chief of Internal Audit : Ms Prabha Vijaykumar
Company Secretary & Chief Compliance Officer : Ms Jayashree Nair
General Managers : Mrs. Neerja Kapur
Mr. A. K. Longani
Mr. Inderjeet Singh
Ms. Gouri Rajan

• Disclosures:

1. During the year, there were no pecuniary relationships or transactions with the Non-Executive Directors.

2. Financial Statements accurately and fairly represent the financial condition of the Company.

3. There has not been any significant change in the accounting policies of the Company during the year.

4. The Company has Business Risk Management process which is periodically reviewed by the Board of Directors/Risk Management Committee to determine its effectiveness.

5. The Board of Directors and the Audit Committee periodically review the status of compliances in respect of applicable Laws and report thereon by the Internal Audit team.

6. Whistle Blower Policy - The Company has a Whistle Blower Policy and the same has been hosted on the website.

7. The Global solvency Margin of the company for the year 2020-21 is 2.13 times.

8. A certificate from S. N. Ananthasubramanian & Co., Company Secretaries in Practice has been obtained certifying that none of the Directors on the Board of the Company has been debarred or disqualified from being appointed or continuing as Directors of the Company by SEBI/Ministry of Corporate Affairs or any such statutory authority as on March 31, 2021.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITION AND REDRESSAL ACT 2013)

The Company has formulated an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the workplace (Prevention, Prohibition & Redressal) Act 2013. Internal complaints committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

The following is the summary of Sexual harassment complaints received and disposed of during the year 2020-21:

Number of Complaints pending as on 1st April 2020 00
Number of Complaints filed during the FY 2020-21 03
Number of Complaints disposed of during FY 2020-21 01
Number of Complaints pending as on 31st March 2021 02

AUDITORS AND AUDIT REPORT

Under 139 and Section 143 of The Companies Act, 2013, the Comptroller and Auditor General of India, appointed M/s. Mukund M. Chitale & Co. and M/s. Kailash Chand Jain & Co. as the Central Statutory Auditors of the Company for the year 2020-21. Branch auditors for the various Regional Offices, Divisional Offices and claims hubs in India and for the foreign branch/agency offices were also appointed for the year. The Board of Directors expresses its gratitude for the directions and guidance given by the statutory auditors in drawing up the Companys annual results.

The remuneration payable to the Joint Statutory Auditors for FY 2021, has been determined by the Board of Directors of the Company in their meeting held on November 11, 2020 based on recommendation of the Audit Committee of the Company.

Statutory Audit and other fees paid to Joint Statutory Auditors:

Total statutory audit fees paid for 2020-21 : 75,00,000
Total expenses reimbursed for 2020-21 : 30,833
Total of Fees and expenses : 75,30,833

EXTRACT OF ANNUAL RETURN:

Pursuant to Section 92(3) of the Companies Act 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, the extract of the Annual Return can be viewed at the below link.

https://www.newindia.co.in/cms/f9c6eede-8bdf-486e-b976-3eb0c4aaadbb/MGT-9%20FY%202020-21.PDF?guest=true

RENEWAL OF LICENCE BY THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI)

Section 3A has been amended by the Insurance Laws (Amendment) Act 2015 to remove the process of annual renewal of the certificate of Registration issued to insurers under Section 3 of the Insurance Act 1938. The insurers however, shall continue to pay such annual fee as may be prescribed by the Regulations. Thus w.e.f. 26.12.2014 insurers shall not be issued the Renewal Certificate of Registration (IRDA/R6) on an annual basis.

Accordingly, the Certificate of Registration of the Insurers renewed in 2016 and which expired on 31st March 2021 shall continue to be in force from 1st April 2020, subject to the provisions of Section 3A read with Section 3 of the Insurance Act 1938.

The Certificate of License has been renewed by IRDAI w.e.f. 01.04.2021.

The Company has paid the renewal fees as prescribed by the above Regulations.

SUBSIDIARY COMPANIES

The Company has 3 Subsidiary Companies. The names and details of New India shareholding are as under:

S. No Name of the subsidiary Total paid-up capital (no. of shares) New Indias shareholding (no. of shares) % holding of New India Assurance
1. The New India Assurance Company (Trinidad & Tobago) Limited 17418946 14612444 83.89
2. The New India Assurance Company (Sierra Leone) Limited 250000 250000 100
3. Prestige Assurance Plc. Nigeria 13252561888 10379522933 78.32

The performance of subsidiaries for the year ended 31st December 2020 is summarized below:

Name of the subsidiary Currency U/w Profit/Loss Investment Income Other Income Profit before tax Dividend
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
NIA (T&T) Ltd. $ (569) 7028 7291 4256 - - 6722 11284 0 871
NIA (S. Leone) Ltd. Le (34614) (18365) 12645 21980 - - (21969) 3615 - -
Prestige Assurance N (35727) (204114) 621948 713381 99686 338 685907 509605 331314 161477

• All the subsidiary companies follow the calendar year for finalization of accounts. Therefore, performance has been given for the year ended 31st December 2020.

• The New India Assurance Company (Sierra Leone) Limited has closed down business operations with effect from 1st January 2003 due to the civil disturbances prevailing in that country. The Company has not declared any dividend for the year 2020-21.

• In compliance with the provisions of the Companies Act 2013, the report and audited accounts of the subsidiary companies may be viewed at The Companys website: https://www.newindia.co.in/portal/aboutUs/Investors/FinancialsResult

• POSTAL BALLOT :

During the year, pursuant to Section 110 of the Act, read with the Companies (Management and Administration) Rules, 2014 (including any statutory amendment(s) or re-enactment(s) made thereunder), the Company passed no resolutions through postal ballot.

• GENERAL MEETINGS HELD:

The details of the Annual General Meetings held in the previous three financial years are given below:

Annual General Meeting Day, Date Time Venue
101st AGM Thursday, October 29th, 2020 03:30 pm Head Office, Mumbai, through Video Conferencing
100th AGM Friday, August 30th, 2019 03:00 pm Walchand Hirachand Hall, Indian Merchant Chambers Bldg, IMC Marg, Churchgate, Mumbai 400020
99th AGM Monday, July 30th 2018 03:00 pm Walchand Hirachand Hall, Indian Merchant Chambers Bldg, IMC Marg, Churchgate, Mumbai 400020

The details of the Special Resolutions passed in the Annual General Meetings held in the previous three financial years are given below:

General Body Meeting Day and Date Special Resolution
Annual General Meeting Thursday, October 29th, 2020 No special resolution was passed
Annual General Meeting Friday, August 30th 2019 No special resolution was passed
Annual General Meeting Monday, July 30th 2018 No special resolution was passed

SUBMISSION OF ACCOUNTS BEFORE PARLIAMENT:

Annual Report of the Company for the Financial Year 2019-20 along with the Directors Report was placed before Lok Sabha on 8th February, 2021 and Rajya Sabha on 12th February, 2021.

MEANS OF COMMUNICATION:

The Companys website (www.newindia.co.in) allows access to all the stakeholders of the Company to access information at their convenience. It provides comprehensive information of the Company.

The financial and other information and the various compliances as required/prescribed under the Listing Regulations are filed electronically with BSE and NSE. The financial results, official news releases, analyst call transcripts and presentations are also available on the Companys website.

The Companys quarterly financial results are published in the Financial Express (Mumbai Pune, Ahmedabad, Delhi, Lucknow, Chandigarh, Kolkata, Chennai, Kochi, Bangalore, Hyderabad), Jansatta (Delhi, Chandigarh, Kolkata, Lucknow) and Loksatta (Mumbai, Pune, Nagpur, Ahmednagar, Aurangabad, Delhi).

GENERAL SHAREHOLDER INFORMATION:

IRDAI Registration Number 190
Corporate Identification Number L66000MH1919 GOI000526
Financial Year 2020-21
Board Meeting for adoption of Audited Annual Accounts June 7, 2021
Day, Date and Time of 102nd Wednesday, September
Annual General Meeting 29, 2021; 11.00 AM
Venue Through Audio-Video / OAVM
Financial Year April 1 2020 - 31 March 2021
Book Closure NA
Date of Dividend Payment NA
Companys Website www.newindia.co.in

LISTING OF EQUITY SHARES:

Currently, the Equity shares of the company are listed at

Stock Exchange April 1, 2020 - March 31, 2021
BSE Limited (BSE) Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400001 540769
National Stock Exchange of India Limited (NSE) Exchange Plaza, 5th Floor, Plot C/1, G block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 NIACL

The Company has paid the annual listing fees for the relevant period to BSE and NSE.

Month BSE NSE
High Low High Low
2020
April 190.85 180.15 191.1 180.15
May 182.25 163.1 180.85 162.6
June 163.3 148.2 163.25 148.45
July 151.65 113.05 149.55 114
August 121.45 104.1 121.7 104.4
September 109.45 100.1 109.95 99.9
October 170.55 94.8 170.65 94.9
November 164.55 145.1 164.1 145.05
December 148.05 132.2 148.15 132
2021
January 166 134.95 166.05 134.95
February 151.3 109.55 151.4 109.45
March 112.2 78.5 112.3 78.25

Disclosures with respect to demat suspense account/ unclaimed suspense account

There are total of 6 numbers of shares lying in the unclaimed suspense account for FY-2021.

SHARE TRANSFER SYSTEM

Pursuant to SEBI Notification No. SEBI/LAD- NRO/GN/2018/24 dated June 8, 2018 and further amendment vide Notification No. SEBI/LAD-NRO/ GN/2018/49 dated November 30, 2018, request for effecting transfer of securities in physical form (except in case of transmission or transposition of securities) is restricted w.e.f. April 1, 2020. In case of shares in electronic form, the transfers are processed.by NSDL/CDSL through respective Depository Participants. In compliance with the Listing Regulations, a Practicing Company Secretary carries out audit of the System of Transfer and a certificate to that effect is issued. Therefore, Members holding shares in physical form are requested to take action to Dematerialise the Equity Shares of the Company, promptly.

The Members can contact the Company or Companys RTA i.e., LinkInTime (India) Private Limited for assistance in this regard.

Outstanding Global Depository Receipts or American Depository Receipts or Warrants or any convertible instruments, conversion date and likely impact on equity

This is not applicable to the Company.

Commodity price risk or foreign exchange risk and hedging activities.

This is not applicable to the Company, since the Company does not have any derivatives or liabilities denominated in foreign currency.

Details of utilization of funds.

During FY 2020-21, the Company has not raised any funds through Preferential Allotment or Qualified Institutions Placement as specified under Regulation 32(7)(A) of the SEBI (Listing Obligations and Disclosure Requirement) Regulations 2015 and the Companies Act 2013.

Plant Locations

This is not applicable to the Company, since it is not a manufacturing entity.

Correspondence Address

Correspondence address relating to the Financial Performance of the Company may be addressed to:

Ms Gouri Rajan / Mr Titus. F. Maliakkel

The New India Assurance Co. Ltd.,

New India Assurance Bldg., 87,

M. G. Road, Fort, Mumbai - 400 001.

Tel No.: 022 22708100

Email id: cfo@newindia.co.in

DISCLOSURES

Related party transactions

There are no materially significant related party transactions that may have potential conflict with the interest of the Company.

Details of Non-Compliance by the Company, penalty, strictures imposed on the Company by the stock exchange, or SEBI or any statutory authority on any matter related to Capital Markets

BSE Limited and National Stock Exchange Limited imposed a penalty of Rs. 5,31,000/- (Rupees Five Lakhs Thirty-One Thousand only) each with respect to the non-compliance of Regulation 17(1) of LODR, 2015, The Company has made representation with regard to the same that the Company is a Government of India Undertaking and all the Directors are appointed by the Government of India.

Reserve Bank of India imposed penalty of Rs 0.21 Lakhs on account of shortfall in Securities segments in respect of Security Pay-out in Triparty Repo transactions of April 21, 2020, which was paid by the Company during the year.

ADOPTION OF MANDATORY AND NON-MANDATORY REQUIREMENTS

The Company has complied with all mandatory requirements specified in Regulations 17 to 27 and clauses (b) to (i) of sub- regulation 2 of Regulation 46 of Listing Regulations.

The Company has complied with the non-mandatory requirement of reporting of Chief of Internal Audit who is heading the Internal Audit department of the Company directly to the Audit Committee of the Company. The Internal Auditor presents the key audit findings of internal audit department of the Company to the Audit Committee on a quarterly basis along with compliance status of previous Audit Committee.

REGISTRAR AND TRANSFER AGENTS:

The Registrar and Transfer Agent of the Company is M/s LinkInTime (India) Pvt. Ltd. for Equity Shares. Investor services related queries/requests/complaints may be directed at the address as under:

Link In Time (India) Pvt. Ltd.

247 Park,C 101,1stFloor,LBSMarg,

Vikhroli (W), Mumbai -400083

Phone No.: 022 49186000

Email id : rnt.helpdesk@linkintime.co.in

INFORMATION ON SHAREHOLDING:

Sl. Category Number of Shares on March 31,2021 % total
1 Central Government 1408000000 85.44
2 Clearing Members 504863 0.03
3 Other Bodies Corporate 3087263 0.19
4 Hindu Undivided Family 646126 0.04
5 Life Insurance Corpn of India 142833188 8.67
6 Mutual Funds 4292221 0.26
7 Nationalised Banks 35179652 2.13
8 Non-Nationalised Banks 79954 0.00
9 Non-Resident Indians 723629 0.04
10 Non-Resident (Non Repatriable) 140786 0.01
11 Public 16981971 1.03
12 Trusts 13200 0.00
13 G I C & Its Subsidiaries 33029668 2.00
14 Insurance Companies 1955752 0.12
15 Unclaimed Shares 6 0.00
16 Foreign Portfolio Investors (Corporate) 524721 0.03
17 NBFCs Registered with RBI 7000 0.00
Total 1648000000 100.00

SHAREHOLDERS OF THE COMPANY WITH MORE THAN 1% HOLDING AS ON MARCH 31, 2021 (OTHER THAN PROMOTEROF THE COMPANY:

Sr. No Name No. of Shares held Percentage (%) of total number of shares
1. Life Insurance Corporation of India 142833188 8.67
2. General Insurance Corporation of India 21667646 1.31
3. State Bank of India 20680829 1.25

DISTRIBUTION OF THE SHAREHOLDING OF THE COMPANY AS ON MARCH 31, 2021:

The New India Assurance Company Limited
DISTRIBUTION OF SHAREHOLDING (SHARES)
SR.NO. SHAREHOLDING OF SHARES SHAREHOLDER PERCENTAGE OF TOTAL TOTAL SHARES PERCENTAGE OF TOTAL
1 1 to 2500 119289 99.429 14386160 0.8729
2 2501 to 5000 387 0.3226 1394067 0.0846
3 5001 to 10000 151 0.1259 1145358 0.0695
4 10001 to 15000 35 0.0292 447356 0.0271
5 15001 to 20000 32 0.0267 583490 0.0354
6 20001 to 25000 15 0.0125 346158 0.0210
7 25001 to 50000 27 0.0225 932379 0.0566
8 50001 to ********** 38 0.0317 1628765032 98.8328
Total 119974 100.00 1648000000 100.00

COMPLIANCE CERTIFICATE OF AUDITORS:

The Statutory Auditors of the Company, M/s. Mukund M. Chitale & Co. and M/s. Kailash Chand & Co. have issued the Certificate for compliance of conditions of Corporate Governance as stipulated in SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and forms part of the Annual Report.

EVENTS AFTER BALANCE SHEET DATE:

There has been no material changes and commitments, affecting the financial position of the Company, which have occurred between the end of the financial year of the Company to which the balance sheet relates and the date of this report.

POLICY FOR MATERIAL SUBSIDIARIES:

The Company has a policy for material subsidiaries. The same has been up-loaded on the website of the Company.

https://www.newindia.co.in/cms/bd675cf0-dfde-4782-9fb5-630cb47ddbbd/Material%20Subsidiary%20Policy.

pdf?guest=true

CONSERVATION OF ENERGY:

Considering the nature of operations of the Company, the provisions of Section 134 (3)(m) of The Companies Act 2013 read with Companies (Accounts) Rules 2014 relating to information to be furnished on conservation of energy and technology absorption are not applicable.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirements under Section 134(5) of the Companies Act, 2013, the Board of Directors of the Company has laid down Internal Financial Controls to be followed by the Company and such Internal Financial Controls are adequate and were operating effectively. The Board confirms that:

1. in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same.

2. that they have selected such accounting policies and applied them consistently and made judgments 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 of the Company for that period;

3. that they have taken proper and sufficient care for the maintenance of adequate accounting records, in accordance with the IRDAI (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 and provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. that they have prepared the annual accounts on a going concern basis;

5. that they have laid down internal financial controls to be followed by the Company and that such internal financial controls were adequate and were operating effectively and;

6. that they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENT:

The Board of Directors thanks Government of India, Ministry of Finance, Department of Financial Services (Insurance Division), Insurance Regulatory & Development Authority (IRDA), General Insurers (Public Sector) Association of India (GIPSA), General Insurance Council, intermediaries and other government and regulatory agencies for their valuable guidelines and continuous support provided to the company throughout the year.

The Board of Directors are also grateful to the valued customers, bankers, agents, surveyors, stakeholders and public at large for the patronage and confidence reposed in the company.

The Board of Directors places on record their appreciation for the commitment, sense of involvement and dedication exhibited by each staff member in the overall development and growth of the company and look forward to the continued support and whole-hearted cooperation for the realization of the corporate goals in the year ahead.