Post de-tariffing, if fire and engineering are making holes in the balance sheets of non-life insurance companies, it is the retail business — health and motor — that is raking in the moolah. The two sectors account for almost two-third of the Rs 28,126.4 crore general insurance industry.

While the health insurance premium for non-life insurers shot up 55 per cent to Rs 4,969 crore in 2007-08, motor insurance posted a more modest 20 per cent growth during the year. The industry as a whole grew just 12.5 per cent during the year compared with Rs 24, 998.4 crore in 2006-07.

According to an IRDA report card, Reliance General Insurance — with nearly 7 per cent market share — has booked the highest jump in health insurance premium. It collected Rs 257.62 crore, up 307 per cent as against Rs 67.69 crore in 2006-07. The biggest non-life insurer, state-owned New India Assurance, collected nearly Rs 114 crore, 58 per cent more than the previous year. For other major players such as National Insurance, United India and Bajaj Allainz too, the health business premia rose by 105 per cent, 60 per cent and 53 per cent, respectively.

"With the fall in the prices of engineering and fire premia, insurance companies are now focusing more on the retail lines – motor and health," says T Ramalingam, head (underwriting), Bajaj Allianz General Insurance. "Before de-tariffing, group health insurance was bundled with property insurance and offered at a subsidised rate. With de-tariff kicking in, insurance premium for property has come down and medical insurance costs has risen. This has further led to a rise in premium collection for health insurance."

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