THE ORIENTAL INSURANCE COMPANY LIMITED

The Oriental Insurance Company Ltd was incorporated at Bombay on 12th September 1947. The Company was a wholly owned subsidiary of the Oriental Government Security Life Assurance Company Ltd and was formed to carry out General Insurance business. The Company was a subsidiary of Life Insurance Corporation of India from 1956 to 1973 ( till the General Insurance Business was nationalized in the country). In 2003 all shares of our company held by the General Insurance Corporation of India has been transferred to Central Government. The Company is a pioneer in laying down systems for smooth and orderly conduct of the business. The strength of the company lies in its highly trained and motivated work force that covers various disciplines and has vast expertise. Oriental specializes in devising special covers for large projects like power plants, petrochemical, steel and chemical plants. The company has developed various types of insurance covers to cater to the needs of both the urban and rural population of India. The Company has a highly technically qualified and competent team of professionals to render the best customer service. Oriental Insurance made a modest beginning with a first year premium of Rs.99,946 in 1950. The goal of the Company was Service to clients and achievement thereof was helped by the strong traditions built up overtime. ORIENTAL with its head Office at New Delhi has 26 Regional Offices and nearly 900+ operating Offices in various cities of the country. The Company has overseas operations in Nepal, Kuwait and Dubai. The Company has a total strength of around 15,000+ employees. From less than a lakh at inception, the Gross Premium went up to Rs.58 crores in 1973 and during 2008-09 the figure stood at a mammoth Rs. 4077.90 crores. Our Corporate Mission To contribute to the socio economic objectives of the nation by being a vibrant and viable organization catering to the growing insurance needs of the community. Towards this end we will strive for effective management of business operations. Our Corporate Objectives 1. To serve better the insurance needs of the entire community, keeping CUSTOMER as the focus. 2. To strengthen our tradition of being CUSTOMER - FRIENDLY, in order to provide quality service. 3. To manage Business profitably, manage funds judiciously and deploy investible funds for optimum yield. 4. To optimise the retention of Indian business and conduct reinsurance and international operations in the best interest of the country. 5. To work towards minimisation of losses and develop Risk Management Technologies. 6. To function as a strong and dynamic non-life insurer. Management

Oriental Insurance is a professionally managed independent Board-run Company. Illustrious personalities like Shri T.A.Pai ( who later became Cabinet Minister in the Union Government ), Shri K. R. Puri, who rose to be the Governor of RBI and Shri B.D.Pande (who later became the Governor of West Bengal) were among our past Chairmen. At present Dr. R.K.Kaul is Chairman-Cum-Managing Director of our Company. The Board of Directors of our Company include eminent personalities in various fields. Financials

The Companys Gross Direct Premium Income in India during the year 2008-09 (Audited) was Rs.3964.26 crores and the Premium Income outside India was Rs.113.64 crores. The Gross Direct Premium in India & abroad showed a growth of 4.55%. The Net Premium Income (Domestic and Foreign), on the other hand grew by 12.38% from Rs. 2878.67 crores in 2007-.08 to Rs. 3235.10 crores in 2008-09.

The companys operations in Nepal, Dubai and Kuwait yielded a Gross Direct Premium of Rs. 113.64 crores during the year 2008-09 as against Rs. 92.07 crores during the previous year. The net premium on foreign operations stood at Rs. 111.26 crores as against this, the Net Incurred Claims during this year in respect of foreign operations were Rs.65.95 crores at 59.27%. The foreign operations have resulted in an overall surplus of Rs. 15.27 crores. After taking into account the income from Interest, Dividend & Rent of Rs 608.23 crores and Profit on sale of Investments of Rs 387.39, we have posted a pre-tax loss of Rs 82.66 crores & post-tax loss of Rs. 52.66 crores for the year 2008-09. As against the desirable Solvency Margin of 1.5 mandated by the Indian regulatory body, IRDA, the available Solvency Margin is 1.66 as at 31st March 2009. The Company had a documents issuance ratio of more than 98% during the year, having issued 96.55 lacs documents approximately. The claims disposal ratio for non-suit claims settlement ratio was 86.30%.

The Company is not only IT friendly but also Technology Savvy. We have our own website in place. An integrated Non-Life Insurance Application Software (INLIAS) has been implemented in all the 1018 offices. This will ensure that our Customer Service parameters grow by leaps and bounds.

No wonder, The Oriental Insurance Company has been enjoying the highest rating from leading Indian credit rating agencies CRISIL and ICRA. The Company has also been rated as B++(Very Good by AM Best, an international rating agency.

Financial Snapshot 2008-09 & 2007-08 Figures in brackets are percentage to net premium Fire 2008- 200709 08 Marine 2008- 200709 08 Miscellaneous 2008- 200709 08 (Rs. in lakhs) Total 2008- 200709 08

Gross Direct Premium: In India

44066 4782 0 1786 4960 6 2971 2 59.90 % 3469 (11.7 %) 3470 (11.7 %) 679 (2.3% )

33259 3390 6 1261 3516 7 1862 9 52.97 % 1851 (9. 9 %) 1851 (9.9% ) -1042 (5.6%)

31910 1 2990 87 6160 3052 47 2395 26 78.47 % 3471 5 (14.5 %) 3473 0 (14.5 %) 1273 7 (5.3%)

39642 6 3808 13 9207 3900 20 2878 67 73.81 % 4003 5 (13.9 %) 4005 1 (13.9 %) 1310 0 (4.6%)

Outside India Gross Direct Premium Total Net Premium Ratio of Net to Gross

2296 46362 31947 68.90 % 2729

1588 34847 17715 50.84 % 1292 (7.29 %) 2029 (11.45 %) -1251 (7.06% )

7480 32658 1 27384 8 83.85 % 23765 (8.68 %) 37313 (13.63 %) 18689 (6.83% )

11364 40779 0 32351 0 79.33 % 27786 (8.59 %) 43626 (13.48 %) 20319 (6.28% )

Profit on Sale of Investments (Policy Holders)

(8.54 %) 4284

Int./Div./ Rent (Policy Holders)

(13.41 %) -379

Commission and other income (Net Income(+)/ Net Outgo (-))

(1.19% )

132 NPA (Provision (+)/ Write back(-)) (0.41 %) -16 (0.05% ) -454 Increase (-)/ Decrease (+) in unexpired risks reserve (1.42% )
-36245

71 (0.2% ) -1 (0.0%) 2730 (9.2% )

31037 (104.5 %) 10688 (36.0% )

63 (0.36 %) -7 (0.04% ) 785 (4.43 %)

38 (0.2% ) 0 (0.0% ) -1689 (9.1%)

11008 (59.1% ) -5560 (29.8% )

1152 (0.42 %) -143 (0.05% ) 17161 (6.27% )

252248 (92.11% ) -75248 (27.48% )

705 (0.3% ) -9 (0.0% ) -1284 (0.5%)

21817 7 (91.1% ) 66112 (27.6% )

1347 (0.42 %) -166 (0.05% ) 16830 (5.20% )

305719 (94.50% ) -91444 (28.27% )

814 (0.3% ) -10 (0.0% ) -24 (0.1%)

26022 2 (90.4% ) 82360 (28.6% )

Diminution in value of shares (-)/ written back (+)

-17226 (97.24% ) -5613 (31.68% )

Net Incurred claims

(113.45 %) -10583

Expenses of Management

(33.13% )

-77 Amortization expenses (0.24% ) -65 (0.20% ) -8727 Net Operating Profit (27.32 %)

-74 (0.2%) -8 (0.0% ) -1677 (5.6%)

-37 (0.21% ) -31 (0.17% ) -2281 (12.87 %)

-39 (0.2%) -4 (0.0% ) 3027 (16.2 %)

-671 (0.25% ) -561 (0.20% ) 28643 (10.46 %)

-738 (0.3%) -76 (0.0% ) 1054 3 (4.4% )

-785 (0.25% ) -657 (0.20% ) 39651 (12.26 %) 17197 10953 2659 -8842

-851 (0.3%) -88 (0.0% ) 1189 3 (4.1% ) 1711 8 1711 0 -1886 4423 5

Investment Written off

Interest, Dividends & Rent (Shareholders) Profit on sale of Investments (Shareholders) Other Income/ Outgo Profit (+) / Loss (-) before Tax

Prior period income & expenses IT deducted at source and Provision for Tax Provision for Tax for earlier years Net Profit/ Loss after Tax Transfer to General Reserve Provision for Dividend Corporate Dividend Tax * Percentages mentioned above are to Net Premium

-94 -1167 4837 -5266 -5266 00 00

000 -4429 3887 6 930 53 750 127

Five Year Digest

(Amount in lacs)

2004-05 Gross Direct Premium Net Premium Net Claims 309055 221802 190838 (86.0%) 72988 (32.9%) 21338 (9.6%) 14918 47170 33052 10000 131836 111937 2565

2005-06 360977 250046 206475 (82.6%) 85076 (34.0%) 14438 (5.8%) 12169 33419 28392 10000 154526 126399 2565

2006-07 402078 287974 235885 (81.9%) 75423 (26.2%) 29833 (10.3%) 15732 62964 49727 10000 192553 145295 2565

2007-08 390020 287867 260222 (90.40%) 82360 (28.6%) 11893 (4.1%) 17118 44235 930 10000 192606 145539 2565

2008-09 407790 323510 305719 (94.50 %) 91444 (28.27%) -39651 (12.26 %) 17197 -8842 -5266 10000 187339 162369 2565

Operating Expenses

Underwriting Profit / Loss (-) ** Interest, Dividend and Rent ** Profit Before Tax Profit After Tax Paid-up Capital General Reserve Reserve for Unexpired Risk Capital Reserve & Other Reserve % means percentage to net premium

** W.e.f 1.4.2003, Underwriting Profit/Loss is after apportionment of a share of profit on Sale of Investments, Int./Div./Rent, NPA Provision, Diminution in value of Shares, Amortization and Investment Written Off.

what is Personal Accident Insurance ? Personal Accident is an insurance cover wherein, in the event of the person sustaining bodily injuries resulting solely and directly from an accident caused by EXTERNAL, VIOLENT & VISIBLE means , resulting into death or disablement. What type of events are covered under Personal Accident Insurance ? An accident may include events like: Rail / Road / Air Accident. Injury due to any collision/fall. Injury due to Bursting of gas cylinder. Snake-bite, Frost bite/Dog bite. Burn Injury, Drowning, Poisoning etc. These are only illustrative and not an exhaustive list of type of accidents. What is scope of cover & benefits available under Personal Accidental cover ? Personal Accidental policy covers accidental death, loss of limbs, permanent total and partial disablement as selected and granted by the insurance companies based on the underwriting norms. Does this policy cover medical expenses incurred due to accident ? Yes, on payment of additional premium, medical expenses reimbursement can be covered. These expenses are payable, in case, if the claim is admitted under the basic policy cover. What are the other types of covers available for covering accidental injuries ? In addition to the Personal Accident Insurance cover the policies available are : Nagrik Suraksha Poicy, Janta Personal Accident Policy, Gramin Personal Accidental Policy , Student Package Policies for students, Bhagashree for Girl-children, Raj Rajeshwari for Women etc. Further as an ad-on cover Motor Vehicle Package Policy & Overseas Mediclaim Policy too offer personal accidental injuries cover. What is the age limits under personal accident cover ? This Policy is available to persons between the age of 5 and 70 years (Male & Female). In case of Family Package covers, the age of children should be between 5 to 19 years. The age ceiling of 70 years can be relaxed in special conditions subject to suitable premium loading.

Are there any territorial restrictions applicable to the policy ?

No, the coverage under this policy is WORLDWIDE however, claims, if any, will be paid in Indian currency only. What is the basis of arriving at the sum insured ? Sum insured is based on various factors namely : (1) income from gainful employment, (2) type of occupation, (3) age as on date of proposal, (4) period of insurance (5) Conditions prevailing at the place from where the proposal is made etc. (6) As regards the non-earning spouse of the insured the sum insured in respect of such not exceed 50% of the eligibility of the insured, subject to a limit of Rs.One Lakh under benefits available under Table III of the policy. (7) Dependant children can be offered a sum insured not exceeding Rs.50000/- to cover death and disablement only. NO TEMPORARY DISABLEMENT COVER SHALL BE OFFERED. Are personal accidental policies are available for long term? Generally Personal Accident policies are maximum for one year only. However, depending upon the requirement of the proposer it can be offered for a period which could even be lesser than 12 months What is permanent total/partial and temporary disablement ? (i) When an insured person sustains accidental injuries resulting in loss of limb and is certified by a medical specialist that the injury is of a permanent total or permanent partial nature, then only the insured shall deemed to be permanently totally/partially disabled. (ii) Temporary total disablement arises when a person is not in a position to perform the duties that he performing immediately prior to the accident, which has to be certified by a medical professional. These are general interpretation for easy understanding & not legal wording. What is the compensation available in the event of the insured sustaining TTD ? In the event of an accidental injury resulting in temporary total disablement ( to be confirmed by the attending physician )the insured shall be entitled to a compensation @ 1% of sum insured per week subject to a maximum of 104 weeks. Such weekly compensation shall in no case exceed Rs.5,000/- per week. Can non-earning individual take Personal Accident Insurance cover ? A non earning individual can have policies like Janta Personal Accident Policy , Gramin Personal Accident Policy.

spouse shall

Is there any discount for getting family cover ?

Yes, depending upon the number of persons covered, family discount is granted. Can a cover be granted to a proposer where war and war like situation prevails ? Under normal circumstances where war and or warlike situation prevails PA cover is not offered. However, on payment additional premium the same can be got covered. What is cumulative bonus ? If the insured person does not prefer any claim in the expiring policy, he is entitled to 5% cumulative bonus for every such claim free year subject to maximum of 50% cumulative bonus that means the sum insured under the renewed policy will be increased by 5% every year without charging any additional premium. Is there any grace period for renewal of policy ? There is no grace period for continuity of insurance cover and policy cover expires on the last day of policy period. In order to avail cumulative bonus benefits, the policy can be renewed within 90 days from the expiry of policy period.

What is an Assignment ? Assignment means that in the event of fatal accident of the insured person, the compensation is made to the assignee on the basis of his full and final discharge. In case the assignment is not made under Personal Accident Policy, the insurance company insist for SUCESSION CERTIFICATE from the Court for settlement of claim compensation, which is a time consuming, lengthy & cumbersome procedure. Is there any tax benefit under Personal Accident like covers? There is NO TAX BENEFITS for the premium paid under these types of cover. What the insured has to do in the event of accident ? IN THE EVENT OF ACCIDENTAL INJURIES Immediate written notice should be given to the Insurance Company with all particulars. Claim from duly completed alongwith the following documents should be sub mitted ; Medical Certificate about the nature and extent of accident resulting injuries. Medical Examiners Report. Details of treatment rendered by the attending Doctor/Hospital/Nursing home. Certificate from the employer to the effect that the Insured was on leave during the period. Fitness certificate. IN THE EVENT OF ACCIDENTAL DEATH The following documents are required to be submitted : Post-mortem Report. F.I.R./Police Report. Punchnama Departmental Inquiry, if any. Report of Doctor/Hospital/Nursing Home. Death Certificate.

Personal Accident Group

Brief Description We all in our day to day life are exposed to the risks of accidents. Despite all possible precautions accidents do occur. This may result into disablement or loss of limbs or sometimes even death. To cater to this need insurers has devised an insurance cover, known as Personal Accident Insurance. This policy provides compensation in the event of insured sustaining injuries, solely and directly from an accident caused by violence, visible and external means, resulting into death or disablement be it temporary or permanent. This policy is also available to a Group of Persons and is known as Group Personal Accident Policy. This policy can be granted for restricted hours of Duty and not for all the 24 hours of the days and nights) at a reduced premium also. A group policy is subject to Group Discount also Covered Risks This policy provides compensation in the event of insured sustaining injuries, solely and directly from an accident. Major Exclusions Intentional self injury, suicide or attempted suicide, Death or disablement resulting from child birth and pregnancy; Accident while the insured is under the influence of intoxicating liquor or drugs; War and allied perils.

Personal Accident - Individual

Brief Description We all in our day to day life are exposed to the risks of accidents. Despite all possible precautions accidents do occur. This may result into disablement or loss of limbs or sometimes even death. To cater to this need insurers has devised an insurance cover, known as Personal Accident Insurance. This policy provides compensation in the event of insured sustaining injuries, solely and directly from an accident caused by violence, visible and external means, resulting into death or disablement be it temporary or permanent. There are some additional benefits without paying additional premium. Cumulative Bonus, Children Education Fund, Reimbursement of expenses for the carriage of the dead body. There is a discount for family package cover. Covered Risks This policy provides compensation in the event of insured sustaining injuries, solely and directly from an accident. Major Exclusions Intentional self injury, suicide or attempted suicide, Death or disablement resulting from child birth and pregnancy; Accident while the insured is under the influence of intoxicating liquor or drugs; War and allied perils.

Claim documents
Accidental Death Claim

Copy of Claim intimation given to Company together with xerox of policy & premium receipt Duly filled Claim Form Post mortum report Death Certificate Police Panchnama/First Information Report/Final Investigation Report Medical report & details of medical expenses Wage Certificate from employer Proof of Age

Permanent Disability/Injury claim due to accident

Copy of Claim intimation given to Company together with xerox of policy & premium receipt Police Panchnama/First Information Report/Final Investigation Report Medical Certificate & details of medical expenses & disability certificate Leave certificate from employer Duly filled Claim Form Wage Certificate from employer

Temporary Total Disability (TTD) (Weekly compensation) claim due to accident

Copy of Claim intimation given to Company together with xerox of policy & premium receipt Duly filled Claim Form Police Panchnama/First Information Report/Final Investigation Report

Medical report Leave certificate from employer Details of medical expenses

Third Party (T.P.) Claim due to accident

Copy of Claim intimation given to Company together with xerox of policy & premium receipt Copy of FIR Charge Sheet Copy of driving licence & certificate A statement of driver as to how accident occurred Name & address of person injured & killed in accident Address of Police Station where accident reported Address of Hospital where injured/dead bodies shifted by police from site of accident. Certified copies of injury/post mortem report Vakalatnama duly signed by owner of vehicle & driver Details of Loss to TP Vehicle or other property Comment of owner/driver on FIR/Charge Sheet Who are the person travelling in the vehicle? Whether you had prior knowledge of all occupant's of vehicle.