BACKGROUND

The New India was incorporated on 23rd July, 1919 and commenced transacting business on 14th October in the same year. There was hardly any Indian company of sufficient size and resources catering to emerging general insurance requirements of the country when New India was floated. At that time there were about 150 British, French, American and other foreign companies operating in the market mostly through managing agencies held by large Indian business houses.

Sir Dorab Tata recognized that Managing Agency system was not conducive to the development of indigenous insurance industry and conceived the idea of forming a large wholly Indian insurance company.

Recognising that insurance is a co-operative effort, Sir Dorab Tata succeeded in enlisting the co-operation of prominent citizens who and founded New 'India. Drawn from different and competing spheres of Bombay's business world, these persons gave New India a cast-iron profile. The response was such that the whole of the Issued Capital of the company was subscribed privately within weeks and no application could be invited from public.

Operating under these auspices, the company surmounted its teething troubles and started clear of tile difficulties encountered. Within a span of less than 10 years, New India acquired a status of a leader in the Indian market. This was the result of the drive and enthusiasm of its Directors, the untiring efforts of its management and the goodwill and patronage of business community.

PIONEERS

New India has been a pioneer among the Indian insurance companies on numerous fronts. When the domestic airlines started in 1946, New India offered full protection to this venture, thus becoming one of the first companies in the world to constitute an Aviation division. New India also pioneered in handling the hull insurance requirements of Indian Shipping fleets, which till then was wholly placed in the London market.

New India also pioneered in establishing its own training school and introduced the concept of "Model Offices", a replica of the various operating departments of the company. The creation of strong technical teams of Head Office level was first introduced in New India in an insurance company in the country. The testimony to this is borne the shape of highly skilled expertise in areas like Engineering and Cargo Insurance.

In the early sixties, a very innovative concept in marketing was established in the form of ' 'Inspector Kit System" wherein a salesman of tile company virtually functioned as a Mobile Office. This was effectively supported by mechanization of office work with the help of IBM machines.

NATIONALIZATION

Following the take over of the management of all the insurance companies by the Government of India in 197I, and the subsequent nationalization in 1973, New India was reconstituted under the merger scheme, taking over 23 Indian companies into its fold. The reorganized New India started operations in 1973 with a gross premium of Rs.44.45 crores and assets totaling Rs.144.80 crores. Late Shri B.K.Shah, who was already Managing Director, was appointed as Custodian of the company at the time of nationalization, and later elevated to the post of Managing Director. His contribution in building up New India, both at home and abroad, is part of the history of Indian insurance industry.

At the time of nationalization, New India was ranked no.3 in terms of premium generation. However within about 3 years, the Company rose to the number 1 position and has retained this position since then. Today it enjoys the status of the largest non-life insurance company, not only in India but also in the Afro-Asian region excluding Japan.

NEW INDIA'S FOREIGN OPERATIONS

Foreign Operations commenced in the year 1920 with the setting up of the office in London. Today the company operates in 23 countries through 33 offices -Network of 17 Branches, 12 Agencies, 2 Subsidiaries and 2 Associate companies.

Given below is the list of foreign offices with their year of commencement. 

The important features of the company's foreign operations are as Under: 

• New India contributes almost 80% of the total premium generated in India through foreign operations. 
• Our operations abroad provide liaison and insurance support for Foreign Direct Investments made in India for major projects. 
• The operations offer opportunities and exposure to our officers in international insurance market. 
• Serve not only ethnic Indian community and Indian business houses" established abroad, but also wide cross section of local clients.
• Growing bi-lateral trade between India and the country where New India operates.
• Strengthening of relations with some of the top international insurers, re-insurers and brokers, which in turn help our Indian operations.
• Helps the company to keep pace with the latest developments in the field of insurance.

FINANCIAL RATING

The Company is rated 'A (Excellent)' by M/s. A.M.Best Co., one of the oldest and premier rating agencies in the world, specializing in rating of insurance companies. The rating was recently reaffirmed by the agency. The rating is based upon company's superior capital position, strong operating performance, strong market position and long record of successful operations outside India. This rating has put tile company on par with some of the world's major insurance companies.

PERFORMANCE OVERVIEW
(As On 31st March 2001).
· Gross Direct premium of Rs.3040 crores from Indian operations and Rs.440 crores from foreign operations - Market share of more than 31%
· Net premium of Rs.2676 crores
· Investable funds Rs.6420 crores (provisional)
· Investment Income Rs.100 crores (provisional)
· Profit Before tax of Rs.422 crores (provisional)
· Total Assets - more than Rs. 8400 crores (Provisional) 
· Capital & Funds – Rs.4600 crores (provisional) 

INFORMATION TECHNOLOGY:
History:

New India was the first company to introduce mechanized computing  system in early 1950. This was followed by batch processing 'DOS system' for accounting at Divisional Offices. Accounting consolidation and payroll systems was introduced in mid 80s at Head Office and Regional Offices. The company introduced Front Line Office Computerisation, an in-house developed system in the year 1994. This was followed by the introduction of GENISYS in 1998 which is an integrated software. 
Present:

In order to keep up with the changing times and recognizing tile need for total automation of systems and processes, tile company has adopted, an IT Plan under which, every office of the company will be fully computerized and eventually networked. For this, a special integrated software "GENISYS" has already been implemented in 350 offices in major centers. These 350 offices account for more than 70% of our business underwritten. In the next phase, the remaining offices will be computerized by August 2001, after which there are plans to establish connectivity between the offices. 

FUTURE PLANS

The company has devised Action Plans in  the following areas keeping the future intact
· Strategic Issues: Business Growth and Customer Retention
· Customer Retention in the face of competition. 
· Increase penetration level to retain premium volume
· Meet demands of different customer
· Improvement in customer service levels 
· Strengthening of Distribution Channels
· Strategies for Cost Reduction . 
· People Related Issues: Redeployment of Manpower
· To gainfully re-deploy manpower. 
· Redesigning of organisational structure to support business strategies
· Comprehensive overhaul of HR policies 
· Strategies for retention of talent . Training
· Process Related Issues 
· Re-engineering of processes towards improved customer service
· Strengthening of Risk Management and Asset Liability Management 
· Re-engineering of MIS processes
· Technology Related Issues
· Developing Information Technology as a tool for competitive advantage
· Meaningful MIS for improve
· Decision Support System
· Strengthen Back-office systems
· Establish on-line connectivity

The Founder Chairman of the New India Assurance Company Ltd. Sir Dorab Tata had stated:
"The New India constitutes the commencement of a new and a large commercial undertaking for India. It is not a Bombay Insurance Company or a company working solely in India, but may claim to be a worldwide Company..."  The progress made by New India over the years reaffirms the sentiments of the Founder Chairman Sir Dorab Tata.