Calcutta, Nov. 23: United India Insurance Company hopes to arrest losses in the motor insurance business, particularly in third-party insurance, following the introduction of the premium and risk pooling mechanism from January this year.

“Under the pooling system, the profit or loss will be shared in equal proportion by all general insurance companies. This arrangement will help us reduce losses in third party motor insurance business this year and we hope that we will be able to make profits from the business from next year,” said G. Srinivasan, chairman-cum-managing director of United India.

However, the detariffing regime has slowed down the growth of premium income.

Under detariffing, insurers were allowed to fix premiums for own motor damage, fire and engineering insurance from January this year.

The growth in the premium income of the company during the current financial year up to October was down to 5 per cent compared with 7 per cent a year ago.

The growth of the general insurance industry this year has also slowed down in value terms to 10 per cent against 25 per cent last year.