The industry -- comprising four subsidiaries and the apex General Insurance Corporation (GIC) -- has recorded a 13.5 per cent growth in 1997-98 against 16 per cent during 1996-97 and 22 per cent in 1995-96. All the four companies have missed the business-growth targets by a wide five to six percentage point margin. This is despite fixing a lower target for the 1997-98 fiscal year.

"Being a service sector, insurance industry cannot perform well in isolation. Our performance depends on the overall performance of the industry," a top GIC official said.

According to analysts, a below 15 per cent business growth in the general insurance industry is poor performance, while growth above 20 per cent could be considered an excellent performance.

Of the motor-insurance market, which provides the largest chunk of business for thesecompanies, the heavy-vehicle market has fallen by 45 per cent, while the market for light vehicles crashed by as much as 56 per cent, a top official of the New India Assurance, the largest subsidiary, said.

The Chennai-based United Insurance and the Calcutta-based National Insurance suffered the most. United India -- which had recorded more than 16 per cent growth in premium income in 1996-97 -- has posted a 10 per cent growth in premium income during 1997-98. In absolute terms, the company's total premium income is pegged at Rs 1955.46 crore last year, down from Rs 1777.42 crore in 1996-97.

Similarly, National Insurance, which had recorded a 21.3 per cent growth in the premium income in 1996-97, has put up a dismal show, posting a 13.85 per cent growth in premium income last year.

In absolute terms, the company's total premium income is pegged at Rs 1,640 crore last year, down from Rs 1270.54 crore in 1996-97.

The growth in premium income for the Mumbai-based New India Assurance and Delhi-basedOriental Insurance has fallen moderately.

New India's premium income, which is pegged at Rs 2460 crore during 1997-98, has recorded growth close to 14 per cent against growth of 16 per cent during 1996-97. Oriental Insurance has recorded a premium income of Rs 1,696.49 crore during 1997-98 recording 13 per cent growth, down from 15.6 per cent in 1996-97.

The premium income of the apex GIC -- which is involved in reinsurance business for its subsidiaries and exclusive insurance business of Air-India and Indian Airlines -- has continued to fall owing to low aviation insurance cost in the international market.

GIC's income, which had dropped by Rs 25 crore during 1996-97, will further fall in 1997-98, a company official said.

The rate of growth of 16.1 per cent up to March 1997 was lower by 3.1 per cent of revised annual target growth rate of 19.2 per cent.