Government-run non-life insurer National Insurance Co Ltd (NIC) is expecting its growth to slip by 5 per cent, from 25 per cent in 2011-12 to 20 per cent in the current financial year.

NIC Director & General Manager A. V. Girija Kumar said the insurer would suffer the estimated decline in growth due to a higher base and an overall slowdown in the economy that are impacting its infrastructure projects.

Speaking on the topic, Girija said, "Compared to last year, the growth has been lower this year. Apart from the base effect, this is because of a moderation in growth in motor and health segments. This apart, because of the slowdown in the economy, infrastructure projects have not taken off."

In the last financial year (FY), NIC had registered a net profit of Rs 325 crore.

Girija was speaking to media persons on the sidelines of an insurance seminar organised by the Confederation of Indian Industry (CII) on Tuesday.

Speaking on the topic, Girija also revealed that the general insurer had made provisions worth Rs 850 crore to cover motor third party losses in the last two FYs, and that the insurer would have to make provision for Rs 550-600 crore in the next FY to cover itself for the losses incurred.

Girija added that India's insurance sector had recorded massive growth in a short span of time. He claimed that with $6 billion capital, the Indian insurance sector drew investments of US$300 billion.