Public Sector Insurance Firms Incur Rs 26,364 Crore Loss In 5 Years
NDTV
All four public sector insurers incurred losses of Rs 26,364 crore in the health portfolio for the last five years due to higher claims.
All four public sector insurers incurred losses of Rs 26,364 crore in the health insurance portfolio for the last five years due to higher claims in group policies, according to a report from the Comptroller and Auditor General of India (CAG).
"The losses of the health insurance business of PSU insurers either wiped out/ decreased the profits of other lines of business or increased the overall losses," an audit report by CAG tabled in Parliament recently said.
The aggregate loss of the four PSU insurers -- New India Assurance Company Limited (NIACL), United India Insurance Company Limited (UIICL), Oriental Insurance Company Limited (OICL) and National Insurance Company Limited (NICL) -- was Rs 26,364 crore during 2016-17 to 2020-21.
The health insurance business is the second largest line of business of the PSU insurers (the first being motor insurance), having a gross direct premium of Rs 1,16,551 crore during the five years from 2016-17 to 2020-21.
