NEW DELHI: All four public sector normal insurance coverage firms are within the red, primarily because of the over Rs 26,300 crore losses incurred of their well being portfolio in 5 years from 2016-17 to 2020-21, a report of the Comptroller and Auditor General (CAG) of India has revealed.
In its report tabled in Parliament on Friday, the CAG mentioned the losses have been triggered on account of group insurance coverage insurance policies the place premium charged was much less and declare outgo was extra compared to retail insurance policies. The audit coated New India Insurance Company Limited, United India Insurance Company Limited, Oriental Insurance Company Limited and National Insurance Company Limited and put their mixed losses at Rs 26,364 crore.
About 10 years in the past, PSU insurers took the initiative to have their very own community of hospitals by forming a Preferred Provider Network (PPN). It discovered the four PSU insurers collectively have PPN agreements with solely 2,552 hospitals (as towards 9,900 hospitals for Star Health Insurance Co. Ltd and 10,000 hospitals for HDFC Ergo General Insurance Co. Ltd). “This indicates inadequate efforts by PSU insurers in tying up with a greater number of hospitals,” the auditor has mentioned.