Government insurance coverage firms misplaced Rs 26,364 crore in well being trade in 5 years

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New Delhi, Aug 9 (PTI) All the 4 public sector insurance coverage firms (PSUs) have incurred a lack of Rs 26,364 crore within the medical insurance trade all over the ultimate 5 years. The Comptroller and Auditor General (CAG) has mentioned this in its document.

According to a up to date CAG document tabled in Parliament, losses within the medical insurance section of public sector insurance coverage firms have both eroded the income of different sectors or driven up the full losses.

According to the document, all over the monetary 12 months 2016-17 to 2020-21, those 4 insurance coverage firms…New India Assurance Company Limited (NIACL), United India Insurance Company Limited (UICL), Oriental Insurance Company Limited (OICL) and The overall lack of National Insurance Company Limited (NICL) stood at Rs 26,364 crore.

Health insurance coverage is the second one greatest trade sector for public sector insurance coverage firms. In the primary position is the automobile insurance coverage sector. The gross direct top class of the sphere for the ultimate 5 years has been Rs 1,16,551 crore.

According to the document, the marketplace percentage of presidency insurers within the medical insurance trade is regularly declining as in comparison to non-public firms.

The CAG mentioned the audit additionally discovered that the general public sector insurance coverage firms didn’t agree to the ministry’s pointers and the blended ratio of those firms within the workforce medical insurance section was once 125 to 165 in step with cent.

Regarding claims control, the document mentioned the IT gadget of public sector insurance coverage firms lacks verification tests and controls. Apart from this, the reporting gadget may be affected along with the functioning.