Despite settlement of epidemiological claims, profitability of public sector insurers improved
Public sector insurance companies suffered a total loss of Rs 3,450 crore during the period between April 2020 and September 2021, as 14.92 lakh coronavirus pandemic health claims were filed with them amounting to Rs 17,537 crore as on December 31, 2021.
According to sources in the finance ministry, state-owned insurers, despite the burden of pandemic-related claims, faced losses of Rs 3,450 crore between April 2020 and September 2021 (when the first and second wave hit the country). Had to do, less was more. During the pre-pandemic period (October 2018 and March 2020), these entities had suffered a loss of Rs 7,552 crore.
Therefore, the overall profitability of state-owned insurance entities registered an improvement of Rs 4,101.34 crore during the initial one-and-a-half financial year period of the pandemic, despite absorbing the impact of the pandemic in terms of claims related to COVID, the sources said.
He further added that out of 14.92 lakh COVID health claims with these public sector insurance companies, 93 per cent were settled till December 31, 2021, he added.
During the period from March 2020 to March 2022, i.e. in the two financial years of 2020-21 and 2021-22, the government infused Rs 17,450 crore in public sector insurance companies to improve their solvency ratio.
Of the four government general insurance companies, only New India Assurance Company is listed on the stock exchanges. The remaining three entities, namely Oriental Insurance Company Limited, National Insurance Company Limited and United India Insurance Company are wholly owned by the Government.
According to a PTI report quoting sources, in the current financial year (2022-23), the government will infuse additional capital of Rs 3,000 crore to Rs 5,000 crore in three public sector general insurance companies depending on their performance and requirement during the year. can put