New Delhi: All four public sector general insurance companies are at risk mainly due to losses of over Rs 26,300 crore in their health portfolios in the five years from 2016-17 to 2020-21, a report by the Comptroller and Auditor General (C&AG) said. CAG of India) has disclosed.
in its report presented in Parliament The CAG on Friday said the loss was due to group insurance policies where premium charges were lower and claim outgo was higher than retail policies. audit covered New India Insurance Company Limited, United India Insurance Company Limited, Oriental Insurance Company Limited And National Insurance Company Limited and put their combined loss at Rs 26,364 crore.
About 10 years ago, PSU insurers took the initiative to build their own network of hospitals by creating a Preferred Provider Network (PPN). It was found that the four PSU insurers have PPN agreements with only 2,552 hospitals (as against 9,900 hospitals for Star Health Insurance Company Limited and 10,000 hospitals for HDFC Ergo General Insurance Company Limited). “This indicates inadequate efforts by the PSU insurance companies in tying up with more number of hospitals,” the auditor said.