Public sector insurance companies suffered a total loss of Rs 3,450 crore in the period between April 2020 and September 2021 as 14.92 lakh Coronavirus pandemic-related health claims worth Rs 17,537 crore were filed with them until December 31, 2021.
According to sources from the Ministry of Finance, the losses of Rs 3,450 crore they incurred between April 2020 and September 2021 (when the first and second wave had swept the country) (when the first and second wave had swept the country), were less than Rs. 7,552 crore in losses incurred by these entities during the pre-pandemic period (October 2018 and March 2020).
Therefore, the overall profitability of state insurance entities registered an improvement of Rs 4,101.34 crore during the first year and a half of the pandemic, despite absorbing the impact of the pandemic in terms of Covid-related claims, sources reported.
Of the 14.92 lakh Covid health claims filed with these public sector insurance companies up to December 31, 2021, 93 percent had been disposed of, they further said.
During the period from March 2020 to March 2022, i.e. two fiscal years from 2020-21 and 2021-22, the government injected 17,450 crore of capital into the public sector insurance companies to improve their solvency ratios.
Of the four state-run non-life insurers, only New India Assurance Company is publicly traded. 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 citing sources, in the current fiscal year (2022-23) the government can inject Rs 3,000 crore to Rs 5,000 crore additional capital into the three general insurance companies in the public sector based on their performance and requirements during the year.