Public sector insurance companies sustained a total loss of Rs 3,450 crore during the period between April 2020 and September 2021, as 14.92 lakh Coronavirus pandemic-related health claims worth Rs 17,537 crore were lodged with them till December 31, 2021.
According to Finance Ministry sources, despite the burden of pandemic-related claims on state-owned insurance companies, the Rs 3,450 crore losses faced by them between April 2020 and September 2021 (when the first and second waves had swept the nation), were lesser than Rs 7,552 crore worth of losses which these entities had faced during the pre-pandemic period (October 2018 and March 2020).
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 Covid-related claims, sources informed.
Out of the 14.92 lakh Covid health claims which were filed with these public sector insurance companies till December 31, 2021, 93 per cent of these had been disposed of, they said further.
During the period from March 2020 to March 2022, i.e. two financial years of 2020-21 and 2021-22, the Government infused Rs 17,450 crore capital into the public sector insurance companies to improve their solvency ratios.
Of the four state-run 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 fiscal (2022-23), Government may infuse Rs 3,000 crore to Rs 5,000 crore additional capital in the three public sector general insurance companies based on their performance and requirement during the year.