The Finance Ministry has asked public sector general insurance companies to not only focus on increasing income but also aim to improve profits. The government has recently infused about Rs 7,250 crore in three public sector general insurance companies – National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance in different installments.
There will be no need for capital investment going forward
Financial Services Secretary Vivek Joshi said, “We are monitoring the performance of government general insurance companies and it has started improving. Therefore, we will keep an eye on their performance this year. It is expected that these companies will not need any further capital investment. This is the reason why no provision has been made in the budget. Vivek Joshi said that these three general insurance companies have improved their financial performance quite well.
Oriental Insurance had a loss of Rs 5,000 crore in the financial year 2022-23
Vivek Joshi said that Oriental Insurance had suffered a loss of Rs 5,000 crore in the financial year 2022-23, after which the company has made a great comeback and recorded a profit of Rs 18 crore in the financial year 2023-24. Whereas National Insurance Company has reduced its loss from Rs 3,800 crore in the financial year 2022-23 to Rs 187 crore in the financial year 2023-24. Similarly, United India Insurance had a loss of Rs 2,800 crore in the financial year 2022-23. This government insurance company reduced its loss significantly in the financial year 2023-24 and managed to bring it down from Rs 2800 crore to Rs 800 crore.
New India Assurance’s stellar performance continues
New India Assurance is performing the best among all these companies. The good thing is that the company’s excellent performance continues. New India Assurance recorded a profit of Rs 1,000 crore in FY 2022-23, which increased to Rs 1,100 crore in FY 2023-24. Apart from the change in focus, the government is also resolving the operational issues going on within these insurance companies.
With PTI inputs
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