All four public sector insurers incurred losses of Rs. 26,364 crore in the health insurance portfolio for the last five years due to higher claims in group policies, a CAG report said.
“The losses of the health insurance business of PSU insurers either wiped out/decreased the profits of other lines of business or increased the overall losses,” an audit report by CAG tabled in Parliament recently said.
The aggregate loss of the four PSU insurers was Rs. 26,364 crore during 2016-17 to 2020-21.
The health insurance business is the second largest line of business of the PSU insurers (the first being motor insurance), having a gross direct premium of Rs. 1,16,551 crore during the five years from 2016-17 to 2020-21.
PSU insurers’ market share in the health insurance business is also reducing continuously vis-a-vis the stand-alone health insurers and private insurers, the report observed.