General insurers to seek bailout from Finance Minister
After life insurers, it’s general insurers who are knocking at the finance minister’s door, calling him to save the industry from a worsening situation.
Finance minister P Chidambaram will meeting general insurers in New Delhi recently to understand the problems of the industry.
The Rs 60,000 crore general insurance industry is in crisis as all its vital financial parameters are shaky despite the sector showing a growth of 20-25 per cent in premium collection. Its massive losses (over Rs 10,000 crore in 2011-12) are a result of cut-throat competition post detariffing period, regulated third party motor premium and losses in health insurance portfolio. Read more