The government dedicated Rs. 17,450 crore to Public Sector General Insurance Companies from 2019-20 to 2021-22, to facilitate reforms, enhance operational efficiency, and boost profitability.
New Delhi: Once plagued by losses, Indian Public Sector General Insurance Companies (PSGICs) have successfully reversed their fortunes, with each of them now operating profitably.
In recent financial reports, Oriental Insurance Company Ltd. (OICL) and National Insurance Company Ltd. (NICL) have both shown promising results, with OICL recording profits in the fourth quarter of FY 2023-24 and NICL in the second quarter of FY 2024-25. United India Insurance Company Ltd. (UIICL) made a significant comeback by posting a profit in Q3 of FY 2024-25 after a seven-year hiatus. Meanwhile, New India Assurance Company Ltd. (NIACL) continues to thrive as a market leader, consistently delivering profits.
In a statement today, the Finance Ministry highlighted the government’s ongoing commitment to fostering strong and competitive Public Sector General Insurance Companies. This commitment is backed by reforms that include systematic monitoring based on key performance indicators. Furthermore, the Union Government has injected a total of Rs. 17,450 Crore into these PSGICs between 2019-20 and 2021-22, intending to enable structural reforms, boost operational efficiencies, and restore profitability.
According to the Ministry, the PSGICs have made a “magnificent” recovery, shifting from a combined loss exceeding Rs.10,000 crore in 2022-23 to profitability for all individual PSGICs by the third quarter of this financial year. This “impressive turnaround” is attributed to better risk management practices, effective loss control initiatives, the integration of technology, the launch of new products, enhanced customer service, and a diversified portfolio, resulting in a combined profit of Rs.1066 crore in Q3 of 2024-25.
The Public Sector Insurance Companies are firmly focused on maintaining their positive growth trajectory. The Ministry has highlighted that they are rolling out strategic measures and new initiatives to enhance the financial stability of the PSGICs and improve customer service. Additionally, the PSGICs are dedicated to delivering high-quality insurance products and services, ensuring sustainability, and enriching the customer experience while pursuing growth. They are also committed to the overarching aim of achieving “Insurance for All” by 2047.
– global bihari bureau
