According to the Comptroller General and Auditor General’s (CAG) audit report, the total loss was reported by all four public sector general insurance companies (New India Insurance, United India Insurance, Eastern Insurance and National Insurance) between 2016-17 and 2020-21 is 26,364.

The audit report of the third-party management agency (TPA) of the health insurance business of the public insurance company showed that the public insurance company’s health insurance business suffered losses or losses or reduced the profits of other businesses.

“These losses were due to lower premiums and higher claims payouts charged by group health insurance policies compared to retail policies,” the CAG report said.

The market share of PSU insurers in the health insurance business is also declining compared to independent health insurers and private insurers.

The audit found that the four insurers failed to comply with government directives to have a combined ratio of no more than 95% for standalone group policies and 100% for group policies involving cross-subsidisation.