Finance Ministry: All general insurance companies have been asked to focus on profitable business. Apart from this, the ban on recruitment has also been lifted by the Finance Ministry.
Finance Ministry: The government has prepared a plan to bring public sector general insurance companies into profit. These companies have now been asked to focus only on profitable business. Insurance companies have been instructed to take themselves out of loss-making businesses like motor and health insurance. Along with this, these companies have also been given permission to start recruitment again. The government has recently invested Rs 7,250 crore in National Insurance, Oriental Insurance and United India Insurance. Apart from these three, New India Assurance is already running in profit.
Focus on profitable business instead of increasing business
The Finance Ministry has asked these government insurance companies to focus on profitable business instead of increasing business. Financial Services Secretary Vivek Joshi said that we are monitoring the performance of general insurance companies. This year their performance will be closely monitored. We hope that these companies will not need more capital. This is the reason why no such provision has been made in the budget.
Financial performance of insurance companies has improved
He said the financial performance of these three companies has improved. Oriental Insurance has earned a profit of Rs 18 crore in FY 2024. A year ago this company was in a loss of Rs 5,000 crore. National Insurance Company has reduced its loss from Rs 3,800 crore to Rs 187 crore and the loss of United India Insurance has come down from Rs 2,800 crore to Rs 800 crore. On the other hand, the profit of New India Assurance has increased to Rs 1,100 crore.
Ban on recruitment lifted, will be able to give new jobs
Vivek Joshi said that many employees of these companies had retired. There was a ban on recruiting new employees. Now they have been asked to recruit gradually. This will improve the performance of these companies. Earlier these companies were expanding the business to show growth. Now they have been asked to focus only on profits. The government has already invested Rs 17,450 crore to improve the financial condition of these insurance companies. Out of these four, only New India Assurance is listed on the stock exchanges.
