Parliament Question: Performance of Public Sector General Insurance Companies

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION No. 119 ANSWERED ON MONDAY, 20 JULY, 2026/ ASHADHA 29, 1948 (SAKA) Performance of Public Sector General Insurance Companies 119. SHRI M K RAGHAVAN: Will the Minister of FINANCE be pleased to state: (a) whether the Government has taken note of the poor performance of Public sector general insurance companies in the country and if so, the details thereof; (b) whether any steps have been taken/proposed to be taken by the Government to streamline the Human Resource Management System (HRMS) and promotion exams in public sector general insurance companies on par with that of public sector banks, if so, the details thereof; (c) whether the Government has noticed that a large number of retired hands of public sector general insurance companies seek re-employment in private brokers and insurance regulators immediately post retirement; (d) if so, the details of steps taken to prevent the retired executives from seeking employment in the private sector immediately post retirement; (e) whether the appointment of Parametric insurance service provider by public sector general insurance companies has been done according to norms; and (f) if so, the details thereof? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) : The performance of the Public Sector General Insurance Companies (PSGICs) is as below: Gross Direct Premium (GDP) (In ₹ Cr) Particulars National New India Oriental United India Public Insurance Assurance Insurance Insurance Sector Company Limited Company Limited Company Limited Company Limited Insurers Total 2023-24 15,114 36,997 18,289 19,853 90,252 2024-25 16,767 38,625 19,789 20,072 95,252 2025-26(P) 17,674 42,831 20,641 21,422 1,02,568 P- Provisional (Source : IRDAI)Over the last 3 financial years, all four PSGICs have reported increase in gross direct premium. The combined premium of these 4 insurers has increased from Rs. 90,252 crore in FY23-24 to Rs. 1,02,568 crore during FY25-26 (P). Profit after Tax (PAT) (In ₹ Cr) Particulars 2023-24 2024-25 2025-26(P) National Insurance Company -187 -483 -2,534 Limited Oriental Insurance Company 19 144 -4,061 Limited United India Insurance -804 149 -4,839 Company Limited New India Assurance Company 1,129 988 1,384 Limited P- Provisional (Source : IRDAI) The profitability of the PSGICs exhibited a mixed trend during FY25-26. While New India Assurance Company Limited continued to remain profitable with an improved net profit of ₹1,384 crore, the other three insurers reported losses (b) : PSGICs have implemented Human Resource Management System (HRMS) to digitize and streamline employee lifecycle processes such as leave, payroll, performance management, promotion, transfer, training and retirement benefits. Continuous improvements are being made in these systems to enhance transparency, efficiency and employee services. Promotion policies, including promotion examinations wherever applicable, are governed by the Promotion Policy approved by the respective Board of the company. The companies periodically review these policies to align them with organizational requirements and to promote the best HR practices. (c) (& (d) : Paragraph 49 [Commercial Employment after Retirement] of the General Insurance (Employees') Pension Scheme, 1995 governs the acceptance of commercial employment of retired employees of PSGICs. It allows commercial employment subject to certain conditions. e) : Yes, the appointment of Parametric Insurance Service Providers by PSGICs has been made in accordance with the prescribed norms such as tender. (f) : PSGICs have appointed two Parametric Insurance Service Providers *****