BUSINESS

CAG raps four PSU insurers for causing Rs. 122 cr loss

Automobile, Viewed [ 24 ] , Rating :
     
Star Live 24, Star Live 24
Thursday, August 08, 2013
Published On: 19:29:10 PM
Comments

Four state-run insurers, including National Insurance and Oriental Insurance, suffered loss of Rs 121.81 crore due to their 'imprudent' decision to enter into business pact with private player Star Health and Allied Insurance Company, official auditor CAG said today.

National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company suffered loss during the four-year period ending June 2012, said the Comptroller and Auditor General (CAG) report, tabled in Parliament.

In November 2007, Tamil Nadu invited bids from general insurers to provide health cover to the state government employees and local bodies, among others.

Star Health and Allied Insurance Company won the bid, in which the four PSU insurers too had participated.

Even though the premium quoted by the PSU insurers was much higher than finally agreed to by Star, they entered into a co-insurance agreement with the private firm as the leader.

From June 2008 to June 2012, the four PSU insurers received premium of Rs 137.33 crore and accepted expenditure of Rs 259.14 crore towards claims, administrative charges and other expenses, CAG said.

'The PSU insurers suffered a total loss of Rs 121.81 crore on this insurance scheme... A substantial part of claim was borne by the four PSU insurers, who accepted the co-insurance in spite of low premium and without putting in place appropriate checks and balances to safeguard their financial interests,' it added.

Courtesy : The Hindu

Other Videos


Obama warns of action if Syria deal snapped

Obama warns of action if Syria deal snapped

Bhawanipur misses out despite win

Bhawanipur misses out despite win

Djokovic, Tipsarevic put Serbia in Davis Cup final

Djokovic, Tipsarevic put Serbia in Davis Cup final

An academy, the need of the hour: Advani, Mehta

An academy, the need of the hour: Advani, Mehta

West Ham holds Southampton

West Ham holds Southampton

BJP, congress slug it out over namo’s elevation

BJP, congress slug it out over namo’s elevation

UB Group stocks lose up to 76% value in 2013

UB Group stocks lose up to 76% value in 2013




 Comment Note: By posting your comments in our website means you agree to the terms and conditions of www.StarLive24.tv
More From This Section
  • Fiscal Stability & Contractual Sanctity ..
  • Indian Firms Get FDA Approval For 110 Ge..
  • Govt Further Cuts Import Tariff Value Of..
  • RIL Slams DGH Move To Snatch Gas Discove..
  • UB Group Stocks Lose Up To 76% Value In ..
  • CCI To Consider 7 Projects Worth About R..
  • Chidambaram To Meet US Treasury Secretar..
  • Eight Blue-Chip Companies Together Add R..
  • Slowdown, A Wake Up Call For Banks
  • Bar On First Leasing
  • Sundaram Infotech Beefs Up Overseas Pres..
  • Dasgupta Asks PM To Order Penalty Notice..
  • Oerlikon’S 3Rd Unit To Come Up At Sanand
  • Oerlikon’S 3Rd Unit To Come Up At Sanand..
  • CIL To Seek Revised MDO Contract Interes..


Related Search
  • Automobile
  • Economy
  • Interview
  • Markets


> >

1/4

Most Viewed

Railway Freight Tariff To Go Up From Oct 1