Source: indiatimesCurrently, the Gross Direct Premium underwritten of three public sector insurance companies in the likes of National Insurance, Oriental Insurance and United India Insurance that are set to merge is far behind the fourth public sector general insurer New India Assurance. Let’s take a look at where these 4 public sector general insurers stand in the current fiscal in terms of Gross Direct Premium underwritten.
|Gross Direct Premium underwritten|
|Rs. 11,732.21 crore|
|United India Insurance||
Rs. 11,987.03 crore
Source: thehinduThe Gross Direct Premium underwritten by the proposed combined general insurance company is expected to go past Rs.30000 crore. Some anticipated consequences of amalgamation The Standing Committee Secretary of All India Insurance Employees Association (AIIEA) suggested the consolidation of three public general insurance companies with a view to bringing in the following changes;
- Elimination of rivalry among these three PSU companies
- Raising in cost efficiencies, s
- Streamlined of systems and processes
- Increased risk retention capacity
- Reduction in the outflow of cash of reinsurance premiums.
- A comprehensive health insurance coverage to more than 10 crore poor families is announced which will benefit over 50 crore vulnerable people in India.
- This ambitious scheme is designed to cover both primary and tertiary treatment.
- 50 crore people can cover their treatment expenses up to a maximum limit of Rs. 5 Lakhs
- Each and every family need to pay around Rs. 1100 to avail this health insurance coverage.
- The coverage of R. 5 Lakhs will be available on the reimbursement basis.
- Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana have also been extended in the Union budget 2018.These two schemes are aimed to bring in all poor households that belong to the marginalized sections under the coverage of health insurance in India.
- The first scheme is designed to protect economically weaker families in the unfortunate event of accidental injury and death.
- The second scheme is about the establishment of health and wellness centers with a view to bringing healthcare in the proximity of one’s residence. . There will be 1.5 lakh health centers to provide essential medicines and diagnostic services for free. A total sum of Rs. 1200 crore has been granted to materialize this giant project.
- The tax deduction on the payable premium of health insurance has also been increased to Rs. 50000 from Rs. 30000 in the Union Budget 2018. This highly beneficial move is not only advantageous for senior citizens but will also boost penetration of health insurance in India.