General Insurance News

Agriculture minister Shivraj Singh Chouhan assured Lok Sabha govt was committed to taking action against anyone found guilty of corruption in the crop insurance scheme - PM Fasal Bima Yojana.

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Strict action against Corruption in Crop Insurance: Shivraj

The minister was responding to a question by Supriya Sule of NCP (SP) alleging corruption of Rs 5,000 crore in Maharashtra related to the crop insurance scheme. Sule quoted the Maharashtra agriculture minister saying there was Rs 500 crore worth of irregularities in the scheme. She added the minister was corrected by a BJP MLA who had claimed it was a Rs 5,000 crore corruption scandal and not just Rs 500 crore. Chouhan said there was no such report available with the Centre, adding no one will be spared if found guilty.

Private insurers show 239% jump in motor commission payouts to Rs. 16,578 crore

Despite concerns raised by the IRDAI, private sector general insurers reported a 239 per cent jump in commission expenses in the motor insurance segment in fiscal ended March 2024. Interestingly, private insurers lagged behind public sector counterparts with a low claims ratio.

Private insurers shelled out a whopping Rs. 16,578 crore to motor insurance service providers (MISPs) as commission during the fiscal ended March 2024 as against Rs. 4,890 crore in FY2023 while securing fresh businesses. Interestingly, public sector insurers kept away from the 'commission game' and reported only 31.59 per cent rise in commission expenses at Rs. 3,099 crore in FY2024 as against Rs. 2,355 crore in FY2023, according to the Annual Report of the IRDAI.

When it comes to incurred claims ratio, public sector insurers led with 99.57 per cent while private players were far behind with a figure of 73.30 per cent, according to the IRDAI report.