Private Crop Insurers Profit Rs 3,000 cr While PSUs Suffer Losses

According to the annual report of Insurance Regulatory and Development Authority of India (IRDAI), it seems farmers are opting state-owned insurance companies to claim insurance against crop loss much more than their private counterparts. Direct inference of this is the fact that as much as Rs 11,905.89 crore was collected by 11 private sector insurers as premium, but they faced insurance claims of only Rs 8,831.78 crore, clocking profits of roughly Rs 3,000 crore. In the same financial year, state-owned insurers incurred a loss of Rs 4,085-crore losses, raising questions about the allocation of business.