How Many Public-Sector General Insurance Companies in India Face Severe Solvency Issues?

Parliamentary Panel Flags Solvency Concerns in PSU Insurers

A Parliamentary panel has flagged serious solvency concerns in three public-sector general insurance companies in India. The Committee on Public Undertakings (CoPU) noted that National Insurance Company Ltd. (NICL), Oriental Insurance Company Ltd. (OICL), and United India Insurance Company Ltd. (UIICL) continue to report negative solvency ratios.

The three insurers remain below the IRDAI-prescribed minimum solvency ratio of 1.50. The committee has asked the Department of Financial Services (DFS) to submit a comprehensive solvency restoration report within six months.

💡 Why is this important?
Solvency is a key indicator of an insurer’s ability to meet its financial obligations and honour claims. Persistent negative solvency can raise concerns about the financial strength and long-term sustainability of an insurance company.

📚 CURRENT AFFAIRS QUICK REVISION

Question: How many public-sector general insurance companies in India have been flagged by a parliamentary panel for experiencing severe solvency issues?

✅ Answer: 3

🎯 This is an important current affairs question for UPSC, SSC, Banking, Insurance, IRDAI, Defence, Railway, State PCS and other competitive examinations.

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