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GOVERNMENT OF INDIA Ministry of Finance DEPARTMENT OF FINANCIAL SERVICES
RAJYA SABHA UNSTARRED QUESTION NO. 691 TO BE ANSWERED ON AUGUST 16, 2012 / SRAVANA 25, 1934 (SAKA) Directions of PSU insurance companies to share data
691. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of FINANCE be pleased to state:
(a) whether Government has directed the four PSU insurance companies to share data with respect to major accounts, and ensure that there is no competition between them in any corporate or group account;
(b) if so, the reasons therefor; and
(c) whether this would amount to cartelization, as this is against free competition?
ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (c): All the four Non-life Public Sector Insurance Companies have been incurring underwriting losses over a period of time. It has, therefore, been felt necessary to contain the losses to improve their financial health so that they continue to serve in the best interests of the public and economy as envisioned of them. Advisory instructions have been issued to them to achieve this objective through prudent underwriting and efficient claims management.