September 18, 2017
The Maharashtra government may soon become a new player in the insurance industry. The state government is planning to set up an insurance company in a joint venture with a public sector insurer.
The proposed company will execute the state government’s general, life and medical insurance-based schemes for stakeholders like farmers, employees, and beneficiaries from the Below Poverty Line (BPL) and Above Poverty Line (APL) categories.
A senior state government official confirmed that the state government runs a number of insurance schemes and the Maharashtra government is examining the establishment of an insurance company to handle this. The company will collect premiums for various covers and settle claims.
The state’s finance minister Sudhir Mungantiwar confirmed that the idea is being contemplated and they are in discussions with the public sector insurance companies for a joint venture. This will enable the government to reduce costs.
The Maharashtra government covers various categories of beneficiaries like the 18 lakh state government employees who get medical and life insurance cover.
Officials, however, express concerns over the possibility of political interference in the claims payment process if the government ran insurance schemes. Also, there are worries over the state’s ability to approve claims.