According to report number 12 presented in Parliament earlier this week, Oriental Insurance Company Ltd determined the bidding rates for Pradhan Mantri Fasal Bima Yojna in 2019-20 by applying pricing components uniformly without specific determination as per the terms and conditions of the Agriculture Quota Share Reinsurance treaty with General Insurance Corporation of India, being Re-insurer."This led to imposition of Loss Corridor clause of the treaty by GIC and consequent loss of Rs 194.08 crore," it said.Imprudent underwriting of Group Janta Personal Accident Policy of the Maharashtra state government by the public sector general insurance company without reinsurance cover and in violation of guidelines of Insurance Regulatory and Development Authority of India (IRDAI) in 2018-19 led to a loss of Rs 14.92 crore, the CAG report said in another observation. As per the report, SBI Cards and Payment Services Ltd (SBCPSL) approved the renewal of the credit card facility of a client raising the credit limit from Rs 70 crore to Rs 90 crore.

CAG flags ₹194 cr loss incurred by Oriental Insurance in FY20

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