New India provides for Rs 102 crore for dues from state governments
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Government-owned premier non-life insurer New India Assurance Company Ltd has provided about Rs 102 crore last fiscal towards doubtful debt for the dues from the governments of Rajasthan, Karnataka, and Arunachal Pradesh.
According to New India, an amount of Rs 120.09 crore was withheld/deducted by the Rajasthan government under the Bhamashah Health Insurance Scheme towards rejection of claims under the scheme and related matters.
As per a meeting held on August 4, 2020 between New India and the Rajasthan government, it was agreed to adjust the amount of about Rs 65.33 crore against the outstanding claims payable by the company to respective claimants/hospitals under the scheme.
During the current quarter and for the year ended March 31, 2021, out of total amount of about Rs 65.33 crore, an amount of about Rs 2.09 crore and Rs 63.08 crore, respectively, has been adjusted against the outstanding claims payable by the company to respective claimants/hospitals.
The balance amount of about Rs 2.24 crore shall be adjusted against unsettled claims in subsequent periods.
The remaining amount of about Rs 54.75 crore has been provided for and charged to the revenue account during the year ended March 31, 2021, New India said.
In the case of Karnataka, a sum of about Rs 39.70 crore was receivable from the state government under the Rastriya Shawastya Bima Yojana Scheme.
According to New India, during the year ended March 31, 2021, the company has made provision for doubtful debts amounting to Rs 30.99 crore and charged to the revenue account.
The remaining amount of about Rs 8.71 crore will be adjusted against the outstanding claims payable by company to respective claimants/ hospitals under the said scheme, New India added.
Similarly, a sum of about Rs 16.75 crore was receivable as subsidy from the Arunachal Pradesh government under the Arunachal Pradesh Chief Minister Universal Health Insurance Scheme.
During the year ended March 31, 2021, the company has made provision for doubtful debts amounting to Rs 16.75 crore and charged to the revenue account.
That aside, the non-life insurer also said its equity investment in IL&FS Transportation Networks Ltd with a book value of about Rs 17.84 crore as on March 31, 2021.
As a result of net worth erosion of the underlying investments, the company had made a provision of about Rs 17.84 crore up to December 31, 2020 which is in line with its accounting policy and which has been written down to Re 1 during the last quarter of last fiscal, New India said.
(Venkatachari Jagannathan can be contacted at v.jagannathan@ians.in)
