The Clamber of Control Attacks Insurance Companies

The Insurance companies spent only 40% out of the 284 millions GEL on their customers. The Chamber of Control informed the Interpresnews about it.

According to the preliminary information provided by the Chamber of Control, the insurance companies spent only 40% out of the 284 millions GEL on their customers that made only one-fifth of the insured people. According to the same information, the profit of the companies exceeded 60 percent, while the difference of the profit in individual insurance is 4 percent, which complies with to the international standards of insurance business.

“In 2008-2010, 171 000 cases of 808 000 insured citizens were funded in the framework of the “Program for Socially Disabled People”; that means only 21 percent enjoyed the service of insurance companies. The income of the companies was 170 million GEL after neglecting the state interests, the interests of medical personnel and the insured people”,the Chamber of Control stated.

Based on the above-mentioned information, the Chamber of Control concluded that following growing risks and shortcomings were discovered in the insurance sector -lack of state strict regulation, unfair activities of the insurance companies, artificially restricted access to medical service, insufficient information provided to beneficiaries and mistakes in the data base for program beneficiaries. 

The Chamber of Control of Georgia will start full monitoring in few days and will study all risk-factors in near future; as well they will reveal those shortcomings and deficiencies, which cause unreasonable and uneconomic expenditure of the budget funds.

The Chamber of Control has been studying the legality of the management of state program in health insurance, in the framework of what 294 million GEL was allocated in 2008-2010 to provide 800 000 citizens with timely and proper medical service.

The Chamber of Control will spread further information about the concrete insurance companies later.

Interpresnews