New Delhi: Government may consider to privatize Oriental Insurance or United India Insurance Company. People with knowledge about the matter said that the government can consider their privatization as their financial health has improved after the capital investment. To further strengthen their financial health, the government is expected to invest Rs 3,000 crore in public sector general insurance companies during the current quarter.
Both Oriental Insurance and United India Insurance based in Chennai will be able to generate interest from the private sector due to its superior financial position. The process of choosing a suitable candidate for privatization has started and it will take some time to decide, according to sources, the possibility of a New India Assurance cannot be ruled out, where the government holds 85.44 per cent.
According to the plan, the NITI Aayog will make recommendations from the government and the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance will take the proposal to its rightful conclusion. Finance Minister Nirmala Sitharaman in her Budget 2021-22 announced a big privatization agenda, which includes two public sector banks and a general insurance company.