New Delhi: The government aims to complete merger of PSU general insurance companies — National Insurance Co Ltd, United India Insurance Co Ltd, and Oriental Insurance Co Ltd — by the end of March, Finance Secretary Rajiv Kumar said.
“Merger of PSU general insurers is at an advanced stage. We can see that happening quite soon. It is already before the Cabinet,” Kumar told in an interview.
Though the merger process was in the works, the government would take a call on listing the merged entity after the merger, he said.
To facilitate the merger, the Budget has announced a capital infusion of Rs 6,950 crore into the three public sector general insurance companies (PSGICs) in the next financial year.
This will help achieve requisite minimum solvency ratio by each of the three PSGICs, according to Budget documents.
“A partial budgetary support has been made in RE 2019-20 through first batch of supplementary demands for grants and provision for further capital infusion is included. The provision is met from the National Investment Fund,” it said.
The government infused Rs 2,500 crore into the three insurers through first supplementary demands for grants for 2019-20 in December.
