The government may infuse Rs 3,000 to 5,000 crore additional capital in three public sector general insurance companies which would depend on their performance and requirement during the year. The capital infused will help these companies to improve their financial health. The three companies selected for capital infusion are National Company Limited, United India Insurance Company, and Oriental Insurance Company Limited.
The three public sector general insurance companies are short of solvency margin. Soon an external consultant would be appointed to improve companies’ operation efficiencies.
The government had infused Rs 5,000 crore in these three insurance companies in the last financial year. During 2020-21, the government had infused Rs 9,950 crore in these companies, out of which Rs 3,605 was infused in the United India Insurance Company, Rs 3, 175 crore in National Company limited, and Rs 3,170 in Oriental Insurance Company Limited.
