The Centre has raised the authorized capital of three state-run insurance firms to enable subscription of capital. These companies are National Insurance Co. Ltd (NICL), Oriental Insurance Company Limited (OICL), and United India Insurance Co. Ltd. (UICL).
The authorized share capital of entities is increased periodically to enable subscription of capital, said, officials.
Finance Ministry issued a notification stating that Rs 15,000 crore will be the authorized capital for NICL, Rs 7,500 crore for OICL, and the authorized capital for UICL will be Rs 7,500 crore. The government had to infuse capital into these companies as they were staring at low solvency levels and coping with financial stress. The government informed about the amendment to merge schemes of these three insurance companies.
NICL, OICL, and UICL have about 20 percent market share and did not earn any profit. The government has infused more than Rs 12,200 crore into these companies in the past two years.
