United India Insurance Company
The government can infuse Rs 3,000 crore into government general insurance companies during the current quarter.
- February 21, 2021, 4:48 PM IST
To further strengthen their financial position, the government can infuse Rs 3,000 crore during the current quarter. Sources said that both Oriental Insurance and Chennai-based United India Insurance can attract private sector due to their better financial condition.
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Sources said that the process of choosing a suitable company for privatization has just started and it will take some time to decide. The government holds 85.44 per cent stake in New India Assurance.Also read- PM Kisan Samman Nidhi: The next installment is coming in March! Check whether your name is in the list or not
According to the plan, the NITI Aayog under the Ministry of Finance will recommend the government for privatization and the Department of Investment and Public Asset Management will take the proposal to its logical conclusion.
12,450 crore was announced for general insurance companies
Last year, the cabinet and CCEA meeting chaired by Prime Minister Narendra Modi decided to infuse capital in three major government general insurance companies of the country. The Cabinet had approved infusion of Rs 12,450 crore in Oriental Insurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.