Govt approves Rs 2,500 crore capital infusion into 3 PSU general insurers

The government has given an in-principle approval for capital infusion and immediate release of Rs 2,500 crore for three public sector general insurance companies -- Oriental Insurance Company (OICL), National Insurance Company (NICL) and United India Insurance Company (UIICL), in the light of the critical financial position and breach of regulatory solvency requirements of the general insurers.

The capital infusion in these companies comes ahead of their proposed merger by the end of March 2020. Earlier in January, the finance ministry had said that the merger of PSU general insurers was at an advanced stage and that could happen soon as the matter was pending before the Cabinet. As on March 31, 2017, the three companies together had more than 200 insurance products with a total premium of Rs 41,461 crore and a market share of around 35 percent.