SME Times News Bureau | 08 Jul, 2020
The Union Cabinet on Wednesday approved capital infusion of Rs 12,450
crore for three state run insurance companies - the Oriental Insurance
Company, the National Insurance Company and the United India Insurance
Company.
The approved amount also includes Rs 2,500 crore infused in FY 2019-20.
In
the last budget on February 1, the government had set aside Rs 6,950
crore for recapitalisation of the three public sector general insurance
companies.
Experts have time and again sought capital infusion in the state-run insurers as they are undercapitalised.
The
government also looks to improve the solvency ratio of these companies
before merging the three entities to create a general insurance giant.
