Three state-run general insurance companies to get Rs 2500 crore, Cabinet approves proposal
Union Minister of Information and Broadcasting Prakash Javadekar addressing a press conference in Delhi on Wednesday and said that the Union Cabinet approves Rs 2,500 crore fund infusion in three state-run general insurance companies today.
These general insurance companies include National Insurance Company, Oriental Insurance Company, and United India Insurance Company. The decision was taken to improve the solvency ratio of the general insurance companies Prakash Javadekar added.
The union cabinet has passed Rs 2500 crore with immediate effect, according to the official statement. The decision to infuse capital into the 3 government companies has already come before the merger of the three companies by the end of March 2020.
The Finance Ministry said In January itself that the merger process of the three government general insurance companies is in the final stage. The final decision on the merger is with the cabinet.
Before moving ahead with the merger process, the government has decided to put the money in the three general insurance companies due to the stability in the companies.
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However, considering the deteriorating companies’ financial health, a final merger decision could not be made yet.