Three public sector general insurers – National Insurance Company, Oriental Insurance Company, and United India Insurance Company – supposed to be merged, are expecting an infusion of Rs 12,000-crore in this financial year (FY20). “Several months ago, the Department of Financial Services (DFS) had recommended the fund infusion of Rs 12,000 crore. We hope it will come soon. The final call will be taken at the highest level,” said a senior official of one of the firms.
In accordance with the sources, the matter of capital infusion needs to be approved by Union Finance Minister Nirmal Sitharaman despite the approval of DFS. “The board approval is an indication that the government is serious about the merger. There are expectations that the government might infuse the funds before the merger,” the official said.
