The merger of the three public sector general insurance companies — National Insurance Company (NIC), United India Insurance and Oriental Insurance Company — is likely to be completed before the end of the next financial year.
“The merger is expected to be complete before the government presents the vote of account early next (calendar) year,” said M N Sarma, CMD, United India Insurance. He added that the merger would lead to rationalisation of offices, but would not entail any job cuts.
Union Finance Minister, Arun Jaitley, in his Budget speech, had announced a proposal to merge the three public sector general insurers into a single company. The combined entity would be subsequently listed, Jaitley had said while presenting the Budget 2018-19 in Parliament.
Earlier, K Sanath Kumar, CMD, National Insurance too had said the government that the merger is likely to be complete by the end of next financial year.
“I was told that the merger would be most likely finalised by the end of next financial year. The Insurance Nationalization Act has to be amended and necessary permission for the merger has to be acquired from the IRDAI. Share transfer is not a challenge, as 100 per cent of it is held by the government,” Kumar had earlier told.
