The Finance Ministry will infuse Rs 3,000 crore capital into state-owned general insurance companies during the current quarter in a bid to improve their financial health. Last year, the Union Cabinet headed by Prime Minister Narendra Modi cleared proposal to provide capital support to National Insurance, Oriental Insurance and United India Insurance.
The cabinet had also decided to increase the authorised share capital of National Insurance Company Ltd. to Rs 7,500 crore and that of United India Insurance Company Ltd. and Oriental Insurance Company Ltd. to Rs 5,000 crore each to give effect to the capital infusion decision.
The infusion will be done after the supplementary demands for grants is passed by Parliament which will reconvene on March 8. The capital infusion will enable the three public sector general insurance companies to improve their financial and solvency position, meet the insurance needs of the economy, absorb changes and enhance the capacity to raise resources and improve risk management.