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Union Cabinet okays Rs 12,450 crore capital infusion into three PSU general insurance cos

IANS
Updated: July 8th, 2020, 22:06 IST
in Business
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New Delhi: The Union Cabinet 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.

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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.

(IANS)

Tags: capital infusionInsuranceUnion Cabinet
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