Chennai, Feb 1 (IANS) The Budget 2020 has allocated Rs 6,950 crore towards recapitalisation of three public sector general insurers so that they can meet the solvency norms.
According to the budget papers, a sum of Rs 6,950 crore has been allocated towards recapitalisation of the government-owned general insurers – the National Insurance Company Ltd, the Oriental Insurance Company Ltd and the United India Insurance Company Ltd – so that they can maintain the required solvency ratio.
The government had provided Rs 2,500 crore for the three companies as a partial budgetary support as per the revised budget estimates for 2019-2020.
Finance Minister Nirmala Sitharaman was, however, silent on the merger of three companies as proposed by the government earlier.
The Board of Directors of three companies in their recent meeting had given their approval for merger.