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Funds prop for PSU insurers

Capital infusion to help improve financial health of general insurance firms
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PTI   |   New Delhi   |   Published 09.05.22, 02:54 AM

The government may infuse Rs 3,000-5,000 crore additional capital in the three public sector general insurance companies based on their performance and requirement during the year, sources said. 

The capital infusion would help improve the financial health of the general insurance firms — National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company.

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Last year, the government made a capital infusion of Rs 5,000 crore in these three insurance companies.

During 2020-21, Rs 9,950 crore was infused in three PSU general insurers by the Centre out of which Rs 3,605 crore was infused in United India Insurance, Rs 3,175 crore in National Insurance and Rs 3,170 crore in Oriental Insurance.

Fund support was given to the weak general insurance companies last year, some more fund requirement is there to bring them back on profitability path, sources said.



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