Cabinet okays ₹12,450 crore recap of the Oriental Insurance Company, the National Insurance Company and the United India Insurance Company.

• The Union Cabinet on 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 government also looks to improve the solvency ratio of these companies before merging the three entities to create a general insurance giant. the Oriental Insurance Company, the National Insurance Company and the United India Insurance Company.

The Union Cabinet on 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. 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.

SEE ALSO:
INTERVIEW: Shaaz Jung opens up about the blood, sweat and years behind the viral images of a rare black panther
Coronavirus herd immunity may be 'unachievable' after study suggests antibodies disappear after weeks in some people