Govt likely to propose United India Insurance for privatisation
The government is likely to propose United India Insurance for privatisation, sources informed CNBC-TV18.
The government is likely to propose United India Insurance for privatisation, sources informed CNBC-TV18.
"The cabinet nod will be sought after other approvals in place," sources said.
The Parliament recently approved amendments to General Insurance Business (Nationalisation) Act (GIBNA) and it's most likely that insurance companies wil be privatised before banks.
GIBNA, which came into force in 1972, provided for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of the general insurance business.
The government has so far infused approx Rs 12,500 crore in non-life insurers.
United India Insurance market share was 7.82 percent for July FY22.
Last year, the Union Cabinet headed by Prime Minister Narendra Modi had cleared a 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 (NICL) to Rs 7,500 crore and that of United India Insurance Co Ltd (UIICL) and Oriental Insurance Co Ltd (OICL) to Rs 5,000 crore each to give effect to the capital infusion decision.
(Edited by : Anshul)
First Published: Aug 16, 2021 10:44 AM IST
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