The Cabinet on Wednesday approved a capital infusion of ₹12,450 crore into three public sector general insurance companies to make them more financially stable and able to raise further resources.
Oriental Insurance Co., National Insurance Co. (NIC), and United India Insurance Co. will get an initial tranche of ₹3,475 crore in the current financial year, while the balance ₹6,475 crore will be infused later in one or more tranches, the government said. A sum of ₹2,500 crore was infused in 2019-20. The Cabinet also approved an increase in authorised share capital of NIC to ₹7,500 crore and that of the other two to ₹5,000 crore each.
“The process of merger has been ceased... in view of the current scenario,” the government added.
