More capital for state-owned insurance companies on way
Among state-owned insurers, only New India Assurance is in the green. The other three, United India Insurance, National Insurance Company, and Oriental Insurance Company, suffered losses of ₹6,926 crore in FY22.
NEW DELHI : The government may infuse ₹4,000-5,000 crore in three loss-making, state-owned general insurers after the budget to help them meet regulatory requirements in preparation for planned listing and privatisation. According to two persons privy to the development, the capital provision would be made in the current year’s budget for which Parliamentary approval is expected to be taken through the last supplementary demand for grants for FY23 later in March. The government had already enhanced the authorised capital keeping further fund infusion in mind. The budget may also provide token capital for insurance companies that would be validated only after fresh requirement is assessed post the restructuring of the general insurance companies, one of the two people said.