Cabinet approves Rs 2,500 cr of capital infusion in 3 PSU gen insurance cos

The Cabinet approves the proposal for capital infusion and immediate release of Rs 2,500 crore for three public sector general insurance companies in the light of the critical financial position and breach of regulatory solvency requirements," an official statement said.

 

New Delhi:

The Union Cabinet on Wednesday approved a proposal for capital infusion and immediate release of Rs 2,500 crore for three public sector companies on account of their critical financial conditions.

 

The decision came after United India Insurance, National Insurance Company and Oriental Insurance Company breached the regulatory solvency requirements.


"The Cabinet approves the proposal for capital infusion and immediate release of Rs 2,500 crore for three public sector general insurance companies in the light of the critical financial position and breach of regulatory solvency requirements," an official statement said.

 

Briefing reporters here, Union Minister Prakash Javadekar said the capital has been infused in the light of the critical financial position and breach of regulatory solvency requirements of the general insurers.


The capital infusion in these companies comes ahead of their proposed merger by the end of March 2020.
 

Earlier in January, the finance ministry had said that the merger of PSU general insurers was at an advanced stage and that could happen soon as the matter was pending before the Cabinet.

 


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