In a bid to develop the financial condition of the state-run general insurance firms, the Finance Ministry will infuse additional Rs 3,000 crore into them in the ongoing quarter (January-March).
Last year, the Union Cabinet had cleared the proposal to put in capital into National Insurance, Oriental Insurance and United India Insurance.
The cabinet had also decided to increase the authorized share capital of National Insurance Company Limited (NICL) to Rs 7,500 crore and that of United India Insurance Company Limited (UIICL) and Oriental Insurance Company Limited (OICL) to Rs 5,000 crore each to give effect to the capital infusion decision. Recently, the government sought Parliament nod for gross additional expenditure of Rs 6.28 lakh crore for 2020-21.
The government recently sought the Parliament’s approval for gross additional expenditure of Rs 6.28 lakh crore for 2020-21 as part of the second and final batch of supplementary demands for grants, which includes Rs 3,000 crore for the recapitalization of the general insurers.
The infusion will be done after the supplementary demand for grants is passed by parliament which will reconvene on March 8. The supplementary grants are required for “providing additional funds towards re-capitalization of Insurance companies (Rs 3,000 crore)”, said the second supplementary demands for grants for 2020-21.
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