According to a senior industry official, asset monetisation is one of the elements of organisational change that the four government-owned general insurance companies are anticipated to carry out.

The four insurers viz. National Insurance Company Ltd, Oriental Insurance Company Ltd, The United India Insurance Company Ltd and New India Assurance Company Ltd. The four entities have hired “Ernst & Young”  as the consultant for the assignment called "Organisational Efficiencies and Performance Management in Public Sector General Insurance Companies."

As per industry officials, the assignment is for ten months and Ernst & Young seems to have started delivering. "The four insurers own some prime real estate, many of which came to them when the private insurers were nationalised in 1972."

As per another senior industry official, the real estate assets that are under utilised can be monetised. The companies also own residential apartments some of which are in a dilapidated condition or where the repair expenses far exceed their intrinsic value.

Unlike the Life Insurance Corporation of India (LIC) the four non-life insurers are not major real estate owners but do have properties in some major cities. These properties are used by the insurers and are also let out on rent. In their balance sheet, the real estate is shown at their historical value minus depreciation and any impairment loss. "The organisational restructuring will result in merger of offices which may free up properties for sale. Further the merger of offices will also save the companies huge sums in terms of rental outgo," official said to IANS.

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