India will infuse Rs 2,500 crore in three public sector general insurers to help them meet their buffer requirements.
The cabinet approved the fund infusion in United India Insurance Company Ltd., Oriental Insurance Company Ltd., and National Insurance Company Ltd. in the light of the critical financial position and breach of regulatory solvency requirements, Prakash Javadekar, minister of environment, forest and climate change; and information and broadcasting, said in a press briefing after the cabinet meeting.
Anurag Singh Thakur, minister of state for finance, on Monday, had said the government would provide a financial assistance of Rs 2,500 crore to insurers in the ongoing financial year, and Rs 6,950 crore had been budgeted for the next fiscal.
The poor financial health of the three insurers has delayed their proposed merger announced in the budget for 2018-19 by the late Arun Jaitely, then finance minister, and approved by the cabinet two years later.
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