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The merger of the three general insurance companies—National Insurance Company (NIC), United India Insurance and Oriental Insurance Company—is likely to be complete by early next year.
According to MN Sarma, CMD, United India Insurance, the chiefs of the three general insurance companies will have a ‘departmental meeting’ on February 16 to discuss and deliberate on Budget pronouncements including the roadmap for merger.
“All the three public sector general insurance companies are meeting on the 16th of this month for discussions on Budget pronouncements. So we hope to have some roadmap on merger and health insurance scheme in the meeting. We expect the merger to be completed before the next vote on accounts,” Sarma told newspersons on the sidelines of a health insurance summit organised by Assocham here on Tuesday.
Union Finance Minister, Arun Jaitley, had in his Budget speech, announced the proposal to merge the three public sector general insurance companies into a single entity. The combined entity would be subsequently listed, Jaitley said while presenting the Budget 2018–19 in Parliament.
The profitability of most general insurance companies including the State-owned ones, has been under pressure owing to rising underwriting losses and higher claims.
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