Government insurance companies will be merged, the government has made a super plan..

Following the banks, the government has now decided to merge the country's state-owned insurance companies. A plan has been prepared for this. According to reports, the Finance Ministry is considering a preliminary proposal to merge three state-owned general insurance companies into a single unit, as their financial situation has improved. This initiative aims to ensure greater efficiency and greater scale. Let us explain what kind of planning is being undertaken by the government.

Which companies could be merged?
The government invested a total of ₹17,450 crore in Oriental Insurance, National Insurance, and United India Insurance between 2019-20 and 2021-22 to help them overcome a financial crisis. In the 2018-19 budget, then-Finance Minister Arun Jaitley announced the merger of these three companies into a single insurance unit. However, in July 2020, the government shelved this idea and instead approved a capital infusion of ₹12,450 crore into the three companies.

Privatization is also under consideration
According to sources, now that their financial situation has improved, the Finance Ministry is conducting a preliminary review of their merger to enhance their efficiency. Sources said that a proposal to privatize a general insurance company announced by the government is also being considered. However, no final decision has been taken yet, and various options are being considered. Finance Minister Nirmala Sitharaman announced a major privatization agenda in the 2021-22 budget, including the privatization of two public sector banks and one general insurance company. Subsequently, in August 2021, Parliament passed the General Insurance Business (Nationalization) Amendment Bill, 2021, paving the way for the privatization of government-owned general insurance companies.

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