The forthcoming Budget may make a provision for Rs 4,000 crore capital infusion for public sector general insurance companies to revamp their capital.
According to sources, the Department of Financial Services has sought Rs 4,000 crore in the Budget for fund infusion in three insurance companies, National Insurance Company, Oriental Insurance Company and United India Insurance Company.
Depending on the capital that the Budget provides, individual allocations will be made, sources added.
As on March 31, 2017, the three companies together had more than 200 insurance products with a total premium of Rs 41,461 crore and a market share of around 35 per cent.
Their combined net worth is Rs 9,243 crore, with total employee strength of around 44,000 spread over 6,000 offices.