Govt may infuse Rs. 3K-5K cr into insurers

The government may infuse Rs 3,000-5,000 crore additional capital in the three public sector general insurance companies based on their performance and requirement during the year, sources said.

The capital infusion would help improve the financial health of the general insurance firms — National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company.

In the last financial year, the government made capital infusion of Rs 5,000 crore in these three insurance companies.

During 2020-21, Rs 9,950 crore was infused in three PSU general insurers by the government out of which Rs 3,605 crore was infused in United India Insurance, Rs 3,175 crore in National Insurance and Rs 3,170 crore in Oriental Insurance.

Fund support was given to the weak general insurance companies last financial year, some more fund requirement is there to bring them back on profitability path, sources said.

Capital infusion of Rs 3,000-5,000 crore may be done in these companies based on their performance, sources said, adding, the government has already enhanced their authorised capital keeping further fund infusion in mind.