Govt may infuse Rs. 5000 crore in PSU General Insurers

The central government will reportedly infuse Rs 5,000 crore as equity support into PSU general insurers. “A fresh assessment may be done by the end of the December quarter and, accordingly, a capital allocation may be made,” an official aware of the matter told.

This is over and above the support of Rs 5,000 crore already given to general insurers. National Insurance has been given Rs 3,700 crore, Oriental Insurance Rs 1,200 crore and United Insurance Rs 100 crore, the report added.

Only New India Assurance is profitable among all the four state-run general insurers. Oriental Insurance, National Insurance and United India are loss-making.