National Insurance + Oriental Insurance + United Insurance merger halted by Modi govt

The Union Cabinet on Wednesday decided to halt the merger process of three state-owned general insurance companies, National Insurance, Oriental Insurance and United India Insurance, for the moment and approved fund infusion of Rs 12,450 crore to improve their financial health.

The cabinet headed by Prime Minister Narendra Modi also decided to increase the authorised share capital of National Insurance Company Limited (NICL) to Rs 7,500 crore and that of United India Insurance Company Limited (UIICL) and Oriental Insurance Company Limited (OICL) to Rs 5,000 crore each to give effect to the capital infusion decision.

“Further, the process of merger has been ceased so far in view of the current scenario and instead, the focus shall be on their profitable growth,” an official statement said.