Govt May Infuse Capital in PSU General Insurers in Q4 Based on Performance

- Advertisement -

The finance ministry is considering providing capital infusion to three loss-making public sector general insurance companies (PSUs) – National Insurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company – in the fourth quarter of the current financial year.

The decision will be based on the financial performance of the PSUs in the first nine months of the year.

The government is also reviewing the impact of the restructuring initiatives undertaken by the PSUs on their profitability and solvency margin.

- Advertisement -

The solvency margin is the extra capital that insurance companies must hold over and above the claim amounts they are likely to incur. It acts as a financial backup in extreme situations, enabling the company to settle all claims.

The government last year provided Rs 5,000 crore capital to the three PSUs.

The government has been infusing capital into the PSUs to improve their financial health and help them meet the regulatory solvency requirement of 150%.

- Advertisement -

The government has also announced its intention to privatise one general insurance company.

- Advertisement -

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Huge rush of customers in SBI, Women stand outside SBI since Night for KYC

Women stand outside SBI from 2 am at Night for KYC

ICICI Bank Manager accepts he conducted Rs 12 crore fraud by forging customer’s signature

ICICI Bank Manager accepts he conducted Rs 12 crore fraud by forging customer's signature

Standard Chartered Bank ordered to pay compensation for not updating CIBIL score of loan borrower

Standard Chartered Bank ordered to pay compensation for not updating CIBIL score of loan borrower

Retired Judges get only Rs.19000 pension, Court asks Govt to increase pension of Judges

Supreme Court asks Government to increase pension of retired Judges

CBI Court sentenced UCO Bank Manager to 5 years Jail

CBI Court sentenced UCO Bank Manager to 5 years Jail

PNB Bank union writes letter to PM Modi to introduce five day banking

PNB Bank union writes letter to PM Modi to introduce five day banking

What happened to Nithin Kamath, CEO of Zerodha?

What happened to Nithin Kamath, CEO of Zerodha?

SBI projects 14-15% loan growth, Read what SBI Chairman Dinesh Khara said

SBI projects 14-15% loan growth, Read what SBI Chairman Dinesh Khara said

Acid attack on Bank of Baroda Female Manager, Case transferred to Allahabad Court

Acid attack on Bank of Baroda Female Manager, Case transferred to Allahabad Court

High Court orders RBI to pay compensation for denying maternity leave of Female Employee

High Court orders RBI to pay compensation for denying maternity leave of Female Employee