Overview
- The Finance Ministry has reopened a preliminary review to combine Oriental Insurance, National Insurance and United India Insurance into a single entity to boost efficiency and scale.
- The original merger plan announced in 2018-19 was dropped in July 2020 as the Cabinet approved ₹12,450 crore in capital, part of a total ₹17,450 crore infused between 2019-20 and 2021-22 to stabilise the firms.
- Officials attribute the fresh assessment to improved financial health at the insurers, with no decision yet on the merger’s design or timing.
- A possible privatisation of a general insurer remains under examination, enabled by the 2021 law that removed the requirement for the Centre to hold at least 51% equity.
- The government is expected to introduce a bill in the December 1–19 Winter Session to lift the insurance FDI cap from 74% to 100% to draw more overseas investment.