The government may propose United India Insurance for privatisation. The Cabinet nod will be sought after other approvals are in place, sources told CNBC-TV18.
Last week, the General Insurance Business (Nationalisation) Amendment Bill, 2021, was passed in the Rajya Sabha by a voice vote in a matter of minutes, with Finance Minister Nirmala Sitharaman not replying to brief points raised by MPs.
The General Insurance Business (Nationalisation) Amendment Bill, 2021, was passed by the Lok Sabha on August 2.
The government has so far infused approxmately Rs 12,500 crore in non-life insurers. United India Insurance market share was 7.82 percent for July FY22, according to the TV channel.
According to the statement of objects and reasons of the general insurance amendment bill, it seeks to remove the requirement that the central government should hold not less than 51 per cent of the equity capital in a specified insurer.
To provide for greater private participation in the public sector insurance companies, enhance insurance penetration and social protection, better secure the interests of policyholders and contribute to faster growth of the economy, it has become necessary to amend certain provisions of the act, according to the bill.
The finance minister in Budget 2021-22 had announced a big-ticket privatisation agenda which included two public sector banks and one general insurance company.
There are four general insurance companies in the public sector - National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and the United India Insurance Company Limited.
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