Latest News on United India Insurance
The Supreme Court has stayed an order directing an insurer to pay Rs 82.80 lakh to cricketer S Sreesanth on account of an injury he sustained during the Indian Premier League (IPL) 2012.
The Supreme Court has stayed an order by the National Consumer Disputes Redressal Commission (NCDRC) that directed an insurance company to pay Rs 82.80 lakh to a company that had contracted players for the Indian Premier League (IPL) team Rajasthan Royals. The claim was made due to a knee injury suffered by cricketer S Sreesanth during a practice match in 2012, which made him unfit to play in the tournament. The insurance company, United India Insurance Co. Ltd, had repudiated the claim citing a pre-existing toe injury that was not disclosed by the company.
The NCDRC had passed an order in April directing the insurance company to pay the claim, stating that the repudiation was a deficiency in service. The commission noted that the policy covered loss of fees and remuneration due to non-appearance in the tournament, and that the injury was sustained during the policy period. The commission also stated that the surveyor’s report had concluded that the injury was a sudden and unforeseen event, and that the claim was within the purview of the policy terms and conditions.
However, the Supreme Court has now stayed the NCDRC’s order, observing that Sreesanth did not play for a single day in the 2012 IPL tournament. The court has fixed the matter for hearing and stayed the effect and operation of the impugned order until further orders. The insurance company had filed a plea against the NCDRC’s order, arguing that the claim was wrongly allowed.
The case highlights the complexities of insurance claims and the need for careful consideration of policy terms and conditions. The NCDRC’s order had noted that the repudiation of the claim was based on a pre-existing toe injury that was not established to have occurred or recurred during the period of insurance cover. The Supreme Court’s stay order suggests that the court may take a closer look at the circumstances surrounding the injury and the insurance claim. The matter is expected to be heard further, and the final outcome will depend on the court’s interpretation of the policy terms and conditions, as well as the evidence presented by the parties involved.
A consumer forum has ordered an insurance company to provide compensation due to a delay in settling a claim.
The Ernakulam District Consumer Disputes Redressal Commission has ordered United India Insurance Company to pay a compensation of Rs 35,000 to a policyholder, Jabeen L Zacharias, due to a delay in settling her claims and deficiency in service. The compensation includes payment for deficiency in service and unfair trade practice.
Zacharias had insured her office building, furniture, and electronic equipment under a compact policy issued by United India Insurance Company, which was valid from April 26, 2009, to April 25, 2010. In February 2010, an electrical fault damaged several electronic items in the office, prompting Zacharias to intimate the insurance agency and follow their directives for inspection and repair estimates.
However, due to the delay in inspection, the office was closed, and upon reopening, a break-in and theft were discovered. Zacharias lodged a police complaint and four claims with the insurance company. Despite her repeated reminders, the insurance company failed to decide on three of the claims, citing “delay” as the reason. The only response from the insurance company was a denial of the theft claim after months of silence.
The consumer commission found the insurance company liable for the delay and ordered them to pay the compensation within 30 days. The commission’s decision highlights the importance of timely settlement of claims and fair treatment of policyholders by insurance companies. The ruling emphasizes that insurance companies must fulfill their obligations and provide adequate service to their customers, failure to do which can result in penalties and compensation for deficiency in service and unfair trade practices.
The case serves as a reminder to insurance companies to prioritize their customers’ needs and settle claims in a timely and efficient manner. It also underscores the role of consumer commissions in protecting the rights of policyholders and ensuring that insurance companies adhere to fair trade practices. By ordering the insurance company to pay compensation, the commission has sent a strong message that deficiency in service and unfair trade practices will not be tolerated.
The annual premium for the Chief Minister’s Comprehensive Health Insurance Scheme (CMCHIS) exceeds ₹1,200 crore, which is paid to the insurance company.
The Chief Minister’s Comprehensive Health Insurance Scheme (CMCHIS) in India’s Tamil Nadu state has provided health insurance benefits to over 1.45 crore families. The state government has paid an annual premium of ₹1,237.80 crore to the United India Insurance Company, which includes ₹1,173.66 crore for the coverage period from January 11, 2026, to January 10, 2027, and ₹64.13 crore as the remaining 5% premium from the previous year. The CMCHIS was launched in 2009 by former Chief Minister M. Karunanidhi and has since expanded to cover more families and provide additional benefits.
According to Health Minister Ma. Subramanian, the scheme has been steadily growing, with the annual premium increasing over the years. In the last three years, the premium paid was ₹1,200 crore in 2023, ₹1,228.27 crore in 2024, and ₹1,262.91 crore in 2025. The minister also mentioned that the government has included new categories of persons under the scheme, such as orphans, persons with disabilities, and construction workers, which has resulted in 7,56,873 people being brought under CMCHIS coverage.
The scheme has also seen an increase in the number of treatments covered, from 1,090 to 2,053, and the number of government and private empanelled hospitals has increased from 970 to 2,157. Additionally, the number of high-end procedures covered under the scheme has increased from two to eight. The government has also increased the premium per family from ₹699 to ₹849 and the annual income limit from ₹72,000 to ₹1.20 lakh.
In recent months, the government has implemented initiatives such as Ungaludan Stalin and Nalam Kaakkum Stalin, which have resulted in the enrolment of 2,77,735 new beneficiaries under CMCHIS. The minister acknowledged the efforts of hospitals and doctors who have performed well in the scheme and presented awards to them. The CMCHIS has been a significant step towards providing health insurance benefits to the people of Tamil Nadu, and the government’s efforts to expand and improve the scheme are commendable. With its increasing coverage and benefits, the scheme is expected to continue making a positive impact on the lives of the people in the state.
Chief Minister’s health insurance scheme reveals that kidney and heart treatments are the most common claims in Chennai.
The Chief Minister’s Health Insurance Scheme in Tamil Nadu has reported that treatment for kidney and heart diseases are the most common claims under the scheme. According to data from the Tamil Nadu State Health Systems Project, dialysis is the most opted procedure, followed by angiography-stenting and cardiac bypass surgery. This information was revealed as the health minister, Ma Subramanian, handed over a cheque of ₹1,237.80 crore to United India Insurance Corporation Ltd as the annual premium for 2026-27.
The scheme, which was initiated by late chief minister M Karunanidhi, provides health cover of up to ₹5 lakh for over 1.45 crore families across the state. The scheme has undergone significant expansions since its inception, with the premium contribution per family increasing from ₹691 to ₹849. The annual family income eligibility has also been enhanced from ₹72,000 to ₹1.2 lakh, and the sum insured has increased from ₹2 lakh to ₹5 lakh per family.
The treatment coverage under the scheme has expanded from 1,090 to 2,053 procedures, and the number of hospitals participating in the scheme has increased from 970 to 2,157. High-end treatments, including liver, kidney, bone marrow, and stem cell surgeries, have also been added to the scheme, with renal and cochlear transplant being among the most opted high-end procedures.
The scheme has grown into one of Tamil Nadu’s largest welfare initiatives, providing much-needed financial support to families in need of medical treatment. The expansion of the scheme’s coverage and the increase in the number of participating hospitals have made it possible for more people to access quality healthcare services. The scheme’s focus on providing coverage for high-end treatments, such as organ transplants, has also been a significant development, making it possible for people to access life-saving treatments that were previously out of reach. Overall, the Chief Minister’s Health Insurance Scheme has been a vital initiative in improving access to healthcare in Tamil Nadu.
Centre approves wage, pension revisions for PSGICs, NABARD and RBI.
The Indian government has approved a long-pending wage revision for Public Sector General Insurance companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). The revision will benefit approximately 46,322 employees, 23,570 pensioners, and 23,260 family pensioners across these organizations. The wage revision for PSGIC employees will be effective from August 1, 2022, with an overall hike in the wage bill of 12.41%. The revision includes an enhancement in the National Pension System (NPS) contribution from 10% to 14% for employees who joined after April 1, 2010.
The PSGICs that will be affected by this revision include National Insurance Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd., United India Insurance Company Ltd., General Insurance Corporation of India, and Agricultural Insurance Company Ltd. The total outgo for the wage revision will be approximately Rs 8,170.30 crore, which includes Rs 5,822.68 crore towards arrears, Rs 250.15 crore for NPS, and Rs 2,097.47 crore for family pension.
In addition to the wage revision, the government has also approved a pension revision for retirees of NABARD and the Reserve Bank of India (RBI). The pension revision for NABARD retirees will bring their basic pension and family pension on par with that of ex-RBI NABARD retirees. The revision will benefit around 3,800 serving and former employees, with an additional annual wage bill of around Rs 170 crore and a total payment of arrears amounting to around Rs 510 crore.
The pension revision for RBI retirees will result in an enhancement of basic pension by a factor of 1.43, leading to a substantial improvement in their monthly pension. The revision will benefit a total of 30,769 beneficiaries, comprising 22,580 pensioners and 8,189 family pensioners, with a total financial implication of Rs 2,696.82 crore. The government has stated that these revisions are aimed at improving the welfare of employees and retirees in these organizations.
Recent Updates
Punjab Government to Launch Rs 10 Lakh Cashless Health Insurance Scheme in Partnership with United India Insurance
The Punjab government is set to launch a new health insurance scheme, ‘Mukh Mantri Sehat Yojna’ (MMSY), on January 15, 2026, which aims to provide cashless treatment up to ₹10 lakh per family per year to all residents of Punjab. The scheme, which will be launched by Chief Minister Bhagwant Singh Mann and AAP National Convenor Arvind Kejriwal, will cover all families, including government employees and pensioners, without any income cap or exclusion criteria.
The scheme is designed to be inclusive, and beneficiaries can enroll using their Aadhaar and voter ID cards. A helpline will be launched to facilitate the process, and beneficiaries will receive dedicated MMSY health cards. The scheme will provide comprehensive coverage through more than 2,000 selected treatment packages and will cover secondary and tertiary care across a network of 824 empaneled hospitals, including public, private, and government hospitals.
The United India Insurance Company has been selected to implement the scheme, which will provide coverage of ₹1,00,000 per family, while the State Health Agency (SHA) Punjab will provide coverage for treatment requirements between ₹1,00,000 and ₹10,00,000. The scheme adopts the latest Health Benefit Package (HBP 2.2) and will ensure faster claim settlements and reduced payment turnaround times.
The launch of the MMSY scheme is a significant milestone towards achieving Universal Health Coverage in Punjab, as promised by Chief Minister Bhagwant Singh Mann. The scheme is expected to provide health dignity and financial protection to every household in the state. With its comprehensive coverage and inclusive design, the MMSY scheme has the potential to make a significant impact on the health and well-being of the people of Punjab.
The scheme’s operational framework is designed to ensure seamless delivery of healthcare services, with a robust network of empaneled hospitals and a user-friendly enrollment process. The selection of United India Insurance Company brings the advantage of specialists to manage claim processing efficiently, ensuring faster claim settlements and reduced payment turnaround times. Overall, the MMSY scheme is a major step forward in providing quality healthcare to the people of Punjab, and its launch is eagerly anticipated.
Punjab Chief Minister Bhagwant Mann and Delhi Chief Minister Arvind Kejriwal will launch a health insurance scheme on January 15.
The Punjab government is set to launch a historic healthcare initiative, the “Mukh Mantri Sehat Yojna” (MMSY), this month, marking a significant step towards achieving Universal Health Coverage. This move is in line with the promise made by Chief Minister Bhagwant Mann to provide health dignity and financial protection to every household in the state. The scheme aims to provide a cashless health insurance cover of Rs 10 lakh to all families in Punjab.
A crucial agreement was signed on Friday between the State Health Agency (SHA) and the United India Insurance Company, paving the way for the implementation of the MMSY. The agreement was signed by Sanyam Aggarwal, CEO of SHA, and Mathew George, Executive Director of United India Insurance Company, in the presence of Health and Family Welfare Minister Balbir Singh.
The launch of MMSY is a significant milestone in the state’s journey towards achieving Universal Health Coverage. The scheme will provide financial protection to families in Punjab, ensuring that they do not have to bear the burden of exorbitant medical expenses. The cashless health insurance cover of Rs 10 lakh will enable families to access quality healthcare services without worrying about the financial implications.
The Punjab government’s initiative is expected to have a positive impact on the health and wellbeing of the state’s population. By providing access to quality healthcare, the government aims to reduce the burden of out-of-pocket expenses on families and ensure that everyone has access to essential health services. The launch of MMSY is a testament to the government’s commitment to prioritizing the health and wellbeing of its citizens.
With the agreement in place, the Punjab government is all set to roll out the MMSY this month, as announced by Chief Minister Mann. The scheme is expected to benefit all families in Punjab, providing them with a sense of security and dignity. The government’s efforts to achieve Universal Health Coverage are a significant step towards creating a healthier and more equitable society, and the launch of MMSY is a major milestone in this journey.
Centre approves wage, pension revisions for PSGICs, NABARD and RBI
The Indian government has approved a long-awaited wage revision for Public Sector General Insurance companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). This revision will benefit approximately 46,322 employees, 23,570 pensioners, and 23,260 family pensioners across these organizations. The wage revision for PSGIC employees will be effective from August 1, 2022, and will result in a 12.41% increase in the overall wage bill, with a 14% hike in basic pay and dearness allowance.
The revision also includes an increase in the National Pension System (NPS) contribution from 10% to 14% for employees who joined after April 1, 2010. Family pension has been revised to a uniform rate of 30% from the date of publication in the official gazette, benefiting 14,615 family pensioners. The total outgo for this revision is estimated to be Rs 8,170.30 crore, which includes arrears of wage revision, NPS contributions, and family pension.
In addition to the wage revision, the government has also approved a pension revision for retirees of NABARD and the Reserve Bank of India (RBI). For NABARD, the hike in pay and allowances is approximately 20% for all Group ‘A’, ‘B’, and ‘C’ employees, effective from November 1, 2022. This will benefit around 3,800 serving and former employees. The pension revision for NABARD retirees who were originally recruited by NABARD and retired before November 1, 2017, has been brought on par with that of ex-RBI NABARD retirees.
The government has also approved the revision of pension and family pension to the retirees of the RBI, which will result in an effective enhancement of basic pension by a factor of 1.43 for all retirees. This revision will benefit a total of 30,769 beneficiaries, comprising 22,580 pensioners and 8,189 family pensioners. The total financial implication for this revision is estimated to be Rs 2,696.82 crore, which includes a one-time expenditure of Rs 2,485.02 crore towards arrears and a recurring annual expenditure of Rs 211.80 crore.
The PSGICs that will be affected by this revision include National Insurance Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd., United India Insurance Company Ltd., General Insurance Corporation of India, and Agricultural Insurance Company Ltd. The wage and pension revisions are expected to improve the financial well-being of the employees and retirees of these organizations.
11.6k cr pay day at PSU insurers, RBI
The Indian government has approved a retrospective wage and pension reset for employees of public sector general insurers, the Reserve Bank of India (RBI), and the National Bank for Agriculture and Rural Development (Nabard). The total payout is estimated to be around Rs 11,640 crore. The majority of this amount, Rs 8,170 crore, will go to state-owned general insurers, followed by the RBI at Rs 2,697 crore and Nabard at Rs 773 crore.
The payout for public sector general insurers includes Rs 5,823 crore in arrears, Rs 250 crore for the National Pension System (NPS), and Rs 2,098 crore for family pensions. This will benefit around 43,247 employees and 14,615 family pensioners across six insurance companies: National Insurance, New India Assurance, Oriental Insurance, United India Insurance, General Insurance Corporation of India (GIC), and Agriculture Insurance Company of India Limited (AICIL).
However, the financial health of these insurers is a concern, with three of them – National Insurance, Oriental Insurance, and United India Insurance – failing to meet the minimum solvency margin of 1.5 as of March 31, 2025. Only New India Assurance met this requirement, with a solvency margin of 1.9. This raises the possibility of the government providing budgetary capital infusion to fund the higher wages.
There is speculation that the government may link this support to reforms that make the public sector undertakings (PSUs) more sustainable. In the past, the government has tied budgetary support to reforms, and there is a possibility that it may announce consolidation of PSU insurers or sell stakes in these companies to improve their financial health. The government’s decision to approve the wage and pension reset is expected to have significant implications for the insurance sector and the overall economy.
BJP Terms ₹10L Health Insurance Plan Fiscally Impossible
The Punjab unit of the Bharatiya Janata Party (BJP) has launched a scathing attack on the Aam Aadmi Party (AAP) government’s upcoming health insurance rollout, labelling it a “bundle of lies” designed to mislead voters. The Mukh Mantri Sehat Yojna (MMSY) promises each family ₹10 lakh in cashless medical insurance, but the BJP claims that the programme is unviable mathematically and financially given the state’s soaring debt.
According to BJP’s former state minister Manoranjan Kalia, the state is only paying a nominal premium to the United India Insurance Company, leaving the majority of the financial risk to an already depleted state treasury. The BJP claims that the state is paying only ₹1 lakh as a premium to the insurance company, while the remaining financial burden is placed on the state health agency, ultimately falling on the state exchequer.
The BJP’s critique centres on Punjab’s deteriorating balance sheet, with the state’s total debt exceeding ₹4 lakh crore and its per capita debt standing at ₹1,23,274. The party argues that a government struggling to meet basic social security obligations cannot afford a massive new insurance entitlement. The Punjab State Power Corporation Limited (PSPCL) also faces outstanding dues of more than ₹10,500 crore.
Kalia questioned how the administration plans to fund high-end medical treatments when it reportedly lacks the liquidity to pay timely old-age and widow pensions. He remarked that the scheme is not healthcare, but merely a “bundle of hollow promises and false claims”. The BJP has expressed doubt over how the government will bear the huge cost of the scheme when the state treasury is empty.
The AAP government has yet to issue a formal rebuttal to the figures presented by the BJP, maintaining that the January 15 launch of the MMSY will revolutionise affordable healthcare in the region. However, the BJP’s criticism has raised concerns over the viability of the scheme and the state’s ability to fund it. The opposition party’s allegations have also highlighted the need for greater transparency and accountability in the government’s financial commitments and budget allocations.
The Finance Minister has instructed insurers to innovate and develop new products that address emerging risks.
Finance Minister Nirmala Sitharaman recently met with public sector general insurance companies to discuss their performance and future strategies. The meeting, attended by Financial Services Secretary M Nagaraju, aimed to address the need for innovation and diversification in the insurance sector. Sitharaman emphasized the importance of developing new products to mitigate emerging risks such as cyber fraud, which is becoming increasingly prevalent.
The Minister highlighted the need for robust underwriting, portfolio optimization, and aligning combined ratios with global benchmarks to ensure long-term financial sustainability. She encouraged insurers to leverage data analytics and artificial intelligence (AI) to develop precise pricing and claims models, enabling improved risk assessment. This will help insurers to better manage their risks and provide more accurate quotes to policyholders.
Sitharaman also stressed the need to increase insurance penetration and density in India. Currently, insurance penetration in India stands at 1% of GDP, significantly lower than the global average of 4.2%. However, there has been some improvement in insurance density, which has increased from $9 in 2019 to $25 in 2023. The Minister urged insurers to step up their adoption of digital tools to improve their reach and services.
The public sector general insurance companies, including New India Assurance, United India Insurance, and Oriental Insurance, among others, were asked to diversify their portfolios to meet evolving consumer demands. By developing innovative products and leveraging technology, these insurers can better serve their customers and stay competitive in the market. Overall, the meeting aimed to encourage public sector insurers to modernize and expand their services, ultimately contributing to the growth of the Indian insurance sector. By doing so, the government hopes to increase insurance coverage and provide greater financial protection to citizens.
The Punjab government has signed an agreement to introduce a cashless health insurance program, which is set to be launched on January 15.
The Punjab government has signed an agreement with the United India Insurance Company to launch the “Mukh Mantri Sehat Yojna” on January 15. This scheme will provide a cashless health insurance cover of Rs 10 lakh to all families in the state. The agreement was signed by the CEO of the State Health Agency, Sanyam Aggarwal, and the Executive Director of United India Insurance, Mathew George, in the presence of the State Health and Family Welfare Minister, Balbir Singh.
The scheme aims to provide comprehensive health protection to all residents of Punjab, including government employees and pensioners, with no income cap or exclusion criteria. The coverage will be provided through a network of 824 empanelled hospitals, including public, private, and government hospitals. The number of empanelled hospitals is expected to increase as the scheme progresses.
The scheme will be launched by Chief Minister Bhagwant Singh Mann and AAP national convenor Arvind Kejriwal on January 15. The minister emphasized that the scheme is designed to be inclusive and accessible, with simple enrollment procedures through Common Service Centres (CSCs) using only Aadhaar and voter IDs. Beneficiaries will receive dedicated MMSY health cards, and a helpline will be launched soon to facilitate the process.
The United India Insurance Company will provide coverage of Rs 100,000 per family for all 65 lakh families in the state. For treatment requirements between Rs 100,000 and Rs 10,00,000, the insurance will be provided by the state health agency on a trust basis. The scheme adopts the latest health benefit package, ensuring comprehensive coverage through more than 2,000 selected treatment packages.
The minister declared the scheme a landmark reform, significantly expanding health protection from the earlier Rs 5 lakh coverage, which was limited to specific categories. The scheme aims to provide cashless treatment up to Rs 10 lakh per family per year, and beneficiaries can access secondary and tertiary care across the network of empanelled hospitals. With the launch of this scheme, Punjab is set to become one of the first states in the country to provide comprehensive health insurance coverage to all its residents.
Centre Considers Significant Overhaul of Public Sector General Insurers, Including Merger or Privatization Options
The Union finance ministry is considering major restructuring options for three public sector general insurance companies in India: National Insurance Company, Oriental Insurance Company, and United India Insurance Company. The potential options include merging two of these companies with New India Assurance, a profitable and listed insurer, merging all three state-owned entities, or merging two while preparing the third for privatization. This move aligns with the government’s policy to limit state presence in non-strategic sectors to one or two companies.
The three targeted insurers continue to face financial difficulties, with low solvency ratios and significant undercapitalization. For instance, United India Insurance reported a profit of ₹154 crore in FY25 but had a solvency ratio of -0.65, while National Insurance posted a loss of ₹483 crore in FY25 and a loss of ₹284 crore in Q2 FY26. In contrast, New India Assurance is a profitable entity, reporting a profit of ₹988 crore in FY25 and maintaining solvency ratios above the 1.5x threshold.
The consolidation plan is seen as a way for public sector insurers to enhance efficiency and customer focus to compete effectively in a market that is opening up to foreign direct investment (FDI). The Indian insurance sector is expected to undergo significant changes, with potential consolidation, market restructuring, and changes in the operational landscape for public sector insurers.
The discussions around restructuring are significant, with a potential impact on the Indian insurance sector. Investors are likely to watch New India Assurance’s role and the overall competitive dynamics. The government’s move to consolidate the public sector insurers is expected to lead to a more efficient and competitive market, with a reduced presence of state-owned companies in non-strategic sectors.
The key terms related to the news include restructuring, merger, privatization, solvency profile, and solvency ratio. The solvency ratio is a critical measure of an insurer’s ability to meet its financial obligations, and a ratio below 1.5 indicates potential financial weakness. The government’s decision to consolidate the public sector insurers is expected to have a significant impact on the Indian insurance sector, with a rating of 7/10.
Odisha government to release standard operating procedure for expediting accident insurance claims settlement
The Odisha State Road Transport Corporation (OSRTC) has empanelled five leading insurance companies to provide coverage for road accidents. These companies include New India Assurance Co Ltd, Iffco-Tokio General Insurance, Oriental Insurance Co Ltd, United India Insurance Co Ltd, and Go Digit General Insurance. Initially, Go Digit General Insurance was the primary service provider, but New India Assurance Co Ltd and Oriental Insurance Co Ltd have since taken over claim settlements.
As of the latest data, a total of Rs 6.77 crore worth of claims have been filed, with Rs 1.45 crore already settled. The state government is closely monitoring the resolution of pending claims to ensure a faster settlement process. According to officials, the government is committed to providing timely compensation to the families of accident victims.
To streamline the claims process, the government has launched an Electronic Detailed Accident Report (e-DAR) portal. This online platform, developed in consultation with insurance companies, will provide instant access to road accident data, enabling faster compensation claims for the families of accident victims. The portal is expected to improve the efficiency of the claims process and reduce the burden on vehicle owners and accident victims.
The Transport department has urged vehicle owners to obtain insurance for their vehicles or renew their existing policies to avoid legal and financial complications. This move is intended to benefit road accident victims and ensure that they receive timely compensation. By promoting insurance coverage, the government aims to reduce the financial burden on accident victims and their families. Overall, the initiative is expected to improve road safety and provide support to those affected by accidents in Odisha.
Finance Ministry considers consolidating state-run insurance companies: Rediff Moneynews
The Indian Finance Ministry is reconsidering a proposal to merge three state-owned general insurance companies – Oriental Insurance, National Insurance, and United India Insurance – into a single entity. This decision comes after the companies’ financial health has improved following a capital infusion of Rs 17,450 crore between 2019-20 and 2021-22. The government had initially announced plans to merge the companies in 2018, but dropped the idea in 2020 in favor of a capital infusion.
The merger is being considered to achieve better efficiency and scale, and a preliminary assessment is currently underway. Additionally, the government is also reviewing a proposal to privatize a general insurance company, as announced in the 2021-22 Budget. The General Insurance Business (Nationalisation) Amendment Act, 2021, which allows for privatization of state-owned general insurance companies, was approved by Parliament in August 2021.
The government is also planning to increase the foreign direct investment (FDI) limit in the insurance sector from 74% to 100% to facilitate the entry of new players and increase insurance penetration. A bill to this effect is expected to be introduced in the upcoming Winter session of Parliament, which begins on December 1.
The improved financial health of the three insurance companies has made them attractive for privatization or merger. The government’s decision to reconsider the merger proposal and introduce privatization is aimed at improving the efficiency and competitiveness of the insurance sector. The move is also expected to increase insurance penetration and social protection in the country.
The Finance Ministry’s decision is part of the government’s broader agenda to privatize state-owned enterprises and increase private sector participation in key sectors. The government has announced plans to privatize two public sector banks and one general insurance company, and the proposed merger or privatization of the three insurance companies is a key part of this agenda. The outcome of the proposal is expected to have significant implications for the insurance sector and the economy as a whole.
The Tamil Nadu government has extended the health insurance scheme for its employees for another year.
The Tamil Nadu government has extended the New Health Insurance Scheme, 2021, for its employees by another year, from July 1, 2025, to June 30, 2026. The scheme, which was set to expire on June 30, 2025, provides health insurance coverage to government employees and their families. The insurance cover is capped at ₹5 lakh for families of all insured employees, with an additional ₹5 lakh for specified illnesses. The extension of the scheme is as per the existing terms and conditions of the agreement with the United India Insurance Company Limited.
However, the State coordinator of the Contributory Pension Scheme (CPS) Abolition Movement, P. Frederic Engels, has raised concerns about the clarity of the government order (G.O.) issued by the Finance (Health Insurance) department. He pointed out that it is not clear if employees who have exhausted their original cover within the block period of four years are eligible for an additional ₹5 lakh cover during the next one year.
Engels also criticized the scheme, saying that despite being designed to provide cashless treatment, most employees who have claimed health insurance have had to incur significant expenses out of their own pockets. He argued that if the extended health insurance cover does not provide additional cover for one year, employees would be paying for a cover they may not be able to benefit from.
The scheme was initially launched in 2021, with an annual premium payable by the government of ₹3,240 + GST per employee per annum for a block period of four years. The premium was recovered from employees at ₹300 per month. In December 2021, the government extended the cover to dependent children of government employees without any age restriction, with an additional premium of ₹20 + GST per family per annum. The insurance company has agreed to extend the scheme for another year, following a request from the Director of Treasuries and Accounts. The extension is expected to benefit government employees and their families, but concerns about the scheme’s effectiveness and clarity remain.
UIIC AO Cut Off 2026, Category-Wise Cut Off Marks
The United India Insurance Company Limited (UIIC) conducts the UIIC AO Exam to fill Generalist and Specialist posts. The UIIC AO Cut Off is the minimum score required to qualify the examination. The cut off is determined by the UIIC and is a deciding factor in whether a candidate has qualified the exam or not.
To prepare for the exam, candidates can refer to the previous year’s cut off marks, which provide insights into the minimum scores required to qualify for different categories. The UIIC AO Previous Year Cut Off marks are crucial for aspirants preparing for the exam, as they help candidates set realistic goals, understand competition levels, and strategize their preparation effectively.
The UIIC AO Cut Off 2024 for Generalist posts was released, with sectional cut off marks of 15 for all categories in all sections. The category-wise cut off marks for Generalist posts were also released, with the highest cut off mark being 156.39 for the Unreserved category. The cut off marks for Specialist posts were also released, with discipline-wise cut off marks for different categories.
The UIIC AO Cut Off 2024 for Specialist posts included cut off marks for six disciplines: Risk Management, Finance and Investment, Automobile Engineer, Chemical Engineer/Mechatronics Engineer, Data Analytical Specialist, and Legal. The cut off marks for these disciplines varied across different categories.
In addition to the cut off marks, the UIIC also releases the sectional cut off marks for Specialist posts. The sectional cut off marks for the 2024 exam were released, with cut off marks for each section ranging from 1 to 15.
To check the UIIC AO Cut Off, candidates can follow the steps outlined on the official website of UIIC. The factors that affect the UIIC AO Cut Off include the number of vacancies released, reservation policy, difficulty level of the exam, and the number of candidates appearing for the exam.
The UIIC AO Cut Off for previous years, including 2016, 2015, and 2023, is also available. The cut off marks for these years provide valuable insights into the minimum scores required to qualify for different categories and can help candidates prepare for the exam. By referring to the previous year’s cut off marks, candidates can strategize their preparation and increase their chances of qualifying the exam.
In conclusion, the UIIC AO Cut Off is an essential factor in determining whether a candidate has qualified the exam or not. By referring to the previous year’s cut off marks and understanding the factors that affect the cut off, candidates can prepare effectively for the exam and increase their chances of success. The UIIC AO Cut Off marks are released on the official website of UIIC, and candidates can check the cut off marks by following the steps outlined on the website.
Punjab has signed an agreement to launch a cashless health insurance program, which is set to be implemented on January 15.
The state government of Punjab has signed an agreement with the United India Insurance Company to launch a cashless health insurance scheme called ‘Mukh Mantri Sehat Yojna’ on January 15. The scheme will provide a cashless health insurance cover of up to Rs 10 lakh per family per year to all residents of Punjab, including government employees and pensioners. This is a significant expansion of the earlier health protection scheme, which had a coverage limit of Rs 5 lakh and was limited to specific categories.
The new scheme aims to provide total inclusivity, with no income cap or exclusion criteria. Enrolment for the scheme will be made simple and accessible through Common Service Centres (CSCs) using only Aadhaar and voter IDs. Beneficiaries will receive dedicated MMSY health cards, and a helpline will be launched soon to facilitate the process.
The United India Insurance Company will provide coverage of Rs 100,000 per family for all 65 lakh families in the state. For treatment requirements between Rs 100,000 and Rs 10,00,000, the insurance will be provided by the state health agency on a trust basis. The scheme adopts the latest health benefit package, ensuring comprehensive coverage through more than 2,000 selected treatment packages.
Beneficiaries can access secondary and tertiary care across a robust network of 824 empanelled hospitals, which includes 212 public hospitals, eight government of India hospitals, and over 600 private hospitals. The number of empanelled hospitals is expected to increase further as the scheme progresses. The scheme will be formally launched by Chief Minister Bhagwant Singh Mann and AAP national convenor Arvind Kejriwal on January 15.
The state government has emphasized that the scheme is designed to provide comprehensive health coverage to all residents of Punjab, regardless of their income or social status. The scheme’s operational framework has been designed to ensure that beneficiaries can access quality healthcare services without having to worry about the financial burden. With the launch of this scheme, Punjab is taking a significant step towards providing universal health coverage to its residents.
The Punjab Government is set to launch a ₹10 lakh cashless health insurance scheme, following the signing of an agreement with the United India Insurance Company (UIIC).
The Punjab government, led by Chief Minister Bhagwant Singh Mann, is set to launch a new health insurance scheme called ‘Mukh Mantri Sehat Yojna’ (MMSY) on January 15, 2026. The scheme aims to provide ₹10 lakh cashless health insurance cover to all families in Punjab, ensuring health dignity and financial protection for every household. This move is a significant step towards achieving Universal Health Coverage, a promise made by the CM.
The agreement for the scheme was signed with the United India Insurance Company, which will provide coverage of ₹1,00,000 per family for all 65 lakh families in the state. For treatment requirements between ₹1,00,000 and ₹10,00,000, the insurance will be provided by the State Health Agency (SHA) Punjab on a trust basis. The scheme adopts the latest Health Benefit Package (HBP 2.2), ensuring comprehensive coverage through more than 2,000 selected treatment packages.
Beneficiaries can access secondary and tertiary care across a robust network of 824 empaneled hospitals, including 212 Public Hospitals, eight Government of India Hospitals, and over 600 Private Hospitals. The number of empaneled hospitals is expected to increase further as the scheme progresses. The scheme is designed for total inclusivity, featuring no income cap or exclusion criteria, and enrolment has been made simple and accessible through Common Service Centres (CSCs) using only Aadhaar and Voter IDs.
The Health Minister, Dr. Balbir Singh, highlighted that the scheme significantly expands health protection from the earlier ₹5 lakh coverage, which was limited to specific categories. He also emphasized that the selection of United India Insurance brings the advantage of specialists to manage CPD processing efficiently, ensuring faster claim settlements and reduced payment turnaround times. CM Bhagwant Singh Mann and AAP National Convenor Arvind Kejriwal will formally launch the scheme on January 15, 2026.
UIIC AO Final Result 2025 Out, Shortlisted Candidates List
The United India Insurance Company Limited (UIIC) has announced the final result for the Administrative Officer (AO) positions, both Generalists and Specialists (Scale-I), on May 12, 2025. The result is available in PDF format on the official UIIC website, www.uiic.co.in, and contains the roll numbers of provisionally short-listed candidates for the pre-employment medical examination.
A total of 200 posts are available for Administrative Officers, with selection based on online tests and interviews. Candidates who appeared in the UIIC AO interview exam can check their results on the official website. The details of the pre-employment medical examination, including dates and venue, will be sent to candidates via their registered email addresses.
To access the UIIC AO Result 2025, candidates can visit the official website, navigate to the ‘Careers’ section, and click on the ‘Recruitment’ section. Then, they can select the “List of Provisionally Selected Candidates for Next Stage – Administrative Officer Recruitment – 2024” to view the result PDF. The PDF contains the roll numbers of selected candidates, and candidates can press CTRL+F to search for their roll number.
The UIIC AO Result 2025 PDF mentions details such as the name of the organization, post name, roll numbers of selected candidates, and the next stage of the selection process. The cut-off marks for the UIIC AO exam 2025 will be released on the official website after the recruitment process. Only candidates whose scores match the respective category cut-off marks will be considered selected for the interview round.
Candidates can check the UIIC AO Final Result 2025 by clicking on the direct link provided or by visiting the official website. The result is available for download in PDF format, and candidates can search for their roll number using the CTRL+F function. The UIIC AO Final Cut-Off 2025 will be released later, and candidates can check it on the official website.
The UIIC AO recruitment drive aims to fill 200 posts for Administrative Officers, and the selection process involves online tests and interviews. Candidates who have qualified for the pre-employment medical examination will receive further instructions via email. The UIIC AO Result 2025 is a crucial step in the selection process, and candidates are advised to check their results and follow the instructions provided.
On October 8, 2025, insurance agents and associations are likely to raise the issue of Goods and Services Tax (GST) with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry.
The insurance industry in India is facing a significant issue related to the Goods and Services Tax (GST) and Input Tax Credit (ITC). Private insurers have reduced distributor payouts by 15-18% to offset the loss of ITC, following the GST exemption on life and health insurance premiums. This move is expected to have a significant impact on agents, brokerages, and individual advisors, particularly small and independent operators. The reduction in payouts will directly cut into their working capital, leading to reduced take-home income and morale, especially in smaller towns and rural markets.
The current GST framework, if left unadjusted, may set a precedent where insurers maintain profitability by squeezing distribution costs rather than improving efficiency. Industry associations and agents are likely to take up the issue with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry. The President of the General Insurance Agents Federation Integrated stated that the change will shrink access to insurance, which is against the Prime Minister’s vision of Insurance for All by 2047.
In contrast, Life Insurance Corporation (LIC) and other public sector insurers have decided to maintain existing commission structures, even as they pass the full GST relief to policyholders. LIC plans to offset the impact through higher policy sales and new product pricing. Public sector general insurers, including New India Assurance, Oriental Insurance, United India Insurance, and National Insurance, have also opted against cutting commissions, choosing instead to absorb the ITC loss.
Private insurers, on the other hand, are passing on the ITC burden to agents because their business models and cost structures leave little room to absorb additional expenses. The removal of ITC has raised operating costs by roughly 2-3% of premiums, and private companies must adhere to stricter IRDAI Expense of Management (EoM) caps. Absorbing this loss would directly dent profitability and risk regulatory breaches. Several private general and standalone health insurers, including Tata AIG, Aditya Birla Health Insurance, Niva Bupa, Care Health, and ICICI Lombard, have implemented revised commission structures, making payouts inclusive of 18% GST, which means distributors will bear the tax cost.
UIIC Assistant Recruitment 2025 notification is expected to be released soon.
The United India Insurance Company (UIIC) will soon announce vacancies for Assistant posts across the country through the UIIC Assistant Recruitment 2025. The registration dates for the recruitment will be released along with the notification on the company’s official website, www.uiic.co.in. The UIIC Assistant Notification PDF will carry complete details regarding the selection process, application fee, age relaxation, and more.
Overview of UIIC Assistant Recruitment 2025:
- Organization: United India Insurance Company (UIIC)
- Posts: Assistant
- Vacancies: To be announced
- Category: Govt Jobs
- Mode of Application: Online
- Registration Dates: To be notified
- Education Qualification: Graduation
- Age Limit: 21 to 30 years (as on 30.09.2023)
- Salary: Rs. 37,000 per month
- Selection Process: Online Examination followed by Regional Language Test
- Official website: www.uiic.co.in
UIIC Assistant Recruitment 2025 Important Dates:
- UIIC Assistant Recruitment 2025 Notification: To be announced
- Last date to Apply Online for UIIC Assistant Recruitment: To be notified
- Last Date for Editing Application Details: To be notified
- Last Date for Online Payment: To be notified
- Last Date of Printing Application: To be notified
- UIIC Assistant Exam Date 2025: To be notified
UIIC Assistant Vacancy 2025:
The number of vacancies for UIIC Assistant Recruitment 2025 is expected to be more than the previous year. Last year, there were 300 vacancies for various branches across the country.
UIIC Assistant Apply Online 2025:
The online application procedure for UIIC Assistant Recruitment 2025 will start on the official website of United India Insurance Company (UIIC) at www.uiic.co.in. Candidates’ applications will be accepted online, and no other mode will be accepted.
UIIC Assistant Recruitment 2025 Application Fee:
All applicants other than SC/ST/PwBD, Permanent Employees of the company have to pay the application fee/service charges + GST as applicable, whereas SC/ST/Persons with Benchmark Disability (PwBD), Permanent Employees of the Company are exempted from the application fee.
UIIC Assistant Recruitment 2025 Eligibility Criteria:
- Educational Qualification: Any graduate from a recognized university and knowledge of reading, writing, and speaking of the regional language of a related state.
- Age Limit: 21 to 30 years (as on 30.09.2023)
- Upper age relaxation as per government norms will be applicable.
UIIC Assistant Recruitment 2025 Selection Process:
The candidates will be shortlisted through an Online Examination followed by a Regional Language Test. The final merit list State-wise and Category-wise shall be prepared as per the marks secured by the candidates in the online examination.
UIIC Assistant Recruitment 2025 Exam Pattern:
The UIIC Assistant Exam 2025 will be conducted in Online Mode with a total of 250 marks. The exam will have 200 questions, and the duration will be 120 minutes (2 hours). The objective tests except the test on “The English Language” will be bilingual (in English and Hindi). For each incorrect answer, a 1/4th mark will be deducted.
UIIC Assistant Recruitment 2025 Salary:
The initial salary for an Assistant will be Rs. 37,000 per month (for metro cities). The pay scale of UIIC Assistant will be Rs. 22405-1305(1)-23710-1425(2)-26560-1605(5)-34585-1855(2)-38295-2260(3)-45075-2345(2)-49765-2500(5)-62265. The salary structure for UIIC Assistants includes basic pay, allowances, and other benefits.
The latest claim settlement ratio of health and general insurance companies was released by IRDA in 2025. According to the data, Navi and Acko have taken the lead, while Star Health and Zuno have fallen below the 90% mark.
The rising medical inflation has made it challenging for individuals to bear medical expenses without a comprehensive health insurance policy. In India, the Insurance Regulatory and Development Authority (IRDAI) releases an annual list of claim settlements by health and general insurance companies. The claim settlement ratio, which refers to the percentage of claims paid or settled by an insurer, is a reliable way to assess an insurer’s efficiency.
According to the latest figures for 2023-2024, the general insurers paid out a total of 71,200,854 claims, with 81.13% of total claims paid within 3 months of claim intimation. Among private general insurers, Acko General Insurance and Navi General Insurance Ltd led with claim settlement ratios of 99.91% and 99.97%, respectively. Zuno General Insurance Co. Ltd had the lowest claim settlement ratio among private sector insurers, with 83.12% of claims paid within 3 months.
Among public insurers, The Oriental Insurance Co. Ltd had the lowest claim settlement ratio, with only 65.08% of claims paid within 3 months. United India Insurance Co. Ltd had the highest claim settlement ratio among public insurers, with 96.33% of claims paid within 3 months.
For stand-alone health insurers, Aditya Birla Health Insurance Company had the highest claim settlement ratio within 3 months, at 92.97%. Care Health Insurance and Niva Bupa Health Insurance followed closely, with claim settlement ratios of 92.77% and 92.02%, respectively. Star Health and Allied Insurance Co. Ltd had the lowest claim settlement ratio among stand-alone health insurers, with 82.31% of claims paid within 3 months.
While checking the claim settlement ratio is necessary, it should not be the sole basis for finalizing a health or general insurance company. Other factors such as the sum insured, waiting period for various illnesses, and network of hospitals offered should also be considered.
The IRDAI data also reveals that during 2023-24, 16.3% of total claims were paid out between 3-6 months, indicating that some insurers may have delayed claim settlements. It is essential for policyholders to review the claim settlement ratio and other factors before selecting an insurer to ensure they receive adequate and prompt financial assistance in case of medical emergencies.
Overall, the claim settlement ratio is a crucial factor in assessing an insurer’s efficiency, and policyholders should carefully evaluate this metric along with other factors before making an informed decision. By doing so, they can ensure that they have a comprehensive health insurance policy that provides them with the necessary financial protection in case of medical emergencies.
Privatization of general insurers gets a reboot following FDI cap increase.
The Indian government is set to restart the process of privatizing a state-run general insurer in the next financial year. This decision comes after the Parliament passed a bill to increase the foreign direct investment (FDI) limit in the insurance sector to 100%. The government is expecting more players to show interest in the privatization process, which could lead to better valuations. The privatization process is part of the government’s plan to reduce its stake in state-owned general insurers to below 51%, as announced by Finance Minister Nirmala Sitharaman in her 2021-22 budget speech.
There are four public sector general insurers in India, but only one, New India Assurance, is profitable. The other three, National Insurance, United India Insurance, and Oriental Insurance, are loss-making, despite showing some improvement. The government will conduct a performance review of these companies after the December quarter results, which will help determine the next course of action.
The privatization process is expected to be influenced by the financial health of the chosen company. Private sector interest may be higher for companies with better financials. For example, Oriental Insurance has significant losses of around ₹8,293 crore on its balance sheet, while United India Insurance has reported a turnaround in 2024-25, posting a net profit of ₹154 crore. National Insurance, on the other hand, reported a loss of ₹284 crore for the September quarter.
The Insurance Regulatory and Development Authority of India (IRDAI) requires all insurance companies to maintain a surplus of 1.5 times their liabilities at all times. The solvency margin, which is the minimum margin of assets required by an insurer in excess of its liabilities, is a key indicator of an insurer’s financial health. The government may need to infuse capital into the loss-making insurers to make them more attractive to private investors.
The government’s decision to increase the FDI limit in the insurance sector to 100% is expected to attract more foreign investment and improve the competitiveness of the sector. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which was passed by Parliament, also gives more power to the IRDAI to regulate the insurance sector. Overall, the government’s plan to privatize a state-run general insurer is expected to lead to more efficient and competitive insurance services in the country.
NCDRC Orders United India Insurance to Pay Rs. 2.35 Crores for Cancelled Cricket Match
The National Consumer Commission has ruled in favor of the Andhra Cricket Association, holding United India Insurance Co. Ltd. liable for deficiency in service. The insurance company had wrongfully rejected a claim related to the cancellation of a One Day International cricket match that was scheduled to take place on October 14, 2014. The cancellation was due to a cyclone, which forced the organizers to call off the match.
As a result of the cancellation, the Andhra Cricket Association submitted an insurance claim to United India Insurance Co. Ltd. However, the insurance company repudiated the claim, leading to a dispute between the two parties. The Andhra Cricket Association then approached the National Consumer Commission, seeking redressal for the wrongful rejection of their claim.
After hearing the case, the National Consumer Commission found United India Insurance Co. Ltd. guilty of deficiency in service. The commission directed the insurance company to pay a significant amount of Rs. 2,35,81,470 to the Andhra Cricket Association. This amount is expected to compensate the association for the losses they incurred due to the cancellation of the match.
The ruling is a significant victory for the Andhra Cricket Association, which had suffered financial losses due to the cancellation of the match. The decision also serves as a warning to insurance companies to honor legitimate claims and not reject them without proper justification. In this case, the insurance company’s decision to repudiate the claim was found to be wrongful, and they have been held accountable for their actions.
The National Consumer Commission’s decision is a testament to the importance of consumer protection in India. The commission’s role is to ensure that consumers are treated fairly and that companies are held accountable for their actions. In this case, the commission has taken a strong stance against an insurance company that failed to fulfill its obligations, sending a clear message that such behavior will not be tolerated. The ruling is expected to have far-reaching implications for the insurance industry, emphasizing the need for companies to prioritize consumer interests and honor legitimate claims.
Bajaj Allianz General Insurance, Tata AIG, and United India have joined CRED Garage as insurance partners.
CRED, a fintech platform, has expanded its selection of motor insurers on CRED garage to include Bajaj Allianz General Insurance, Tata AIG, and United India Insurance. This addition brings the total number of curated insurance providers on the platform to seven, including ACKO, ICICI Lombard, Zurich Kotak, and Digit. CRED members can now evaluate and choose from India’s leading motor insurance providers in one place, with the ability to compare premiums, get quotes, and renew their policy seamlessly.
To date, CRED garage has enabled members to insure over 10 lakh vehicles without coverage lapses. The platform also facilitates digital claims initiation and provides end-to-end support through a dedicated concierge team. Insurers offer dynamically priced premiums with better rates for those with higher credit scores, recognizing members’ creditworthiness as a signal of responsible behavior.
The addition of new insurers reflects the benefit of CRED’s approach to the entire ecosystem, where creditworthy members get better benefits and insurers have access to more prudent consumers. According to Akshay Aedula, Product and Growth at CRED, the platform has reimagined the traditional insurance experience from the user’s perspective, enabling them to make the right choice in a frictionless, transparent, and intuitive manner.
The partnership with CRED garage has been welcomed by the new insurer partners. Dr. Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, said that insurance should adapt to the customer’s life, and the partnership allows vehicle owners to stay on top of their insurance status and renewal dates. Saurabh Maini, Senior EVP at TATA AIG, stated that the partnership helps them offer motor insurance solutions to a tech-savvy audience, reinforcing their focus on innovation and customer-centric protection.
Lipika Kalra, General Manager (Marketing) at United India Insurance, said that the partnership marks a key milestone in their digital transformation and B2C growth journey, enabling them to directly engage with a digitally native community that values convenience, transparency, and trust. With over 1.1 crore vehicles managed through CRED garage, the platform helps members manage all parts of car ownership in one place, from discovering challans to renewing pollution certificates, insurance, FASTag, checking valuation, and even resale.
The government is considering merging state-owned general insurance companies into a single entity.
The Indian government is considering a plan to merge three state-owned insurance companies – Oriental Insurance, National Insurance, and United India Insurance – into a single entity. This move is aimed at achieving better efficiency and scale, as the financial health of these companies has improved. The Finance Ministry is conducting a preliminary assessment of the merger, which is in line with Finance Minister Nirmala Sitharaman’s privatisation agenda announced in the 2021-22 Budget.
The government had previously announced plans to privatise a general insurance company, and various options are being examined. The General Insurance Business (Nationalisation) Amendment Act, 2021, was approved by Parliament in August 2021, allowing for the privatisation of state-owned general insurance companies. The act also dropped the requirement for the central government to hold at least 51% of the equity capital in a specified insurer.
The idea of merging the three insurance companies was first announced by former Finance Minister Arun Jaitley in the 2018-19 Budget. However, the plan was dropped in July 2020, and the Union Cabinet instead approved a capital infusion of ₹12,450 crore into the three companies. Between 2019-20 and 2021-22, the government invested ₹17,450 crore in the three public sector undertakings to help them overcome financial distress.
Now that their finances have improved, the government is reconsidering the merger plan. The government is also keen to increase foreign direct investment (FDI) in the insurance sector, with a bill seeking to increase the FDI limit to 100% from the existing 74%. This move is aimed at facilitating the entry of new players from overseas and increasing insurance penetration in the country.
The Winter session of Parliament is set to begin on December 1 and will continue until December 19, with 15 working days. The government is expected to introduce several bills and amendments during this session, including the proposal to merge the three insurance companies and increase the FDI limit in the insurance sector. The government’s efforts to privatise and merge state-owned insurance companies are part of its broader agenda to improve efficiency and increase private participation in the sector.
Privatization of general insurers gets a reboot following FDI cap increase
The Indian government plans to restart the process of privatizing a state-run general insurer in the next financial year. This decision comes after Parliament passed a bill allowing for 100% foreign direct investment (FDI) in the insurance sector. The government aims to attract more private players and achieve better valuations for the insurer. Currently, only one of the four public sector general insurers, New India Assurance, is profitable, while the other three – National Insurance, United India Insurance, and Oriental Insurance – are struggling with losses.
The government will conduct a performance review of the four state-run insurance firms after the December quarter results and hold further intergovernmental discussions. There is a possibility of capital infusion in the loss-making insurers, and the government will assess which firms have the potential to turn around on their own. The privatization process is expected to be more attractive to private players due to the increased FDI limit and the improved regulatory framework.
The financial health of the loss-making insurers is a concern, with Oriental Insurance reporting losses of around ₹8,293 crore and a solvency margin ratio of -1.01. United India Insurance Company has made a turnaround, posting a net profit of ₹154 crore, but still has losses of ₹3,297 crore. National Insurance reported a loss of ₹284 crore for the September quarter, with a solvency ratio of -0.75. The Insurance Regulatory and Development Authority of India (IRDAI) requires insurance companies to maintain a surplus of 1.5 times their liabilities at all times.
The government’s plan to privatize a state-run general insurer is part of its broader strategy to reduce its stake in public sector enterprises. In 2021, Finance Minister Nirmala Sitharaman announced the government’s intention to privatize two public sector banks and one general insurance company. The General Insurance Business (Nationalisation) Amendment Act, notified in August 2021, paved the way for reducing the government’s stake in state-owned general insurers to below 51%. The government hopes that the increased FDI limit and improved regulatory framework will attract more private players and lead to better valuations for the insurer.
The finance ministry is considering a proposal to merge public sector general insurance companies.
The Indian finance ministry is reconsidering a proposal to merge three state-owned general insurance companies, namely Oriental Insurance, National Insurance, and United India Insurance, into a single entity. This move is being considered due to the improved financial health of these companies, with the goal of achieving better efficiency and scale. Between 2019-20 and 2021-22, the government infused Rs 17,450 crore into these companies to help them recover from financial distress.
The idea of merging these companies was first announced by former finance minister Arun Jaitley in the 2018-19 Budget. However, the plan was dropped in July 2020, and instead, the Union Cabinet approved a capital infusion of Rs 12,450 crore into the three general insurance companies. Now, with their finances improved, the finance ministry is conducting a preliminary assessment of the merger proposal to enhance their efficiency.
In addition to the merger proposal, the government is also exploring the option of privatizing a general insurance company, as announced by finance minister Nirmala Sitharaman in the 2021-22 Budget. This is part of a larger privatization agenda, which includes the privatization of two public sector banks. According to sources, various options are being considered, but no decision has been made yet.
The potential merger and privatization of these state-owned general insurance companies are expected to have significant implications for the Indian insurance sector. The merger could lead to improved efficiency and scale, while privatization could attract foreign investment and increase competition in the market. However, the outcome of these proposals is still uncertain, and the government is likely to carefully consider the potential benefits and challenges before making a decision.
India’s largest general insurance company is considered ‘too big to fail’, yet it struggles to generate profits.
New India Assurance, a state-owned insurance company, has been designated as a “Domestic Systemically Important Insurer” (D-SII) by regulators for the fourth consecutive year. This designation recognizes the company’s significant role in India’s financial system and its potential to cause widespread impact if it were to experience financial difficulties. New India Assurance is one of the largest insurers in India, providing coverage for a wide range of risks, including government hospitals, oil rigs, rural crops, and industrial accidents.
However, despite its importance, the company has been operating with a combined ratio of 117% since 2015, meaning that for every Rs 100 it earns in premiums, it spends Rs 117 on claims and expenses. This is a concerning trend, as a sustained combined ratio above 100% indicates that the company is not generating sufficient revenue from underwriting to cover its expenses. While the company does generate investment income, which helps to offset some of the losses, its chronic underpricing of risk has led to significant financial leaks.
The company’s financial performance is not unique among public-sector insurers in India. United India Insurance, for example, has a 10-year average combined ratio of 129%, indicating even more severe financial challenges. The Insurance Regulatory and Development Authority (Irdai) has designated New India Assurance as a D-SII due to its scale and systemic exposure, rather than its financial performance. This designation is a recognition of the company’s importance in the Indian financial system, rather than a reward for excellence.
New India Assurance’s financial struggles are a concern, given its significant role in the Indian economy. The company has been in operation since 1919 and has a long history of providing insurance coverage to a wide range of industries and individuals. Its financial health is closely tied to the health of the Indian economy, and any significant difficulties experienced by the company could have far-reaching consequences. As such, regulators and policymakers will likely continue to closely monitor the company’s financial performance and take steps to ensure its stability and viability.
UIIC Apprentice Recruitment 2025-26 notification has been released, and online applications are now being accepted.
The United India Insurance Company Limited (UIIC) has released the official notification for the recruitment of apprentices for the 2025-26 cycle. The online registration window is open from December 18, 2025, to January 12, 2026. A total of 153 vacancies have been announced across various states and union territories. The selection process involves a merit-based screening of candidates based on their graduation marks, followed by a document verification round.
To be eligible, candidates must have completed their graduation in any discipline from a recognized university or institution. The age limit is between 21 and 28 years, with age relaxation applicable for reserved categories. Candidates who have already completed an apprenticeship or have prior job experience exceeding one year may not be eligible. The selected candidates will receive a hands-on experience in insurance operations, customer handling, documentation, and basic administrative processes.
The training duration is one year, and the selected candidates will receive a monthly stipend of ₹9,000. The vacancies are spread across 20 states and union territories, with the highest number of vacancies in Karnataka (26) and Tamil Nadu (19). The eligibility criteria, selection process, and other details can be found on the UIIC official website, www.uiic.co.in.
The important dates for the application and registration process are as follows: December 2025 (notification release), December 18, 2025 (online registration start date), and January 12, 2026 (last date to apply online). The shortlisting and verification process, as well as the training commencement date, will be notified later.
The state-wise vacancy list is as follows: Andhra Pradesh (3), Assam (1), Bihar (2), Chandigarh (2), Chhattisgarh (4), Delhi (9), Goa (2), Gujarat (8), Haryana (1), Jharkhand (1), Karnataka (26), Kerala (10), Madhya Pradesh (6), Maharashtra (23), Odisha (1), Puducherry (4), Punjab (2), Rajasthan (18), Tamil Nadu (19), Telangana (2), Uttarakhand (5), and West Bengal (4).
Overall, the UIIC Apprentice Recruitment 2025-26 provides an opportunity for candidates to gain hands-on experience in the insurance industry and receive a monthly stipend of ₹9,000. Candidates who meet the eligibility criteria and are interested in applying can do so through the UIIC official website.
Insurance policies with arbitration clause issued post IRDAI’s circular are valid – SCC Times
The Delhi High Court has ruled in favor of the petitioner, Numero Uno Clothing Ltd., in a dispute with United India Insurance Co. Ltd. over the existence of an arbitration agreement in two insurance policies. The policies, issued on January 31, 2024, contained arbitration clauses, despite the existence of an IRDAI Circular dated October 27, 2023, which allegedly superseded arbitration clauses in fire insurance policies. The respondent, United India Insurance, had argued that the circular rendered the arbitration clauses in the policies ineffective, but the court rejected this argument.
The court held that by issuing policies after the circular with arbitration clauses intact, the respondent had effectively waived its right to rely on the circular to deny the existence of an arbitration agreement. The court noted that party autonomy is a core principle of arbitration law, and if the respondent intended to rely on the circular, it should not have included arbitration clauses in the policies issued after the circular.
The court also observed that the circular would apply to policies existing as on the date of the circular or on the date of being gazetted, but where a policy had been issued after the circular and still contained an arbitration clause, there was no justification for the insurer to argue that the clause stands deleted unless it plainly intended to retain arbitration.
The court allowed the petition and directed the respondent to appoint its nominee arbitrator within two weeks, and the two nominee arbitrators to appoint the presiding arbitrator within a further two weeks. The court’s decision emphasizes the importance of party autonomy in arbitration and the need for insurers to clearly indicate their intention to rely on regulatory circulars when issuing policies.
The case highlights the complexities of arbitration law and the need for careful consideration of regulatory circulars and their impact on insurance policies. The court’s decision provides clarity on the issue and sets a precedent for similar cases in the future. The petitioner was represented by a team of advocates, including Saurav Agarwal and Ritika Jhurani, while the respondent was represented by Senior Advocate Vishnu Mehra. The case was decided on November 20, 2025, and is reported as Numero Uno Clothing Ltd. v. United India Insurance Co. Ltd., 2025 SCC OnLine Del 8704.
Delhi High Court has ruled that a government circular cannot limit insurance coverage, and has ordered an insurer to pay the balance of a COVID-19 claim.
The Delhi High Court has ruled in favor of a policyholder, Reena Goel, who had filed a petition against United India Insurance Company Limited for not reimbursing her full Covid-19 hospitalization claim. The court observed that a government circular issued during the pandemic, which regulated hospital charges, cannot be used to limit the contractual obligations of insurance companies towards their policyholders. The circular, issued by the Delhi government on June 20, 2020, was intended to regulate the fees hospitals charged patients for Covid-19 treatment, but it did not reduce the reimbursement payable under insurance policies.
The court noted that the Insurance Regulatory and Development Authority of India (IRDAI) had already clarified this position through circulars issued in January and April 2021. Goel had been admitted to a hospital between December 4 and December 18, 2020, and incurred expenses of ₹3,56,295. She was covered under a ₹3 lakh base policy and an additional ₹3 lakh “Super Top Up Medicare Policy.” However, the insurer reimbursed only ₹1,75,340, citing the Delhi government’s circular.
The court found the insurer’s reliance on the circular unjustified and directed United India Insurance to release the balance amount to Goel within four weeks. The court held that the deficit payment was contrary to IRDAI’s clarifications and the past conduct of the insurer in similar cases. The petitioner was represented by a team of advocates, while IRDAI was represented by Abhishek Nanda, Hrishika Rawat, and Sourabh Singh.
The court’s decision is a significant victory for policyholders who have been facing issues with insurance companies citing government circulars to limit their claims. The judgment emphasizes the importance of contractual obligations and the need for insurance companies to honor their commitments to policyholders. The case highlights the need for clarity and transparency in insurance policies and the importance of regulatory bodies like IRDAI in ensuring that insurance companies act in the best interests of their policyholders.
Rajasthan Royals vs insurer over Sreesanth injury heads to Supreme Court
The Rajasthan Royals cricket team has been embroiled in a decade-long legal battle with United India Insurance Company over an injury claim for former player S Sreesanth. The case dates back to 2012, when Sreesanth suffered a knee injury during a practice match, causing him to miss the season. The Royals had taken out a special contingency insurance cover worth over ₹8.7 crore and filed a claim of approximately ₹82.8 lakh to recover player fees for Sreesanth’s missed season.
However, the insurer denied the claim, arguing that Sreesanth had a pre-existing toe injury from 2011 that was not disclosed at the time of the policy. The insurer contended that this omission invalidated the Royals’ claim, despite an independent surveyor initially ruling that the knee injury was a sudden and unforeseen event covered by the policy.
The Royals’ defence argued that the old toe issue never kept Sreesanth from playing, and the knee injury suffered during the insured period was the sole reason for his absence. The team’s lawyer, Neeraj Kishan Kaul, maintained that fitness certificates were provided both when Sreesanth joined the squad and after he sustained the knee injury, underscoring that the franchise had complied with its disclosure obligations.
The case has now reached the Supreme Court, with the insurer challenging a previous ruling in favour of the Royals by the National Consumer Disputes Redressal Commission (NCDRC). The Supreme Court has asked the insurance firm to produce additional documents, including Sreesanth’s fitness certificates and the original policy application, before a final decision is made.
The outcome of this legal battle will not only decide a long-pending financial claim but could also set an important precedent for how future player insurance disputes in the Indian Premier League (IPL) are handled. The case highlights the complex intersection of professional sports, insurance law, and medical disclosure, and its resolution will be closely watched by the sports and insurance industries.
Madras High Court Rules That Deceased’s Family Can’t Claim Compensation From Insurance Company If Deceased Was Solely Responsible For Accident Due To Negligent Driving
The Madras High Court has ruled that an insurance company is entitled to retrieve the compensation amount deposited in a motor accident case where the deceased was solely responsible for the accident due to negligent driving. The case involved a Toyota Qualis Car that met with an accident in 2009, resulting in the death of the driver. The driver’s wife filed a claim petition seeking compensation of Rs 3,93,500, which was awarded by the Motor Accidents Claims Tribunal, along with interest. However, the insurance company appealed to the High Court, arguing that the accident occurred solely due to the driver’s rash and negligent act.
The High Court’s Single Bench, consisting of Justice R. Poornima, observed that when a person borrows a vehicle and drives it, they step into the shoes of the owner. In this case, the deceased drove the vehicle negligently and was solely responsible for the accident, which means he cannot claim compensation from the insurance company as he does not fall within the category of a third party. The court referred to a Supreme Court decision in Ramkhiladi and another Vs. United India Insurance Company and another (2020), which held that a claim petition under Section 163-A is not maintainable by the borrower/permissive user of the vehicle against the owner and/or insurer.
The court also noted that the FIR recorded the deceased as the driver responsible for the accident, and the claimant did not dispute this fact. During the trial, the claimant admitted that her husband was driving the vehicle at the time of the accident. The court concluded that the deceased was not entitled to maintain a claim for compensation as he had borrowed the vehicle from the lawful owner and driven it negligently, resulting in the accident. Therefore, the insurance company was entitled to get back the deposited amount. The High Court allowed the appeal and set aside the impugned order of the Tribunal, directing the insurance company to retrieve the deposited amount. The case highlights the importance of determining liability in motor accident cases and the application of Section 163-A of the Motor Vehicles Act.
A court has sentenced a United India Insurance official to 4 years imprisonment for involvement in corruption.
On June 30, 2025, A. Sitarama Krishna Rao, Special Judge for CBI Cases in Vijayawada, delivered a verdict in a corruption case against Kola Rama Narasimham, a Development Officer at the United India Insurance Co. Ltd.’s Kandukuru Branch in Prakasam District, Andhra Pradesh. Narasimham was found guilty of demanding and accepting a bribe of ₹10,000 from a complainant. The bribe was allegedly demanded in exchange for forwarding an insurance claim file related to the death of the complainant’s buffalo to the Divisional Office of UII in Guntur.
The CBI Visakhapatnam Branch had laid a trap for Narasimham, catching him red-handed while he was demanding and accepting the bribe. The court convicted Narasimham under sections 7 and 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988. As a result, he was sentenced to undergo four years of simple imprisonment and ordered to pay a fine of ₹2,000.
Narasimham was immediately taken into custody and sent to the District Jail in Vijayawada to serve his sentence. The conviction and sentencing of Narasimham serve as a reminder of the CBI’s efforts to combat corruption and hold public servants accountable for their actions. The case highlights the importance of transparency and accountability in public offices, and the consequences that can follow when individuals abuse their positions for personal gain.
The verdict was delivered on June 30, 2025, and Narasimham’s conviction is a significant outcome in the fight against corruption in India. The CBI’s successful investigation and the court’s decision demonstrate the commitment to upholding the law and ensuring that those in positions of power are held accountable for their actions. The case also underscores the need for vigilance and the importance of reporting corruption to the authorities. By doing so, individuals can help to prevent corruption and promote a more transparent and accountable system.