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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 […]<\/p>\n","protected":false},"author":1,"featured_media":221269,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,39],"tags":[],"class_list":["post-222634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","category-united-india-insurance"],"jetpack_featured_media_url":"https:\/\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/united-india-insuracne.jpg","jetpack_shortlink":"https:\/\/wp.me\/p9ibIB-VUS","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":222488,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/23\/the-finance-ministry-is-considering-a-proposal-to-merge-public-sector-general-insurance-companies\/","url_meta":{"origin":222634,"position":0},"title":"The finance ministry is considering a proposal to merge public sector general insurance companies.","author":"Team Small News","date":"December 23, 2025","format":false,"excerpt":"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\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222502,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/24\/the-government-is-considering-merging-state-owned-general-insurance-companies-into-a-single-entity\/","url_meta":{"origin":222634,"position":1},"title":"The government is considering merging state-owned general insurance companies into a single entity.","author":"Team Small News","date":"December 24, 2025","format":false,"excerpt":"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\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222495,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/23\/privatization-of-general-insurers-gets-a-reboot-following-fdi-cap-increase\/","url_meta":{"origin":222634,"position":2},"title":"Privatization of general insurers gets a reboot following FDI cap increase","author":"Team Small News","date":"December 23, 2025","format":false,"excerpt":"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\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222521,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/26\/privatization-of-general-insurers-gets-a-reboot-following-fdi-cap-increase-2\/","url_meta":{"origin":222634,"position":3},"title":"Privatization of general insurers gets a reboot following FDI cap increase.","author":"Team Small News","date":"December 26, 2025","format":false,"excerpt":"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\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222723,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/23\/11-6k-cr-pay-day-at-psu-insurers-rbi\/","url_meta":{"origin":222634,"position":4},"title":"11.6k cr pay day at PSU insurers, RBI","author":"Team Small News","date":"January 23, 2026","format":false,"excerpt":"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,\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222704,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/20\/government-considers-%e2%82%b95000-crore-capital-infusion-for-three-public-sector-insurance-companies-as-losses-resurface\/","url_meta":{"origin":222634,"position":5},"title":"Government considers \u20b95,000 crore capital infusion for three public sector insurance companies as losses resurface.","author":"Team Small News","date":"January 20, 2026","format":false,"excerpt":"Vijayan emphasized that strengthening the operational aspects of insurance companies requires more than just increasing capital. Over the past decade, the number of employees in these companies has drastically decreased, from approximately 16,000 to around 7,000 per company. 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