Budget 2020: FM may announce second capital infusion for non-life insurers
Finance Minister Nirmala Sitharaman may announce second-round capital infusion for public sector general insurance companies in the upcoming Budget to improve their financial health. The government infused Rs 2,500 crore in the three insurers -- National Insurance, Oriental Insurance and United India Insurance -- through first supplementary demands for grants for 2019-20 last month. However, these companies would require additional Rs 10,000-12,000 crore capital dose to meet the prescribed solvency margin, sources said. The sources further said that announcement to this effect can be made in the Budget 2020-21 that is scheduled on February 1. Infusion will not only improve their financial health but facilitate merger announced in the Budget 2018-19. In the Budget 2018-19 speech, then Finance Minister Arun Jaitley had announced that the three companies would be merged into a single insurance entity. Read More