Cabinet to take final call on listing of PSU insurers this month

The Cabinet is likely to take a call on the final contours of listing of Public Sector Undertaking  (PSU) general insurance companies this month, a finance ministry official said.

The ministry had last week circulated a draft Cabinet note for inter-ministerial consultations on the listing of four public sector general insurance companies.

"The Cabinet nod for PSU general insurers is likely this month," an official said.

These companies are New India Assurance Company, National Insurance Company, Oriental Insurance Co and United India Insurance Co.

Listing of PSU general insurance was announced in the Union Budget 2016-17 by Finance Minister Arun Jaitley.

"...(proposed to) undertake important banking sector reform and public listing of public sector general insurance and undertake significant changes in FDI policy," he had said while unveiling the Budget.

Last year, the government allowed foreign insurance players to raise their stake in their joint venture to 49%. Earlier, only up to 26% FDI was permitted.

There are 52 insurance companies operating in India, of which 24 are in life business and 28 general insurance.