Govt to formalise PSU general insurance consolidation plan in three months

However, the insurance firms are financially crippled and may need to be recapitalised before merger, and the new govt may also take a call on it

Even as the consolidation plan of the three public sector general insurance companies – National Insurance, United India Insurance and Oriental Insurance – is back in the spotlight of the government, the financial health of all three companies looks bleak.

Senior finance ministry officials said the plan to consolidate the three companies is ready, in the form of a cabinet note, and will be taken up immediately once the new National Democratic Alliance (NDA) government takes charge.

“The plan is to secure nod of the Union Cabinet and other relevant regulatory approvals within the next three months,” a senior finance