Cash-rich PSU general insurer may be asked to buy out smaller ones

In the 2018-19 Budget, FM Jaitley proposed merging three public sector general insurance companies into one single insurance entity

 Taking cue from ONGC buyout of HPCL, the government may look at replicating the same in the insurance sector by asking a cash rich PSU general insurer to buyout the smaller ones. 
 

A finance ministry official said apart from buy out by cash-rich general insurers, a share-swap could also be considered for smaller insurers.
 

In the 2018-19 Budget, Finance Minister Arun Jaitley proposed merging three public sector general insurance companies--National Insurance Co Ltd, United India Insurance Co Ltd and Oriental India Insurance Co Ltd--into a single insurance entity.

The merged entity would be subsequently listed on the bourses.
 

The official said