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Govt Eyes Merger of 3 Insurers
23 Nov, 2025
Summary
- Finance Ministry considering merger of three state insurers.
- ₹17,450 crore capital infusion revitalized these companies.
- Privatization of a general insurer is also being examined.
Following a period of financial improvement, the Finance Ministry is re-evaluating a past proposal to merge three state-owned general insurance companies: Oriental Insurance, National Insurance, and United India Insurance. These entities received substantial government support, with a ₹17,450 crore capital infusion between 2019-20 and 2021-22 to overcome financial distress.
The potential consolidation aims to leverage their strengthened financial standing for greater operational efficiency and economies of scale. This move revisits an earlier plan that was shelved in July 2020, when the government instead opted for direct capital support.
Concurrently, the government continues to explore privatization options for a general insurance company, a key component of its disinvestment agenda announced in the 2021-22 Budget. Amendments to the General Insurance Business (Nationalisation) Act in August 2021 have paved the way for increased private participation and potential foreign investment.
