Spotlight

The government plans to merge three of its unlisted general insurance companies to create a behemoth that will control a third of the non-life insurance market and be listed on stock exchanges to fetch better valuation.

National Insurance Company, United India Insurance Company and Oriental India Insurance Company will be merged, an entity that could be a dominant player in the Rs 1.5-lakh-crore-year motor, health and industrial insurance industry, which is seeing intense competition.

 

In 2016-17, the Insurance Regulatory and Development Authority of India (Irda) asked the three insurers to amortize motor third-party liability for three years from FY17 and to consider 30% of fair value change account to appear solvent. Oriental India and United India had reported a loss last fiscal.

 

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