Insurance Privatization: The government can privatize the insurance company before the banks. All the speculations have been made about which insurance company it will be. The latest update is that the government can pursue United India Insurance for privatization.
Insurance Privatization: The government can privatize United India Insurance. According to the news published in CNBC-TV18, it has been told that according to the sources, it can be privatized after the approval of the cabinet. It has also been claimed in this report that insurance companies can be privatized before the privatization of banks.
Government passed bills from Parliament
Let us tell you that Parliament recently passed the General Insurance Business Nationalization (Amendment) (GIBNA) Bill-2021. After this bill, the government will be able to reduce its stake in government general insurance companies to less than 51%. GIBNA was introduced in 1972, allowing acquisition and transfer of shares of Indian insurance companies and other existing insurance companies’ undertakings to better meet the needs of the economy by securing the growth of the general insurance business.
Privatization of any one insurance company
Let us tell you that while presenting the budget on February 1, the Finance Minister had announced the privatization of two public sector banks and one insurance company. Last year itself, the cabinet chaired by Prime Minister Narendra Modi had approved infusion of capital in four general insurance companies National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company and United India Insurance Company. One of these four companies is to be privatized.
Name of United India Insurance came forward
The government has so far put Rs 12500 crore in non-life insurance companies. The cabinet had also decided to increase the authorized share capital of National Insurance Company Limited (NICL) to Rs 7,500 crore and that of United India Insurance Company Limited (UIICL) and Oriental Insurance Company Limited (OICL) to Rs 5,000 crore. . Now it has been claimed in the report that the name of United India Insurance is at the forefront. For the current financial year, the government has set a target of disinvestment and privatization at Rs 1.75 lakh crore.
Apart from the General Insurance Business Nationalization (Amendment) ie GIBNA, another bill was introduced by the Parliament to the Deposit Insurance and Credit Guarantee Corporation (DICGC), which was passed by voice vote. Due to the DICGC amendment bill, now the account holders in the bank are safe up to Rs 5 lakh. That is, if a bank sinks, then the account holders will get 5 lakh rupees. Earlier this limit was Rs 1 lakh. The account holders will get this money within 90 days.
