Revamping of Govt Insurance sectorDepartment of Financial Services (DFS) in the Finance Ministry is proposing an infusion of Rs 4000 crore in the Govt insurance organizations namely - National Insurance Company, United India Insurance Company and Oriental Insurance Company and asking budget provision for it during 2019-20.
Meanwhile, Govt has started the process of merging of these three companies to form an insurance giant which will be a big player in the health, automobile and industrial sector.
The merger will take about 1-1/2 year to complete and about present 4.5 crore policyholders will be under it.
The infusion of capital will be required to revamp and improve the performance of the unified giant through digital service and new skilled persons will be employed and existing employees in upper age bracket will be asked to take voluntary retirement.
It is a big exercise but is required if we want to bring transparency and efficiency in this area.
What is your opinion about it? Will it be a successful endeavour by the Govt?