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  • Category: Miscellaneous

    Revamping of Govt Insurance sector

    Department 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?
  • #657257
    Amalgamation of these three insurance companies and infusion of funds will definitely make the Government insurance sector. In any case, the companies mentioned by the author manage the majority of the policies in India.
    Come on, have a fight. Don't shoot and scoot.

  • #657263
    It's a big exercise and the government must work on the proposal seriously to make this happen. There are many private players in the insurance market and at times we get news of irregularities in settling claims. If these three companies are merged, the combined group will definitely become the giant and for that, a capital infusion is required.

    People have immense faith in government financial institutions and when this will materialize, it will give a boost to the government insurance sector. The process of the merger will be successful if all the stakeholders' wellbeing is taken into account, otherwise, it will be delayed for an indefinite period.

    Sankalan

    "Life is easier when you enjoy what you do"

  • #657268
    Merging all the three general insurance companies in the government sector is a good initiative. Many life insurance companies are there in the private sector but LIC is the biggest and no company can beat LIC.
    But in general insurance, these three companies have to compete with each other in addition to the private players. If all the three combines and work together, they will become a giant company in general insurance and people will prefer this like LIC.
    But it is definitely a big exercise and all the steps should be taken with due care and no injustice should be done to the three organisations which are involved in this process. With some capital infusion and amalgamation of these three units will definitely make the government insurance sector very strong.

    drrao
    always confident


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