Finance Minister Nirmala Sitharaman has said the government would move forward on the merger of the three state-run general insurance companies as announced in the previous Budget. General insurers have sought around ₹2000 crore to ₹3000 crore each for avoiding falling below solvency ratio, sources said. According to the guidelines of Insurance Regulatory and Development Authority of India, general insurance companies need to maintain a minimum solvency ratio of 1.50. As on March 31, 2019, the solvency ratio of National Insurance Co. was 1.04 and for Oriental Insurance Co it was 1.57, while solvency ratio for United India Insurance, as on Mar 31, 2018, was 1.54. Currently, New India Assurance Co and General Insurance Corp of India Ltd are the only two listed state—owned non—life insurance companies.

Source: The Hindu November 17, 2019 16:14 UTC