United India Insurance picked for privatisation

The Niti Aayog has identified the United India Insurance for privatisation in the coming financial year and it is now working out the modalities.

Apart from it, three other general insurance companies under the government's fold are: National Insurance, New India Insurance and Oriental Insurance. Only New India Insurance is in profits.

The United India posted losses of Rs 2,486 crore in the financial year 2019-20, National Rs 4,108 crore and Oriental Rs 1,524 crore. United India has better financials than National and offers most insurance products unlike three others.

The Finance Ministry had asked the Niti Aayog, the policy body of the government, to get cracking for the privatisation after Finance Minister Nirmala Sitharaman announced in her budget on February 1 to privatise two public sector banks and an insurance company in the financial year 2021-22.

The Finance Ministry plans to infuse Rs 3,000 crore capital into state-owned general insurance companies during the current quarter in a bid to improve their financial health.

Last year, the Union Cabinet headed by Prime Minister Narendra Modi cleared proposal to provide capital support to National Insurance, Oriental Insurance and United India Insurance.