National Insurance Company Will Merge with UIIC & OIC

The propose of merging three general insurance companies such as National Insurance, United India Insurance and Oriental Insurance is likely to be completed by early next year. The companies will merge into a single insurance company - Finance Minister Arun Jaitely said that while presenting the budged 2018-2019 in the Parliament. According to the speech of MN Sarma, the CMD of United India Insurance, the three public sectors general insurance companies discuss and calculate on Budget announcements, including the roadmap for merger. They expect that the merger will be completed before the next vote. Mr. Sarma also said that the merged body will have operational advantage and will help rationalise costs. Once these companies get merged with National Insurance, the entity will be stronger to handle the risk better. The combined entity will have stronger existence and ultimately fetch better appraisal at the time of listing. And this will be a key part of the government’s divestment target of Rs 80,000 crore set for fiscal year 2018-19.