Cabinet likely to decide on listing of PSU general insurance firms

The Cabinet is expected to decide on listing of Public Sector Undertaking (PSU) general insurance firms this month. Recently, Finance Ministry had circulated a draft Cabinet note for inter-ministerial consultations on the listing of four PSU general insurance companies.

These companies are New India Assurance Company, National Insurance Company, Oriental Insurance Company and United India Insurance Company. In the Union Budget 2016-17, Finance Minister Arun Jaitley has announced listing of PSU general insurance companies.

The government had allowed 49 percent Foreign Direct Investment (FDI) to foreign insurance player to increase the stake in their joint venture. There are 52 insurance companies operating in India and out of which 24 are in life business and 28 general insurance.