Budget 2022 Expectations: Government may announce Rs 5000-7000 cr infusion in state-run general insurance companies; Anil Singhvi calls it big; New India Assurance, GIC shares gain

Government general insurance companies could likely get a boost in this year’s Uninon Budget 2022. Finance Minister Nirmala Sitharaman could announce recapitalisation of state-run general insurance companies in her Budget 2022 speech, Zee Business’ Anurag Shah reports citing his top sources in the government. (#BudgetonZee)

The government could announce infusion of capital between Rs 5000 and Rs 7000, he said in this exclusive report.

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One of the reasons behind this is the state of solvency in three out of the four government run general insurance companies. Even the New India Assurance Company which has solvency higher than the permissible limit has received significant number of claims, he further said.

The government intends to improve the solvency of these companies.

Another reason is the wage matter for the employees of these copanies. The wage revision has been pending for these employess since 2017. The companies need money to revise the wages.

Moreover, the health insurance segment has been growing and the market share of this segment is now 34 per cent. It has seen a 30 per cent growth, he said. The health insurance premium has risen from Rs 42,000 cr in December to Rs 52,000 cr now.

The companies need capital for growth.

This is the reason why government could consider putting money in the general insurance companies.

Zee Business Managing Editor Anil Singhvi called this a big development. He also said that the government also plans to privatise one of the companies though the name is still not known, he added.

The stocks of The New India Assurance Companies were trading in the green around the time of breaking of the story. At 11:45 am, they were trading at Rs 143.90 on the NSE, up almost 4 per cent from the Friday closing price.

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#ZBizExclusive#NewIndiaAssurance #GICRe के लिए बड़ी खबर

बजट में हो सकते हैं जनरल इंश्योरेंस कंपनियों के लिए बड़े ऐलान

सरकारी जनरल इंश्योरेंस कंपनियों को ₹5000 से ₹7000 करोड़ पूंजी का बूस्टर मुमकिन

जानिए पूरी खबर @anuragshah_से#GrowthBoosterZe #BudgetOnZee #Budget2022 pic.twitter.com/e7kju3QvmS

— Zee Business (@ZeeBusiness) January 31, 2022

Meanwhile, General Insurance Corporation of India (GIC) shares were traing at Rs 141.70, up almost 2.13 per cent.