There will be no privatisation of the three state-owned insurance companies – United India Insurance Company, National Insurance Company and Oriental Insurance Company - Zee Business’ Anurag Shah today told Managing Editor Anil Singhvi in this big breaking news. 

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Shah said that the news of their privatisation, emerging from various quarters are merely rumours. The government had recently announced putting Rs 12,450 cr in the three insurance companies and if the privatisation bid would have been on the cards, the government would not have decided to put this huge amount into the companies, he added.

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  The solvency condition of all the three companies have not been too great, Shah said. 

The government is planning to keep a single government company in the general insurance sector in line with the life insurance sector where the Life insurance Corporation of India (LIC) is the only player, Shah further said. 

This will reduce competition among the four government companies. These three unlisted companies will likely be merged in the fourth company New India Insurance, which is a listed company, Shah said. 

This will ensure just one Government Company in the general insurance space.  

The government’s plan to infuse money in the three insurance companies is with the aim to improve their financial position. Later, companies will be merged to create a government owned giant company in the General Insurance sector.  

In relation to this, the officers’ associations of the four companies have also written to the government urging them to move ahead in this direction.  

The competition among them is currently benefiting the private companies. The government and companies will gain if all the entities are merged together. 

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In the 2018 Budget Speech, it was announced that the 3 companies would be merged and later listed. Recently, Union Minister Prakash Javadekar said that the plans to merge it and list it have been put on hold and now the government is putting money in the companies, Shah said.