The insurance regulator IRDAI has sought revised business plans from the three loss-making public sector general insurers — National Insurance Company, Oriental Insurance Company and United Insurance Company.
Fund infusion into the three companies will be based on their meeting certain regulatory milestones.
“For these three public sector general insurance companies, we have asked for revised business plans. The fund infusion would depend on their compliance with certain milestones we have laid out so that there is a calibrated way of coming out of this situation,” said TM Alamelu, Member (non-life), IRDAI on Thursday.
The Centre has sought ₹5,000 crore for recapitalisation of the PSU general insurers and is expected to announce a plan on this soon.
Alamelu, along with IRDAI Chairman Debasish Panda, met with heads of insurance companies.
“The government is aware of the present financials of insurance companies. The regulator has given some forbearance with the advice also that may be they have to infuse more capital in order to perform better,” Panda said, while declining to give more specific details.