Chennai, Jan 17 (IANS) The Board of Directors of two public sector general insurance companies – Oriental Insurance Company Ltd. and United India Insurance Company Limited – are expected to give their nod for the merger at their respective meetings held in Delhi on Friday, said a Union leader.
“The boards of United India and Oriental Insurance are having their meetings today in Delhi. The two Boards are expected to pass a resolution giving the green signal for the merger,” K. Govindan, General Secretary, General Insurance Employees All India Association (GIEAIA) told IANS.
Another industry official also confirmed the development and told IANS preferring anonymity: “The development comes two weeks before the Union Budget to be placed in the Parliament by Finance Minister Nirmala Sitharaman.”
The official said the Finance Minister may announce infusion of capital for the merged entity.
“There is no need for a merger if the Finance Minister announces infusion of capital for the three individual companies,” the official added.
According to Govindan, the Board of Directors of National Insurance Company are expected to meet on Monday and pass necessary resolution for the merger.
The Central government had proposed to merge all the three companies into one entity.