The government is studying a proposal to inject more capital into three state-run general insurers-National Insurance, Oriental Insurance and United India Insurance-in the fiscal year ending 31 March 2022 (FY22) to boost their solvency levels and enable them to meet regulatory requirements in the aftermath of the COVID-19 pandemic.
Since the government has already approved pumping in INR99.5bn ($1.36bn) in FY21, the additional capital required to be injected into the insurers for FY22 will likely be lower than in FY21, a source told Financial Express.

“The three insurance companies may require at least INR50bn more in the next fiscal year to achieve a solvency ratio of 1.5 times and meet regulatory norms. The pandemic has weighed on their already-high stress levels,” the source said.


 

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