new Delhi: Business Desk Insurance regulator IRDA has sought a revised business plan from three state-run general insurance companies, National Insurance Company Limited, United India Insurance Company Limited and Oriental Insurance Company Limited. All three insurance companies are facing financial challenges. Irda member (non-life) TM Alamelu said that in order to get financial assistance, these companies have to fulfill certain criteria set by the regulator.
Must be ready to be listed on the market
Alamelu met IRDA Chairman Debashish Panda and other senior officials of life insurance, general insurance and health insurance companies on Thursday. In this, Panda asked the insurance companies to move towards listing on the stock exchanges for the availability of capital.
Ask the government to remove the minimum limit
He also said that the regulator would request the government to do away with the minimum capital limit of Rs 100 crore fixed by the government for entry of new companies in the insurance business.
Demand for Rs 5,000 crore for four insurance companies
Recently, the third batch of supplementary demands for the current financial year sought Rs 5,000 crore from the government for recapitalization of four public sector general insurance companies. Panda said the government is well aware of the current financial position of insurance companies. The regulator has also given some relaxation to the advice that they may need to invest more for better performance.
LIC is also bringing IPO
Let us tell you that the government is planning to bring the IPO of the country’s largest insurance company LIC. It is expected to launch in the capital markets in May. This offer can be very helpful in the disinvestment program of the government.