Govt may propose United India Insurance for privatisation

Moneycontrol has previously reported that privatisation of two state-owned banks and one general insurer is unlikely to be completed this fiscal year, and the process might be pushed to FY23. (Representative image: Shutterstock)

The government might propose United India Insurance for privatisation, CNBC-TV18 reported, citing sources.

"The cabinet nod will be sought after other approvals in place," sources told the news channel.

Insurance companies are likely to be privatised before banks, the report said.

Also read: Explained | The General Insurance Business Nationalisation Bill and Opposition concerns

The Parliament recently passed The General Insurance Business Nationalisation (Amendment) Bill, 2021, which permits the Centre to dilute its stake in state-owned general insurers below 51 percent.

The passage of the bill amends The General Insurance Business (Nationalisation) Act, which was first passed in 1972.

The government has so far infused approx Rs 12,500 crore in non-life insurers, CNBC-TV18 reported.

The government has set an ambitious divestment target of Rs 1.75 lakh crore for the fiscal year 2021-22.

Moneycontrol has previously reported that privatisation of two state-owned banks and one general insurer is unlikely to be completed this fiscal year, and the process might be pushed to FY23.