The Union Cabinet has approved a fund of Tk 2.5 crore to increase the financial position of the three public sector insurers – National Insurance, Oriental Insurance and United India Insurance.
The financial position of these three insurance companies is very bad. The central agencies and the Ministry of Planning have agreed to provide immediate funding to rescue these companies from the financial crisis.
The central government has already provided Rs 2,5 crore to the three companies in the current financial year to increase their funding. In this case Tk 2.5 crore will have to be re-allocated.
It is said that a further Rs 12,000 crore is needed to fully improve the financial capital of these companies.
In the budget session 2018-19, then Finance Minister Arun Jaitley announced the consolidation of the three companies. The financial performance of these three insurers is worrying and the integration is difficult to implement.