Business / LIC may turn into composite insurer likely to merge 4 PSU general firms see details

LIC Merger News: Another big news is coming out between privatization and merger happening in the country. Now four government general insurance companies of the country can be merged with LIC. These include National Insurance, New India Assurance, the Oriental Insurance and United India Insurance Company. Business experts have said that it has been proposed to amend it under the Insurance Regulatory and Development Authority (IRDA) Act 1999 and the Insurance Act 1938.

What is said in the proposed amendment?

The proposed amendments state that there should be only one recognized company for selling life and non-life insurance policies in the country, which would facilitate the insurance regulator to eliminate statutory limits by prescribing minimum capital required. It has also been informed that another agriculture insurance company may be merged with it.

In fact, giving information on this subject, a senior official said, Finance Minister Nirmala Sitharaman had earlier announced that only four companies can be government in the case of strategic sectors. That is, in this way the government can merge its four non-life insurance companies with LIC. On the other hand, the employees of these companies have also been demanding that these companies should be merged with LIC.

LIC command in private hands

On the other hand, a big news is coming out that now private sector people will get a chance to become the chairman in LIC. Significantly, this has happened for the first time in 66 years when the control of LIC has gone into the hands of a private chairman. According to the rule till now, the MD of the company itself has been made its chairman.