Merger of three out of four public-sector General Insurance companies announced in the Union Budget for fiscal year 2018-19 with three to-be-merged companies namely National Insurance Company, United India Assurance Company and Oriental Insurance Company having a total market-share of 38 per cent in general insurance leaving New India Insurance Company with market-share of 17 per cent in general insurance, is a step in right direction to reduce unnecessary overheads in having so many companies after nationalisation of big four General Insurance companies. But it would have been better if a single company also merging New India Insurance Company would have been formed on lines of Life Insurance Corporation (LIC) of India.
Union Finance Minister should now concentrate on grim situation of declining market-share of public-sector companies now reduced to just 55 per cent. Public-sector companies are more reliable than private and multi-national companies which usually play gimmicks to lure customers. Unfortunately while India was made slave by one East India Company, now so many East-India-Companies dominating in important aspects of day-to-day life like including insurance and banking are making Indians financial slaves. Chief Executive Officers of the merged public-sector General Insurance companies should be given annual targets to ensure increased market-share of public-sector companies in insurance-sector.
Union Finance Ministry should now expedite merger of public-sector banks and oil-companies.
Subhash Chandra Agrawal
(The views expressed by the author in the article are his/her own.)