Union Cabinet paves the way for privatisation of govt-owned insurers

The Union Cabinet has approved amendments to the General Insurance Business (Nationalisation) Act, paving the way for privatisation of government-owned insurers.

The amendments, approved by Cabinet, will remove the clause for the Centre to hold at least 51 per cent in public sector insurance companies at any given time. It will also have an enabling provision for the transfer of management control from the government to the potential buyer of the public sector insurance company.

The finance ministry will move amendments to the insurance Act in the ongoing Parliament session. This will open the door to privatisation of a public sector insurer.