IPO BY PSU INSURERS OPPOSED

Kochi: The General Insurance Officers All India Association has opposed the Union Government’s move to introduce an initial public offer (IPO) in the four public sector general insurance companies. Mr P. P. Mohanan, General Secretary of the Association, Kerala, said that the proposed amendment in the General Insurance Business (Nationalisation) Act of 1972 to raise capital from the markets through an IPO is against the assurance given by the Union Government while moving th e Insurance Regulatory and Development Authority (IRDA) Bill in 1999.

In order to raise the equity base of the four PSU general insurance companies ( New India Assurance Company, National Insurance Company, Oriental Insurance Company and United India Insurance Company), he suggested that the government should think of other alternatives. As there was no capital support from the Union Government since nationalisation, he said that even government funds could also be used for the same.

Source: The Hindu Business Line