There is news that Indian government is in consultation to sell stakes in major Non life insurance companies. These are New India Assurance, National Insurance, oriental and United India. Is this move done to get more cash for government or it wants to modernize these players.
In Non life segment- the two major categories come are -
1. Health Insurance
2. Motor Insurance
With these companies who have large market share - it will certainly change the industry.
For customers - what this can do.
These companies are considered honest in terms of claims but to get claim in these companies is a very tedious work.
With selling the stake- may be new teams will get appointed who will look after the concerns in delay of claims etc.
The other motive behind this govt move can be to insure these companies do not get into large losses and with public participation in capital, they make find there way to profitability.
To comply with norms all these companies will have to have independent directors which will help in restructing.
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