Merger of insurance firms will adversely impact Centre's flagship schemes: SJM

New Delhi, Jan 30 (PTI) Ahead of the Union Budget, RSS-affiliate Swadeshi Jagran Manch on Thursday urged Prime Minister Narendra Modi to stop the merger of three public sector insurance companies, saying it will have adverse impact on Centre's flagship schemes.

Underlining the importance of the public sector companies in the letter to Modi, SJM's co-convener Ashwani Mahajan said the Centre's insurance schemes for farmers, health benefits and other purposes have been mostly distributed by these companies.

'The merger of these three insurance companies would have adverse impact on the Centre's flagship schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY) and Pradahan Mantri Jan Aarogay Yojana (PMJAY),' he said.

In last year's budget, the government had announced the merger of National Insurance Company, Oriental Insurance Company and United India Insurance Company into an one entity.

The process of merger could not be completed due to various reasons, including poor financial health of these companies.

Mahajan said he fully agrees that these companies have to stop bleeding but the solution lies not in merger but in other areas such as reviewing the efficiency of staff, eliminating vested interest in payment of commissions for generating business, prudent premium charging policy keeping in view the claims settled among others. PTI JTR JTR TDS TDS