The Central Government notifies amendments to its insurance merger schemes

The Central Government has notified the United India Fire and General Insurance Company Limited (Merger) Amendment, Scheme, 2020. This amendment will be effective from 31^st July, 2020.

In the United India Fire and General Insurance Company Limited (Merger) Scheme, 1973, the following changes are envisaged:

• in paragraph 10, for the words “two hundred crore divided into twenty crore”, the words “five thousand crore divided into five hundred crore” shall be substituted. There is an increase in authorised share capital to the tune of Rs. Five thousand crore.
• in the Second Schedule,—

(a) in Part I, in paragraph 2, for the words “two hundred crore divided into twenty crore”, the words “five thousand crore divided into five hundred crore” shall be substituted;

(b) in Part II, in paragraph 1, for the words “two hundred crore divided into twenty crore”, the words “five thousand crore divided into five hundred crore” shall be substituted.

The central government has also notified the National Insurance Company Limited (Merger) Second Amendment, Scheme, 2020, effective from 31^st July, 2020.

It envisages the following changes to the Principal Scheme of 1973:

• in paragraph 10, for the words, “two thousand six hundred crore divided into two hundred sixty crore”, the words “seven thousand five hundred crore divided into seven hundred fifty crore” shall be substituted. There is an increase in authorised share capital to the tune of Rs. Seven thousand five hundred crore.
• in the Second Schedule,—

(a) in Part I, in paragraph 2, for the words “two thousand six hundred crore divided into two hundred sixty crore”, the words “seven thousand five hundred crore divided into seven hundred fifty crore” shall be substituted;

(b) in Part II, in paragraph 3, for the words “two thousand six hundred crore divided into two hundred sixty crore”, the words “seven thousand five hundred crore divided into seven hundred fifty crore” shall be substituted.

The central government has also notified the Oriental Fire and General Insurance Company Limited (Merger) Second Amendment, Scheme, 2020, effective from 31^st July, 2020.

It contemplates the following changes:

• in paragraph 11, for the words “two hundred fifty crore divided into twenty-five crore”, the words “five thousand crore divided into five hundred crore” shall be substituted. Thus there is an increase in authorised share capital to the tune of Rs. Five thousand crore.
• in the Second Schedule,—

(a) in Part I, in paragraph 3, for the words “two hundred fifty crore divided into twenty-five crore”, the words “ five thousand crore divided into five hundred crore” shall be substituted;

(b) in Part II, in paragraph 1, for the words “two hundred fifty crore divided into twenty five crore”, the words “five thousand crore divided into five hundred crore” shall be substituted.