CURRENT AFFAIRS

Detailed explanation-1: -Though the name of insurance company for privatisation had not yet been finalised, government think tank NITI Aayog has recommended privatisation of State-owned insurer United India Insurance Company.

Detailed explanation-2: -Federal think tank NITI Aayog is said to have recommended United India Insurance for privatization to a core group of secretaries on disinvestment, the people said, though the name is yet to be finalized. A group of ministers (GoM) will take the final call on the candidate for privatization.

Detailed explanation-3: -In the Union Budget 2021-22, Finance Minister Nirmala Sitharaman announced that, other than IDBI Bank, the Centre proposes to take up the privatisation of two public sector banks and one general insurance company in the year 2021-22.

Detailed explanation-4: -Privatization of insurance companies is easier to process as the General Insurance Business Nationalisation Act was amended by Parliament last year to enable the transfer of ownership of companies and privatization. The amendment allows the government to dilute its stake in a general insurance company to below 51%.

Detailed explanation-5: -The proposal to privatise United India Insurance is yet to get the nod of the group of ministers on disinvestment headed by Finance Minister Nirmala Sitharaman. The government is deliberating on picking Chennai-based United India Insurance for privatisation, CNBC-TV18 has learned from some reliable sources.