## Report on Amendments to General Insurance Company Limited Merger Schemes
**1. Executive Summary:**
This report analyzes three amendments, all dated April 13, 2022, to the merger schemes of United India Fire and General Insurance Company Limited, National Insurance Company Limited, and Oriental Fire and General Insurance Company Limited. These amendments, enacted under the General Insurance Business Nationalisation Act, 1972, primarily focus on increasing the capital divisions within the respective merger schemes. The report details the specific changes and their likely impact on the involved insurance companies.
**2. Introduction:**
This report provides an informative overview and analysis of three separate, but related, amendments to the merger schemes of United India Fire and General Insurance Company Limited, National Insurance Company Limited, and Oriental Fire and General Insurance Company Limited, enacted by the Central Government. The analysis is based solely on the text of the provided notifications published in the Gazette of India on April 13, 2022.
**3. Policy Overview:**
* **Type:** Amendment to existing Merger Schemes
* **Original Policies:** United India Fire and General Insurance Company Limited Merger Scheme, 1973; National Insurance Company Limited Merger Scheme, 1973; Oriental Fire and General Insurance Company Limited Merger Scheme, 1973.
* **Core Objective (Inferred from Text):** The core objective of the original merger schemes (and by extension, these amendments) appears to be the regulation and management of the merged entities' capital structure and operation, as indicated by the focus on specific financial divisions. The amendments specifically address and modify the capital structure within the existing framework.
**4. Background and Rationale:**
The provided text does not explicitly state the reasons for these amendments. However, it can be inferred that the amendments are necessary to adjust the authorized capital divisions of the respective insurance companies. The increase in capital divisions likely reflects a need for greater financial flexibility, potentially driven by market conditions, business expansion, or regulatory requirements. The specific amendments modify the definition of how the total capital is divided, suggesting a change in the number and value of these divisions.
**5. Key Provisions / Changes:**
The key changes introduced by these amendments are as follows:
* **United India Fire and General Insurance Company Limited Merger Amendment Scheme, 2022:**
* **Original Policy Section Changed:** Paragraph 10 of the original scheme and Paragraph 2 of Part I and Paragraph 1 of Part II of the Second Schedule.
* **New Provision:** The phrase "five thousand crore divided into five hundred crore" is replaced with "seven thousand five hundred crore divided into seven hundred fifty crore".
* **Effect of Change:** This increases the capital division from 5,000 crore divided into 500 crore parts to 7,500 crore divided into 750 crore parts. This implies an increase in both the overall capital and the number of divisions into which the capital is split.
* **National Insurance Company Limited Merger Amendment Scheme, 2022:**
* **Original Policy Section Changed:** Paragraph 10 of the original scheme and Paragraph 2 of Part I and Paragraph 3 of Part II of the Second Schedule.
* **New Provision:** The phrase "seven thousand five hundred crore divided into seven hundred fifty crore" is replaced with "fifteen thousand crore divided into fifteen hundred crore".
* **Effect of Change:** This substantially increases the capital division from 7,500 crore divided into 750 crore parts to 15,000 crore divided into 1,500 crore parts. This reflects a significant expansion in both the overall capital and the granular number of divisions of the capital.
* **Oriental Fire and General Insurance Company Limited Merger Amendment Scheme, 2022:**
* **Original Policy Section Changed:** Paragraph 11 of the original scheme and Paragraph 3 of Part I and Paragraph 1 of Part II of the Second Schedule.
* **New Provision:** The phrase "five thousand crore divided into five hundred crore" is replaced with "seven thousand five hundred crore divided into seven hundred fifty crore".
* **Effect of Change:** This increases the capital division from 5,000 crore divided into 500 crore parts to 7,500 crore divided into 750 crore parts, mirroring the increase applied to the United India Fire and General Insurance Company Limited.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* The management and shareholders of United India Fire and General Insurance Company Limited, National Insurance Company Limited and Oriental Fire and General Insurance Company Limited.
* The Department of Financial Services, Ministry of Finance, as the responsible government body.
* Regulators overseeing the insurance industry.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Government, specifically the Department of Financial Services within the Ministry of Finance, is responsible for enacting and overseeing these amendments.
* **Timelines/Procedures:** The amendments come into force on the date of their publication in the Official Gazette (April 13, 2022). No other specific procedures or timelines are mentioned in the provided text. The companies are expected to adjust their internal financial structures to align with the revised capital divisions.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes and impacts of these changes are:
* **Increased Financial Flexibility:** The amendments provide the insurance companies with greater financial flexibility by increasing their authorized capital divisions.
* **Potential for Business Expansion:** The increased capital base may enable the companies to pursue new business opportunities, expand their market presence, or invest in new technologies.
* **Enhanced Regulatory Compliance:** The amendments may be necessary to comply with evolving regulatory requirements related to capital adequacy and risk management in the insurance sector.
* **National Insurance Company Limited Growth:** Specifically for National Insurance Company Limited, the doubling of the capital division amount signifies a planned significant expansion.
**9. Conclusion:**
The amendments to the merger schemes of United India Fire and General Insurance Company Limited, National Insurance Company Limited and Oriental Fire and General Insurance Company Limited, represent adjustments to the capital structures of these entities. These amendments, authorized under the General Insurance Business Nationalisation Act, 1972, are likely aimed at providing increased financial flexibility and supporting the continued operation and growth of the involved insurance companies. The most significant change impacts the National Insurance Company Limited with a doubled capital division. Further details regarding the specific rationale and long-term implications would require access to additional policy documents and industry data.
Key Entities Referenced
General Insurance Business Nationalisation Act, 1972: A law that is the basis for the powers exercised in the notification.
United India Fire and General Insurance Company Limited: An insurance company whose merger scheme is being amended.
United India Fire and General Insurance Company Limited Merger Scheme, 1973: The original merger scheme for United India Fire and General Insurance Company Limited, which is being amended.
United India Fire and General Insurance Company Limited Merger Amendment Scheme, 2022: The new scheme amending the original merger scheme.
National Insurance Company Limited: An insurance company whose merger scheme is being amended.
National Insurance Company Limited Merger Scheme, 1973: The original merger scheme for National Insurance Company Limited, which is being amended.
National Insurance Company Limited Merger Amendment Scheme, 2022: The new scheme amending the original merger scheme.
Oriental Fire and General Insurance Company Limited: An insurance company whose merger scheme is being amended.
Oriental Fire and General Insurance Company Limited Merger Scheme, 1973: The original merger scheme for Oriental Fire and General Insurance Company Limited, which is being amended.
Oriental Fire and General Insurance Company Limited Merger Amendment Scheme, 2022: The new scheme amending the original merger scheme.
New Delhi: Location of the Ministry of Finance and place of notification
Ministry of Finance: The government ministry issuing the notification.
Department of Financial Services: The department within the Ministry of Finance responsible for the notification.
Amit Agrawal: Additional Secretary, who signed the notification.
Mayapuri, New Delhi: Location of Government of India Press
Delhi: Location of Controller of Publications
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-13042022-235134
xxxGIDHxxx
CG-DL-E-13042022-235134
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1734] नई दिल्ली, बुधिार, अप्रलै 13, 2022/चत्रै 23, 1944
No. 1734] NEW DELHI, WEDNESDAY, APRIL 13, 2022/CHAITRA 23, 1944
जित्त मत्रं ालय
(जित्तीय सिे ाएं जिभाग)
अजधसचू ना
नई दिल्ली, 13 अप्रैल, 2022
का.आ. 1821(अ).—केन्द्रीय सरकार, साधारण बीमा कारबार (राष्ट्रीयकरण) अजधजनयम, 1972 (1972 का 57)
की धारा 16 की उपधारा (1) और उपधारा (6) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, एतद्द्वारा, युनाइटेड इंजडया फायर
एंड िनरल इंश्योरेंस कंपनी जलजमटेड (जिलय) योिना, 1973 का और संिोधन करन े के जलए जनम्नजलजखत योिना बनाती
ह,ै अर्ाात-
1. (1) इस योिना का संजिप्त नाम युनाइटेड इंजडया फायर एडं िनरल इंश्योरेंस कंपनी जलजमटेड (जिलय)
संिोधन योिना, 2022 ह।ै
(2) यह रािपत्र म ेंउनके प्रकािन की तारीख से प्रिृत्त होगा।
2. युनाइटेड इंजडया फायर एंड िनरल इंश्योरेंस कंपनी जलजमटेड (जिलय) योिना, 1973 म-ें
(i) पैरा 10 म ें ‘‘पााँच हिार करोड़ िो पााँच सौ करोड़ में जिभाजित है’’ िब्िों के स्ट्र्ान पर ‘‘सात हजार पााँच
सौ करोड़ िो सात सौ पचास करोड़ म ेंजिभाजित है’’ िब्ि रखे िाएंगे;
(ii) िसू री अनुसूची म ें
2685 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(क) भाग 1 के पैरा 2 में ‘‘पााँच हिार करोड़ िो पााँच सौ करोड़ में जिभाजित है’’ िब्िों के स्ट्र्ान पर ‘‘सात
हजार पााँच सौ करोड़ िो सात सौ पचास करोड़ म ेंजिभाजित ह’ै’ िब्ि रख ेिाएंग;े
(ख) भाग 2 के पैरा 1 म ें ‘‘पााँच हिार करोड़ िो पााँच सौ करोड़ में जिभाजित होगी’’ िब्िों के स्ट्र्ान पर ‘‘सात
हजार पााँच सौ करोड़ िो सात सौ पचास करोड़ म ेंजिभाजित है’’ िब्ि रख ेिाएंगे।
[फा.सं. 14013/12/2020-बीमा-II]
अजमत अग्रिाल, अपर सजचि
टटप्पण: मूल योिना भारत के रािपत्र, असाधारण, भाग 2, खंड 3, उप-खंड (ii) में अजधसूचना संख्या का.आ. 804
(अ) तारीख 31 दिसम्बर, 1973 में प्रकाजित की गई र्ी और अजधसूचना संख्या का.आ. 731 (अ), तारीख
12 अक्टूबर, 1982, का.आ. 927(अ), तारीख 16 अिूबर, 2000 और इसम ें अंजतम संिोधन अजधसूचना
संख्यांक का.आ. 2579 (अ), तारीख 31 िलु ाई, 2020 द्वारा दकया गया।
MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 13th April, 2022
S.O. 1821(E).—In exercise of the powers conferred by sub-section (1) and sub-section (6) of
section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), the Central
Government hereby makes the following Scheme further to amend the United India Fire and General
Insurance Company Limited (Merger) Scheme, 1973, namely:—
1. (1) This Scheme may be called the United India Fire and General Insurance Company Limited
(Merger) Amendment Scheme, 2022.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the United India Fire and General Insurance Company Limited (Merger) Scheme, 1973,—
(i) in paragraph 10, for the words “five thousand crore divided into five hundred crore”, the words
“seven thousand five hundred crore divided into seven hundred fifty crore” shall be substituted;
(ii) in the Second Schedule, —
(a) in Part I, in paragraph 2, for the words “five thousand crore divided into five hundred
crore”, the words “seven thousand five hundred crore divided into seven hundred fifty
crore” shall be substituted;
(b) in Part II, in paragraph 1, for the words “five thousand crore divided into five hundred
crore”, the words “seven thousand five hundred crore divided into seven hundred fifty
crore” shall be substituted.
[F. No.14013/12/2020-Ins II]
AMIT AGRAWAL, Addl. Secy.
Note: The principal Scheme was published in the Gazette of India, Extraordinary, part II, section 3, sub-
section (ii) vide notification number S.O. 804(E), dated the 31st December, 1973, and subsequently
amended vide notification numbers S. O. 731(E), dated the 12th October, 1982, S.O.927(E), dated
the 16th October, 2000 and last amended vide notification number S.O.2579 (E), dated the
31st July, 2020.[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
अजधसचू ना
नई दिल्ली, 13 अप्रैल, 2022
का.आ. 1822(अ).—केन्द्रीय सरकार, साधारण बीमा कारबार (राष्ट्रीयकरण) अजधजनयम, 1972 (1972 का 57)
की धारा 16 की उपधारा (1) और उपधारा (6) द्वारा प्रित्त िजियों का प्रयोग करते हुए, एतद्वारा, नेिनल इंश्योरेंस कंपनी
जलजमटेड (जिलय) योिना, 1973 का और संिोधन करने के जलए जनम्नजलजखत योिना बनाती है, अर्ाात-
1. (1) इस योिना का संजिप्त नाम नेिनल इंश्योरेंस कंपनी जलजमटेड (जिलय) संिोधन योिना, 2022 ह।ै
(2) यह रािपत्र म ेंउनके प्रकािन की तारीख से प्रिृत्त होगी।
2. नेिनल इंश्योरेंस कंपनी जलजमटेड (जिलय) योिना, 1973 म-ें
(i) पैरा 10 म ें “सात हिार पााँच सौ करोड़ िो सात सौ पचास करोड़ म ें जिभाजित ह”ै िब्िों के स्ट्र्ान पर
“पंरह हिार करोड़ रुपए िो प्रत्येक िस रुपए के पंरह सौ करोड़ रुपए म ेंजिभाजित है” िब्ि रखे िाएंग;े
(ii) िसू री अनुसूची म ें
(क) भाग 1 के पैरा 2 म ें ‘‘सात हिार पााँच सौ करोड़ िो सात सौ पचास करोड़ म ें जिभाजित ह”ै िब्िों के
स्ट्र्ान पर “पंरह हिार करोड़ रुपए िो पंरह सौ करोड़ में जिभाजित ह”ै िब्ि रख ेिाएंग;े
(ख) भाग 2 के पैरा 3 म ें ‘‘सात हिार पााँच सौ करोड़ िो सात सौ पचास करोड़ म ें जिभाजित होगी” िब्िों के स्ट्र्ान पर
“पंरह हिार करोड़ िो पंरह सौ करोड़ में जिभाजित होगी” िब्ि रख ेिाएंगे।
[फा.सं. 14013/12/2020-बीमा- II]
अजमत अग्रिाल, अपर सजचि
टटप्पण: मूल योिना भारत के रािपत्र, असाधारण, भाग 2, खंड 3, उप-खंड (ii) म ें अजधसूचना संख्यांक
का.आ.806(अ) तारीख 31 दिसम्बर, 1973 म ें प्रकाजित की गई र्ी और इसम ें अजधसूचना संख्यांक
का.आ. 733(अ), तारीख 12 अिूबर, 1982, का.आ.929(अ), तारीख 16 अिूबर, 2000 और
अजधसूचना संख्यांक का.आ. 1124 (अ) तारीख 18 माच,ा 2020 द्वारा अजतटरि संिोधन दकया गया
और अंजतम संिोधन अजधसूचना संख्यांक का.आ. 2580(अ) तारीख 31 िुलाई, 2020 द्वारा दकया गया।
NOTIFICATION
New Delhi, the 13th April, 2022
S.O. 1822(E).—In exercise of the powers conferred by sub-section (1) and sub-section (6) of
section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), the Central
Government hereby makes the following Scheme further to amend the National Insurance Company
Limited (Merger) Scheme, 1973, namely:—
1. (1) This Scheme may be called the National Insurance Company Limited (Merger) Amendment
Scheme, 2022.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the National Insurance Company Limited (Merger) Scheme, 1973,—
(i) in paragraph 10, for the words, “seven thousand five hundred crore divided into seven hundred
fifty crore”, the words “fifteen thousand crore divided into fifteen hundred crore” shall be
substituted;
(ii) in the Second Schedule,—4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(a) in Part I, in paragraph 2, for the words “seven thousand five hundred crore divided into
seven hundred fifty crore”, the words “fifteen thousand crore divided into fifteen hundred
crore” shall be substituted;
(b) in Part II, in paragraph 3, for the words “seven thousand five hundred crore divided into
seven hundred fifty crore”, the words “fifteen thousand crore divided into fifteen hundred
crore” shall be substituted.
[F. No.14013/12/2020-Ins II]
AMIT AGRAWAL, Addl. Secy.
Note: The principal Scheme was published in the Gazette of India, Extraordinary, part II, section 3, sub-
section (ii) vide notification number S.O. 806(E), dated the 31st December, 1973, and subsequently
amended vide notification numbers S. O. 733 (E), dated the 12th October, 1982, S.O.929(E), dated
the 16th October, 2000, S.O.1124(E), dated the 18th March, 2020 and last amended vide
notification number S.O.2580 (E), dated the 31st July, 2020.
अजधसचू ना
नई दिल्ली, 13 अप्रैल, 2022
का.आ. 1823(अ).—केन्द्रीय सरकार, साधारण बीमा कारबार (राष्ट्रीयकरण) अजधजनयम, 1972 (1972 का 57)
की धारा 16 की उपधारा (1) और उपधारा (6) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, एतद्द्वारा, ओटरएंटल फायर एडं
िनरल इंश्योरेंस कंपनी जलजमटेड (जिलय) योिना, 1973 का और संिोधन करन े के जलए जनम्नजलजखत योिना बनाती है,
अर्ाात-
1. (1) इस योिना का संजिप्त नाम ओटरएंटल फायर एंड िनरल इंश्योरेंस कंपनी जलजमटेड (जिलय) संिोधन
योिना, 2022 ह।ै
(2) यह रािपत्र म ेंउनके प्रकािन की तारीख से प्रिृत्त होगा।
2. ओटरएंटल फायर एंड िनरल इंश्योरेंस कंपनी जलजमटेड (जिलय) योिना, 1973 म-ें
(i) पैरा 11 म ें ‘‘पााँच हिार करोड़ िो पााँच सौ करोड़ म ें जिभाजित है’’ िब्िों के स्ट्र्ान पर ‘‘सात हजार पााँच
सौ करोड़ िो सात सौ पचास करोड़ म ेंजिभाजित है’’ िब्ि रखे िाएंगे;
(ii) िसू री अनुसूची म ें
(क) भाग 1 के पैरा 3 में ‘‘पााँच हिार करोड़ िो पााँच सौ करोड़ में जिभाजित है’’ िब्िों के स्ट्र्ान पर ‘‘सात
हजार पााँच सौ करोड़ िो सात सौ पचास करोड़ म ेंजिभाजित है’’ िब्ि रख ेिाएंग;े
(ख) भाग 2 के पैरा 1 म ें ‘‘पााँच हिार करोड़ रुपए िो पााँच सौ करोड़ म ेंजिभाजित है’’ िब्िों के स्ट्र्ान पर ‘‘सात हजार
पााँच सौ करोड़ िो सात सौ पचास करोड़ म ेंजिभाजित है’’ िब्ि रखे िाएगं े।
[फा.सं. 14013/12/2020-बीमा- II]
अजमत अग्रिाल, अपर सजचि
टटप्पण: मूल योिना भारत के रािपत्र, असाधारण, भाग 2, खंड 3, उप-खंड (ii) में अजधसचू ना संख्या
का.आ.805(अ) तारीख 31 दिसम्बर, 1973 में प्रकाजित की गई र्ी और इसमें अजधसूचना संख्या
का.आ. 732 (अ), तारीख 12 अक्टूबर, 1982, का.आ. 928(अ), तारीख 16 अिूबर, 2000 और
का.आ. 1125 (अ), तारीख 18 माच,ा 2020 की अजधसूचना संख्या द्वारा पश्चातिती संिोधन दकया
गया और इसमें अंजतम संिोधन अजधसूचना संख्यांक का.आ. 2581 (अ), तारीख 31 िुलाई, 2020 द्वारा
दकया गया।[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 5
NOTIFICATION
New Delhi, the 13th April, 2022
S.O. 1823(E).—In exercise of the powers conferred by sub-section (1) and sub-section (6) of
section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), the Central
Government hereby makes the following Scheme further to amend the Oriental Fire and General Insurance
Company Limited (Merger) Scheme, 1973, namely:—
1. (1) This Scheme may be called the Oriental Fire and General Insurance Company Limited (Merger)
Amendment Scheme, 2022.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Oriental Fire and General Insurance Company Limited (Merger) Scheme, 1973, —
(i) in paragraph 11, for the words “five thousand crore divided into five hundred crore”, the words
“seven thousand five hundred crore divided into seven hundred fifty crore” shall be substituted;
(ii) in the Second Schedule,—
(a) in Part I, in paragraph 3, for the words “five thousand crore divided into five hundred
crore”, the words “seven thousand five hundred crore divided into seven hundred fifty
crore” shall be substituted;
(b) in Part II, in paragraph 1, for the words “five thousand crore divided into five hundred
crore”, the words “seven thousand five hundred crore divided into seven hundred fifty
crore” shall be substituted.
[F. No.14013/12/2020-Ins II]
AMIT AGRAWAL, Addl. Secy.
Note: The principal Scheme was published in the Gazette of India, Extraordinary, part II, section 3, sub-
section (ii) vide notification number S.O. 805(E), dated the 31st December, 1973, and subsequently
amended vide notification numbers S.O. 732(E), dated the 12th October, 1982, S.O. 928(E), dated
the 16th October 2000, S. O. 1125(E), dated 18th March, 2020 and last amended vide notification
number S.O. 2581 (E), dated the 31st July, 2020.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.