The general Insurance (Amendment)Act. 2021 removes the provision which required the Central Government to have atleast _______ ownership in four subsidiaries of General Insurance Company, namely, National Insurance, New India assurance, Oriental Insurance, united India Insurance.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 51%.
- This amendment allows for a reduction in government stake below 51%, thereby facilitating greater private investment and potentially enhancing the operational efficiency and competitiveness of these public sector insurance companies.
- The move is part of broader economic reforms aimed at liberalizing the insurance sector, attracting more private capital, and promoting a more competitive market environment.