Mega-state Insurance firm idea to be nixed

In its report last year, the standing committee had suggested the merger of the four state-owned general insurance, United India, Oriental Insurance, New India and National Insurance.

‘‘Our idea was to create a giant general insurance company, which could compete with the private sector,’’ Rajya Sabha member S.S. Ahluwalia said. Ahluwalia reminded that the four companies were originally under one fold but were separated during the Indira Gandhi regime.

The report, sources said, would also form the basis for undertaking wage revisions. Promotions have been stalled despite an 8 per cent drop in workforce due to voluntary retirements.

The government is also likely to take a decision on transfer and mobility of the Class IV employees. At present these employees are not transferred.

The finance ministry had appointed AF Ferguson in May to prepare a report on the four PSUs.