The government is working on amendments to the General Insurance Business (Nationalisation) Act (GIBNA), which will faciliate the privatisation of a PSU general insurance company. The monsoon session is expected to begin from July 19.

The Act, which came into force in 1972, provided for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of the general insurance business.

The amendments are being worked out and may be tabled in the upcoming session to help privatisation of a general insurance company announced in the budget this year, sources said. Finance minister Nirmala Sitharaman in her Budget 2021-22 had announced a big-ticket privatisation agenda, including privatisation of two PSU banks and one general insurance company.

The Niti Aayog was entrusted with the task of recommending a suitable candidate for the privatisation of two public sector banks and one general insurance company. The government think-tank is believed to have suggested the name of United India Insurance to the core group of secretaries on disinvestment.

The government is also gearing itself to table amendments in the Banking Regulation Act, 1949, to enable the privatisation of two public sector banks. Amendments would be required in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, for privatisation.