The government may have to inject more capital into the three public sector general insurance companies to improve their financial health, a senior government official said. The finance ministry would take a call on how much capital they would need to meet regulatory requirements after the government provided Rs 5,000 crore for three insurers last year -- National InsuranceInsurance Company Limited, Oriental InsuranceInsurance Company Limited and United India Insurance Company. The official added that they are not in good financial health and that they would be infused in these entities to increase their solvency margin. The companies must hold over and above the claim amounts they are likely to incur to be able to meet the solvency margin. It helps the company settle all claims in extreme situations because it acts as a financial backup. According to the IRDAI mandate, the minimum solvency ratio the insurance companies must maintain is 1.5 to lower risks. In terms of solvency margin, the required value is 150 per cent. The budget 2023 -- 24 has not provided for the capital infusion for insurance companies, but the funds can be sought through supplementary demand, the official said. During 2020-21, Rs 9,950 crore was infused in three public sector general insurers by the government, out of which Rs 3,605 crore were infused in United India Insurance, Rs 3,175 crore in National Insurance and Rs 3,170 crore in Oriental Insurance. A consultant has also suggested a number of reforms to be undertaken by these companies, besides capital infusion. Some of the suggestions have been incorporated and others are in different phases of implementation, the official added. Of the four state-owned general insurance companies only New India Assurance Company is listed on the stock exchanges, the remaining three are wholly owned by the government. The government has already announced its intention to privatise a general insurance company. In order to facilitate the privatisation process, Parliament has already approved amendments to the General Insurance Business Nationalisation Act GIBNA Finance Minister Nirmala Sitharaman in the Budget 2021 -- 22 budget, which included two public sector banks and a general insurance company. We plan to privatise two Public Sector Banks and one General Insurance company in the year 2021 -- 22. She said that this would require legislative amendments.