NEW DELHI, Dec. 17 -- The Centre is considering a fresh capital infusion of up to Rs.5,000 crore into three loss-making and financially weak public sector general insurers-United India Insurance Co. (UIIC), National Insurance Co. (NIC) and Oriental Insurance Co. (OIC), according to two people aware of the discussions. The move follows a brief earnings turnaround last year that failed to translate into sustained balance-sheet repair.

The proposal, which could be routed through a second supplementary demand for grants this fiscal or the Union Budget for FY27, the people said, revives a plan that was deferred in the past two budgets after the insurers reported short-lived quarterly profits.

The proposed funding is aimed at stabilizing the ...