New Delhi, Nov. 17 -- The Centre is weighing a massive restructuring of National Insurance Co., Oriental Insurance Co., and United India Insurance Co., potentially involving a merger, privatization or both.

The Union finance ministry is discussing various options for the future of the three weak general insurers, the people mentioned above said on the condition of anonymity. These include merging two of them with the listed and profitable New India Assurance; merging all three; and merging only two and preparing the third for privatization.

"The Centre is seeking a structure that aligns with the policy to limit the number of state-owned companies in non-strategic sectors to one or two, while retaining a minimum of four in strategic sect...