The National Insurance Company, Oriental Insurance Company and United Insurance Company will get the additional capital, Union Minister Prakash Javadekar said.
At 3:09 pm, gold futures traded 0.27 per cent higher at Rs 48,930 per 10 grams, while silver futures (September 4) were up 0.60 per cent at Rs 50,502 per kilogram.
Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.
The rupee has recovered 2.57 per cent from a record low of 76.91 logged in April, but still it is down 5 per cent against the American currency so far this year.
