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Bill seeks to increase FDI limit in insurance companies from 74% to 100%, reduction in paid-up capital and provision for composite licence
Given the paucity of time, it is difficult to present the Bill in the ongoing session, sources said, adding it may, however, come in the Budget session
#New Delhi
Insurance Amendment Bill, which proposes 100 per cent FDI in the insurance sector, may not be introduced in Parliament in the ongoing session, sources said.
Some finetuning may be required in the draft Bill after receiving comments from stakeholders, sources said.
Given the paucity of time, it is difficult to present the Bill in the ongoing session, sources said, adding it may, however, come in the Budget session.
The finance ministry has proposed to amend various provisions of the Insurance Act, of 1938, including raising foreign direct investment (FDI) in the insurance sector to 100 per cent, reduction in paid-up capital, and provision for composite licence.
The Department of Financial Services (DFS) has sought public comments on the proposed amendments by December 10.
As per the proposal, the FDI limit in Indian insurance companies will be raised from 74 per cent to 100 per cent.
The proposed amendments primarily focus on promoting policyholders’ interests, enhancing their financial security, and facilitating the entry of more players into the insurance market leading to economic growth and employment generation, the memorandum stated.
Such changes will help enhance efficiencies of the insurance industry, enabling ease of doing business and enhancing insurance penetration to achieve the goal of ‘Insurance for All by 2047’, it stated.
Further, it said, the requirement of net-owned funds for foreign re-insurers is also proposed to be reduced from Rs 5,000 crore to Rs 1,000 crore.
PTI
