Finance Minister said – Insurance Amendment Bill may be introduced in winter session

New Delhi: Finance Minister Nirmala Sitharaman said on Sunday that the Insurance Amendment Bill allowing 100 percent foreign direct investment in the insurance sector is likely to be introduced in the upcoming winter session of Parliament. When asked whether the bill to further liberalize FDI in the insurance sector can be introduced in Parliament in the upcoming winter session? To this, she said, I hope so.

In this year’s budget speech, the Finance Minister had proposed to increase the limit of foreign investment in the insurance sector from the existing 74 percent to 100 percent under the new generation financial sector reforms. He said, this increased limit will be available to companies that invest their entire premium in India. The existing security and conditions related to foreign investment will be reviewed and simplified.

The Finance Ministry has proposed amendments to various provisions of the Insurance Act, 1938, including increasing foreign direct investment in the insurance sector to 100 percent, reduction in paid-up capital and provision for a composite license. Under a comprehensive legislative process, the Life Insurance Corporation Act-1956 and the Insurance Regulatory and Development Authority Act-1999 will be amended along with the Insurance Act-1938.

Currently, India has 25 life insurance companies and 34 non-life or general insurance companies, including specialised general insurance companies like Agriculture Insurance Company of India Ltd and ECGC Ltd. The FDI limit in the insurance sector was last raised from 49 per cent to 74 per cent in 2021. In 2015, the government had raised the FDI limit in the insurance sector from 26 per cent to 49 per cent. So far, the insurance sector has attracted Rs 82,000 crore through foreign direct investment.