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Insurance Amendment Bill: Sitharaman said that this increased limit will be available to companies that invest the entire premium in India.
Insurance Amendment Bill: Finance Minister Nirmala Sitharaman has said that the insurance amendment bill proposing 100 percent FDI in the insurance sector is likely to be introduced in the upcoming winter session of Parliament. The winter session of Parliament usually begins in the late November and ends before Christmas. When asked if the Bill, which makes FDI and liberal-making bill in the insurance sector, could be introduced in the upcoming winter session of Parliament, he told PTI-language that I hope. In this year’s budget speech, the Finance Minister proposed to increase the limit of foreign investment in the insurance sector from 74 percent to 100 percent as part of the new generation financial sector reforms. He said that this increased limit will be available to companies that invest the entire premium in India.
Economic development and employment will be promoted
Foreign investment will be simplified. Till now the insurance sector has attracted Rs 82,000 crore through FDI ((FDI). Amendment will be made.
FDI is currently 74 percent
Said that such changes will help increase the efficiency of insurance industry, ease of doing business and increase insurance penetration so that the target of ‘insurance for everyone by 2047’ can be achieved. The Insurance Act of 1938 is a major act providing legislative structure for insurance in India. This provides structure for the functioning of insurance businesses and controls the relationship between an insurer, its policyholders, shareholders and regulator IRDAI. The Finance Minister said that the entry of more players in this area will not only increase penetration but will also create more employment across the country. Currently there are 25 life insurance companies and 34 non-life or general insurance firms in India, including special general insurance companies like Agriculture Insurance Company of India Limited and ECGC Limited. The FDI limit in the insurance sector was last increased from 49 percent to 74 percent in 2021. In 2015, the government increased the FDI cap in the insurance sector from 26 percent to 49 percent.
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