FM Nirmala Sitharaman introduces Bill in Rajya Sabha to allow 74 per cent FDI in insurance sector
New Delhi, Mar 15: Finance Minister Nirmala Sitharaman on Monday introduced a Bill in Rajya Sabha that seek to amend the Insurance Act to pave the way for 74 per cent foreign direct investment (FDI) in the sector.
The Union Cabinet on Wednesday had gave its nod for amendments in the Insurance Amendment Bill 2021.
Finance Minister Sitharaman introduced the Bill for amendments in the Insurance Act, 1938.
Currently, the permissible FDI limit in the life and general insurance stands at 49 per cent with ownership and management control with Indian.
Sitharaman presenting the Union Budget for 2021-22 had said, "I propose to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49 per cent to 74 per cent in insurance companies and allow foreign ownership and control with safeguards."
Under the new structure, the majority of directors on the board and key management persons would be resident Indians, with at least 50 per cent of directors being independent directors, and specified percentage of profits being retained as a general reserve.
She had also said that for investor protection, an investor charter would be introduced as a right of all financial investors across all financial products.
It was in 2015 when the government hiked the FDI cap in the insurance sector from 26 per cent to 49 per cent.
Increase in FDI will help improve life insurance penetration in the country. Life insurance premium as a percentage of GDP is 3.6 per cent in the country, way below the global average of 7.13 per cent, and in case of general insurance, it is even worse at 0.94 per cent of GDP, as against the world average of 2.88 per cent.
The government has earlier allowed 100 per cent foreign direct investment in insurance intermediaries.
Intermediary services include insurance brokers, reinsurance brokers, insurance consultants, corporate agents, third party administrators, surveyors and loss assessors.
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Modi inciting people, dividing society, alleges Kharge; Uddhav says 'acche din' coming after June 4
Mumbai (PTI): Congress president Mallikarjun Kharge on Saturday accused Prime Minister Narendra Modi of inciting people and dividing society through his election speeches.
Kharge was addressing a press conference of the INDIA bloc, where NCP (SP) chief Sharad Pawar, Shiv Sena (UBT) president Uddhav Thackeray and other leaders were present. The opposition alliance held an election rally in the city on Friday.
"No prime minister before Modi has ever indulged in inciting people like he has been doing. He speaks about democracy repeatedly but doesn’t adhere to the tenets of democracy," Kharge said.
Responding to a question on PM Modi' statement that the Congress will bulldoze the Ram mandir in Ayodhya and also restore Article 370 if the INDIA bloc is voted to power, Kharge said, "We have never used a bulldozer on anyone. Modi has the habit of lying and inciting people about things which Congress will never do or the things that are impossible to be implemented."
Asked about his party's stand on Article 370, Kharge said , "I am not answerable to Modi. We will implement what we have promised in our manifesto."
Attacking the PM further, he said, "Wherever he goes, he tries to create division, speaks of dividing society."
PM Modi had described the Congress' manifesto as Muslim League manifesto, but now he says it is a Maoist manifesto, Kharge added.
The Congress chief assured that reservation as enshrined in the Constitution will continue and nobody can touch it.
Speaking on the occasion, Thackeray said, "'Achche din' are coming from June 4 (when Lok Sabha poll results will be declared) when INDIA bloc-led government takes charge."
"PM Modi calls us 'nakli' (fake) Shiv Sena, tomorrow he may call RSS as 'nakli Sangh'," the former chief minister said.
The BJP is floating 'Pakistan flags in our rally' narrative to divert people's attention from issues like jobs, he alleged.
Pawar said that after coming to power, the INDIA bloc government's duty will be to protect all religious places in the country.
Kharge noted that if elected, the opposition alliance's government will implement a simple, single rate GST, replacing the present GST.
"We introduced Food Security Act, but PM Modi is taking credit for free ration supply," he alleged.
