Govt set to introduce Bill to hike FDI in insurance sector to 100 pc in Parliament
New Delhi (PTI): The government is planning to introduce a Bill in Parliament this week to raise FDI in the insurance sector to 100 per cent, with a view to providing insurance to all by 2047.
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, seeks to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, according to the Bill circulated to members of Parliament ahead of its introduction in Parliament.
The amendment will raise the Foreign Direct Investment limit in the insurance sector from 74 per cent to 100 per cent, it said.
Despite the Bill to hike FDI in the insurance sector to 100 per cent, one of the top officials — Chairman, Managing Director, or CEO — must be an Indian citizen.
It also paves the way for the merger of a non-insurance company with an insurance company.
The Bill received the Union Cabinet's nod on Friday, paving the way for its introduction in Parliament.
The Bill further aims to accelerate the growth and development of the insurance sector and to ensure better protection of policyholders, as per the statement of objects and reasons.
The Bill provides for the establishment of the Policyholders' Education and Protection Fund to protect policyholders' interests.
It would also improve the ease of doing business for insurance companies, intermediaries, and other stakeholders, bring transparency to regulation-making, and enhance regulatory oversight over the sector, it said.
With regard to the term of office of the Chairperson and other whole-time members, the Bill provides for a five-year term or until they attain the age of 65 years, whichever is earlier, it said.
At present, the upper age limit for whole-time members is 62 years, while for the Chairman it is 65 years.
Finance Minister Nirmala Sitharaman, in this year's Budget speech, proposed to raise the foreign investment limit to 100 per cent from the existing 74 per cent in the insurance sector as part of new-generation financial sector reforms.
So far, the insurance sector has attracted Rs 82,000 crore through foreign direct investment (FDI).
The amendments to the LIC Act propose empowering its board to take operational decisions, such as branch expansion and recruitment.
The proposed amendment primarily focuses on promoting policyholders' interests, enhancing their financial security, and facilitating the entry of additional players into the insurance market, thereby driving economic growth and employment generation.
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Nearly 700 km of Karnataka rivers polluted; cities, towns depend on contaminated water
Shivamogga: A total of 693.75 of river stretches across Karnataka are polluted, and water from several of these rivers is being supplied to towns and cities, the State government informed the Legislative Assembly.
According to a report published by The New Indian Express on Monday, replying to an unstarred question by Thirthahalli MLA Araga Jnanendra during the winter session in Belagavi, Forest, Environment and Biodiversity Minister Eshwar Khandre said rivers are classified into five categories, P1 to P5, based on Biochemical Oxygen Demand (BOD) levels, with P1 being the most polluted.
He reportedly said untreated domestic wastewater from urban and rural areas is the main reason for river pollution. Arkavati, Lakshana Teertha, Tungabhadra, Bhadra, Tunga, Cauvery, Kabini, Kagina, Krishna, Shimsha, Bheema and Netravati are the polluted rivers and so far, 112 polluted drainages along these rivers have been identified.
Khandre explained that rivers are classified into five pollution categories P1 to P5. The Arkavati River has been placed in the P1 category, while no rivers fall under P2 and P3. Tungabhadra, Bhadra and Shimsha are categorised under P4, and eight other rivers fall under P5.
Khandre allegedly said domestic wastewater from municipalities, towns and villages along riverbeds is being discharged into at least 17 rivers, identified by the Central Pollution Control Board (CPCB). This is the primary cause of river pollution.
According to the report, the minister said drinking water is being supplied from polluted rivers in districts such as Mandya, Ramanagara, Vijayapura and Shivamogga. In parts of Uttara Kannada, Ballari, Vijayanagara and Bagalkot, local bodies are also drawing water from polluted river sources.
In 2022-23, CPCB identified South Pinakini, Aghanashini, Sharavathi and Gangavali rivers too as polluted. But wrote to CPCB, stating that these rivers are not polluted and sought their removal from the list. An action plan is being prepared for the South Pinakini River, he said.
On remedial measures, Khandre reportedly said the Karnataka State Pollution Control Board is setting up sewage treatment plants as per the directions of National Green Tribunal.
As per the report, under 12 river rejuvenation plans, the state generates 817.31 million litres per day (MLD) of sewage. While 41 STPs with a capacity of 614.1 MLD are operational, 203.21 MLD of sewage remains untreated.
Work is underway to establish 19 STPs with a capacity of 248.91 MLD, while 39 more STPs with a combined capacity of 357.92 MLD are in the planning stage. Progress is being monitored and reported regularly to the NGT and the Union Ministry of Jal Shakti.
The minister reportedly said the state government gave its approval for underground drainage works worth Rs 535.56 crore in 2021 for 24 cities/towns besides Rs 523.80 crore for nine UGD projects.
