A bill that seeks to raise foreign investment in the insurance sector will be taken up in the Rajya Sabha on Thursday and is expected to sail through following the government's agreement to the opposition’s demand to refer two other contentious bills, the Mines and Minerals (Development and Regulation) Bill and Coal Mines (Special Provisions) Bill, to select committees in the upper House.
Formally called the ‘Insurance Laws (Amendment) Bill’ and rechristened as ‘Insurance Laws (Amendment) bill, 2015’, the bill seeks to amend the Insurance Act, 1938 and the General Insurance Business (Nationalization) Act 1972 and the Insurance Regulatory and Development Authority (IRDA) Act, 1999. It aims at increasing the cap on foreign direct investment (FDI) in the public sector insurance companies from 26 to 49 per cent was passed by Lok Sabha last week. The amendment is expected to bring in much needed additional equity to the tune of Rs 25,000 crore to the insurance sector.
Notably, Congress had earlier indicated that it will not obstruct the passage of the Insurance Bill as it was in principle the UPA’s “baby”. The bill, one of the key reform legislations, has been pending since 2008.