In a major boost to the government’s reform agenda, the Rajya Sabha on Thursday approved the insurance bill, thereby raising the ceiling for foreign investment in the sector from 26% to 49%. The Insurance Laws (Amendment) Bill, 2015 will replace the ordinance promulgated by the government last year.
The passage of the bill in the Rajya Sabha, with help from Congress, comes as a major relief to the Modi government which had been slamed for the high-handedness with which it had taken the ordinance route to carry out major policy decisions. Further, the passage of the bill, which provides power to Insurance Regulatory Development Authority (IRDA), also brings cheer for insurance agents. As per the Bill, the manner and amount of remuneration, or reward, to be paid or received by way of commission or otherwise, to an insurance agent or an intermediary, will be decided by the regulator.
Notably, Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) was able to get its thing done in the upper House, where it is in a minority, after the Congress decided to support the bill, signalling a rare consensus between the two national political parties on a key economic reform.
However, the passage of this bill in Rajya Sabha also raises hopes of legislative passage for some other crucial bills like the Coal Mines (Special Provisions) Bill and Mines and Minerals (Development and Regulation) Amendment Bill, 2015, which have been referred to a select committee by the house.