Rajya Sabha Passes Bill To Raise FDI In Insurance Sector

The Rajya Sabha on Thursday passed the Insurance (Amendment) Bill 2021, which aims to raise the limit of foreign investment in an Indian insurance company from the existing 49 to 74 per cent.

While addressing the House, Union Minister Nirmala Sitharaman said, “FDI limit is not a compulsion; it only sets the upper limit. Increasing the limit does not mean automatic foreign investment to that level to all companies. Every company will decide for themselves, whether they want that money, to what extent, and so on.”
She added, “This enabling amendment is only to allow them to receive some money but not exceed 74 per cent. The policyholders’ money that is going to be collected will have to be invested within India only. It cannot be crossing our boundaries.”

She further said that when money comes and when there is more competition, the common people of India will have a better deal given to them and a better negotiating premium and better package.

“Competition is strictly for betterment,” she added.

Sitharaman introduced the Bill for amendments in the Insurance Act, 1938. The Union Cabinet on Wednesday had given its nod for amendments in the Insurance Amendment Bill 2021.

Earlier, the permissible FDI limit in life and general insurance stood at 49 per cent with ownership and management control with Indians. (ANI)

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.

These cookies are essential in order to enable you to move around the website and use its features. Without these cookies basic services cannot be provided.

Cookie generated by applications based on the PHP language. This is a general purpose identifier used to maintain user session variables. It is normally a random generated number, how it is used can be specific to the site, but a good example is maintaining a logged-in status for a user between pages.

Used on sites built with Wordpress. Tests whether or not the browser has cookies enabled
  • wordpress_test_cookie

In order to use this website we use the following technically required cookies
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Decline all Services
Accept all Services
Would love your thoughts, please comment.x