The Bill was launched on Friday by Finance Minister Nirmala Sitharaman.
The General Insurance Business (Nationalisation) Amendment Bill, 2021 is aimed toward producing required assets from the Indian markets in order that public sector common insurers can design modern merchandise.
- PTI New Delhi
- Last Updated:August 02, 2021, 16:57 IST
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Lok Sabha on Monday handed a invoice to amend the overall insurance coverage legislation to enable the federal government to pare its stake in state-owned insurers. The General Insurance Business (Nationalisation) Amendment Bill, 2021 is aimed toward producing required assets from the Indian markets in order that public sector common insurers can design modern merchandise.
As per the assertion of objects and causes of The General Insurance Business (Nationalisation) Amendment Bill, 2021, it seeks to take away the requirement that the central authorities ought to maintain not lower than 51 per cent of the fairness capital in a specified insurer. To present for larger non-public participation within the public sector insurance coverage corporations, to improve insurance coverage penetration and social safety, to higher safe the pursuits of policyholders and contribute to quicker progress of the economic system, it has turn out to be obligatory to amend sure provisions of the Act, in accordance to the Bill.
The Bill was launched on Friday by Finance Minister Nirmala Sitharaman. The Finance Minister within the Budget 2021-22 had introduced a big-ticket privatisation agenda which included two public sector banks and one common insurance coverage firm.
“We propose to take up the privatisation of two Public Sector Banks and one General Insurance company in the year 2021-22. This would require legislative amendments,” she had mentioned on the time. As of date, there are 4 common insurance coverage corporations within the public sector – National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and the United India Insurance Company Limited.
Now, one in all these will probably be privatised for which the federal government is but to finalise the identify.
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