New Delhi: Finance Minister Nirmala Sitharaman will move the Insurance (Amendment) Bill 2021 in Rajya Sabha for passing on Thursday.
The Insurance (Amendment) Bill 2021 seeks to amend the Insurance Act to pave the way in which for 74 per cent international direct funding (FDI) in the sector.
Sitharaman had on Monday (March 15) launched the Bill in Rajya Sabha. Sitharaman launched the Bill for amendments in the Insurance Act, 1938. The Union Cabinet on Wednesday had gave its nod for amendments in the Insurance Amendment Bill 2021.
Currently, the permissible FDI restrict in the life and basic insurance coverage stands at 49 per cent with possession and administration management with Indian.
Sitharaman presenting the Union Budget for 2021-22 had mentioned, I suggest to amend the Insurance Act, 1938 to enhance the permissible FDI restrict from 49% to 74% in Insurance Companies and permit international possession and management with safeguards. Under the brand new construction, nearly all of Directors on the Board and key administration individuals can be resident Indians, with no less than 50% of Directors being Independent Directors, and specified share of income being retained as basic reserve.”
With Agency Inputs
