According to sources, the Insurance Amendment Bill, which provides for 100 percent FDI (FDI) in the insurance sector, is likely to be introduced in the upcoming monsoon session.
Sources said that the draft of the bill is ready and it will soon be introduced before the cabinet for approval. He said that after the approval of the cabinet, the Department of Financial Services will start the process of introducing the bill in Parliament under the Ministry of Finance.
According to sources, the ministry hopes that the bill will be introduced in Parliament in the upcoming monsoon session. The monsoon session of Parliament usually begins in the month of July.
It is noteworthy that in this year’s budget speech, Finance Minister Nirmala Sitharaman proposed to increase the current limit of foreign investment in the insurance sector from 74% to 100% under the new generation reforms in the financial sector.
He said that this increased limit will be available to companies that invest their entire premium in India. The current obstacles and conditions related to foreign investment will be reviewed and they will be simplified.
The Finance Ministry has proposed to amend various provisions of the Insurance Act, 1938, including increasing direct investment in the insurance sector to 100 percent, reducing paid capital and complete licensing provisions.
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