Outlook Business Desk
The Insurance Amendment Bill, aimed at raising the FDI limit in the insurance sector to 100%, is set to be introduced in Parliament soon, pending final approvals
The proposed amendments seek to increase the FDI cap in the insurance sector from 74% to 100%, a move expected to attract more foreign investment
The bill introduces a composite licence, allowing companies to offer life, non-life, and health insurance products under a single licence
A government official confirmed that the draft of the bill is complete. Once it receives final approvals, it will be presented to the cabinet before being introduced in Parliament
The Insurance Regulatory and Development Authority of India (IRDAI) has been pushing for 100% foreign direct investment (FDI) in the insurance sector. The IRDAI believes that this move would play a crucial role in achieving the government's goal of "insurance for all" by 2047
The bill suggests eliminating the Rs 100-crore minimum paid-up equity capital requirement for life, general, and health insurance sectors. This change is intended to facilitate the entry of new players, encouraging competition and enhancing the overall efficiency of the industry
The amendments aim to broaden the scope of insurers eligible for registration, with the IRDAI setting minimum capital requirements tailored to different types of insurers. These adjustments are designed to stimulate economic growth and create more employment opportunities in the insurance sector