Cabinet approves Insurance Laws (Amendment) Bill, 2008

The Cabinet has approved official Amendments to the Insurance Laws (Amendment) Bill, 2008 and its introduction in the Rajya Sabha.  The decision was taken at a Cabinet meeting chaired by the Prime Minister Narendra Modi in New Delhi.

This amendment Bill aims at

  • Removing archaic and redundant provisions in the relevant legislations.
  • Enable the insurance sector to work for the betterment of the insured with greater efficacy.

Earlier, the Select Committee on the Insurance Laws (Amendment) Bill chaired by Rajya Sabha MP Dr Chandan Mitra had recommended a composite cap of 49 per cent on foreign investment in insurance. This will include all forms of FDI and foreign portfolio investments. At present the Foreign Direct Investment limit in the sector is 26 per cent.

Background

In August 2014, Rajya Sabha had appointed a 15-member Select committee, to scrutinize the long pending Insurance Laws (Amendment) Bill, 2008.  The Bill was held up for nearly six years on account of political differences. Thus after the cabinet approval, government is likely to bring the Bill for consideration of the Rajya Sabha.

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