Insurance Current Affairs - 2020

GoI: Benefits to COVID-19 affected workers under Atal Beema Vyakti Kalyan Yojana

On March 19, 2020, the Government of India announced that it will provide unemployment benefits to the section of unorganized workers. These workers include, persons who have lost their jobs due to the impact of the Corona Virus Pandemic.

Highlights

Along the lines of countries like USA in combating the deadly Corona Virus, GoI is to provide cash to workers. These workers are those that become unemployed due to the impact of corona virus. They are to receive cash for 3 months.

This step is to be implemented by Atal Beema Vyakti Kalyan Yojana.

Atal Beema Vyakti Kalyan Yojana

The scheme provides unemployment insurance to those workers enrolled in EST scheme. ESI is Employee State Insurance Scheme. Under the scheme, the workers receive cash of 25% of their salary that they were receiving in the last 2 months. The scheme is operation since 2018. It provides compensation to those who become unemployed for three months.

DPIIT notifies 100% Foreign Direct Investment in Insurance Intermediaries

The Department for Promotion of Industry and Internal Trade (DPIIT) operating under Ministry of Commerce and Trade has amended the FDI (Foreign Direct Policy) to allow 100% foreign investment for insurance intermediaries. This includes insurance companies, third party administrators, insurance brooking, loss assessors and surveyors.

Highlights

Initially DPIIT had allowed only 49% of FDI in the insurance sector. This has now been increased to 100% to increase Ease of doing business in the insurance sector. With this move, the foreign companies shall easily buy stakes in Indian Insurance Companies.

Background

The 100% FDI in Insurance Sector was announced by Finance Minister Nirmala Sitaraman in the Budget 2020-21. This is essential because, according to UNCTAD (United Nations Conference on Trade and Development) World Investment Report, 2019, India faced third consecutive annual decline in terms of FDI in 2019.

UNCTAD

UNCTAD is a UN Body that deals with trade and investment. It was established in 1964. It also measures the Sustainable Development Goal set out by the member countries of the United Nations.