The Insurance (Amendment) Bill, 2021 seeking increase in the FDI limit to 74 per cent in the domestic Insurance Companies was today introduced in the Rajya Sabha.
Union Finance & Corporate Affairs Minister Nirmala Sitharaman introduced the bill which aims at amending the Insurance Act, 1938. The FDI limit in the Indian Insurance companies at the moment stands at 49 per cent.
The Union Finance Minister had already made the proposal to enhance the FDI limit in the sector in her General Budget for Financial year 2021-22.
The legislation seeks to achieve the objective of Government’s Foreign Direct Investment Policy of supplementing domestic long-term capital, technology and skills for the growth of the economy and the insurance sector, thereby enhancing insurance penetration and social protection.