M Nagaraju, Secretary, Department of Financial Services
“The Bill is not in the agenda of the current session of the Parliament,’’ confirmed M Nagaraju, secretary, Department of Financial Services(DFS)
Mumbai: It is now official. The much awaited `Insurance Amendment Bill’’, facilitating 100 per cent foreign direct investment (FDI) along with a host of sweeping reforms in the Indian insurance sector, will not be tabled in the Monsoon session of the Parliament.
“The Bill is not in the agenda of the current session of the Parliament,’’ confirmed M Nagaraju, secretary, Department of Financial Services(DFS).
The Monsoon session of Parliament, which began on last Monday will continue till August 21, with no sittings on August 13 and 14 due to Independence Day celebrations.
However, sources in the DFS have said the text of the Bill is fully ready and depending upon the available of the time of the Parliament in future, it will be introduced for its passage.
Several new prospective international and Indian players are waiting to know the provision of the new bill to take decisions on their business plans.
Sources point out it is unlikely that the government will table it in the Winter session of the Parliament which will be of much shorter duration.
With the increase in foreign direct investment (FDI) limit from 74 per cent to 100 per cent for insurance companies, the government aims to unlock the full potential of the Indian insurance sector, which is projected to grow at 7.1 per cent annually over the next five years, outpacing global and emerging market growth, Finance Minister Nirmala Sitharaman said in a written reply to a question in the Lok Sabha. on Monday.
New likely provisions in the Amendment bill include- provisions for composite licensing, allowing insurers to sell both life and non-life products under a single license, reduction in paid-up capital, allowing agents to sell products from multiple insurers breaking away from the existing exclusivity model, amending LIC Act to empower its board to take operational decisions like branch expansion and recruitment, perpetual licensing for insurance brokers.