Finance Minister Nirmala Sitharaman introduces Bill to amend Insurance Act, seeking 74% FDI
The Union Cabinet has given a green signal for amendments in the Insurance Amendment Bill 2021. Finance Minister Sitharaman introduced the Bill for amendments in the Insurance Act, 1938.
Presently, the act allows 49% FDI limit in the life and general insurance with ownership and management control with Indian.
Sitharaman presenting the Union Budget for 2021-22 had said, "I propose to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49 per cent to 74 per cent in insurance companies and allow foreign ownership and control with safeguards."
As per the new structure, the majority of directors on the board and key management persons would be resident Indians, with at least 50 per cent of directors being independent directors, and specified percentage of profits being retained as a general reserve.
She also added that an investor charter would be introduced for investor protection, as a right of all financial investors across all financial products.
Increase in FDI will help improve life insurance penetration in the country. Life insurance premium as a percentage of GDP is 3.6% in the country, way below the global average of 7.13%, and in case of general insurance, it is even worse at 0.94% of GDP, as against the world average of 2.88%.
AuthBridge launches iBRIDGE 2.0 AI-powered verification solution
Authentication technology company, AuthBridge has announced a new and improved version of...
Conga launches Innovation and R&D Lab in India
Revenue Lifecycle Management solutions company, Conga has announced the opening of the new...
SCADA/OT Security Acceleration Program launched by National Cyber CoE, C-DAC and Infopercept
Data Security Council of India’s National CoE program in collaboration with C-DAC (C...
Fortinet addresses top cybersecurity challenges at its LEAP 2022 Security Summit
Fortinet has recently hosted top customers from India & SAARC at Fortinet LEAP 2022 Se...
Crayon Software Experts concludes its 3-city Connect Partner summit
Crayon Software Experts India has recently concluded the 3-city Crayon Connect partner sum...