Insurance Amendment Bill: Unveiling Potential Transformation in FDI Policy

The Insurance Amendment Bill proposes increasing FDI in the insurance sector to 100%, but further revisions are required before its introduction in Parliament. Its goals include boosting industry growth, job creation, and insurance penetration, with public comments requested on the proposed legislative changes.

The Insurance Amendment Bill, aiming to allow 100% Foreign Direct Investment (FDI) in India's insurance sector, may not be tabled in the current parliamentary session, according to sources. The bill requires further refinements following stakeholder feedback, prompting delays until possibly the Budget session.

Proposed amendments to the Insurance Act of 1938 include raising the FDI limit from 74% to 100%, reducing paid-up capital requirements, and introducing a composite license framework. The Department of Financial Services has invited public comments by December 10, as it engages in a second round of consultations on these legislative updates.

These changes are designed to make insurance more accessible and affordable, stimulate industry growth, and ease business operations. The Insurance Regulatory and Development Authority of India has been actively involved in reviewing the legislative framework to foster increased market participation and economic development.

(With inputs from agencies.)