INSURANCE ACT – THE AMENDMENT BILL
The new government would be in place in a few days from now and one of the keenly expected areas is the reforms in Insurance Sector.
The previous government introduced the amendment bill in Rajya Sabha and as such the bill is live and has not lapsed.
The important points in the bill are given below for our understanding:
- Raising of foreign holdings from 26% to 49% (FDI Cap)
- Withdrawl of the condition which required Indian Promoters to divest a part of their holding 10 years after commencement of operations.
- Allowing a ceiling for the government guarantee of LIC Obligations
The effect of this bill would be inflow of Foreign capital of over 2500 crores in life segment alone and bringing in of new technology and knowledge by foreign promoters.
posted by Venkat at
11:58 AM
1 Comments:
What are the implications to the existing insurance companies and how does this benefit a customer
5:59 PM
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