Insurance Amendment Bill Unlikely To Be Presented In Winter Session, Says Report

The FM has suggested a revision in several provisions of the Insurance Act, of 1938, such as hiking the FDI limit in the insurance sector to 100 per cent and provision for composite licence

The sources noted that some finetuning might be required in the draft bill based on feedback from stakeholders.

Source : Pexels

The Insurance Amendment Bill might not be introduced in the Parliament in the current winter session, media reports said. The bill proposes 100 per cent foreign direct investment (FDI) in the insurance sector.

However, a report by PTI cited sources and said that the bill is unlikely to be presented in the ongoing session in the Parliament. The sources noted that some finetuning might be required in the draft bill based on feedback from stakeholders.

“Given the paucity of time, it is difficult to present the Bill in the ongoing session, it may however come in the Budget session,” the sources said. The Finance Ministry has suggested a revision in several provisions of the Insurance Act, of 1938, such as hiking the FDI limit in the insurance sector to 100 per cent, reduction in the paid-up capital, and provision for composite licence.

The Department of Financial Services (DFS) asked for public comments on the proposed changes by December 10. This is the second public consultation sought by the DFS on the proposed amendments to the Insurance Act.

Earlier in December 2022, the ministry called in for feedback on the recommended changes to the Insurance Act 1938, the Life Insurance Corporation Act 1956, and the Insurance Regulatory and Development Authority Act, 1999.

A recent office memorandum stated that it is proposed to revise certain sections of insurance laws to boost accessibility and affordability of insurance for individuals. These changes majorly focus on boosting the interests of the policyholders, enhancing their financial security, and helping more players enter the insurance market to promote employment generation.

The proposal also calls for allowing an insurer to carry on one or more classes of insurance business and activites related/incidental to insurance.