Delhi Delhi. The central government has come up with some proposals for the insurance sector, including increasing the FDI limit in Indian insurance companies from 74 per cent to 100 per cent and enabling insurers to carry on one or more types of insurance business and activities. Besides, it is also proposed to reduce the net owned fund requirement for foreign reinsurers from Rs 5,000 crore to Rs 1,000 crore. The government has invited comments on the proposed amendments to the Insurance Act, 1938, Life Insurance Corporation Act, 1956 and Insurance Regulatory and Development Authority Act, 1999.
Further, the Government proposes to amend certain provisions of insurance laws to ensure access and affordability of insurance to citizens, promote expansion and growth of the insurance industry, and streamline business processes.
“In this regard, a comprehensive review of the legislative framework governing the sector has been undertaken in consultation with IRDAI and the industry,” the government office memorandum said. Also, the government said insurance regulator IRDAI is being empowered to specify lower entry capital (not less than Rs 50 crore) for underserved or underserved sectors. Insurance sector regulator Insurance Regulatory and Development Authority of India (IRDAI) has committed to achieve “Insurance for All” by 2047. The public is requested to give comments on the proposed amendments by December 10 through email consultation-dfs@gov.in. Additionally, according to a recent report by global consulting management firm McKinsey, India could save approximately USD 10 billion annually by expanding insurance access to people and assets who are still uninsured.
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