Parliament Approves ' The Insurance Amendment Bill 2021'

After the Rajya Sabha, the 'Insurance Amendment Bill 2021' has now been approved in the Lok Sabha.

The Insurance (Amendment) Bill, 2021 was approved in the Lok Sabha on Monday, while the Bill was passed in the Rajya Sabha on Thursday last week. Sitharaman said that raising the FDI limit to 74 percent in the insurance sector will help meet the growing capital requirement of companies in the sector. Parliament approved the 'Insurance (Amendment) Bill, 2021', which provides for raising the foreign direct investment (FDI) limit in the insurance sector to 74 percent. The bill was approved in the Lok Sabha on Monday, while the bill was passed in the Rajya Sabha on Thursday last week. Responding to the discussion on the Bill in the lower house, Finance Minister Nirmala Sitharaman said that raising the FDI limit to 74 percent in the insurance sector will help meet the growing capital requirement of companies in the sector. Sitharaman said that this amendment is being done so that the companies can decide to what extent they have to take FDI.

She said that the insurance sector is a highly regulated sector in which everything, even from investment to marketing, is disinvested. She said that insurance companies are facing liquidity pressures. She said that raising the FDI limit to 74 percent in the insurance sector will help meet the growing capital requirement of companies in this sector. The Finance Minister said, "The insurance sector regulator decided to increase the FDI limit in the sector after extensive consultations with all parties."

Following the Minister's reply, the Lok Sabha approved the 'Insurance (Amendment) Bill, 2021'. Sitharaman said that the allegations of public sector undertakings being sold are wrong and they will remain so. This is clearly mentioned in the policy announced in the budget. She denied the allegations of some members of the opposition, saying, "No one will take our money out, money will remain with us." And a part of the profit will also remain here.

The Finance Minister said that this bill has nothing to do with LIC. The bill is related to the insurance sector. She said that when it comes to the insurance sector, it should be noted that it has seven public sector companies and 61 private sector companies. The minister said, "When we talk of self-reliant India, then the insurance cover should increase. All the Dalits, the exploited and the underprivileged should be provided facilities. On the remarks of opposition members of the BJP opposing the bill during the UPA, he said, "Then our leaders took a step against it which was following the situation then because there were no safety standards then, but today we have enough Safety standards have been brought. ''

Responding to the remarks of a member of Congress, Sitharaman said that the nationalization of banks was done by the then Prime Minister Indira Gandhi but 'nationalization of corruption was done during the UPA. Narendra Modi is doing the work to improve it.” She said that the members of the opposition took the name of Nirav Modi etc., but it was the Congress that took care of him. Sitharaman said, "Ask your family, who run the Congress, why they did this work." ''

She said that in 2015, when the FDI limit in the insurance sector was raised to 49 percent, then the investment of 26,000 crores came. She said that with more investment, the competition will not only increase but people will get better packages, better premium facilities ,and employment will also increase. Sitharaman said, "This bill has been prepared after extensive deliberations and there is no question of compromising the interests of the country."