As per the announcement made by the finance minister during the budget 2021-22, the Insurance Amendment Bill, 2021 was passed by the Rajya Sabha recently to raise FDI limits in the insurance sector.
- · Maximum foreign investment in the instance sector has been raised from the existing 49% to 74%. · It was done by amending the Insurance Act, 1938.
- · Earlier in 2015, the government increased the FDI limit in the insurance sector from 26% to 49%. · The government had also permitted 100% FDI for insurance intermediaries in 2019.
- · Under the proposed new structure, certain safeguard measures like the majority of Directors on the Board and key management persons being resident Indians, with at least 50% of Directors being Independent Directors, and specified percentage of profits being retained as general reserve have also been introduced.
