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What does select panel's report on Insurance Bill say?

We bring you the key highlights of the draft Bill, which was approved by Congress, paving way for a long-pending economic reform.

December 10, 2014 / 05:25 PM IST

After a delay of almost seven years, the legislative approval to hike foreign direct investment in insurance sector from 26 percent to 49 percent may finally see the light of the day. A select committee of the Rajya Sabha headed by BJP leader Chandan Mitra tabled its report on Insurance Bill in the Upper House on Wednesday.

We bring you the key highlights of the draft Bill, which was approved by Congress, paving way for a long-pending economic reform. 

* The report, among other things, recommends a composite cap of 49 percent, which should include all foreign investment and foreign portfolio investment, including FDI, FPI and NRI components.

* Suggesting changes in definition of reinsurance, the draft seeks to define the term ‘control’ in Insurance Act and proposed power to IRDA in formulating norms subject to acts and rules.

* The committee is also of the view that incremental equity should “ideally” be used for expansion of capital base i.e to go from 26 percent to 40 percent there should be fresh capital infusion.


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first published: Dec 10, 2014 05:25 pm
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