Parliament clears Bill to allow 100% FDI in insurance sector

New Delhi: A day after the Lok Sabha passed it, the Rajya Sabha passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, which allows 100% Foreign Direct Investment (FDI) in the insurance sector. The Upper House also cleared the Repealing and Amending Bill that repeals 71 obsolete laws. 

The Lok Sabha had passed both the Bills earlier.

The structure of insurance regulation is very clearly laid out in the Bill, and the premium collected from Indians by foreign insurance companies will be kept in the country, Union Finance Minister Nirmala Sitharaman said, replying to a debate on the Bill.

Private sector insurance companies were participating in all welfare schemes of the Union government, and the Bill would ensure that foreign companies will also participate in social sector-related activities and government schemes, Ms. Sitharaman said. “We are not giving them any room to get away from that responsibility,” she said.

The increase in the FDI limit to 100% would ensure more foreign companies invest in India as, in many cases, they do not find joint venture partners due to various reasons, the Minister said. With more companies, the competition will increase, and premiums should drop, she said.