Parliament passes Insurance Laws (Amendment) Bill, 2015
Parliament
has passed Insurance Laws (Amendment) Bill, 2015. It was first passed in Lok
Sabha on 4 March 2015 and later in Rajya Sabha on 12 March 2015. In both the
houses the bill was passed by voice vote. The amendment bill replaces ordinance
promulgated in this regard and aims to bring improvements and revisions in the
existing laws relating to insurance business in India. The bill also seeks to
remove archaic provisions in previous laws and incorporate modern day practices
of insurance business that are emerging in a changing dynamic environment,
which also includes private participation. The amendment bill hikes Foreign
Direct Investment (FDI) cap in the insurance sector to 49 percent from present
26 percent. It also adds provision for the establishment of Life Insurance
Council and the General Insurance Council. These councils will act as
self-regulating bodies for the insurance sector.
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