FM likely to move Insurance Bill in Rajya Sabha Tuesday
New Delhi: Finance Minister P Chidambaram is likely to move the long-pending insurance Bill in Rajya Sabha Tuesday which seeks to raise foreign direct investment cap to 49 percent in the sector from the existing 26 percent.
The Insurance Laws (Amendment) Bill, 2008 is listed in the Tuesday's business schedule of the Upper House for consideration and passage.
The comprehensive Bill seeks to further amend the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999.
Earlier this month, the Finance Minister had expressed the hope that it will be passed soon, saying that there is difference of opinion only with regard to one clause in the Bill, for which he is in touch with the main opposition party BJP to sort that out.
Once the Insurance Bill is passed, Chidambaram had said the Pension Bill will follow.
Pension Bill is only a reflection of what is contained in the Insurance Amendment Bill, he had said.
Insurance Bill seeks to raise foreign investment cap in the sector from 26 percent to 49 percent. The pension bill too aims to increase it to same level, among other things.
The Insurance Laws (amendment) Bill, 2008 had provided for an increase in foreign investment limit to 49 percent.
However, the Standing Committee on Finance, headed by senior BJP leader Yashwant Sinha, did not favour the hike in FDI ceiling, indicating wide opposition to the move.