The proposed amendments in insurance law will be investigated, IRDAI formed the committee, know the whole thing – India tv hindi

The Insurance Regulator Insurance Regulatory and Development Authority (IRDAI) has constituted a seven -member committee under the chairmanship of Dinesh Khara, former chairman of the State Bank of India (SBI). The committee will investigate the proposed amendments in the Insurance Act, 1938 and suggest the outline for its implementation. According to the news of PTI, the government has amended the insurance law to propose 100 percent of foreign direct investment and other changes.

FDI limit increased from 74 percent to 100 percent

According to the news, Finance Minister Nirmala Sitharaman announced in his budget on 1 February that the FDI limit for the insurance sector would be increased from 74 percent to 100 percent. This increased limit will be available to companies that invest in India. Existing security and conditions related to foreign investment will be reviewed and they will be simplified. According to sources, the committee headed by Khara held its first meeting earlier this week.

These members are in the committee
The remaining members of the seven-member committee are- NS Kannan, former MD and CEO of ICICI Prudential Life Insurance, former CMD of United India Insurance, Girish Radhakrishnan, former IRDAI member Rakesh Joshi, former RBI executive director Saurabh Sinha, MFIN MD and CEO Alok Mishra and legal expert L Vishwanathan. Following the proposed amendments in the insurance law by the committee, there will be several competent provisions in the Insurance Act. The committee will see how those provisions can be enabled through regulations and circulars.

These act will be amended
To increase FDI limit, the government will have to amend the Insurance Act 1938, Life Insurance Corporation Act 1956 and Insurance Regulatory and Development Authority Act 1999. Insurance Act 1938 is the major act providing legislative framework for insurance in India. Currently, India has 25 life insurance companies and 34 non-life or general insurance firms. These include companies like Agriculture Insurance Company of India Limited and ECGC Limited.

Financial Services Secretary M Nagaraju said that we have almost fulfilled internal government advice. Then, we will take the next action. There are other rules, how to invest and how will the profit be refunded when FDI is. This will also be part of the proposed amendment bill, which will be brought to Parliament. Once it is approved, those rules will also be notified, so that whatever improvement we want to increase in the insurance sector can be done through these measures.

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