The Telegraph
 
  This website is ACAP-enabled
IN TODAY'S PAPER
WEEKLY FEATURES
CITIES AND REGIONS
ARCHIVES
Since 1st March, 1999
 
THE TELEGRAPH
 
 
CIMA Gallary

Insurance regulator for higher limit on FDI

New Delhi, Oct 3 (PTI): The Insurance regulator Insurance Regulatory and Development Authority (Irda) on Wednesday favoured increase in foreign direct investment in the sector to 49 per cent, saying it requires big investments for growth.

”Absolutely (in favour of hike in FDI limit). I do think unless we go for 49 per cent, we will not have the kind of capital required to underpin the growth of insurance industry,” Irda Chairman J Hari Narayan said on the sidelines of a CII event here.

”This sector requires lot of money, so unless we enable inflow... Look at it, in banks it (FDI) is 74 per cent. In Asset Management Companies, 100 per cent. I do not see why, in insurance companies, it should be 26 per cent. We should increase that,” he said. Foreign Direct Investment (FDI) in the insurance sector is capped at 26 per cent. With the government taking policy reform initiatives last week, especially allowing FDI in multi-brand retail and aviation sectors, there is expectation that the limit for the insurance industry may be raised as well.

The Insurance Laws (Amendment) Bill has been pending before Parliament for about 4 years as there has been no consensus among political parties on the issue of raising the FDI limit to 49 per cent.

Following pressure from key allies, the government in May,2012, had postponed a decision on raising the FDI limit in the insurance sector to 49 per cent.

The Insurance Bill, which was tabled in the Rajya Sabha in 2008, proposed to increase the FDI limit in the insurance sector to 49 per cent, but Parliamentary Standing Committee on Finance wanted it to be retained at the current level of 26 per cent.


 More stories in Front Page

  • Insurance regulator for higher limit on FDI
  • SC asks Centre not to alter pricing system for essential drugs
  • Kingfisher has to seek DGCA's nod for resuming operations: Minister
  • Petrol price may be cut later in October
  • Aid for riot-hit districts
  • Decks cleared for DHD pact
  • Seek and ye shall find beauty of Bengal
  • All schools must have toilets within six months: SC
  • Land maps lost under gripe list
  • Coalgate: PMO declines to share information citing CBI probe
  • Maruti marks up prices of all models...
  • ...And Audi to follow suit after festive season, even as sales soar
  • Brar sure of pro-Khalistan hand
  • Mukul warns against politician-rebel nexus
  • Panel summons Delhi officer
  • Himachal elections on Nov 4; Gujarat to vote on December 13, 17
  • SP wary of Mamata call
  • Fertile field for science
  • Brilliant, boys!(But a bit bizarre)
  • ADB lowers India's growth forecast