Chandan Mitra On Raising Of The FDI Limit In Insurance Sector

Chandan Mitra, Head-Insurance, Parliamentary Committee discussed in detail the increase FDI limit in insurance to 49%. He informed that the Select Committee has suggested 49% as a composite cap of FDI, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investment (FPI). A fresh legislation and law of concern will be drafted by the government.

Read More

Get ₹5 Lac Health Insurance starts @ ₹200/month*
Tax Benefitup to Rs.75,000
Save up to 12.5%* on 2 Year Payment Plans
7 Lakh+ Happy Customers

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Get insured from the comfort of your home No medicals required
I am a

My name is

My number is

By clicking on ‘View Plans’ you, agreed to our Privacy Policy and Terms of use
I am a

My name is

My number is

Select Age

City Living in

    Popular Cities

    Do you have an existing illness or medical history?

    This helps us find plans that cover your condition and avoid claim rejection

    Get updates on WhatsApp

    What is your existing illness?

    Select all that apply

    When did you recover from Covid-19?

    Some plans are available only after a certain time

    The committee has decided to retain ownership and control in the hands of Indian shareholders. According to the bill, the power of control includes control of management, right to appoint a majority of directors, and make policy decisions related to the management rights, shareholding, voting agreements or shareholder agreements.

    He elaborated that the health insurance capital has been increased from Rs. 50 crore to Rs. 100 crore to keep the non-serious players out of the health insurances sector. The main focus is on bringing somebody with required amount of capital for the industry. And, Rs. 50 crore will not be sufficient in case of large payouts.

    Chandan Mitra talked about the big business of re-insurance and bringing it to India. He informed that the Lloyd’s of London is the main re-insurance company in the world. China and Singapore have already opened themselves to Lloyd’s but not India, as there was no law in India permitting foreign re-insurance business entities to enter into the country and do business. However, according to the new bill, Lloyd’s of London can enter India to start the re-insurance business that will subsequently increase the FDI flow.

    He believes the recommendation of allowing one insurance agent to sell policies for life, general or health insurance will liberalize the entire insurance sector. This is to eliminate unnecessary restriction. Subsequently, it helps the insurance agent to have more number of customers.

    On the discussion of getting the Insurance Bill passed, Chandan Mitra informed that only 4 of 15 members disagreed to the Bill. Thus, the committee has a clear majority that falls in the favor of the Bill. He believes the Bill will be passed smoothly in the Rajya Sabha as there has not been any serious opposition to it.

    (Source: This article has been adapted from the article "Want to keep out non serious players from health insurance sector" that appeared on December 11, 2014 in

    Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

    Health insurance articles

    Recent Articles
    Popular Articles
    Does Health Insurance Cover Sports & Gym Injuries?

    27 Jun 2022

    Gone are the days when only athletes and professional sports...
    Read more
    Health Insurance for Rural India

    24 Jun 2022

    Healthcare is expensive in India and is increasing with each...
    Read more
    Health Insurance for a Down Syndrome Child in India

    23 Jun 2022

    Down Syndrome is one of the most common genetic disorders in...
    Read more
    Income Tax Slab for Women: Guide to Exemptions and Rebates

    22 Jun 2022

    In India, every person who earns beyond a certain limit is liable...
    Read more
    Is Coconut Water Diabetic Friendly?

    22 Jun 2022

    Coconut water is an excellent beverage for people struggling with...
    Read more
    PMJAY Scheme: Ayushman Bharat Yojana Eligibility & Registration Online
    Prime Minister Shri Narendra Modi announced the launch of (PMJAY) Ayushman Bharat Yojana in his Independence...
    Read more
    Best Health Insurance Plans in India 2022
    Finding the best health insurance plan from so many different health insurance companies can get confusing for many...
    Read more
    Best Maternity Insurance Plans
    Maternity insurance offers comprehensive coverage for medical expenses incurred during pregnancy, including the cost...
    Read more
    How to apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)
    Ayushman Bharat health insurance is a flagship scheme launched by the Government of India, as per the...
    Read more
    10 Major Benefits of Ayushman Bharat Yojana
    Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi...
    Read more
    Download the Policybazaar app
    to manage all your insurance needs.