49 % FDI in Insurance: 7 Things You Should Know About

In a landmark moment for the insurance sector, the Insurance Laws (Amendment) Bill was approved by the Cabinet of ministers in July. It was then introduced in the Lok Sabha where it has met with opposition. This is primarily because the bill raises the FDI in insurance sector to 49% from the current 26% which has stoked concerns about ceding control to foreign players in a sensitive sector.

Read more
Get ₹1 Cr. Life Cover at just ₹449/month+
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
Tax Benefit
Upto Rs. 46800
Life Cover Till Age
99 Years
8 Lakh+
Happy Customers
+Tax benefit is subject to changes in tax laws. +Standard T&C Apply
++ Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Get ₹1 Cr. Life Cover at just ₹449/month+
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
+91
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use

While the debate rages on about whether FDI increase in the sector is desirable, here’s a quick overview of the situation: 

Why Increased FDI in Insurance is a Positive Step:

  • India has one of the lowest penetrations of insurance in the world. With an influx of capital, the penetration of insurance is expected deepen.
  • Heads of companies like HDFC, Standard Life and others estimate from 20,000 crores to 60,000 crores of investment in the sector with the change in FDI limit. This will have a positive effect on the economy in general.

How This Bill Affects You:

  • Investment from outside the country is not just expected to lead to more players entering the fray but also to established players growing their operations to serve regions and customers that they weren’t able to focus on for lack of capital. This expansion should create a multitude of jobs.
  • The technical and product expertise of foreign partners, coupled with increased investment is likely to lead to better products and offerings for insurance customers over the long term.

The Insurance Bill:

  • The Insurance Laws (Amendment) Bill has been pending since 2008 when the Congress-led United Progressive Alliance government proposed to hike foreign holding in insurance joint ventures to 49 per cent.  It has been introduced in Parliament by the BJP led National Democratic Alliance government.
  • The Finance minister, Arun Jaitley, said in his budget speech mooting a higher FDI limit in insurance that the sector is investment starved and needs capital to expand.
  • For those wondering who will control the JV entity, the Insurance Bill is clear. The management control will reside with the Indian company.

Types of Term Plans


Life insurance articles

Recent Articles
Popular Articles
Post Office Gram Suraksha Scheme Calculator

27 Jun 2022

A Post Office Gram Suraksha Scheme calculator is a useful online...
Read more
What happens if you stop paying life insurance premiums?

03 Jun 2022

Buying the best life insurance plan is a wise and learned...
Read more
Postal life Insurance Tax Benefits

26 May 2022

Postal Life Insurance is the oldest life insurer in the country...
Read more
How to Download PLI Statement Online?

24 May 2022

PLI or Postal Life Insurance was an initiative originally...
Read more
Is Life Insurance an Investment?

24 May 2022

The thumb rule to building wealth is to invest your money in...
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However...
Read more
How to Cancel SBI Life Insurance Policy?
As per the Insurance Regulatory and Development Authority, you can cancel a life insurance policy taken within 15...
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is not only about the financial protection of the family but also about working for life’s...
Read more
Surrender Value in Insurance
Have you bought a life insurance policy which is not as per your requirement? Are you planning to terminate the...
Read more
PLI Surrender Value Calculator
PLI Surrender Value Calculators have proven to be one of the simple tools for digitally savvy customers. PLI...
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL