Insurance sector has recently received the latest foreign investment norms from the government. It has illustrated the four major areas which would initiate investment and also restricted the cap at 26% for the automatic route. The earlier insurance policy focused only on the insurance sector not over any investment. Now, the new guidelines are more comprehensive specifying the four sectors i.e. insurance brokers, third party administrators, surveyors and loss assessors and insurance companies. It will also consider insurance related foreign direct investments.
A press note was issued by the Department of Industrial Policy and Promotion (DIPP) which stated permission for the investment through Foreign Institutional investments (FIIs), Non-Resident Indians (NRIs) and Foreign Direct Investment (FDI), but, under the cap of 26% established for insurance sector.
As per the Finance Ministry, the FDI policy is to remain the same with no new addition of guidelines and it is just a clarification process occurring in this case. PWC, Executive Director Akash Gupt said that it is just the merging of the current policy provision where the insurance law and Insurance Regulatory Regulations have same caps for investments by FII, FDI and NRI.
A license from the Insurance Regulatory and Development Authority (IRDA) is required for performing prescribed activities, esp. the companies which bring in foreign investment should obtain this.
Arranging insurance contracts with reinsurers or the insurers on behalf of the client, the insurance brokers are the individuals who take care of the remuneration. IRDA believes that the TPAs are a big help for insurers as they assist them with health insurance. Insurance companies are offered with technical services by surveyors and loss. While IRDA stipulated the norm of keeping the cap within 26%, Arvind Mayaram’s committee had recommended for keeping a cap of 41% (for composite FDI) for the insurance sector.
- Most Read
- Term Insurance with More Than 100 Years of Coverage
Date: 14 November 2017
- All About Pradhan Mantri Suraksha Bima Yojana
Date: 13 November 2017
- Pradhan Mantri Jeevan Jyoti Bima Yojana – Features, Benefits and Eligibility
Date: 25 October 2017
- 5 Mistakes You Must Avoid While Planning Retirement
Date: 24 October 2017
- How to Revive Lapsed LIC Insurance Policy Online
Date: 15 September 2017
- Best 5 LIC Policies To Invest in 2017
Views : 1084730
- How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Views : 1075519
- A Quick Guide To Post Office Monthly Income Scheme
Views : 415184
- Best Term Insurance Plans in India with Claim Settlement Ratio
Views : 409288
- National Pension Scheme (NPS) – Govt Approved Pension Scheme
Views : 284427