1COVID-19: Be Claim Ready With Your Health Insurance Policy
The Union Finance Minister, Nirmala Sitharaman proposed increasing the Foreign Direct Investment limit in insurance from 49% to 74% on Monday. "I propose to amend the Insurance Act, 1938, to increase the permissible FDI limit from 49 percent to 74 percent in insurance companies and allow foreign ownership and control with safeguards," she said.
This has been a long-standing demand by the industry. The foreign firms that set up services in India will need to have resident Indians on their boards and in key management positions. A specified percentage of profits will also need to be retained by these firms as a general reserve.
The move will be revolutionary as it opens up the insurance sector in India and will help in increasing the insurance penetration. Here’s how it will benefit the industry:
07 May, 2021