The Parliament has passed the Insurance (Amendment) Bill, 2021 with the Lok Sabha approving it on Monday. The Rajya Sabha has already passed the legislation.
The Bill seeks to amend the Insurance Act, 1938 which will increase the ceiling limit of foreign investment allowed in Indian insurance companies.
The Bill provides to increase the foreign direct investment limit from existing 49 percent to 74 percent. It also has a provision for removal of restrictions on ownership and control of insurance companies.