Union Cabinet clears amendment to Insurance Act for raising FDI to 74%

The Union Cabinet on Wednesday gave its nod for amendments in the Insurance Act, paving way for 74 per cent foreign direct investment. Currently, the permissible FDI limit in the life and general insurance stands at 49 per cent with ownership and management control with Indian.It was in 2015 when the government hiked the FDI cap in the insurance sector from 26 per cent to 49 per cent. The government has earlier allowed 100 per cent foreign direct investment in insurance intermediaries. Intermediary services include insurance brokers, reinsurance brokers, insurance consultants, corporate agents, third party administrators, surveyors and loss assessors.

also read : Article on foreign direct investment (FDI)