Latest News | Govt Notifies Rules with Regard to Amended Insurance Laws

New Delhi, May 20 (PTI) The government has notified rules pertaining to amended insurance laws that seek to raise foreign direct investment (FDI) limit in the insurance sector to 74 per cent from the current 49 per cent.

These rules may be called the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2021, according to a gazatte notification.

"Total foreign investment in an Indian insurance company shall mean the sum total of direct and indirect foreign investment by foreign investors in such company, calculated in such manner as is specified in regulations made by the Authority (IRDAI) with regard to registration of Indian insurance companies," it said.

The Insurance (Amendment) Bill, 2021, was passed by Parliament in March. The Bill amended the Insurance Act, 1938.

"In the principal rules, in rule 3, for the word 'forty-nine', the word 'seventy-four' shall be substituted," it said.

FDI in the insurance sector was increased from 26 per cent to 49 per cent in 2015.

The announcement for hiking the FDI limit was made in the Union Budget 2021-22 on February 1.

The new arrangement is expected to benefit 23 private life insurers, 21 private non-life insurers and seven specialised private health insurance companies. HRS hrs

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)