The Lok Sabha on Monday handed a invoice to amend the General Insurance Act to permit the federal government to cut back its stake in state-owned insurance coverage firms.
The General Insurance Business (Nationalisation) Amendment Bill, 2021 goals to generate vital assets from the Indian markets in order that public sector normal insurers can design revolutionary merchandise.
As per the Statement of Objects and Reasons for the General Insurance Business (Nationalisation) Amendment Bill, 2021, it seeks to cast off the requirement that the central authorities ought to maintain not lower than 51 per cent of the fairness capital in a specified insurer.
In order to supply better personal participation in public sector insurance coverage firms, to extend insurance coverage penetration and social safety, to raised shield the pursuits of policyholders and to contribute to the fast progress of the economic system, sure provisions of the Act modification has develop into vital. to the invoice.
Finance Minister Nirmala Sitharaman launched this invoice on Friday.
The Finance Minister had introduced a large privatization agenda within the Budget for 2021-22 which included two public sector banks and a normal insurance coverage firm.
“We propose to privatize two public sector banks and one general insurance company in the year 2021-22. This would require legislative amendments,” she stated on the time.
As of right now, there are 4 normal insurance coverage firms within the public sector – National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited.
Now one in all these can be privatized, for which the federal government is but to finalize the identify.
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With inputs from TheIndianEXPRESS
