Insurers see liberalisation of the sector

The bill to amend Insurance Laws to raise the FDI limit to 49 per cent is pending in the Rajya Sabha and issue would be taken up by the Upper House after receipt of the report of the Standing Committee.

Earlier, the proposal could not go through because of stiff resistance from the Left parties. “We would expect the new government at the centre to continue with the financial reforms to further liberalise the insurance sector,” MetLife India Insurance Managing Director Rajesh Relan told PTI.

The government should push forward the Insurance Amendment Bill, which has been pending Parliamentary approval, as it will provide much needed impetus to the sector, he said.

Increase in FDI would help customers with better products, more options and better service levels from the insurance players in the industry, he said, adding that it would also help increase the needed penetration level for insurance in the country.

DLF Pramerica Life Insurance MD Kapil Mehta said the government should now be pushing the insurance sector reforms.