New Delhi: Congress MP Mallikarjun Kharge today said that the Insurance Amendment Bill 2021, passed by the Rajya Sabha Thursday, was ‘flawed,’ demanding that it be sent to a Standing Committee.
“Insurance Amendment Bill 2021 has flaws, it should be sent to the Standing Committee. They’ve introduced a provision of ownership and control to foreigners,” Kharge, the Leader of the Opposition in the Upper House, said.
Finance Minister Nirmala Sitharaman on Thursday said that the limit of 74 per cent foreign direct investment (FDI) in the insurance companies is not a compulsion and is aimed at improving life insurance penetration in the country.
The Rajya Sabha on 18 March passed the bill to hike foreign direct investment in the insurance sector to 74 percent from current 49 percent.
With the Insurance (Amendment) Bill, 2021, passed in Rajya Sabha, majority of key management persons and directors on the board would be Indians.
The new structure allows at least 50 percent of directors to be independent directors, while specified percentage of profits being retained as a general reserve.