Investors await clarity as India approves 100 percent FDI

Investors in India’s insurance sector remain cautious, despite the tabling of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, the challenges pertaining to the conditions for full ownership, composite licensing, and timelines remain. While IRDAI gains more enforcement powers, the lack of clarity in the present bill raises concerns. “The bill delegates IRDAI with extensive powers to form regulations for policyholder protection including on key matters such as amalgamation of insurance and non-insurance business, commission payments and increases penalties from one crore to upto ten crores with the objective of forming an enabling and protectionist environment,” said Sidharrth Shankar, partner at JSA Advocates & Solicitors. Read more