Lok Sabha passes bill to raise FDI to 100% in insurance sector

Enhancing foreign direct investment limit to 100% will enable global insurance companies to inject substantial capital directly without waiting for domestic partners, Union finance minister Nirmala Sitharaman told the Lok Sabha on Tuesday as the House passed the insurance bill seeking to remove FDI cap along with over a dozen key sectoral reforms. Sidharrth Shankar, partner at JSA Advocates & Solicitors, sums up key details: “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 ₹1 crore to up to ₹10 crore with the objective of forming an enabling and protectionist environment. Read more