Parliament committee approves of reforms proposed in Insurance Bill

A parliament committee has favoured key reforms proposed in the Insurance Amendment Bill, which includes the introduction of a composite license and reduction in capital requirements.

The draft bill seeks amendments to The Insurance Act 1938, The LIC Act 1956 and the IRDAI Act 1999.

A key proposal is raising the foreign investment limit in insurance to 100% from the current 74%. IRDAI has supported the committee’s recommendation to reduce GST rates.

Furthermore, the committee suggested establishing a collaborative body, involving IRDAI, NHA, and other stakeholders, to create a long-term plan for providing comprehensive coverage for all sections of society.