Lok Sabha Passes Bill To Raise Foreign Investment In Insurance To 74%

Piloting the Bill, Finance Minister Nirmala Sitharaman said that hiking the FDI limit in the insurance sector will help insurers to raise additional funds and tide over financial problems.

A bill to increase foreign direct investment (FDI) in the insurance sector from 49 per cent to 74 per cent was approved by Parliament with the Lok Sabha giving green signal to the legislation by a voice vote on Monday. Piloting the Bill, Finance Minister Nirmala Sitharaman said that hiking the FDI limit in the insurance sector will help insurers to raise additional funds and tide over financial problems. The Insurance (Amendment) Bill, 2021 was earlier passed by the Rajya Sabha last week. The minister said that the government will provide funds to the public sector insurance companies but the private players will have to raise capital on their own.