Insurance Amendment Bill likely in Winter session: FM

The winter session of Parliament generally commences in the second half of Nov and concludes before Christmas

PTI New Delhi

Insurance Amendment Bill, which proposes 100 per cent FDI in the insurance sector, is likely to be introduced in Parliament in the upcoming Winter session, Finance Minister Nirmala Sitharaman has said. The winter session of Parliament generally commences in the second half of November and concludes before Christmas.

"I hope to", she told PTI when asked if the bill to further liberalise FDI in the insurance sector can be introduced in Parliament in the upcoming Winter session. The finance minister, in this year's Budget speech, proposed to raise the foreign investment limit to 100 per cent from the existing 74 per cent in the insurance sector as part of new-generation financial sector reforms.

"This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified," she had said. So far, the insurance sector has attracted Rs 82,000 crore through foreign direct investment (FDI).

The finance ministry has proposed to amend various provisions of the Insurance Act, 1938, including raising foreign direct investment (FDI) in the insurance sector to 100 per cent, a reduction in paid-up capital, and a provision for a composite licence. As part of a comprehensive legislative exercise, the Life Insurance Corporation Act 1956 and the Insurance Regulatory and Development Authority Act 1999 will be amended, alongside the Insurance Act 1938.

The amendments to the LIC Act propose to empower its board to take operational decisions like branch expansion and recruitment. GST reforms to boost demand: Sitharaman As high as 99% of all the goods which were earlier in the 12 per cent GST bracket have now been brought down to the 5 per cent GST bracket, Finance Minister Nirmala Sitharaman said Sunday. 

She made the remarks while addressing a joint conclave of the Trade and Industries Association, titled 'Tax Reforms for Rising Bharat' in Chennai, Tamil Nadu. The sweeping GST rationalisation and reforms unveiled after the GST Council meeting on September 3, once implemented, are expected to bring about a massive change across the country, directly impacting India's 1.4 billion citizens. 

The tax cut decision was unanimously approved in the GST Council meeting with the consent of all states. On September 22, the first day of Navratri, all changes in GST rates will come into effect, much before Diwali, which was indicated by the prime minister from the ramparts of the Red Fort on Independence Day this year. 

Speaking at the Chennai event today, the Finance Minister emphasised the benefits of the latest GST reforms. The event was attended by Tamil Nadu BJP State President Nainar Nagendran, Federation of Tamil Nadu Traders' Association President Vikramraja, IIT-Madras Director Kamakoti, business leaders, and representatives from trade associations. At the event, Sitharaman released two publications titled "GST 2.0 - Fuelling India's Growth" and "GST Reforms for Tamil Nadu's Growth".