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The controversy of the Insurance amendment bill 2021

Let’s understand why the opposition strongly opposing the Insurance amendment bill 2021…

In order to understand the latest modification and changes in the bill, we have to understand the existing Insurance Act…

At present in the Insurance Act, 1938 there are insurance companies in India where these companies are controlled by IRDAI ( Insurance Regulatory Development Authority of India) and in these Insurance companies foreign investment was allowed up to 26% but in an amendment act in 2015 the cap was increased to 49% for foreign direct investments, and in which the insurance company must be owned and controlled by an Indian entity.

But in the current amendment bill in 2021 Government is increasing the limit on foreign direct investments in an Indian Insurance company from 49% to 74% and removes all kinds of restrictions from ownership and control of it. That means now a foreign entity or investor can own and control an Indian Insurance company. Which is a clear state of privatization of the Insurance sector in India.

So for this reason the opposition government is protesting against this bill in the parliament.

The Insurance amendment bill 2021
Source: https://prsindia.org/billtrack/the-insurance-amendment-bill-2021

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