KOLKATA: The Insurance Bill may find its place in the current parliament session, on the back of the government’s urgency to adopt a pro-reform image, as industrial sentiments are lying low amidst a global recession and terrorism. However, the conversion of the bill into a law seems unlikely during the present government’s tenure.
The union cabinet in October had decided to hike the foreign direct investment in insurance companies to 49% from 26% at present. Sources close to the ministry said that while the bill will be placed in the current session or in the next session when Parliament meets for a vote-on-account in February.
With political opinion clearly divided on the FDI front, the UPA government may place it in the Parliament to showcase its eagerness for reforms in the current economic scenario.
Sources in the political circles said that the government is trying to garner support from the BJP on the Bill. “They are in talks and if the BJP gives its support, then the question of Left support is not required”, a source in Delhi said. Meanwhile the “Left will obviously oppose the Insurance Bill”, said a CPI(M) party paper.
The amendments will remove redundant provisions in the insurance legislations and would incorporate certain provisions to provide the Insurance Regulatory Development Authority the flexibility to discharge its functions effectively.
Increasing FDI would help the insurance sector to expand further and enhance product portfolios. It would also help raise long-term funds for infrastructure.
