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‘Flawed’: Congress’ Mallikarjun Kharge flays Insurance Amendment Bill
Kharge, the Leader of the Opposition in the Rajya Sabha, demanded that the bill be sent to a Standing Committee. Passed in the Upper House by a voice vote on Thursday, it raises FDI in insurance to 74% from the current 49%.
Congress MP Mallikarjun Kharge on Friday remarked that the Insurance Amendment Bill 2021, passed by the Rajya Sabha a day ago, was ‘flawed,’ demanding that it be sent to a Standing Committee.
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“Insurance Amendment Bill 2021 has flaws, it should be sent to the Standing Committee. They’ve introduced a provision of ownership and control to foreigners,” news agency ANI quoted Kharge, the Leader of the Opposition in the Upper House, as saying.
Taking a jibe at Prime Minister Narendra Modi, the Congress leader further said, “If FDI (Foreign Direct Investment) comes, there’ll be a West India Company brought in by Modi ji to help people from Gujarat.”
Insurance Amendment Bill 2021, passed in the Upper House with a voice vote, raises FDI in insurance to 74% from the current 49%; in 2015, the central government had hiked the FDI cap in the insurance sector to 49% from 26%. The sector was first opened up for FDI in 2000, with the 26% cap being introduced.
Also Read | Rajya Sabha clears bill to hike FDI in insurance to 74%
Earlier, responding to the debate on the bill, Union finance minister Nirmala Sitharaman had said that higher foreign investment would help insurance companies meet their rising capital requirements and also help in furthering insurance penetration in the country. Sitharaman had also assured that the decision to further hike the FDI limit was taken after consultations held by the Insurance Regulatory and Development Authority of India (IRDAI) with various stakeholders.
“Insurance is a highly regulated sector. Policy holders’ money will have to be invested in India only. It cannot cross our boundaries,” the minister had further said.
The bill has a provision that the majority of directors on the board and key management persons would be resident Indians. Of these, at least 50% directors would be independent directors. Also, a specific percentage of profits would be retained as a general reserve.
