Finance Minister introduces Insurance Amendment Bill 2021

Indian Finance Minister Nirmala Sitharaman recently introduced the Insurance Amendment Bill 2021 in the Rajya Sabha seeking to increase FDI in insurance to 74% from 49%. It was recently approved by the Union cabinet; and it amends the Insurance Act, 1938.

Sitharaman had announced the higher FDI in the budget and declared that the majority of directors on the board and key management persons would be resident Indians. At least 50% of the directors would be independent, while a specified percentage of profits would be retained as a general reserve.