Insurance News: Government can ask for more FII in insurance
Two days ahead of the Parliament opening recently, BJP leader and head of the Standing Committee on Finance, Yashwant Sinha, indicated areas where the government could get critical bills passed, provided, he underscored, the government chose not to be obdurate. While Sinha was critical of statements by commerce minister Anand Sharma saying executive decisions like FDI in retail couldn’t be questioned by those who had blinkers on, he suggested the BJP may not go with Mamata Banerjee’s no-confidence motion against FDI in retail—a decision will be taken later today. The Banking Regulation Act, which would allow RBI to start processing new bank licences, he indicated could get passed. Excerpts from an interview with Sunil Jain and Shobhana Subramanian: Read more
In a first ever move by the finance ministry to seek life insurers’ view on taxation issues, it has invited suggestions from life  insurance companies for making changes in direct and indirect taxes for the sector, to be considered in the Union Budget 2013-14.  In a letter to the Life Insurance Council, the ministry has called for suggestions and views for changes in the duty structure, rates  and broadening of tax base, giving economic justification for the same. 
While Punjab traffic cops have been penalizing two-wheelers running without mandatory documents, the state police have turned a  blind eye toward 700 buses of Punjab Roadways Transport Corporation (PRTC) which operate without the mandatory insurance  cover. 
President Pranab Mukherjee on Wednesday said measures like allowing FDI in multi-brand retail and civil aviation will help  in reducing government’s fiscal deficit and putting the economy back on high growth path. 
Cyclone Nilam has brought the insurance industry and the finance ministry closer on an agreement to set up an exclusive catastrophe pool to cover the losses that occur in natural disasters. Once implemented, a large percentage of house owners across India will have to start paying a premium towards the insurance cover with the balance being financed by the Central or state governments.