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Insurance Laws (Amendment) Bill, 2015 gets Rajya Sabha Nod

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Insurance Laws (Amendment) Bill, 2015 gets final a nod from Upper House on 12th March 2015. Seven Years after it was first introduced by UPA, with the help of Congress. A bill seeking to raise Foreign Direct Investment (FDI) cap in insurance sector from 26% to 49% was approved by Rajya Sabha.

Key Highlights of The Bil

  • The insurance laws (Amendment) Bill 2015 will replace the ordinance promulgated by government last year.
  • The bill was passed on 12th March 2015 by Voice note.
  • It was first introduced in 2008.
  • The bill makes IRDA ( Insurance Regulatory Development Authority), the sole operator to impose penalty, impose a ceiling on expense management or fix a remuneration etc..on insurance sector.
  • The FDI limit has been increased to 49% which may lead to inflow of $8 to $10 billion in insurance sector.
  • It will also help in penetrating the insurance sector.

The bill was passed through voice note after a 3 hours debate which saw the left clashing with treasury bench. the left parties, which has opposed the bill insisted that amendment they have moved be put to electronic voting. Despite their opposition to bill, Samajwadi Party, Bahujan Samaj Party and Janata Dal (United) walked out and making it convenient to pass the bill.