THE INSURANCE AMENDMENT BILL PASSED ON RAJYA SABHA.
The Amendment allows to foreign investors to hold up to 49% of the capital in an Indian insurance company,which must be owned and controlled by an Indian entity.
23 March 2021 Current Affairs:Rajya Sabha passed the 2021 Insurance Amendment Bill. This bill amends the Insurance Act of 1938.
This ACT increase the maximum foreign investement allowed by insurance companies from 49% to 74%.
The Act requires insurance companies to make a minimum investment in assets, which is sufficient to liquidate their insurance claims liabilities.
The Act provides a framework for the operation of insurance business and regulates the relationship between the insurer, its policyholders, its shareholders and the regulator.
If the insurer is incorporated or registered outside India, such assets must be held in India in trust and owned by a trustee who must be a resident of India.
BILL PASSING DATE-18 MARCH 2021(RAJYA SABHA)
BILL PASSING DATE-22 MARCH 2021(LOK SABHA)
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