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The bill to amend several provisions of the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act, 1972, and the Irda Act 1999 was introduced in the Rajya Sabha on December 22, 2008.
V Vaidyanathan, MD and CEO of ICICI Prudential Life Insurance, said, “With a clear electoral verdict, reforms will be accelerated. The expectation is that reforms on the insurance side will happen quickly. The pending bill for raising FDI limit may go through soon.”
According to earlier calculation made by T R Ramachandran, managing director and CEO of Aviva Life Insurance, FDI in life insurance companies operating in India would go up by two-and-a-half times from the level of around
Rs 2,500 crore when the insurance amendment bill was introduced in Parliament.
“Increase in FDI will help us offer better products, more options and better services. It will also help us increase the much-needed penetration levels in the country,” Rajesh Relan, managing director of MetLife India Insurance, said. Jayant Khosla, MD and CEO of Future Generali Life Insurance, agrees with Relan. “The economic slowdown had halted growth rate of the insurance sector to a certain extent. With the amendment in the insurance bill, customers will now have more choices in terms of products and services,” Khosla said.
The move to introduce a bill to hike the FDI cap in insurance had been put on hold for nearly fours because of the opposition from the Left parties.
Paresh Parasnis, executive director and principal officer of HDFC Standard Life Insurance Company, said, “The bill will open doors for source of capital. The economy will recover faster from the downturn as the government will have focused policies in absence of any pulls and pressures of other allied parties.”
Rajesh Sud, CEO and MD of Max New York Life Insurance, felt the stability in governance will be good for the business of the insurance industry.
shrutiverma@mydigitalfc.com
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