The Cabinet has approved official Amendments to the Insurance Laws (Amendment) Bill, 2008 and its introduction in the Rajya Sabha. The decision was taken at a Cabinet meeting chaired by the Prime Minister Narendra Modi in New Delhi yesterday. The Bill is aimed at removing archaic and redundant provisions in the relevant legislations and to enable the insurance sector to work for the betterment of the insured with greater efficacy. Earlier, the Select Committee on the Insurance Laws (Amendment) Bill, recommended a composite cap of 49 per cent on foreign investment in insurance. This will include all forms of FDI and foreign portfolio investments.

At present the Foreign Direct Investment limit in the sector is 26 per cent. The report tabled by the Committee Chairman Dr Chandan Mitra in the Rajya Sabha yesterday endorsed the government Bill to amend the Insurance Act. Our correspondent reports, the Rajya Sabha had appointed a 15-member Select committee, in August this year, to scrutinize the long pending Insurance Laws (Amendment) Bill, 2008. The Bill was held up for nearly six years on account of political differences. The government is likely to bring the Bill for consideration of the Upper House as early as next week.