- In 2015, the government hiked the FDI cap in the insurance sector from 26% to 49%
- The COVID-19 pandemic has shown that further penetration of insurance in India is needed and for that capital infusion is required, said expert
To attract more overseas capital inflows, finance minister Nirmala Sitharaman on Monday increased the foreign direct investment (FDI) limit in the insurance sector from the existing 49% to 74%. “I propose to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49% to 74% in insurance companies and allow foreign ownership and control with safeguards,” finance minister said while presenting the Budget 2021-22.
In 2015, the government hiked the FDI cap in the insurance sector from 26% to 49%. The government has earlier allowed 100% foreign direct investment in insurance intermediaries. Intermediary services include insurance brokers, reinsurance brokers, insurance consultants, corporate agents, third party administrators, surveyors and loss assessors.
Source: livemint
