Lok Sabha on August 2, 2021, announced the General Insurance Business (Nationalisation) Amendment Bill, 2021. The bill was declared amid the objections by the opposition over various matters including the demand for an inquiry into allegations of surveillance through Pegasus spyware.
The bill advanced by the Lower House of Parliament proposes granting greater private support in the public sector insurance companies as well as improving insurance perception and social security.
The Insurance Business Amendment Bill was presented by the Union Finance Minister Nirmala Sitharaman in Lok Sabha on July 30, 2021.
The minister had also published in her budget speech that under the private program of the government, one common insurance company and two public sector banks will be taken up.
General Insurance Business (Nationalisation) Amendment Bill: Keypoints
• The bill attempts to improve the General Insurance Business (Nationalisation) Act, 1972 to accommodate greater support in the public sector insurance companies.
• The bill attempts at improving insurance penetration and social security and better defend the interests of the policyholders. It also points at adding to the more active growth of the economy.
• The amendment bill also queries to eliminate the proviso of the Act to exclude the requirement that the Central Government holds not less than 51% of the equity capital in a specified insurer.
