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Parliament passes bill to allow 100% foreign investment in insurance sector

Parliament has cleared the Sabka Bima Sabki Raksha Bill, allowing 100% foreign investment in insurance companies, with the government assuring strong safeguards for policyholders.

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Nirmala Sitharaman

Parliament on Wednesday cleared a major amendment to insurance laws, paving the way for 100 per cent foreign direct investment (FDI) in insurance companies, up from the earlier cap of 74 per cent. The Rajya Sabha passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, a day after it was approved by the Lok Sabha.

Replying to the debate, Finance Minister Nirmala Sitharaman said the move is aimed at attracting new insurers, intermediaries and allied service providers, which would expand the insurance ecosystem and lead to net employment generation.

Safeguards for policyholders highlighted

Addressing concerns over policyholder protection, Sitharaman said the Insurance Regulatory and Development Authority of India (IRDAI) has mandated a minimum solvency ratio of 1.5 for all insurance companies, meaning their assets must be at least one-and-a-half times their liabilities.

She added that insurers are also required to make provisions for liabilities classified as “incurred but not reported” and “incurred but not enough reported,” and profits can be calculated only after accounting for these obligations. According to the minister, these norms ensure adequate safeguards for policyholders.

LIC performance cited amid reforms

The finance minister said the government continues to strengthen the Life Insurance Corporation of India (LIC), citing its performance in the last financial year. LIC’s total assets under management rose by 6.45 per cent to ₹54.52 lakh crore in FY 2024-25, while its solvency margin improved to 2.11 from 1.98. The net value of new business also increased to ₹10,011 crore from ₹9,583 crore a year earlier.

Employment and consultation process

Sitharaman rejected claims that the amendments would hurt employment, stating that a deeper insurance market would benefit agents, brokers and intermediaries through wider outreach and more products.

She also countered opposition allegations that the bill was rushed, noting that consultations began in November 2024 with states and Union Territories. Inputs were also sought from insurers, regulators, industry bodies and the public, with over 13,000 responses received through the department’s website.

Wider changes under the bill

The legislation raises the FDI limit in insurance companies to 100 per cent and reduces the net-owned fund requirement for foreign reinsurance companies operating in India from ₹5,000 crore to ₹1,000 crore. It also broadens the definition of intermediaries to include managing general agents and insurance repositories.

The bill amends the Insurance Act, 1938, the LIC Act, 1956, and the IRDAI Act, 1999. Sitharaman said the changes align with the government’s long-term goal of achieving “Insurance for All by 2047” and improving ease of doing business.

Under the new framework, all insurance companies and intermediaries will be required to include the word “insurance” in their names for greater customer clarity. The amendments also introduce the provision for suspension of intermediary licences instead of immediate cancellation, allowing time for compliance.

Opposition voices concerns

Several opposition members opposed the bill in the Rajya Sabha, alleging it weakens accountability and prioritises shareholders over policyholders. They argued that insurance should primarily function as a social security mechanism rather than just an investment avenue.

Despite the criticism, the government maintained that the reforms would strengthen regulation, expand coverage, and support the growth of affordable insurance, especially in rural areas.

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TMC faces fresh turmoil as signature controversy exposes internal divisions in Bengal

A political controversy has erupted in West Bengal after two TMC MLAs alleged their signatures were used without consent on a letter endorsing Sobhandeb Chattopadhyay as Leader of Opposition, leading to their expulsion from the party.

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Mamata Banerjee

The Trinamool Congress (TMC) has found itself at the centre of a fresh political controversy after allegations emerged that signatures of some party legislators were used without their consent on a letter related to the appointment of the Leader of Opposition in the West Bengal Assembly.

The row intensified after two TMC MLAs, Ritabrata Banerjee and Sandipan Saha, reportedly objected to their signatures appearing on a letter endorsing senior party leader Sobhandeb Chattopadhyay for the post of Leader of Opposition. The legislators alleged that they had not signed the document.

Allegations trigger political confrontation

The controversy gained prominence after opposition leader Suvendu Adhikari raised the issue and questioned the authenticity of the signatures submitted to the Assembly Secretariat. The allegations have fuelled a political confrontation between the ruling party and the opposition.

Authorities are examining the matter, with the authenticity of the disputed signatures becoming a key focus of the ongoing inquiry. The investigation is expected to determine whether any procedural irregularities occurred during the submission of the endorsement letter.

TMC expels two MLAs

Amid the controversy, the Trinamool Congress expelled Ritabrata Banerjee and Sandipan Saha from the party. TMC leaders cited anti-party activities as the reason for the action, while the expulsions have further intensified debate around the signature dispute.

The development has brought internal disagreements within the party into public view and added to the political tensions surrounding the issue.

Inquiry continues

Officials are continuing to examine the allegations and related documents. The outcome of the inquiry is expected to clarify the circumstances under which the endorsement letter was submitted and whether any irregularities took place.

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K Annamalai likely to quit BJP after declining Rajya Sabha offer, sources say

Former Tamil Nadu leader K Annamalai is set to exit the BJP after rejecting a Rajya Sabha seat offer. Sources indicate he will launch a new public movement following strategic disagreements over assembly election alliances.

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K Annamalai

Former Tamil Nadu party chief K Annamalai is expected to resign from the Bharatiya Janata Party following a scheduled meeting with party president Nitin Nabin in Delhi. According to media sources, the former Indian Police Service (IPS) officer believes that his growth and opportunities within the national party have reached a dead end.

The developments follow a reported offer by the leadership to secure a Rajya Sabha seat for him, which he chose to decline. Instead of continuing his journey within the party, he is highly anticipated to introduce a fresh public movement in the state. This grassroots initiative will focus on mobilizing a broad network of volunteers and connecting with like-minded individuals across diverse professional and social spectrums. When questioned regarding the ongoing speculation about establishing his own political platform, he responded, “Please wait. We will sit down and talk in two days.”

The root of tactical disagreements

The impending departure highlights a growing divide concerning the party’s electoral approach leading up to the 2026 state assembly polls. He had strongly advocated for the party to contest the elections independently, relying on the significant grassroots momentum built during his tenure. Conversely, the central leadership opted to resurrect its alliance with the AIADMK, seeking to unite opposition votes against the governing DMK.

This strategic pivot coincided with structural alterations in the state unit’s administration. Media reports indicate that AIADMK general secretary Edappadi K Palaniswami explicitly requested structural changes in leadership as a prerequisite for the partnership, leading to his replacement as the state president. Consequently, he did not contest the assembly elections or play an active role in the frontline campaigning. The alliance ultimately managed to secure just a single seat in the assembly elections.

A rapid political trajectory

He entered the political sphere in 2020 after stepping away from the civil services, quickly advancing through the local party hierarchy. He was appointed as the state vice-president shortly after his entry and ascended to the position of state president within a single year.

As the state chief, he became one of the most prominent faces for the party in a region traditionally dominated by regional Dravidian parties. Through extensive mass outreach programs, aggressive digital campaigns, and high-visibility public interactions, he substantially enhanced the national party’s presence in the state. Despite the momentum, his opposition to traditional alliances and subsequent exclusion from national organizational roles created friction, paving the way for his expected departure.

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Western disturbance brings major relief from heatwave as mercury drops in Delhi-NCR

An active western disturbance over Rajasthan and central Pakistan has triggered heavy rain and thunderstorms, causing temperatures to plunge across Delhi-NCR and neighboring states.

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Delhi Rain

The intense heatwave sweeping across large parts of the country has officially abated, bringing much-needed respite to citizens. According to weather experts and the India Meteorological Department (IMD), a drastic drop in temperatures has kept the national capital significantly cooler than normal. On Sunday, Delhi recorded a maximum temperature of 35.8 degrees Celsius, which is 4.2 degrees below the seasonal average.

Western disturbance alters regional weather

Meteorologists have attributed this sudden shift to rain and thunderstorm activity triggered by an active western disturbance currently hovering over Rajasthan and central Pakistan. Media reports indicate that the city recorded 0.9 mm of rainfall in the 24 hours leading up to Saturday morning. While the current spell of rain is expected to weaken and move away gradually, leading to a slight rise in temperature from Monday, experts emphasize that no heatwave conditions are anticipated in Delhi during the first week of June.

Widespread rain across states; disruptions in hilly terrains

The impact of the changing weather systems is visible across multiple states. The IMD has forecast heavy rainfall, thunderstorms, and gusty winds reaching speeds of 40-50 kmph for Delhi-NCR, alongside localized heavy showers in Uttar Pradesh and Rajasthan. Furthermore, severe thunderstorm activity with squally winds up to 90 kmph has been predicted over northwest, central, and adjoining eastern regions of India.

In Gujarat, scattered to isolated rainfall and thunderstorms are projected over the next six days due to the active weather systems. Meanwhile, the southwest monsoon is making steady progress, with the weather office indicating its potential advancement into parts of Kerala and Tamil Nadu over the next three to four days.

While the plains enjoy a break from the scorching heat, the sudden weather transition caused temporary complications in the hill states. In Uttarakhand, a heavy downpour and adverse weather conditions led to the brief suspension of the Kedarnath Yatra, leaving hundreds of pilgrims stranded before the restrictions were lifted later in the day. Conversely, the cooler mountain breeze and pre-monsoon showers have triggered a massive influx of tourists to Shimla, as people flock from high-temperature states like Gujarat to seek comfort in the hills.

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