Insurance (Amendment) Act, 2021 aims to achieve the objective of Government’s FDI Policy by raising the limit of foreign investment in Indian insurance companies from the existing 49 per cent to 74 per cent and to allow foreign ownership and control with safeguards. Full text of the Insurance (Amendment) Act, 2021 is as follows:-
MINISTRY OF LAW AND JUSTICE
New Delhi, the 25th March, 2021/ Chaitra 4, 1943 (Saka)
The following Act of Parliament received the assent of the President on the 25th March, 2021, and is hereby published for general information:—
THE INSURANCE (AMENDMENT) ACT, 2021
NO. 6 OF 2021
[25th March, 2021.]
An Act further to amend the Insurance Act, 1938.
BE it enacted by Parliament in the Seventy-second Year of the Republic of India as follows:—
1. Short title and commencement.
(1) This Act may be called the Insurance (Amendment) Act, 2021.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. Amendment of section 2.
In the Insurance Act, 1938 (hereinafter referred to as the principal Act), in section 2, in clause (7A), for sub-clause (b), the following sub-clause shall be substituted, namely:—
“(b) in which the aggregate holdings of equity shares by foreign investors including portfolio investors, do not exceed seventy-four per cent. of the paid-up equity capital of such Indian insurance company, and the foreign investment in which shall be subject to such conditions and manner, as may be prescribed;”.
3. Amendment of section 27.
In section 27 of the principal Act, in sub-section (7), the Explanation shall be omitted.
4. Amendment of section 114.
In section 114 of the principal Act, in sub-section (2), for clause (aaa), the following clause shall be substituted, namely:—
“(aaa) the conditions and manner of foreign investment under sub-clause (b) of clause (7A) of section 2;”.
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.