Insurance bill News

Credit card providers, banks and insurers have started alerting their customers to pay higher tax post implementation of Goods and Services Tax (GST) from July 1.

Describing the passage of India's Insurance Bill - that raises the FDI cap to 49 per cent - as a "substantial step", an influential US insurance organisation has lauded the new government for going ahead with the economic reforms and infusing new energy.

The government has approved French insurance firm AXA raising stake in its life insurance joint venture with Bharti Group to 49 percent for Rs 858.6 crore.

Within days of Parliament clearing the Insurance Bill, Insurance Australia Group (IAG) has decided to increase its stake in SBI's general insurance arm from 26 percent to 49 percent.

Piloting the Insurance Amendment Bill was not just a political and professional challenge for Jayant Sinha as he also faced "teasing" and "taunts" over the stand his father as a former finance minister took on allowing foreign investment in the sector.

The move is expected to stimulate the insurance sector and help bring in over Rs 50,000 crore in fresh capital, according to experts.

The amended insurance law provides for a penalty of up to Rs 25 crore for mis-selling or misrepresentation of policies by agents or insurance companies to customers.

Paring most of their initial gains, stocks of companies with interest in insurance sector today ended mixed in an overall weak stock market amid profit-booking after Parliament approved the Insurance Bill.

The foreign investment limit hike in insurance to 49 percent is likely to result in capital inflows of up to Rs 60,000 crore over the next five years, SBI said in a research report `Ecowrap'.

UK-based healthcare group Bupa will increase its stake in Max Bupa from 26 percent to 49 percent, said the company Friday a day after Parliament approved the law to hike foreign investment cap in the insurance sector.

India`s insurance regulator will frame guidelines for syndicates of Britain`s Lloyd`s to operate in the country, a senior official said Friday.

Stocks of companies with interest in insurance sector extended their uptrend for the second straight session and surged by 2-7 percent after Parliament yesterday approved the long-pending Insurance Bill.

Within minutes of Parliament approving higher foreign investment in insurance sector, a number of insurers including from Bharti, Reliance, Max and SBI groups said their overseas partners will raise their stakes in respective JVs to 49 percent.

Foreign capital to the tune of Rs 25,000 crore is likely to flow into the insurance sector, with Parliament approving hike in foreign investment cap to 49 percent, Minister of State for Finance Jayant Sinha said Thursday.

Following Parliament's passing the Insurance Bill, Bharti Enterprises Thursday said its foreign partner AXA will step up equity investment to 49 percent in the joint venture.

Industry chambers Thursday hailed the passage of the Insurance Bill in Parliament, saying this long-awaited reform will mark a new beginning in the insurance sector and pave the way for higher foreign investment.

Expecting the passage of Insurance Bill to bring in USD 8-10 billion of foreign capital into the industry, Reliance Capital Thursday said it would soon begin talks with foreign partners for its insurance ventures.

Government Thursday invoked names of cricket icons Sachin Tendulkar and Virat Kohli to bat in the Rajya Sabha for Insurance Bill, which provides for raising the foreign investment cap to 49 percent from 26 percent.

The controversial Insurance Laws (Amendment) Bill, 2015, which replaced an ordinance promulgated in December last, was passed by voice vote after walkout by Trinamool Congress and DMK.

Rebounding from one-month lows, stocks Thursday rose for the first time in four sessions with benchmark Sensex closing over 271 points higher at 28,930.41 powered by a spurt in bluechips on hopes Parliament would pass a bill hiking foreign investment limits in insurance sector.