Titled Insurance Regulatory and Development Authority Bill, it is likely to be reintroduced in the Lok Sabha on Thursday.

The minimum capital requirement for life and general insurance has been retained at Rs 100 crore and for reinsurance firms at Rs 200 crore as provided in the earlier IRA Bill.

The Bill will incorporate the provisions of the earlier IRA Bill 1998 along with amendments suggested by the Parliamentary Standing Committee on Finance.

The detailed 71-page Bill will seek to give a statutory status to the interim Insurance Regulatory Authority and amend the 1938 Insurance Act, the 1956 Life Insurance Corporation Act and the 1972 General Insurance Business (Nationalisation) Act to open up to the sector.

The proposed authority shall have five-year term for chairman with a retirement age of 65 andfor other members, the retirement age will be 62 years.

It also proposes tough solvency margins and retains the earlier proposal that the Indian promoter dilutes its stake to 26 per cent in 10 years.

According to statement of objects and reasons of the Bill, the opening up of the sector was crucial to attract long-term resources for financing infrastructure besides providing better insurance cover to people.

The infrastructure sector in the country required 150 billion dollar investment in the next 15 years and with the opening of the sector at least five billion dollar investment is expected to flow into the infrastructure annually.

The minimum solvency margin for private insurers is Rs 50 crore for life insurance companies, Rs 50 crore or a sum equivalent to 20 per cent of net premium income for general insurance and Rs 100 crore for reinsurance companies.

The Bill stipulates that funds of policy holders should be retained within the country besides compulsory exposure to rural and social sectorwhich will be fixed by the authority.

The Bill does not cover repatriation of profits and dividends.

The Bill was cleared by the Cabinet last week. It was earlier introduced in the last Lok Sabha but could not be passed as the House was dissolved after the fall of the Vajpayee government.