Insurance Bill moved in RS

Insurance Bill moved in RS
PRESS TRUST OF INDIA

New Delhi, Dec 6: The Insurance Regulatory and Development Authority Bill to allow private participation in the insurance sector was moved for consideration in the Rajya Sabha today with Finance Minister Yashwant Sinha ruling out any disinvestment in the public sector LIC and GIC and its subsidaries or permission to foreign companies to increase stake beyond 26 per cent.

Moving the bill, Sinha said opening of the insurance sector is aimed at generating greater resources for the infrastructure sector and exploded the myth that the 1938 provision regarding investment in securities in the United Kingdom would have any adverse effect as the provision at that time was or six years only and had since lapsed long time ago.

He said the antiquated provision existed as the 1938 Insurance Act had never been fully amended and only certain amendments were carried out in 1956 when LIC was nationalised and in 1976 when GIC was brought under Government control.

Sinha assured the House that the Government would takesuitable measures for strengthening the LIC and GIC which have contributed significantly to the economy.