Lok Sabha Approves General Insurance Business Nationalisation Amendment Bill; Know Details

New Delhi: The Lok Sabha on Monday approved the ‘Ordinary Insurance Business (Nationalisation), Amendment Bill, 2021’. This will pave the way for facilitating more private participation in public sector insurance companies.

Finance Minister Nirmala Sitharaman placed the bill for discussion and passage. Leader of Congress in Lok Sabha Adhir Ranjan Chowdhury opposed the bill.

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The Congress leader alleged that this is an anti-national bill that has been brought to fill the pockets of the capitalists. Nirmala Sitharaman said that Adhir Ranjan Chowdhury’s claim is completely baseless.

She said, “The government is not taking away anyone’s rights. Those lying, are misleading the public. If you want to discuss, sit calmly and participate in the discussion, you will get the answer.” The Lower House approved the ‘General Insurance Business (Nationalisation) Amendment Bill, 2021’ amidst the ruckus.

Introducing the bill in the House a few days ago, Sitharaman said that insurance companies are not being privatized through this bill, but some provisions are being brought so that the participation of Indian citizens, common people, private sector increases in general insurance companies.”

Sitharaman said that resources are necessary for the rapid growth of these insurance companies, and they can get money and technology from the private sector. The General Insurance Business (Nationalisation) Act is being amended through this bill. The Act came into force in 1972 and provided for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurance companies in order to better meet the needs of the economy through the development of the general insurance business.

The objectives and reasons for the Bill are to provide for greater private participation in public sector insurance companies, increase insurance access, better the social protection and interests of policyholders, and contribute to the rapid growth of the economy. For this, it became necessary to amend some of the provisions of the Act.

Accordingly, the General Insurance Business (Nationalisation) Amendment Bill, 2021 has been brought. The Bill has removed the requirement of 51 percent equity capital of the specified insurer as specified in the previous Act.