Clear the way for private participation in LIC, Parliament approves Insurance Amendment Bill

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New Delhi
The Rajya Sabha on Wednesday approved the ‘Ordinary Insurance Business (Nationalisation) Amendment Bill, 2021’, which will pave the way for facilitating more private participation in public sector insurance companies like LIC. Members of various opposition parties opposed the passage of the bill and demanded that it be sent to the Select Committee of the House. But the House rejected his request. Finance Minister Nirmala Sitharaman proposed the passage of the bill and the House after a brief discussion approved the bill by voice vote. During this, many opposition members were shouting slogans against the government by coming near the podium. Lok Sabha has already passed this bill.

what is the provision
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 to better meet the needs of the economy through the development of general insurance business. . The government is preparing to bring LIC’s IPO. The passage of this bill will clear its way. The objectives and reasons for the Bill are to provide for greater private participation in public sector insurance companies, increase insurance access, better protect 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.

[Attribution to NBT]

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