Bill allows foreign investment in Indian insurance companies

This Bill amends existing insurance laws to modernize definitions, allow 100% foreign investment in Indian insurance companies, and update regulatory requirements for insurers and intermediaries.

The Bill affects insurers (including Indian insurance companies, insurance co-operative societies, and foreign re-insurance entities), insurance intermediaries (such as brokers, agents, and consultants), foreign investors, and the Insurance Regulatory and Development Authority (IRDAI).

• Substitutes the term 'business of insurance' with 'insurance business' throughout the Insurance Act, 1938.
• Defines 'class of insurance business' to include life, general, health, and re-insurance business, as well as other classes notified by the Central Government.
• Expands the definition of 'health insurance business' to include personal accident and travel insurance.
• Allows foreign investors to hold up to 100% of the paid-up equity capital in an Indian insurance company.
• Requires foreign insurers (other than re-insurance) to have net owned funds of not less than one thousand crore rupees.
• Prohibits non-insurers from using words like 'insurance' or 'insurer' in their names or business connections.
• Exempts insurers and intermediaries in Special Economic Zones and International Financial Services Centres from certain provisions of the Act, subject to modifications.
• Replaces references to the 'Controller' with the 'Authority' (IRDAI) in specific sections.
• Changes the minimum capital requirement reference in section 6A from one percent to five percent in a specific context.

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