New Delhi, Sept 4, 2013
Reports suggest that Finance Minister P Chidambaram on Wednesday Sept 4, 2013, settled on a proposal of opposition parties to take up the insurance bill in the winter session of Parliament.
This Insurance Laws (Amendment) Bill, which has been pending in the upper house of country since 2008, proposes to raise the cap of foreign investment limit in India’s insurance sector to 49% from 26%.
According to reports, “the penetration ratio” (in India) “in the life insurance sector is 4.4% and in the non-life segment, it is 0.76%.” This signifies that a major percent of our population still does not have insurance.
Looking at the current scenario of insurance sector in India, it is obvious that the scope of growth is huge. Given the fact that there are nearly 25 companies in India giving out insurance products – both life and non-life insurance – a good penetration in this segment can turn out to be a game changer for India’s current economic growth.