Finance Minister Nirmala Sitharaman moved the Bill that seeks to further amend The Insurance Act, 1938, The Life Insurance Corporation Act, 1956, and The IRDA Act, 1999 in the Upper House. It was sent to the Rajya Sabha by the Lok Sabha on Tuesday and circulated to the Upper House members. Apart from allowing 100% FDI in the insurance sector, the new legislation also reduces the net-owned fund requirements for foreign insurance companies from Rs 5,000 Cr to Rs 1,000 Cr.
Participating in the debate, Arun Singh (BJP) praised Prime Minister Narendra Modi for bringing landmark legislations that have helped the common people. He took pot-shots at the Opposition, saying BJP’s opponents who express surprise at the party winning election after election do not realise the impact of welfare measures of the NDA government.
Saket Gokhale (TMC) opposed the Bill and said it should be sent to a Select Committee of the Rajya Sabha for further scrutiny. Referring to Sitharaman’s reply to the discussion on the Bill in the Lok Sabha on Tuesday, he cautioned that the public sector insurance companies are no match to the foreign entities the dispensation is opening the doors to.
Gokhale said LIC, GIC, AICIL and others are surviving on the capital infusion done by the government. He also underlined that the government insurance companies have a fiduciary responsibility towards the policy holders and not the private sector. LIC, which has a 65% market share, has incurred losses of Rs 26,000 crore and is on “life support” provided by the government.
He also expressed concern that the foreign firms will be like “East India Company-II” as they can repatriate the profits to their home countries. The law has provision only for retaining the premium in India. He sought to know what commitment the government will have towards rural India.
Kamad Purkayastha (BJP) lauded the Bill and the reforms it will introduce including the foreign investment, technology and global practices. He urged the government to keep the welfare of tea garden workers of Assam and those affected by occasional floods.Kanimozhi NVN Somu (DMK) also demanded that the Bill be sent to a select committee of the House. She opposed the Bill also on the grounds that its nomenclature is in Hindi. She further said that the Bill has not taken the interests and concerns of the states and is hence against the spirit of cooperative federalism. “This is daylight robbery. It strengthens the strong and weakens the weak,” she said.
M Thambidurai (AIADMK), Ashok Kumar Mittal (AAP), Sandosh Kumar P (CPI) and Bhagwat Karad (BJP) also took part in the discussion.
Earlier, the Upper House discussed and passed the Repealing and Amending Bill, 2025 in which Vivek Tankha (Cong), Sushmita Dev (TMC), Subhash Barala (BJP) and AA Rahim (CPI-M) took part in the debate. The Bill has already been passed by the Lok Sabha.
