Insurance reforms on frontburner

Insurance reforms seem nearer to reality now that the UPA is close to garnering a majority and Left clearly out of the picture, who were the principal opponents of the bill in the first place.

The Union Cabinet in October 2008 decided to hike the foreign direct investment in insurance companies to 49% from 26% at present.

The Insurance Bill, which is yet to become a law, may become much easier now when the new government is formed.

The UPA government was keen to place it in the Parliament to portray a pro-reform image amidst recession.

In fact with political opinion divided on the FDI front and the UPA government also tried to garner BJP support at one time.

A government official said, “It’s too early to predict something but things may become easier regarding bringing in the Insurance Law. It is unlikely, however, that sweeping changes could happen overnight because a comfort factor with allies is crucial. It may be done in phases”.

The Insurance Law once implemented, will bring in amending the various provisions of the various insurance Acts will be actively considered in the forthcoming session of the Parliament,” the sources said.