PRESENT SCENARIO GENERAL INSURANCE
The Government of India liberalized the Insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership.
Under the current guidelines, there is a 26 percent equity cap for foreign partners in an Insurance company. There is a proposal to increase this limit to 49 percent.
The opening up of the sector is likely to lead to greater spread and deepening of Insurance in India and this may also include restructuring and revitalizing of the public sector companies.
In the private sector 12 life Insurance and 8 General Insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their Insurance policies since 2001.
The Government of India liberalized the Insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership.
Under the current guidelines, there is a 26 percent equity cap for foreign partners in an Insurance company. There is a proposal to increase this limit to 49 percent.
The opening up of the sector is likely to lead to greater spread and deepening of Insurance in India and this may also include restructuring and revitalizing of the public sector companies.
In the private sector 12 life Insurance and 8 General Insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their Insurance policies since 2001.