(Video) Rajya Sabha TV (RSTV) The Big Picture: General Insurance Business (Nationalisation) Amendment Bill, 2021

Topic: General Insurance Business (Nationalisation) Amendment Bill, 2021

Guest:

Kapil Mehta, (Co-Founder, Secure Now Insurance Broker Pvt. Ltd.)
Sidhartha, (National Economic Editor, TOI)

Topic Description:

Lok Sabha on Monday passed the General Insurance Business (Nationalisation) Amendment Bill, 2021. The Bill seeks to amend the General Insurance Business (Nationalisation) Act, 1972. The Act was enacted to nationalise all private companies undertaking general insurance business in India. The Bill seeks to provide for a greater private sector participation in the public sector insurance companies regulated under the Act. The 1972 Act requires that shareholding of the central government in the specified insurers must be at least 51%. The 2021 Amendment Bill removes this provision. Besides, there are certain other amendments as well related to change in the definition of general insurance business, transfer of control from the govt, and liabilities of directors.