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Insurance regulator Irdai has approved as many as 16 proposals amounting to Rs 14,591.9 crore as foreign investment, Parliament was informed today.
"Post notification of the Insurance Laws (Amendment) Act, 2015, Irdai has approved 16 proposals amounting to Rs 14,591.89 crore as foreign investment in the insurance sector," Minister of State for Finance Jayant Sinha said in a written reply in the Rajya Sabha.
The Insurance Laws (Amendment) Act, 2015, provides for an increase of foreign investment cap in an Indian Insurance Company to 49% from 26% with the safeguard of Indian ownership and control, he said.
The government had notified the Indian Insurance Companies (Foreign Investment) Rules, 2015, to facilitate foreign investment in the insurance sector.
"Indian Insurance Companies (Foreign Investment) Rules, 2015, have been amended on March 16, 2016, to allow foreign investment up to 49% through automatic route in the insurance sector," Sinha said.
To bring clarity on 'Indian owned and controlled', the Insurance Regulatory and Development Authority of India (Irdai) has issued guidelines on the same.
In December, Irdai chief T S Vijayan had said higher foreign participation in the insurance sector will attract more capital and increase sectoral penetration in India.
