Context
The Parliament passed the General Insurance Business (Nationalization) Amendment Bill 2021 which removes the condition that the Central Government should hold 51% shareholding in state-owned general insurance companies.
Background
The General Insurance Business (Nationalisation) Act, 1972
(i) National Insurance (ii) New India Assurance (iii) Oriental Insurance (iv) United India Insurance |
How will this bill help to privatise the insurance sector?
Key-features of the Bill
Control means: (i) the power to appoint a majority of directors of a specified insurer, or (ii) to have power over its management or policy decisions. |
Who will get empowered in this Bill?
Impact of coronavirus on insurance sector in india
Government scheme promoting insurance sector :
|
How significant is this bill?
Conclusion
This Act was put into play to nationalize all the private companies that were undertaking general insurance in India. The next step forward for this Bill and the public sector lies in the Bill becoming an Act after it is gazetted. After that, all the above-mentioned changes will be set into place and privatization can be taken for public sector insurers once more.
Verifying, please be patient.