General Insurance (Business) Amendment Bill 2021

On 11^th August, 2021, the Parliament passed the General Insurance Business (Nationalisation) Amendment Bill, 2021.

It seeks to amend the General Insurance Business (Nationalisation) Act, 1972.

Need

• According to the government, the need arose to address such matters as-
  • push for higher private participation in public sector insurance companies;
  • raise the level of insurance penetration and thereby social protection;
  • secure the interests of policyholders in a better manner; and
  • contribute to faster growth of Indian economy.

Salient Features

Government Shareholding Threshold

• As per 1972 Act, it requires that shareholding of the central government in the specified insurers (the above five companies) must be ....