Insurance Bill May Be Reffered To Select Committee Of Parliament

The much awaited economic reform bill Insurance Laws (Amendment) Bill-2008, is likely to be sent to the Select Committee of Parliament.

Insurance Laws (Amendment) Bill, which proposes to increase foreign direct investment (FDI) ceiling in insurance market to 49 per cent from 26 per cent, has been caught in a logjam due to the stiff opposition of 9 political parties, including the Congress. They are insisting the BJP-led NDA government to refer it to a Select Committee of the Parliament. And, according to the sources, the government has accepted the demand of the opposition on the condition that the panel finishes its scrutiny in a time-bound manner and, more important, speedily enough for the bill to be presented in the Rajya Sabha at the beginning of the winter session.

The government is confident of getting the bill passed in the Lok Sabha but is wary about the Upper House where the ruling NDA has not necessary numbers.

Interestingly, the bill was first introduced by the Congress-led UPA government in 2008, but could not get passed due the opposition of the BJP. Since the government has made some changes in the original bill, now the Congress wants it to be sent to a Parliamentary Select Committee for threadbare examination of the issue.

Source: http://www.insuringindia.com