INSURERS WAIT FOR FDI HIKE

New Delhi: Max New York Life Insurance chairman, Mr Analjit Singh, said on Thursday that passing of the insurance bill, which seeks to raise the FDI limit, will be a positive development for the industry.

The finance minister, Mr P. Chidambaram had said on Wednesday that centre will try to push the reform process forward and will try to pass the insurance bill. The bill proposes to raise the foreign investment ceiling for insurers to 49 per cent from 26 per cent.

"There are many second tier insurance companies in which the Indian partners are not so active as the foreign partners. If the FDI limit is increased, the foreign companies will make these firms more effective by increasing their stake," Mr Singh said after launching a new life insurance scheme ‘Max Vijay’ for the rural India. He said that there are various international insurance companies which are waiting for the bill to get pass before coming to India. "This will increase the competition which will be a good thing," said Mr Singh.

He said that there is a huge opportunity for growth as the penetration of the insurance companies is very low. "We want the insurance bill to get passed in this tenure of the government. We have been waiting for this from last four to five years," said Mr Singh.

Source: The Pioneer, Asian Age