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Industry hails Parliament's nod for insurance Bill

12 March, 2015

The passage of insurance bill by Parliament was widely welcomed by insurance industry honchos, who felt that the long pending reforms ushered in by the latest legislative action would augur well for the entire insurance sector.

Shachindra Nathj, Group -CEO, Religare Enterprises Limited said that the Parliament's nod to the insurance Bill has finally ushered in long pending reform and paved the way to hike foreign investment limit insurance to 49 percent.

This will surely send a positive signal to global insurance players in particular and foreign investors in general, he said.

Sandeep Bakshi, Managing Director and CEO, ICICI Prudential Life said that the passage of the insurance bill is a welcome development at many levels.

"It indicates the intent of the Government to push the economic revival agenda forward. As the Indian insurance industry expands, there will be need for additional capital in order to build this scale.

The increased FDI limit will provide the much needed flexibility to raise this capital. Customers too will benefit as it will translate into delivery of better products and services to them", he said.

Rajesh Sud, Managing Director and CEO, Max Life Insurance, said the approval of the insurance Bill is a welcome step as it ends uncertainty.

"This shows the Government's resolve to take forward its reform agenda. The increase in FDI limit will enable flow of long term capital into the insurance sector and provide flexibility in capital structures", he said.

Ajay Bimbhet, Managing Director, Royal Sundaram Alliance Insurance Company Ltd said the passing of the insurance bill is a historic move for the Indian insurance industry.

"Universal health being one of the primary motives of the new government, we can expect sizeable FDI inflow into insurance industry. The investment would be channelled towards product innovations and increase market penetration', he said.

V Manickam, Secretary General, Life Insurance Council, said the passage of the Bill is a big morale booster for life insurance industry.

"Life insurance industry will witness increased capital infusion. Players will open new branches in rural and semi urban geographies and help enhance penetration.

With hike in FDI, foreign partners would also bring in technical knowhow and superior risk management practices", he said, adding that the passage of the Bill would foment financial inclusion agenda of the Government.

Deepak Mitral, Managing Director and CEO, Edelweiss Tokio Life Insurance said the passage of the Bill was long awaited from the perspective of international investor community.

The hike in foreign investment limit will lead to capital inflows which could be used to expand distribution and invest in technology and service infrastructure.

Tarun Chugh, Managing Director and CEO ,PNB MetLife said the passage of the Bill will deliver significant benefits to the Indian economy.

On MetLife plans, he said MetLife has been committed to the Indian market and "in line with our strategy in fast growth markets, we will evaluate our options to strengthen our business in the country".