INSUBCONTINENT EXCLUSIVE:
The General Insurance Business (Nationalisation) Amendment Bill, 2021 was passed in Lok SabhaThe Lok Sabha on Monday passed a legislation
which would enable the Government to sell its majority stake in State-owned insurance companies, setting the stage for their
privatisation.Also Read: West Bengal Finance Minister Urges Centre To Desist From Privatising Insurance
Firms https://www.TheIndianSubcontinent.com/business/west-bengal-finance-minister-urges-centre-not-to-privatise-public-sector-insurance-com
panies-2500625?pfrom=home-business_topstoriesThe General Insurance Business (Nationalisation) Amendment Bill, 2021 is aimed at generating
required resources from the Indian markets so that public sector general insurers can design innovative products, official sources said.The
bill, which was passed without any discussion in the lower house, has been protested upon by the Opposition and West Bengal Finance Minister
Amit Mitra had even written a letter to Union Finance Minister Nirmala Sitharaman, urging her not to privatise public sector insurance
companies.According to the objectives of the bill, it seeks to remove the requirement that the Central Government should hold not less than
51 per cent of the equity capital in a specified insurer.It also calls for greater private participation in the public sector insurance
companies, to enhance insurance penetration and social protection, to better secure the interests of policyholders.Ms Sitharaman had
introduced the bill on Lok Sabha on July 30, 2021
She had also announced in her budget speech that under the Government's privatisation agenda, two public sector banks and one general
insurance company would be taken up.There are four major State-owned insurance companies in the country namely, National Insurance Company
Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and the United India Insurance Company Limited.
