• OPEN AN ACCOUNT
Indian Indices
Nifty
22,326.90 203.25
(0.92%)
Sensex
73,651.35 655.04
( 0.90%)
Bank Nifty
47,124.60 338.65
( 0.72%)
Nifty IT
34,898.15 153.80
( 0.44%)
Global Indices
Nasdaq
16,379.46 -20.06
(-0.12%)
Dow Jones
39,807.37 47.29
(0.12%)
Hang Seng
16,541.42 148.58
(0.91%)
Nikkei 225
40,369.44 201.37
(0.50%)
Forex
USD-INR
83.34 0.01
(0.01%)
EUR-INR
90.21 -0.13
(-0.15%)
GBP-INR
105.20 -0.12
(-0.11%)
JPY-INR
0.55 0.00
(-0.01%)

Insurance

Information about FinMin considers changes in Insurance Laws to increase penetration: Report available for investment. Back
FinMin considers changes in Insurance Laws to increase penetration: Report
11-Sep-22   19:10 Hrs IST


With a view to increasing insurance penetration in the country, the Finance Ministry is considering changes in insurance laws, including lowering the minimum capital requirement.

Insurance penetration in India increased from 3.76 percent in 2019-20 to 4.20 percent in 2020-21, registering a growth of 11.70 percent. Insurance penetration, measured as a percentage of insurance premiums to GDP, saw a handsome growth during the year, mainly due to the outbreak of COVID-19.

The ministry is doing a comprehensive review of the Insurance Act, 1938 and also looking at making relevant changes to help push growth of the sector, sources said, adding the process is at a preliminary stage.

One of the provisions being considered is lowering the minimum capital requirement of Rs 100 crore for setting up an insurance business, the sources said.

Easing capital requirement would allow entry of differentiated insurance companies like in the banking sector, which has categories like universal bank, small finance bank and payments bank.

With the ease of entry capital norms, sources said, there could be entry of companies focussed on micro insurance, agriculture insurance or insurance firms with regional approach.

So for them, the solvency margin requirement would also be different but without compromising on policyholders' interest, the sources said.

No Commodity Detailed News..!!