DIPP operationalises hike in FDI in insurance

NEW DELHI: The government decision on hiking FDI cap in the insurance sector to 49 per cent has come into operation with Commerce and Industry Ministry today issuing a press note in this regard.

The hike in foreign direct investment (FDI) limit in the insurance sector was allowed through an Ordinance issued last year-end. A Bill to replace it is likely to be presented in the Lok Sabha tomorrow.

"The government has reviewed the foreign investment policy on the insurance sector. Accordingly, consolidated FDI policy, effective from April 17, 2014 is amended," said the Press Note from the Department of Industrial Policy and Promotion ( DIPP).

Press notes are official documents issued by DIPP through which new FDI policies or changes in existing ones come into effect.

The FDI cap in the sector has been hiked to 49 per cent and that includes foreign investment in the forms of FPI, FII, QFI, FVCI, NRI and DR.

A foreign player can now invest in insurance company, insurance brokers, third party administrators, surveyors and loss assessors and other insurance intermediaries appointed under the provisions of IRDA Act 1999.