Parliamentary panel report on insurance to be tabled in Rajya Sabha on Wednesday

NEW DELHI: In a step towards raising of FDI cap in insurance sector to 49 per cent, a Parliamentary Committee is set to table its report on the issue in Rajya Sabha on Wednesday and the bill could possibly be taken up for consideration next week.

With the Select Committee adopting the draft report, Finance Minister Arun Jaitley expressed the hope that the insurance market expansion would expand once the Bill is passed by Parliament.

Jaitely expressed the hope during a meeting with British insurer Standard Life's Chairman Gerry Grimstone and Kotak Group chief Uday Kotak.

"The Finance Minister expressed his sense of satisfaction as the Parliamentary Select Committee has given its recommendations with regard to the Insurance Amendment Bill referred to it," an official statement said.

The panel's chairman Chandan Mitra told PTI: "The draft report on the Insurance Bill was adopted by the Select Committee today. We will table it in the Rajya Sabha on December 10."

The members, he said, have been given time till tomorrow evening to submit their dissent notes, if any.

However, passage of the long-pending Insurance Laws (Amendment) Bill, 2008 will not be a smooth affair as at least four parties have vowed to oppose it in the Upper House where the ruling NDA does not have a majority of its own.

According to sources, Trinamool Congress, CPI-M, JD(U) and Samajwadi Party will be submitting their dissent notes as they are opposed to raising the cap in insurance sector from 26 per cent.

The government is likely to move the bill for consideration of the Rajya Sabha next week.

Government sources expressed confidence that the bill would be passed, claiming that Congress is on board.

The bill was initially introduced by Congress-led UPA government in the Rajya Sabha.

The Select Committee was set up in August by the Rajya Sabha to scrutinise the Insurance Laws. The 15-member panel was asked to submit its final report by December 12 to Rajya Sabha.