No need to set higher FDI limits for SEZs: IRDA

NEW DELHI: Insurance regulator IRDA on Thursday ruled out any special provisions, including increased FDI limits, for insurance companies in Special Economic Zones. “There is no need for higher FDI limit in SEZs. Whatever is there, should be applicable for the whole country,” IRDA chairman CS Rao told reporters on the sidelines of a seminar here. “SEZs are very small clusters and there is no need to treat them separately.”

Mr Rao said the country had good insurance service providers and the world’s major players were also already present. “We have good players, and they are in a position to provide whatever services are required in SEZs,” he said. The insurance regulator denied that there was any move to allow 100% FDI in these zones. “What IRDA has recommended is 49%.

We can’t have a separate SEZ insurance company,” he said. India at present allows 26% FDI in insurance services, although the government had plans to raise the limit to 49%. However, the legislation to increase the limit has not been passed yet.