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Insurance bill passed amidst walkout

Amidst walkout by Left Parties, Samajwadi Party and Republican Party of India, the Lok Sabha on Thursday approved a bill seeking to delink four subsidiary companies carrying on insurance business from the General Insurance Corporation.

The General Insurance Business (Nationalisation) Amendment Bill, 2001, was passed by a voice vote.

Replying to the discussion, Minister of State for Finance, Balasaheb Vikhe Patel said ever since the four companies were demerged, they have been doing well with their capital having increased to Rs 80.50 billion.

Allaying apprehensions of members that the four companies were not economically viable, he said they were progressing well and there was no question of retrenching any of the staff.

The minister said the entry of multi-national companies would not in anyway affect the domestic companies because they would have to invest 15 per cent in the social sector and they have a cap of 26 per cent foreign equity.

The Opposition barring Congress and Rashtriya Janata Dal walked out protesting formation of four separate insurance companies saying this would only weaken the insurance sector.

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