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"The insurance sector being a capital intensive sector requires huge investments over a prolonged period of time, and therefore, there is constant need for capital infusion.

"A hike in the sectoral FDI cap to 49 per cent would further grow the insurance sector and bring in much needed FDI to the country," MetLife India Insurance's managing director Rajesh Relan said in a statement.

The Confederation of Indian Industries, termed the bill as a much-awaited one, and said, that this bill "would further help in development of the insurance sector".

The industry body, which had played an active role in preparing the draft bill, hoped that it would find a quick and easy passage in Parliament.

MetLife's Relan said allowing more FDI would help achieve "increased coverage to the rural and social sectors, thereby providing protection and peace of mind to the people... also increase employment, develop tertiary sectors such as IT/ITeS and provide long-term investments for developing infrastructure..."

Ficci said, "We now hope that the bill would be cleared in Parliament and thereby provide an impetus for further growth of the insurance sector in the country."

The Union Cabinet, at a meeting on Thursday, approved to table a comprehensive insurance bill, which among others, proposes to increase FDI cap in the sector to 49 per cent from 26 per cent now.