The limit may be raised from 26 per cent. The government plans to present the Bill to change the rules, Finance
Minister P Chidambaram said without specifying the time-frame.
The insurance sector of the country was opened to private players in 2000, ending the state monopoly of LIC and GIC,
after much dilly-dallying in the 1990s that also saw the then United Front government dropping a bill for opening up just
health insurance.
This led to setting up of several joint ventures between domestic and foreign companies in life
and general insurance sectors, including ICICI Prudential, Bajaj Allianz, and HDFC Standard.
However, the FDI has been capped at 26 per cent. Chidmabaram had announced raising the FDI cap in insurance
sector in his first Budget as the finance minister in the United Progressive Alliance government in 2004.
However, the Bill to amend the Insruance Regulatory and Development Authority Bill could not be tabled
in Parliament.
The crucial left supporters of the ruling coalition oppose any increase in FDI cap in the insurance sector.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
© 2026