The Indian government plans to amend insurance laws in the ongoing session of Parliament to facilitate a unified licence for insurers and raise the foreign direct investment (FDI) limit to 100% from the current 74%, reported Reuters quoting two government sources.
A single licence for insurers and higher FDI limit could boost investments and improve insurance penetration in the country.
A unified or composite licence will allow insurers to provide life, general and health insurance under a single entity. Currently, life insurance companies cannot sell products such as health insurance, while general insurers are allowed to sell products ranging from health to marine.
The proposal for a unified licence was first suggested last year by the IRDAI.
The government is also looking to allow 100% FDI in insurance, a move which could facilitate easier entry for foreign insurers, the sources said.
The finance ministry did not immediately respond to Reuters’ request for comment. The sources declined to share any conditions that will be linked to the proposals, and asked not to be identified because they were not authorised to speak to the media.