Indian Parliament on Thursday has approved Insurance Laws (Amendment) Bill, 2015. The bill was passed in the Rajya Sabha yesterday. Foreign direct investment limit in the insurance sector will get increased to 49% from current 26%, once the bill becomes Act when the President signs it.

The Insurance Laws (Amendment) Bill, 2015 will replace an ordinance promulgated in December last year. Earlier, the Lok Sabha had passed the Insurance Laws (Amendment) Bill, 2015 on Mar. 4, 2015.

Commenting on same, Deepak Mittal, MD & CEO, Edelweiss Tokio Life Insurance, said, ''With this move some kind of political consensus has emerged and we see this as an important event in kick starting the reform process again. From an international investor community point of view this was a long awaited move and therefore will help in regaining their trust in the Indian economy and polity.

For the insurance industry the passing of the bill will help in putting in place a more progressive regulatory framework. The FDI/FPI limit increase will lead to capital inflows which could be used to expand distribution and to invest technology and service infrastructure.''

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