Union Cabinet on Thursday cleared big-ticket measures like opening pension sector to foreign investment and raising FDI cap in insurance sector to 49%.
The Cabinet has also approved the Companies Bill which will bring all sectors under the Companies Act, amendment to the Competition Act and a proposal for operationalising the Infrastructure Development Fund (IDF).
Commenting on the same, Dr Amarnath Ananthanarayanan, CEO & MD, Bharti AXA General Insurance said, ``Given the policy paralysis the slew of regulatory announcements including this one pertaining to insurance will surely strike the right cord with all the stakeholders. The move to increase FDI in insurance is a step in the right direction as it will increase the contribution from the foreign players in all technical aspects of the insurance business including product development and claims settlement mechanisms. This is currently an area of improvement for the Indian General insurance industry.``
``The other announcements including creation of ``use & file`` guidelines for standard products and banks being allowed to sell the products of multiple insurance companies acting as a broker, are much required improvements for growing insurance penetration in India. These will provide the customer with more choice and help getting insurance to the smaller places where the undeserved segment banks but current has no access to insurance.``