Bill to Amend General Insurance Law 

Bill to Amend General Insurance Law 

Part of: GS Prelims and GS – III – Economy

In news The General Insurance Business (Nationalisation) Amendment Bill 2021 was introduced in Lok Sabha 

What are the Key amendments of the Bill?

• The Bill will amend the General Insurance Business (Nationalisation) Act, 1972. 
• The Bill proposes three amendments.
• The first aims to omit the provision (Section 10B) which requires that the Central government should hold not less than 51% of the equity capital in a specified insurer.
• The second amendment is to insert a new Section 24B which will provide for ending the application of the Act to such a specified insurer on which the Centre ceases to have control. 
• And, the third amendment is also to insert a new Section 31A, making a director (not a whole-time director), liable only for acts of omission or Commission.
• Although the Bill allows the government to bring down its shareholding below 51%, it was clarified that this is not a Bill for privatisation.

Do you know? 

• As on date, there are four public sector general insurance companies — National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company Limited.
• It is not yet decided in which one of the companies the government will lower its shareholding.

News Source: TH