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.
