The Parliament cleared the General Insurance Business (Nationalisation) Amendment Bill, 2021 on August 11th. The Bill seeks to amend the General Insurance Business (Nationalisation) Act, 1972, and thereby enable the privatisation of the public sector insurance companies regulated under the 1972 Act.
Apart from privatization, the Bill’s stated objectives include enhancing the penetration of the insurance sector, providing social protection by securing the interests of the policyholders better, and contributing to faster economic growth. It is not quite clear how this Bill would manage to achieve all these objectives. Also, is the Bill driven purely by an impulse to generate funds through disinvestment, or does it also further consumer interest?
Guest: Harsh Roongta, founder and head of Fee Only Investment Advisers, LLP, a SEBI-registered Investment Advisory firm.
Host: G. Sampath, Social Affairs Editor, The Hindu
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