GENERAL KNOWLEDGE

Detailed explanation-1: -The Finance Ministry on Thursday formally notified the amendment to the Indian Insurance Companies (Foreign Investment) Rules, 2015 and clarified on the final rules for increasing the foreign direct investment limit in the insurance sector to 74% from the existing 49%.

Detailed explanation-2: -The regulator may allow 100% FDI in new lines of insurance business to expand the scope of the sector. At present, the upper limit for FDI is 74% into companies that write insurance cover.

Detailed explanation-3: -At present, the upper limit for FDI is 74 per cent into companies that write insurance cover. For insurance intermediaries, like brokerages and others, who bring together customers and insurance firms, 100 per cent foreign investment is allowed.

Detailed explanation-4: -A closer look at the Budget 2021: FDI limit hiked to 75% under automatic route. The recent announcement is a significant step for the Indian insurance sector. Additionally, the safeguards announced in this amendment include: The board of directors and key managerial persons will primarily comprise Indian residents.