Amendment of Insurance Laws referred to GoM

New Delhi, Dec 21 (UNI) The Union Cabinet today referred to a Group of Ministers(GoM) the issue of amending various insurance laws, including that of raising the FDI cap in the sector.

Finance Minister P Chidambaram told newspersons here that raising of FDI cap from 26 per cent now to 49 per cent was part of comprehensive amendments to insurance laws, which has been referred to a GoM.

The Finance Minister exuded confidence that the GoM would not take more than two sittings to give its views on the matter.

"The GoM should not take much time since already K P Narasimhan Committee's report is there, views of Law Ministry are there. It should not take more than two sittings," Mr Chidambaram said.

The proposed changes include amendments in the Insurance Act of 1999, LIC Act, 1956 and IRDA Act, 1999.

The hike in raising FDI caps has been a contentious issue for the UPA government, which faced stiff opposition from the Left Parties, which are supporting it from outside.

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