Cooperate in passing the insurance bill: Naidu appeals to opposition

The bill is likely to be taken up for discussion in the Rajya Sbaha on Monday.

“I appeal to all opposition parties in the Parliament, particularly the Congress Party to cooperate in passing ‘The Insurance Laws (Amendment) Bill, 2008’ that seeks to enable the much desired capital inflows into the Insurance Sector. Penetration of insurance coverage in the country is being adversely impacted on account of inadequate investments," Naidu said in a statement.

"When the present NDA government has proposed taking up the said Insurance Bill for consideration in the Rajya Sabha, former Finance Minister Shri P. Chidambaram welcomed the same and sincerely hoped that the Bill will be passed in the current Budget Session of Parliament. I agree with his comment that ‘government is a continuing entity and each government should build on what has been accomplished by previous government’," he said.

Naidu said if the Congress and other parties want a discussion in the Upper House of the Indian Parliament over the content of the proposed Amendment Bill then the government would be 'happy to go along with this suggestion'.

"The further Amendments proposed to the pending legislation on Insurance Sector are based on the recommendations of the Standing Committee. The Standing Committee spent considerable time discussing the Amendment Bill before making their recommendations," the Minister said.

"I and Finance Minister Shri Arun Jaitely desire to discuss this Bill tomorrow with leaders of Congress and other Opposition Parties so as to understand their concerns and address the same," he said.

"In view of the above, I fervently appeal to Congress and other opposition parties to enable passing the proposed legislation for enabling 49% foreign investment in Insurance Sector, in this Budget Session of Parliament in the larger national interest. Spirit of constructive cooperation on issues of economic development needs to be the basis of Parliamentary democracy,” Naidu said in the statement.

Last month, the Union Cabinet in a meeting cleared the proposal to raise FDI (foreign direct investment) cap in the insurance sector to 49 percent from the existing 26 percent.