Govt mulls relaxation in norms for insurance FDI

The government may consider allowing overseas insurance firms to appoint expat managers in key managerial positions such as managing director or chief executive with some safeguards and also allow them to repatriate their entire dividend income, two people familiar with the matter said.

- Rajeev Jayaswal

NEW DELHI:

The move, they added, is in continuance with the announcement made in Union Budget 2025-26 allowing 100% foreign direct investment in insurance subject to conditions. The previous ceiling was 74%.

The intent is to give a free hand to a foreign entity to run the company where its ownership is 100%, but with the stipulation that the foreign investor would follow rules framed by the sector regulator -- the Insurance Regulatory and Development Authority of India (IRDAI) -- the people said requesting anonymity.

They said the government has no intent to relax the Press Note 3 (PN3) that restricts FDI from across the border. PN-3 was issued in April 2020 after some Chinese entities attempted "opportunistic" acquisitions of Indian companies taking advantage of financial stress caused by the Covid-19 pandemic.