New insurance laws to level field for PSUs

The government plans to amend the law to create a level-playing field for private and public insurers and achieve universal insurance coverage by 2047, two people aware of the matter told Mint.

- Subhash Narayan & Rhik Kundu

The Insurance (Amendment) Bill, 2024, if passed, will allow state-owned insurers to obtain composite licences to sell both life and non-life products, avoiding amendments to the Life Insurance Corporation Act of 1956 and the General Insurance Business (Nationalisation) Act or GIBNA, 1972.

The public sector life and general insurers are currently governed by separate parliamentary acts.

"This provision, included in the final draft after stakeholder consultations, eliminates the need to amend the LIC Act and GIBNA, paving the way for broader industry expansion and improved accessibility and affordability of insurance for all citizens," the first person mentioned above said, requesting anonymity.