LIC Favours Raising FDI Cap in Insurance Sector to 49%: Report

Public sector insurer LIC has lent its support to government's proposal of raising the FDI limit in the sector to 49 per cent, a move criticised by a section of the select committee that is evaluating amendments to a Bill pending for four years in Rajya Sabha.

Sources said LIC Chairman S K Roy, while presenting the view of the country's largest insurer at a recent meeting of the select committee, was in favour of raising the cap from 26 per cent now, which according to some members is "politically motivated."

Agitated members asked Mr Roy about his company's stance earlier and what made it change its stance.

Mr Roy is the only head among public sector insurers to make a presentation before the 15-member panel. He refused to comment on what transpired during the meeting.

After the first meeting of the panel earlier this month, committee chairman Chandan Mitra had said: "We will try to submit our report on the Insurance Bill by the third week of November".

The panel headed by the senior BJP leader also recorded "oral evidence" of the representatives of General Insurance Council, a body set up by insurance regulator IRDA.

Besides, top officials of ministries of Corporate Affairs, Finance, Law and Justice Ministry and Commerce presented their views on the Bill.