Snehal Upadhyay –
Published on: August 12, 2021, at 12:50 IST
The Parliament passed the General Insurance Business (Nationalization) Amendment Bill 2021 which removes the Authority of the Central Government that it should hold 51% shareholding in state-owned general insurance companies.
The provision to Section 10B of the General Insurance Business (Nationalization) Act 1972 states that the central government in the specified insurance companies should have at least 51% of shareholding capacity.
The General Insurance Business (Nationalization) Act 1972 was enacted for nationalizing all the private companies so that they could have a general business mechanism in India.
The Amendment Bill 2021 aims to exclude this aforementioned provision.
The Bill has also proposed adding Section 24B in the 1972 Act which mentions for cessation of application of the Act to such specified insurer on and from the date on which the Central Government ceases to have control over it.
The newly introduced Section 31A in the Bill makes a director of a specific insurer liable only for certain acts, the director must not be a whole-time director.
Click here to Read/Download the Bill
Also Read: Rajya Sabha passes Deposit Insurance and Credit Guarantee Corporation(Amendment) Bill, 2021