It is to increase the maximum foreign investment allowed in an Indian insurance company.
The Bill increases the limit on foreign investment in an Indian insurance company from 49% to 74%.
It removes restrictions on ownership and control.
While control will go to foreign companies, the majority of directors and key management persons will be resident Indians who will be covered by law of the land.
Foreign investment in the insurance sector was first permitted in the year 2000 up to 26%.