Oppn parties want insurance amendment Bill sent to select committee

The Insurance Amendment Bill might face rough weather in Parliament with the Congress rallying other opposition parties to demand the legislation be sent to a select committee. The All India Anna Dravida Munnetra Kazhagam, Dravida Munnettra Kazhagam, Samajwadi Party, Bahujan Samaj Party, Trinamool Congress, Left parties and Congress have written to the Rajya Sabha chairman.

Their argument is that the "new amendments" introduced in the Bill, such as the provision for foreign institutional investors (FIIs) to invest up to 49 per cent in the insurance sector, needs to be debated and discussed. While the Bharatiya Janata Party (BJP)-led government is exuding confidence that it would tide over this problem, the Congress is wary that some regional parties might change their stand before the Bill comes up in Parliament on Monday.

On Friday, Congress leader in the Upper House Ghulam Nabi Azad strategised with senior leaders Anand Sharma and Satyavrat Chaturvedi to bring on board all Opposition parties. The Biju Janata Dal (BJD) is yet to clear its stand. The Bill was the main issue at the Congress Parliamentary Affairs committee meeting on Friday morning as well.

Congress spokesperson Abhishek Manu Singhvi said: "Since the time Yashwant Sinha headed the standing committee and rejected this Bill, some changes have been made. The Bill had added the provision for 49 per cent investment through the FII route. We believe we should not have FIIs in a sector as sensitive as insurance. FIIs are a non-loyal constituency...Some parties are rejecting the Bill altogether; but since we had proposed the Bill, we still support it."

The BJP, which is short on numbers in the Upper House, could even resort to calling a joint session of both the Houses to clear the Bill. However, should the government manage to sway one or two parties such as the BSP or the BJD, then passing the Bill would be a smooth affair.

BJP and Congress have both issued whips to their members to be present in the Rajya Sabha on Monday, when the Narendra Modi government plans to introduce the Insurance Bill, its first big reforms. The Bill provides for raising FDI in the insurance sector to 49 per cent from 26 per cent. It was cleared by the Cabinet last week, with a rider that management control will remain in the hands of Indian promoters.