Insurance wishlist from Budget 2011-12

2010 was a challenging year for insurance sector. Apart from IRDA versus SEBI fight on ULIP, the insurance amendment bill faced opposition from many political parties. 2010 also saw protests by All India Insurance Employees on the Government's plan to increase the cap on foreign direct investment in insurance sector.

The Government of India brought the finance reform bill in 2008 for the first time. However, this was thrown in the cold storage because of stiff opposition by the political parties and employees of major insurance companies.

Despite these oppositions, the insurance amendment bill will be pushed hard by the Government. There are other changes in the insurance amendment bill that will also be looked upon by regulators and insurance industries.

The Government & standing committee in finance have started discussion with insurers, bankers, and regulators on insurance reforms. This has given hope that the impending changes will be tabled in parliament in this budget session and implemented with clear direction.