New Delhi, Dec 17 (PTI) Several non-ruling members in the Rajya Sabha on Wednesday opposed the bill to raise FDI in the insurance sector to 100 per cent and demanded that the proposed legislation be sent to a Parliamentary panel for further scrutiny.
Participating in the debate on The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, moved for consideration and passage by Finance Minister Nirmala Sitharaman in the Upper House, members also objected to the title of the Bill, which is in both English and Hindi.
The Bill was passed by the Lok Sabha on Tuesday.
Shaktisinh Gohil of the Congress said the "mixing of language in legislative business is not permitted at all".
He expressed concerns over the sharing of personal information like Aadhaar and PAN card details by Indian citizens with foreign insurers once the Bill is enacted, citing the instances of digital financial fraud in the country.
"100 per cent FDI aap laoge... bada khilwaad hoga ... Jo videshi log hain unko humare desh ke logon ko apna pan card apna aadhaar card dena hoga. aur aaj jis tarah se digitalised fraud ho rahe hain kya aap yeh karna chahoge?" Gohil said.
Opposing the Bill's provision to raise FDI in the insurance sector to 100 per cent, he cited the example of the privatisation of the country's aviation sector and the effects of monopoly and government ceding control to private players.
He urged the government not to act in haste regarding the proposed introduction of 100 per cent FDI and send the Bill to a Select Committee of Parliament.
Arun Singh of the BJP attacked the Congress, saying the party's policies led to the bankruptcy of several companies in the telecom and banking sectors.
He said the opposition parties were trying to create confusion against the 100 per cent FDI provision in the Bill, arguing that the rules and control will remain with domestic regulatory authorities.
He urged members of opposition parties to support the Bill.
Saket Gokhale of the All India Trinamool Congress raised an objection to the title of the Bill in both English and Hindi.
He alleged that the Bill opens the door to profit extraction by foreign entities, and said the claims of capital infusion in the insurance sector by the government need a "reality check".
He sought to know what specific commitments the government will demand from foreign insurers on rural penetration; and repatriation of profits. He also expressed concerns over the potential job losses emanating from aggressive pricing by foreign insurers, asking how the government will ensure the regulation of premium prices, raising questions over the potential impact of the Bill on LIC and public insurers.
"This Bill should be referred to a Standing Committee for detailed examination," Gokhale said, accusing the government of trying to "bulldoze" the Bill.
Kanimozhi NVN Somu (DMK) also raised objections to the title of the Bill.
She accused the government of trying to handicap the public sector while subsidising foreign and private insurers through the 100 per cent FDI provision of the Bill.
"Over the past nine years, as of March 2024, the (insurance) sector has attracted nearly Rs 54,000 crore in FDI supported by progressive policies. Now with 100 per cent FDI, it is expected to touch around Rs 1 lakh crore in the next nine years.
"This means USD 12 billion FDI, the market share of USD 600 billion will go to foreign investors. This is daylight robbery. The government should not squander opportunities to promote and strengthen its own PSUs but this government through this Bill is favouring foreign investors and burdening our own insurance companies," Kanimozhi said.
Communist Party of India member Sandosh Kumar P warned of "huge protest" against the “draconian” provisions of the Bill.
"The Modi government is under tremendous pressure from foreign monopolies. That is why this new bill is being introduced in our Parliament," he said.
Sandosh said the ruling BJP party is "acting like a British Janata Party" most of the time and asked whose interests it was protecting (by pushing this bill)?
Expressing concerns over certain clauses of the bill, Biju Janata Dal's Subhasish Khuntia said insurance is not just a business rather this is an area related to lifelong earnings and security of the citizens of India.
He said the bill allows 100 per cent foreign direct investment, "meaning that the complete control of insurance companies of India may go in the hands of foreign entities".
Rashtriya Janata Dal's Sanjay Yadav demanded "broad all-party discussion" on the bill and urged the government to send it to a standing committee of the Parliament.
M Thambidurai of All India Anna Dravida Munnetra Kazhagam (AIADMK), supported the bill but raised concerns over use of Hindi and English in the title of the bill.
Ayodhya Rami Reddy Alla of Yuvajana Sramika Rythu Congress Party (YSRCP) also favoured the bill with certain riders.
Alla said the bill outlines objectives such as policyholder's protection, ease of doing business and regulatory transparency but does not define measurable outcomes.
Favouring the bill, BJP's Bhagwat Karad said rights of the policyholders are protected under the proposed legislation.
He said the bill makes it mandatory for companies to work in rural areas, unorganised areas and unserved population and would help in greater penetration of eligible rural households.
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, would lead to amendments in the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999.
The amendment seeks to raise the foreign direct investment (FDI) limit in the insurance sector from 74 per cent to 100 per cent, according to the bill.