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Congress gives conditional support to IRDA bill

The Congress today announced conditional support to the Insurance Regulatory and Development Authority Bill, 1999.

The party said its support would depend on the government's acceptance of four amendments moved by it today.

The amendments are:

1. priority to the grant of licences to health insurance,
2. continuation of the social obligations and welfare schemes like crop insurance and insurance for the unorganised sector, currently being fulfilled by the General Insurance Corporation and Life Insurance Corporation of India,
3. a specific direction to new entrants to invest in infrastructure projects,
4. heavy penalties for non-fulfilment of the IRDA's directions.

   Jairam Ramesh, secretary, All-India Congress Committee economic department, said that if the government accepts these four amendments, the Congress would support the bill.

   He hoped the government would accept the amendments for which notices were given earlier in the day.

   Taking full credit for the bill, Ramesh said the BJP had defeated a similar measure two years ago, and was now seeking everyone's support for its own bill.

   He said the specification of a minimum capital requirement of Rs 1 billion for any new insurance company and the provision of solvency margins were the contributions of the Congress. He clarified that the bill has no provision to privatise GIC and LIC and is only for new companies in the sector.

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