This Article is From Aug 04, 2014

Insurance Bill: Opposition Divided as Government Seeks Consensus

New Delhi: An all-party meeting called this morning for a consensus on the Insurance Bill was inconclusive as the opposition dug in its heels, but the first cracks have appeared in its unity. Naveen Patnaik's Biju Janata Dal now says it will support the ruling BJP's bill.

The BJD has opted out of a group of opposition parties, including the Congress, which want the bill reviewed by a parliamentary panel called the select committee. Senior BJP ministers are continuing their efforts to get those parties to help push the bill through in the current session of Parliament instead.

At today's meeting, Parliamentary Affairs Minister Venkaiah Naidu reportedly said the government was ready to accommodate changes to the bill suggested by the Opposition. Another meeting is expected either today or tomorrow.

"The country desperately needs investment on many fronts, and in terms of insurance there are many crores of citizens who today don't have insurance facilities," the BJD's Jay Panda said, explaining the change in his party's stand.

The Insurance Laws (Amendment) Bill aims to raise the ceiling on Foreign Direct Investment (FDI) in insurance to 49 per cent from the current 26 per cent limit. It is an important part of the Narendra Modi government's efforts to revive a sluggish economy; higher FDI in the sector could result in the inflow of up to an estimated Rs 60,000 crore and immediate inflow of Rs 20,000 crore, experts have said.

The BJP and its partners are in a minority in the Rajya Sabha and will need the opposition's help to pass the bill there. The ruling party argues that this is in fact more a "UPA bill." Of the 97 amendments that need Parliament's nod, 86 were proposed by the previous Congress-led government.

The Congress' Mallikarjun Kharge said today, "We want to know what the repercussions will be of changes this government has made to the bill."

Its partner in the UPA, the Nationalist Congress Party, is at odds with the Congress. "This bill was to be introduced and passed by the UPA... they have brought this back so morally we are bound to support it," said the party's DP Tripathi.
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