The Ministry of Law and Justice on 25th March 2021 has published the Insurance (Amendment) Act, 2021 to further amend the Insurance Act, 1938.
The Amendment is brought under section 2 which define certain terms under this Act in which clause 7(a)(b) deals with the term Indian Insurance Company has been substituted as follows:
Indian insurance company means any insurer being a company that is formed and registered under the Companies Act, 1956, in which the aggregate holdings of equity shares by foreign investors including portfolio investors, do not exceed seventy-four per cent. of the paid-up equity capital of such Indian insurance company, and the foreign investment in which shall be subject to such conditions and manner, as may be prescribed.
