These are some of the provisions that are being pushed by Finance Ministry through amendments in the Insurance Act, 1938. The proposed comprehensive insurance bill is currently in limbo as the left parties are opposing it as it also entails a provision of raising FDI limit from 26 per cent to 49 per cent.
"The Bill has a provision for setting up stand-alone health insurance companies, for which investment requirement could be reduced from Rs 100 crore (Rs 1 billion) to Rs 50 crore (Rs 500 million)," said a Finance Ministry official.
At present, very few companies including Star Health Insurance, are offering solely health insurance. With the lowering of investment limit, the government hopes that there will be more and more companies, including hospital chains to sell insurance products including for routine treatments.
The Ministry has claimed that Left parties, which are opposing the Bill on political ground, have also supported this move. On this, CITU National Secretary, Tapen Sen, who attended recent meeting of left parties with Group of Ministers on
Insurance said, "We are waiting for details on such matters and want to know why government intends to lower investment limits for stand-alone health insurance companies."
