'Hike in FDI cap in insurance will help sector's growth'

The proposed hike in foreign direct investment cap from 26 per cent to 49 per cent in the insurance sector will lead to higher growth of the industry, a top official of United India Insurance company said on Wednesday.

"Private as well as government insurers will benefit from the proposed hike of FDI in insurance to 49 per cent. . . these companies will offer better and wide range of insurance products to customers at larger competitive prices," Milind Kharat, chairman and managing director, United India Insurance Company told PTI in Varanasi.

"Ultimately our aim is that customers should get the benefits and this hike will provide them better options in choosing from a wide range of insurance products at competitive prices," he said.

He added: "People in the country have more faith on government insurance companies and less on private ones. . . this hike will benefit the state-run companies more than the private ones."

Kharat attended a two-day annual meeting with officers of the company that began in Varanasi on Tuesday.

At present, the Insurance Bill is under the consideration of Select Committee of Parliament.