Parliament passes bill for privatisation of state-run general insurance firms

The Parliament on Wednesday passed the General Insurance Business (Nationalisation) Amendment Bill, 2021 amid protests and tearing of papers by opposition members. The bill received parliamentary assent after Rajya Sabha passed it with a voice vote. The bill aims to allow privatisation of state-run general insurance companies.

The bill was passed without Finance Minister Nirmala Sitharaman replying to brief points raised by MPs. Notably, opposition parties including Trinamool Congress, DMK and Left had opposed the bill. They said the government should refer the bill to a select committee.

The motion was rejected by a voice vote. The opposition members stormed into the Well, raised slogans, tore papers and even moved close to the presiding officer's chair.

The bill had been passed in Lok Sabha on August 2. The finance minister in her Budget speech for financial year 2021-22 had announced the privatisation agenda for two public sector banks and a general insurance company.

"We propose to take up privatisation of two public sector banks and one general insurance company in the year 2021-22. This would require legislative amendments," she had said at the time.

There are four state-owned general insurance companies -- National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited -- in India.

With PTI inputs

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