Panel may submit Insurance Bill report in Rajya Sabha on December 10

The much-awaited report of the Parliamentary panel on the Insurance Bill, held up for nearly six years, is likely to be placed before the Rajya Sabha on Wednesday.

The Select Committee is believed to have endorsed most provisions of the Insurance Amendment Bill, including a composite cap of 49 per cent for foreign direct investment (FDI) and other foreign investments.

After getting a favourable recommendation from the panel that includes members from all major political parties, the government is likely to bring the Bill for consideration of the Upper House as early as next week.

The House panel is believed to have adopted the report, which may contain dissenting notes from parties like TMC, with a majority vote.

The panel, headed by Rajya Sabha MP Chandan Mitra, has suggested inclusion of a person from the insurance industry in the Securities Appellate Tribunal (SAT) as an expert. It has recommended suitable amendment to the Securities and Exchange Board of India (Sebi) Act for the inclusion.

The Parliamentary panel is believed to have recommended that penalties on insurance companies be linked to seriousness of offences committed by them, suggesting a mechanism to ensure that there is minimum scope for subjective interpretation.

The Standing Committee on Finance headed by senior BJP leader Yashwant Sinha in 2011 had rejected the then government's proposal to hike FDI to 49 per cent in the insurance sector, saying it may not have the desired effect and could expose the economy to global vulnerability.