Pushing for higher foreign direct investment (FDI) cap in the insurance sector,Insurance Regulatory Development Authority (Irda) chairman J Hari Narayan on Monday said the FDI in insurance would enable the companies to grow and infuse more capital in the business as most of the insurance companies are going through a capital crunch. The Irda chief will meet finance minister P Chidambaram on Wednesday to resolve various taxation issues and speed up growth in the sector.
Irda has given its views on tax and investment norms in the insurance sector ahead of the meeting with the FM,he said. Certain tax measures will be beneficiary and will encourage the growth of insurance industry, he said.
Referring to the meeting of select insurance companies with the finance minister on September 4,he said,measures to underpin and strengthen the growth of insurance sector were suggested and the meeting on Wednesday is in furtherance to that as they would sit down to examine the measures… most of which are related to income tax,service tax and so on.
Inaugurating an Assocham insurance summit,Narayan said,Insurance,like many other sectors,requires greater levels of investments and in that regard we would welcome steps to increase FDI in the insurance industry. The Bill for enhancing FDI in industry has been moved by the government in the parliament and we have provided our inputs to the government.